{"id":82177,"date":"2021-03-02t16:50:47","date_gmt":"2021-03-02t21:50:47","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=82177"},"modified":"2024-06-19t10:05:56","modified_gmt":"2024-06-19t14:05:56","slug":"seven-ways-to-beat-staffing-shortages","status":"publish","type":"post","link":"\/\/www.g005e.com\/2021\/03\/02\/seven-ways-to-beat-staffing-shortages\/","title":{"rendered":"seven ways to win the talent wars"},"content":{"rendered":"

how small firms can beat the staffing shortage.<\/strong>\"\/\/www.g005e.com\/2020\/09\/18\/better-talent-drives-better-results\/\"<\/p>\n

by frank stitely<\/i>
\nthe relentless cpa<\/i><\/a><\/p>\n

the following story brought tears to my eyes while i sat in a barbados resort drinking some alcohol concoction. was it the alcohol talking or the happy ending where i got a profit distribution check? maybe a little of both.<\/p>\n

more:<\/b> who\u2019s your most valuable employee?<\/a> | how to implement the laziness equation<\/a> | the happier, saner, richer tax firm<\/a> | \u2018quick questions\u2019 and other client sins<\/a> | how to train clients<\/a> | avoiding projects hung up in process<\/a> | when clients create errors<\/a>
\n\"goprocpa.com\"exclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n

the afternoon before i left for beautiful barbados, the partner group of our outsourced accounting practice met for a state of the practice meeting conducted by our director of outsourced accounting.
\n
\nfred is about 25 years old. i don\u2019t know exactly, as i don\u2019t really need to know. we hired fred directly out of college. he was the college roommate of my business partner\u2019s nephew. we have hired a number of people from fred\u2019s college with generally good results. we like hiring from this college because the big firms don\u2019t like to.<\/p>\n

the college doesn\u2019t have a five-year master\u2019s program. graduates can\u2019t immediately take the cpa exam upon exit. that doesn\u2019t matter so much for us. we aren\u2019t looking for an army of cheap auditors. we expect to teach newbies from scratch about tax returns and life in general. my partner and i were fraternity brothers in college. we know how stupid new college grads can be. we were really stupid ourselves. arguably, i still am.<\/p>\n

fred had been with us about a year when we began looking for a new director of outsourced accounting. we parted with the prior director, because his get up and go had long since gotten up and left. the whole outsourced practice was a hot, stinking pile of excrement. revenue was nil and any clients we had were angry at us and our parents for having us. for good reason.<\/p>\n

we were chasing a controller-type person and had offered a really good salary, but he wanted a lot more. there was no way we could make the numbers work. fred overheard us discussing our frustration.<\/p>\n

he plopped down in my office and said, \u201ci\u2019d like to throw my hat into the ring for the job.\u201d<\/p>\n

my first thought was, \u201csure, fred. you go there with your one year of experience out of college.\u201d<\/p>\n

but, sometimes the best decisions are made out of desperation. fred knew our software. he knew a little about taxes and knew our internal workflow systems. most importantly, he was excited about the job.<\/p>\n

i told him, \u201cwait right there.\u201d i grabbed another partner and dragged her into my office, in a non-sexual way, for those of you looking to be offended. we haggled out the details in about 15 minutes and fred was on board. we had to replace him on the cpa firm side, but we were just out of tax season and had some runway for that.<\/p>\n

fred did so well after the first year that he earned a 10 percent ownership stake as well as a raise. at the end of year two, he was running the end-of-year state of the practice meeting.<\/p>\n

at the start of the meeting, fred distributed profit distribution checks. imagine that. we made enough money to actually distribute profits with cash left over. i\u2019m not certain what happened at the meeting for about an hour. i was in shock. i don\u2019t think even alcohol raises me to this state of bliss.<\/p>\n

once i regained consciousness, i vaguely remember something about a raise and bonuses for fred and his staff. i maybe heard something about fred getting 10 percent more ownership. it\u2019s like the most beautiful woman in the world asking for a favor. the answer is always yes. the most beautiful woman in the world has never asked me for a favor. i\u2019m guessing here.<\/p>\n

