The Great Resignation has hit companies of all types and sizes. According to the Society for Human Resource Management, a record-breaking average of more than 3.95 million workers quit their jobs each month in 2021. There’s considerable speculation about why workers are leaving, but little consensus around which steps employers should take to stem this turnover.
Many companies are thinking creatively about how they invest in employee engagement to mitigate potential turnover. For many organizations, this means rethinking their operational approach. By outsourcing certain specialty needs, companies are finding they may be better equipped to reinvest in their employees and create a workplace that reflects new expectations.
How outsourcing accounting can prevent turnover
Accounting is a highly specialized need that doesn’t always require a large staff. For many organizations, it’s a department that requires a diverse range of experience—from big picture forecasting to day-to-day accounts payable processing—that one person may not be able or willing to provide. Moreover, it’s an area where small improvements can have a major impact on the rest of the organization. In fact, we see five key areas where outsourcing accounting can potentially help mitigate employee turnover.
1. Outsourced accounting can realize cost savings to reinvest in employees
Investing in an outsourced accounting firm can potentially save your organization money that can be reinvested in employee pay increases. Some of these savings come from having an outside expert bring a fresh efficiency to old processes.
An outsourced accounting firm is also better able to dedicate the appropriate amount of time and knowhow needed to this work at an appropriate cost. Rightsizing this work provides an additional opportunity for cost savings. These savings can also be realized by not having to provide additional in-house employees with benefits, insurance, bonuses, and regular pay increases. Moreover, an outsourced firm’s costs generally stay consistent year to year, providing financial stability. That sort of predictability provides a reliable place from which to budget for raises or one-time investments such as new equipment or perks.
2. More reliable data gives employees confidence in decisions
Organizations are tasking managers with responsibility for making faster decisions than ever. Yet, team members working with out-of-date accounting information may find that it’s difficult to confidently move forward.
With an outsourced accounting firm, many organizations gain process improvements that lead to more reliable, up-to-date reporting. Getting critical financial information in real time helps employees know if they can afford to move forward with new solutions or otherwise take action on process improvements without feeling anxious about what tomorrow might hold. When your employees can rely on the accuracy of their financial data, they feel empowered to make good decisions. Not only does this benefit your organization, but it creates a baseline for stronger employee engagement.
3. Process training helps upskill employees
Outsourced accounting firms often bring with them more efficient practices, as well as training that brings your team up to speed on expectations. For some employees, this may be the first time they’ve had training on budget management or other fiduciary responsibilities. This presents an opportunity for employees to gain skills that can help them make better financial decisions—and entice them to stay with your company.
Upskilling is often cited as a key strategy for retaining employees tempted by the Great Resignation. In fact, research from LinkedIn found that 94% of employees surveyed would remain at a company if it was invested in helping them learn. So, ask your accounting firm to walk employees through budget requirements or financial statements. Encourage them to provide employees with insight into the why behind best practices, how to identify areas of potential concern, and how to leverage new technology solutions. This training benefits your company, and may also better engage your employees.
4. Maxed-out managers get cost-effective support
More reliable information can be critical in helping overburdened executives make faster decisions. However, for accounting managers or CFOs who can’t find time in their schedule to take on more than day-to-day activities, outsourcing accounting can also allow executives to focus on more impactful higher-level tasks. An outsourced accounting firm can offload many routine tasks and provide CFOs with peace of mind and reliable data that allows them to more effectively manage staff or enable innovation.
5. Efficiency can strengthen customer and vendor relationships
An outsourced accounting firm may not interact with your clients or vendors directly, but they can take steps to strengthen your relationship with these partners. For example, many organizations find that their accounting firm provides technology solutions, such as online bill pay or remote invoicing, that make it easier to interact with your company. Many small and mid-size organizations hold off on making this leap on their own due to cost and the time needed to implement a new process, but an accounting firm may bring this suite of services into your office seamlessly.
It’s time to make a change
Change can be difficult, but the Great Resignation is a reminder that it can also be costly to stay with the same processes when it’s clear something isn’t working. Organizations that are ready to reinvent their approach to employee engagement will need to creatively rethink their operational approach.
For more information and insight into how an outsourced accounting firm can better support your organization, contact Vault Consulting.