In Pursuit of Profit
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For those familiar with college athletics, March is known for the Division I college basketball championships. You may not, however, know how a few years ago the NCAA allowed student-athletes to change schools with no loss of eligibility by creating the “Transfer Portal.” When an athlete declares that they want to leave for another school, their name gets put in the Transfer Portal database. Voila, other coaches see this and say, “I want that center” or “I want that point guard” and reach out to them. What does this have to do with hiring accounting professionals? Well, the transfer portal concept is not just for college athletes. There’s also a career transfer portal – it’s what happens out there in the world of recruiting. Using an external recruiter is the best way to ensure you are accessing accounting employees that are in the transfer portal.
So, what can you do to prepare yourself for the wave of turnover that may be coming?
When they hear about this trend most employers will go into “fix it” mode and ask what they can do to keep their accountants from bolting soon. Unfortunately, at this point there’s probably very little that can be done to keep them long-term. If the year-end bonus they just got wasn’t enough persuasion, any sort of incentive you throw at them is likely just going to delay the inevitable. (Plus, the quality of work they do and passion they bring to the role is only going to suffer further if they already have one foot out the door.) Instead, your best bet is to get ready for what’s coming next. Take the steps now to be prepared in case your accountant leaves so that you’re not scrambling during tax season to find and onboard someone new. 1/16/2024 What Do Salary Ranges Actually Mean?Companies that post salary ranges may choose to do so voluntarily, in the name of equity and transparency, or be required to do so by law. The idea is that by sharing salary bands job applicants are given a range of earnings to expect, eliminating the disparity that can occur when some groups of candidates are less likely to negotiate for a higher salary. Salary ranges should promote fairness and ensure employees are compensated appropriately for the value they bring to their employer.
So, why are employers and job seekers alike in an uproar about salary ranges? Let’s look at what has gone wrong and how both employers and job seekers can respond to position themselves well in today’s job market.
However, employers can do their part to reduce the accounting exodus by recognizing the warning signs of accountant burnout and taking the right steps to find help. Companies that prioritize the needs of their accounting team can not only help keep accountants in the pipeline, but also increase their own revenue and profitability.
Find out what kind of red flags to be on the lookout for that indicate accounting team burnout, as well as how you can offer your accountants the support they need to thrive in their roles.
I’ve seen many clients struggle to find accounting help over the last two years across all employment levels – from bookkeeper all the way through CFO. I’ve seen new hires simply not show up for their first day without any notice. I’ve seen new employees resign less than a month after starting for other opportunities or just to leave a work culture they don’t like. Workforce expectations have shifted dramatically over the past five years and employers are struggling to fill open positions amid these changes. In fact, Manpower surveys indicate that 75% of employers report difficulty in finding skilled accounting talent.
The role you need depends on your business needs, so let’s look at common business triggers that most likely require needing the next level of financial role, and what kind of activities and responsibilities each role typically includes. We’ll start with bookkeeper and work our way up to Chief Financial Officer (CFO).
7/10/2023 Do Accounting Job Titles Matter?
I discovered many parts of the HR world matched my interests, so I wanted to be a finance leader who had some real HR knowledge. I pursued an SPHR (Senior Professional in Human Resources) designation, which required studying materials and taking an exam. As time passed, I realized recruiting was the part of HR I really liked because I am a lifetime connector. Fast forward to today and I have spent most of the past 20 years as a recruiter.
One topic that is a continual area of consternation within the recruiting world is job titles. Job seekers and hiring companies alike struggle with accounting and finance job titles. I’ll tell you why and what you can do about it when looking for or posting an accounting job: If done well, your new hires will feel important, supported, and immediately motivated to do their best work for you and your organization. When left as an afterthought, however, new employees may end up feeling undervalued, unsupported, or even ostracized by the rest of your team.
Surprisingly, one of the best experiences that I’ve had with onboarding came from a backpacking trip with my daughter. These are the critical lessons I can take away from my experience. She knows the ins and outs of the company’s accounting software, which isn’t perfect, but it works well enough for ABC Company’s needs right now. Sharon really doesn’t make mistakes – she is fastidious in the work that she does and has a system for everything. But, even with the quality work that Sharon is doing, ABC Company knows it needs to bring someone else in to help her because there is simply too much work for one accountant to handle anymore. Plus, Sharon is getting close to retirement age, which means that they will need to bring someone in to replace her when she decides to retire in a few years to follow her dream of traveling around the country in an RV.
How does ABC Company bring in help for Sharon without offending her? How do they convey that while they are happy with the work Sharon is doing, they need redundancy in case Sharon gets sick or is out on disability leave? How does ABC Company put the right personnel in place now so that they have continuity when Sharon decides to retire? How do they hire a senior accountant or controller to help implement a new accounting system to grow with them as their needs change and evolve? There may not be a Sharon at every company, but every business can benefit from learning how to tactfully bring in senior accounting staff. Taking the right approach in the hiring process is crucial because it can truly mean the difference between success and failure. When done correctly, a new hire can complement and elevate your existing team. When done incorrectly, a new hire can lead to resentment and distrust, poisoning the team culture and fueling needless turnover.
Employers need to realize that they may not find an accountant that checks every one of their “nice-to-have” boxes, but if they work with an experienced accounting recruiter, they will find someone that fits their “must-have” needs. And, the sooner they can figure this out, the better because having an open role costs an average of $98/day, and rehiring an accounting employee after letting go of a bad hire costs over $50,000 on average! Therefore, to minimize hiring costs employers need to rethink their expectations around work flexibility, compensation, accounting improvements, and training when looking to fill a role.
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3/18/2024