i would wager that our outsourced accounting practice is larger by itself than at least 75 percent of the accounting firms in the u.s. it took just two years with the right person, fred. our future enterprise growth rests largely with fred\u2019s business. growing a firm with $15,000 annual clients happens a lot faster than growing with $1,500 clients. i knew this when we started the practice, but that didn\u2019t matter until fred walked into my office with his one year of experience.<\/p>\n

let\u2019s stop for a teaching moment for any staff reading this. the best way to ask for a raise is to give your boss a check first. i\u2019m thinking of teaching a seminar on this for millennials. i plan on charging $1,000 a head. send me attendees and i\u2019ll give you a cut of the deal. just add it on to the price. they\u2019ll have to give up avocado toast for a week.<\/p>\n

here\u2019s the point that has me in tears even now. i got a check for doing next to nothing for a year. how? by hiring the right talent.<\/p>\n

do you have to give the right talent money? yes. ownership? maybe \u2013 for great performance. as inigo told the six-fingered man in \u201cthe princess bride,\u201d \u201coffer me all that i ask for and more \u2026\u201d<\/p>\n

that\u2019s where i\u2019ll kill the analogy. i\u2019m the six-fingered man in this analogy, and i really don\u2019t want to die. compensate the best people accordingly. they\u2019re great business partners. they give you money.<\/p>\n

i define effective practice management as follows. effective practice management is putting the right people in the right places with the right resources at the right time. note the \u201cright people\u201d part of this.<\/p>\n

you can have the best practice management software in the world. with the wrong people, you have a hot, heaping pile of excrement. i know from experience. i have the best practice management software in the world. people tell me my best quality is modesty \u2013 the people i pay to tell me this.<\/p>\n

hiring better talent is another of our double wins. better talent reduces wip as better people require fewer hours to perform tasks. better talent also increases capacity as your firm accomplishes more both in terms of services offered and sheer work completed.<\/p>\n

let\u2019s talk about acquiring great talent.<\/p>\n

attracting talent to small firms<\/strong><\/p>\n

stop thinking of small firms as undesirable places to work. we thought for years, \u201cwho would ever want to work for us? we\u2019re small and don\u2019t have the highest salaries and best benefits packages.\u201d<\/p>\n

that was 100 percent wrong. we had to make some changes and take a leap of faith, but we were wrong at the very core. what do small firms offer that large firms can never touch?<\/p>\n

the chance to make a difference. the big four recruits masses of asses (auditors) to tick and tie invoices to source ledgers and report variances based on a properly selected sample size from the population.<\/p>\n

is anyone still awake?<\/p>\n

what do millennials say they want more than clean water, clean air, lower co2 levels, and affordable lattes? a chance to make a difference. in reality, that\u2019s number two after salary, but it\u2019s still a really high priority.<\/p>\n

what do we do, as small firms? we make a difference in clients\u2019 lives. we help clients hire workers, afford college educations, and fund retirement. our staff participates every day in this. very few people and organizations make a difference in people\u2019s lives that we do.<\/p>\n

small firms are great places to work. newbies learn about more than just taxes and bookkeeping, as important as those skills are. they learn how businesses work \u2013 and how they don\u2019t. there is nothing more real-world than what we do. they\u2019ll pick up skills more quickly that are more useful than any they\u2019ll learn with the big four.<\/p>\n

for people who want to make a difference, small firms are the bomb diggity. people who have worked for small firms can work anywhere from controllership to starting their own gigs.<\/p>\n

let\u2019s talk about putting that huge advantage to work.<\/p>\n

making your firm more attractive<\/strong><\/p>\n

if you have hired primarily low-level, cheap staff, you have some work to do before you begin hiring better talent. first, you have your present staff, because you\u2019ve been keeping your prices low. you can\u2019t afford better talent unless you make some changes.<\/p>\n

with your current low-performing staff, you are like a third world subsistence farmer who is always just one misfortune from disaster. when someone quits in january, as poor staff are likely to do, you get to work 100-hour weeks for yet another tax season.<\/p>\n

like third world subsistence farmers, you need fundamental change. subsistence farmers need a mindset change that readies them for new technology to compete. you also need a mindset change to ready your practice for new ways of operating.<\/p>\n

