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Business leaders must consider whether the quality and quantity of current staffing will be sufficient to meet strategic business goals. The unemployment rate remains low in a tight job market, and the confluence of pandemic-inspired retirements and the retiring Boomer workforce has stretched some organizations to their breaking points, draining much-needed senior-level expertise. The solution calls for the development of a skills roadmap, and the right balance of talent sourcing strategies and outsourced accounting and business services.
Case in Point: Finance and Accounting Talent Gap
Roles like accountants, auditors and financial analysts are among the hardest to fill at U.S. organizations. Nearly one-quarter of CEOs have had to cancel or delay a key strategic initiative in the past 12 months because the right people weren’t available to execute it, according to CPA Practice Advisors. And the challenge isn’t just due to the talent drain brought on by mass retirement.
According to a report released in October 2023 by the Institute of Management Accountants and the staffing and consulting firm Robert Half, accounting and finance professionals between the ages of 18 and 36 experienced the highest turnover (39%) over the past two years and are more likely (26%) to leave their current employer in the next 12 months. In fact, 8% of them are considering leaving the profession altogether in the next 12 months. The shifting economic landscape, relentless labor shortage and growing remote workforce will mandate that finance leaders seek flexible and innovative solutions to staff mission-critical projects challenges moving into 2024 and beyond.
The Changing Face of Outsourced Solutions
The talent gap is driving a demand for outsourced accounting and business solutions to help internal teams concentrate on core issues. Rather than solely focus on automation and optimization, CFOs can replenish bench strength lost to the “silver tsunami” with laser-sharp focus on value-add competencies requiring deep expertise. The result can be the best of both worlds—a hybrid team of internal and external experts going to market under one umbrella. An added benefit is the ability to quickly scale up or down as business and economic conditions change. In other words, not every position requires bringing on a full-time equivalent in outside talent.
The old model of waiting for an emergency before turning to outside resources will no longer work in today’s challenging labor environment. When leadership creates a proactive roadmap, you can avert emergencies that derail your objectives through informed decision making.
In weighing the need for outsourced or hybrid solutions, ask yourself:
- Are specific tasks interfering with your internal team’s focus on core competencies?
- Do you lack senior-level bench strength to execute important business functions?
- Are you lacking a specific skillset?
- Are your staffed appropriately for end-of-year demands?
- Could you benefit by having fresh perspectives from specialized experts?
For example, if an organization has fallen behind in their accounting due to staffing shortages or other time constraints, an outsourced team of experts can help them analyze their books and records, bring reconciliations up to date and provide timely financial reporting going forward to help management make timely solutions.
Sometimes CFOs need assistance with the vendor payable process. Again, an outsourced team can help solidify procedures and documentation of internal controls as well as organize vendor data, easing the burden on year-end reporting requirements.
Adopt New Outsourced Business Strategies to Meet Your 2024 Business Needs
Outsourced and interim staffing models will continue to grow to meet the demand for talent. Business leaders should look beyond traditional staffing businesses to top-tier professional services firms, including accounting, law and consulting to augment their teams with quality professionals.
Specific functions like monthly accounting, bill payment and IT support are being outsourced in the form of managed services—and the trend is growing rapidly. This approach is no longer just for small businesses. Large companies are outsourcing or co-sourcing their tax departments, the internal audit function and other regular compliance duties as well.
CBIZ offers an abundance of accounting advisory and outsourced accounting services that make it easier for business leaders to focus on their core operations. Our experts can help you develop a roadmap that can help you identify your needs for interim and hybrid solutions for your unique challenges. Connect with us today.
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