How a Tightening Labor Market Impacts Finance Teams

We work with companies at varying stages of their growth, from launch through pre-IPO and trust me when I say that the labor market shortages are impacting everyone, restaurants and retail are not the only industries feeling the pinch. As companies scale, their time should not be focused on the bandwidth of their finance team, instead, the focus should be on sales and brand development. Companies are increasingly turning to outsourced options to expedite onboarding and lower the costs of financial personnel in all roles ranging from support to lead finance roles.

Save the Time

Finding the right talent with a great background and the “it” factor can take time. In a normal job market, it can take a couple of months, in a tight one…even longer. As companies begin to realize that turnover is inevitable and their teams continue to rotate in and out, they are turning to outsourced options to fill fractional or interim roles in their finance teams. There is no need to spend time on recruiting, onboarding, and training various personnel when there is an easier and less time-consuming option. Bringing an experienced, professional services firm onto your team can expedite the learning curve and allow management to focus on key decisions making.

Manage Costs

Salary, benefits, vacation, and maybe even stock options; add up quickly. Full-time personnel are expensive – losing them and having to rehire constantly is even more expensive. Companies in their growth stage, largely do not need a full-time finance team on staff. It requires a lot of management and capital resources to keep staff in-house and maintain their satisfaction, as employees are constantly moving jobs right now. Professional outsourced financial services are ways that companies are able to mitigate headcount costs, allowing them to have the benefit of expert talent onboard without the heavy costs associated with full-time employees.

It is important to understand when having an in-house finance team is the right move for your company or just an unnecessary cost you do not actually need to bear. Companies are continuing to move toward outsourced financial solutions for controller, CFO, and fundraising duties as the world continue to experience tightened labor markets for great talent.