to afford better talent, you need better clients. if you have 200 clients and can\u2019t afford to lose the bottom 20, you have a marketing problem. if getting one new client a month feels normal, you aren\u2019t replacing bad clients with good ones. thus, you can\u2019t afford better quality staff.<\/p>\n

this isn\u2019t a marketing guide. if you need one of those, go to www.g005e.com\/shop<\/a> and buy one. you need a pipeline of continuous potential clients contacting you all of the time. this isn\u2019t going to cost zero, either. you need a target market and a plan to attract your target clients.<\/p>\n

i recommend working with a local marketing expert on a contract basis. require experience working in the cpa and accounting world. there are also a few very good national organizations that cater to cpa and accounting firms. there are also a lot of bad national organizations catering to us.<\/p>\n

as with most new initiatives, you have a significant likelihood of failing with your first marketing effort. learn from the failure. don\u2019t give up. i am in the middle of what i suspect will be a failed initiative. we will reload and try again.<\/p>\n

next, raise your prices. once you begin building a pipeline of better clients, you can let your bottom-feeding, whining, good-for-nothing clients go away. you hopefully won\u2019t haven\u2019t to fire them. they\u2019ll just go away. you\u2019ll know they\u2019ve gone away when you no longer have debates about the invoices you send out.<\/p>\n

a longtime client came to me and asked why his bill had gone up so much from 10 years ago. first, i looked at an invoice register and discovered what he thought he was paying 10 years ago and what he actually paid was quite a bit apart. he was paying substantially more 10 years ago than he remembered. it\u2019s amazing how facts change the tone of conversations.<\/p>\n

next, i explained how the complexity of his tax returns increased. now instead of a schedule d, we had schedule d with a few 8849 forms. he seemed satisfied with my explanation, but i know from experience, there\u2019s a pretty good chance he\u2019ll be out price shopping soon. we are charging him a reasonable price, and i won\u2019t take less. if he leaves, we\u2019ll replace him from our pipeline.<\/p>\n

until you start making good business decisions about keeping or not keeping clients, you are just like any other third world subsistence farmer. you\u2019ll always be just one step ahead of starving.<\/p>\n

about this point, i would expect a little pushback from people in multi-partner firms. what if we\u2019re a three-partner firm, and one partner is perfectly happy with what we are doing even though the other two of us see the need for change?<\/p>\n

i wish i had an easy solution for this. the real solution is to read your operating agreement and figure out the price of a professional divorce. this happens all the time for issues besides revenue growth. i suggest letting that partner depart the firm with his clients. you probably don\u2019t want them anyway.<\/p>\n

also, let him take some lousy staff with him. you can bet the staff who want to work with him are pretty bad.\u00a0 you know who they are. they\u2019re the preparers who need to print out last year\u2019s tax returns before preparing this year\u2019s. they\u2019re the admin people who tell you clients will never accept tax returns in pdf format. clients want paper.<\/p>\n

once you have a good new client pipeline in place, it\u2019s time to fish in a better talent pond. determine what you need to pay for better staff and what benefits you need. the major payroll services usually have free surveys available. of course, they aren\u2019t really free. you\u2019ll have to sit through a presentation on something useless, like why you should love human resource people. make them bring lunch.<\/p>\n

differentiating your firm<\/strong><\/p>\n

affording competitive benefits is tough \u2013 especially health insurance. we spent 18 months looking for an affordable plan with good coverage. by \u201cwe,\u201d i mean our practice administrator researched the plans and i cheered her on. good staff will leave over bad health insurance. the stakes here are high.<\/p>\n

there are some benefits decisions that are easy. get rid of the old simple or sep retirement plan. i can\u2019t think of a single instance when a simple plan is the right plan for anyone \u2013 clients or us. sep plans may be great for excluding staff from coverage for three years, but is that what we\u2019re after?<\/p>\n

in the year 2020, you are advising pretty much all of your clients, even the small ones, to adopt 401(k) plan variants. take your own advice. drink your own kool-aid. smoke your own dope. pick your analogy.<\/p>\n

