would your employees prefer to be valued for their knowledge and experience or for the time spent on a project?
by jody padar
radical pricing – by the radical cpa
do you think any of your staff studied accounting in college so that they could punch a time clock for the rest of their life? they value being professionals as much as you do. more than likely, they enjoy being valued for their knowledge and experience.
more: what are you selling? | three critical factors drive the value pricing trend | accounting disruptors are heading your way … with deep pockets | the convergence of trends makes pricing changes imperative | stop looking for talent that does not exist | advisory work must be priced by value, not hours
exclusively for pro members. log in here or 2022世界杯足球排名 today.
given the choice between being valued for their time or valued for their professional accomplishments, which do you think they’d prefer? valued employees are happy employees!
when using value pricing, teams are measured on the value of the work they produce rather than the hours they clock. from the beginning, they understand what has to be accomplished in every engagement. their focus shifts to what counts: the quality of their work, communicating with their clients and making sure they feel taken care of.
imagine being freed from the subjugation of the ticking clock!
in traditional firms, far too much of a staffer’s time is spent freaking out about hours: too many, too little, misallocation of time. the anxiety is often stifling. value pricing removes the anxiety and puts the focus where it should be … delivering what clients want and need. these are the things for which they are willing to pay a premium.
value pricing also encourages human connection with the client, leading to more fulfilling communication. automation and streamlined services lead to better work/life balance. adding profit sharing aligns everyone’s goals toward improving client relationships and building a more profitable firm. more fulfillment in their jobs leads to happier employees, a happier office environment and a healthier culture.
what’s not to like?
there are two sides to the value pricing equation. certainly, improving your client focus and profitability leads to a healthier work environment, but nothing improves without happier clients. to understand this side of the equation, you only have to ask yourself if your clients would prefer dealing with a staff whose eyes are on the clock or them.
more committed employees will deliver a better client experience, and clients will see the difference. more committed and happier employees, therefore, naturally lead to stronger client bonds, which, in turn, create a better brand value. brand value and recognition keep new clients pouring in and your fees going up. in this scenario, you may just find yourself saying “no” more as well. don’t worry, that’s a good thing!
when you say no to work, you are saying yes to your firm’s pricing floor and client standards and maintaining your firm’s new culture of happiness and commitment.
firms stuck in traditional thinking worry about raising prices or saying no to work. they fear their brand identity will suffer.
in truth, as you raise your prices, your brand gets stronger.
one response to “how value pricing impacts your employees”
samuel odom
when cpa firms use value pricing, how do they measure employee work and assess job efficiency? in the past, we used billing rates x employee hours to quantify how we were utilizing our resources on a particular job. although this is not an exact measurement because employees can manipulate their time, how do you quantify their efforts?