When You Can’t Find Talent, Outsourcing is Ideal
Professionals change jobs for lots of reasons – better pay, different office environment, new city, larger role etc. What’s important to note is that professionals are changing jobs more often than ever before.
A recent survey showed that 64% of professionals strongly consider a job change every few years. Millennials, who now make a large percentage of the workforce, are 3 times more likely than any other generation to change companies. Up to 20% of professionals under 35 switch jobs in any given year.
Financial professionals are seen as the consummate loyal professionals, but these labor trends apply to them too. Job hopping may even be more common among bookkeepers and CFOs because there is intense competition for a limited amount of talent.
Right now the unemployment rate for accountants is 1.6%, which is less than half the national average for all professions. Supply is at a premium at the same time that demand is on the rise. The Bureau of Labor Statistics estimates that 11% more accountants will be needed by 2026, and academia can only do so much to produce all those CPAs.
All of these forces combined mean that finding, recruiting, and retaining talent is a problem that is about to get much worse. Losing financial staff over the next 5-10 years is almost inevitable, and replacing them won’t be quick or cost effective. Companies will have to make the difficult choice between operating without the right financial team or paying highly-competitive compensation to recruit someone.
Instead of Hiring, Access Talent On Demand
People think of outsourcing as taking assets you have and shipping them off-site. But it’s more like accessing the assets you need when they’re not available otherwise.
Accounting talent is a great example. When it’s hard to hire a bookkeeper, why not eliminate the need for hiring? Outsourced accounting professionals can handle everything from payroll to taxes to CFO advisory services without ever having to commit to a formal employment agreement. Instead of hiring accounting professionals, you access financial services whenever and however they’re necessary.
Outsourcing has lots of advantages, a topic we’ve covered in a previous post. But one of the biggest benefits it provides is a complete solution to recruiting challenges and talent shortages. Think about what companies gain when finance professionals are accessible on-demand:
- Strength – The accounting department is always fully staffed.
- Speed – There is enough talent on hand to meet deadlines and obligations.
- Strategy – Specialized accountants and CFOs can provide in-depth insights tailored to your company.
- Scale – As your company grows it always has adequate financial resources.
Talent shortages are an issue that appears unexpectedly and impacts you immediately. Instead of trying to adapt after the fact, form a relationship with a full-service outsourcing firm early. Contact CDH to discover just how much we can offer.