if you don\u2019t have any retirement plan, what message are you sending to staff? you recommend retirement plans for your clients, but not for your staff. this is how you end up with lousy staff. the good ones leave. the bad ones stay because no one wants them.<\/p>\n

the insurance industry calls this adverse selection. this works with clients as well as staff. when you adopt policies that drive off good clients and staff, you wind up with just the bad clients and staff, who can\u2019t leave. life then sucks.<\/p>\n

if you really want to differentiate yourself from other local firms, pay for training. i beat this topic to death in my first book. you will shock candidates coming from competitors. rinky-dink local firms don\u2019t pay for training. don\u2019t be rinky-dink. i covered the math on this in my first book. training yields a great return on investment.<\/p>\n

finally, create a fun place to work. small firms do interesting work. having fun should be easy when your staff does meaningful work. however, if there\u2019s a lot of yelling going on in the office, and people are bursting into tears, your office will devolve into adverse selection, where anyone, who can leave, will leave. you\u2019ll be a subsistence farmer again.<\/p>\n

we\u2019ve hired a number of staff who have come from yelling environments. one of my current partners came from one. we had a time when too much yelling was happening. it contributed to a reduction in staff quality and thus work quality. i wondered why we were hiring losers. i suspect our work environment was the problem.<\/p>\n

if you feel the need to yell a lot, either you have an anger problem or the wrong employees. yelling won\u2019t make bad employees better. replace them. that\u2019s what this post is about.<\/p>\n

praising good performance matters. when staff only get criticism, they shut down and do even worse work.<\/p>\n

forget the work-life mantra<\/strong><\/p>\n

i\u2019m not a believer in the hot management concept called work-life integration. that\u2019s where employers ask employees to live their personal lives through the business. employers serve meals and provide exercise facilities to keep employees engaged all day and into the night at work. companies hold beer blasts on friday with nearly mandatory attendance required.<\/p>\n

i just read a book on happiness that put forth the proposition that work-life integration causes higher rates of depression by diminishing employee relationships with family and outside friends. the author cited working at facebook as an example. she tells the story of a mother and a child visiting the father for lunch at work because he rarely saw them.<\/p>\n

that life\u2019s not for me or our staff. i suspect work-life integration is merely a way to not pay for extra work. i do believe that occasional social events for employees can build teamwork and morale. it\u2019s much harder to yell at someone when you know their kids\u2019 names and where they\u2019re going to college. just try not to steal too much of your staff\u2019s personal time. tax season is rough enough.<\/p>\n

building a better work environment is about creating a more human-friendly environment \u2013 a place where people can grow and enjoy life outside the firm as well as inside it.<\/p>\n

now, it\u2019s time to find that better pond. a lot of firms are finding that better pond overseas. because you don\u2019t need to hire a hundred new staff, you can fish in places the large firms can\u2019t.<\/p>\n

do any of your clients have kids in college studying accounting? think summer internships.<\/p>\n

what about community college grads? they can work for you while they study to complete their four-year degrees. this is a win-win. you win because you get reasonably priced staff. they win because they get an engaging, relevant work experience while they are studying.<\/p>\n

look for people who have been rejected by other firms after a short period. we hired two newbies this past summer this way. one graduated in december and went to work for a local firm that let him go after one tax season. they\u2019re one of those firms that hires a bunch of people in january, knowing that they\u2019ll fire them in may once their work dries up. i couldn\u2019t sleep if i did that to people, but there are a lot of firms that do this.<\/p>\n

we hired jim in the summer and started training him. because he had been through one tax season, he had a head start. we got him billable almost immediately. he\u2019s doing tax projections as i write this. he\u2019s an intensely smart kid who just got off to a rough start in his career by working for a bad firm.<\/p>\n

greg was a near college grad last spring. \u201cnear college grad\u201d means he participated in college graduation even though he had one summer course to complete. he was hired by a firm that terminated him before he even started for lying on his resume about being a college grad. really???<\/p>\n

we hired greg shortly after for our outsourced accounting operation. fred tells me greg is a brilliant dude. he\u2019s really quick at picking up the technical side. best of all, he\u2019s really great with clients. he may develop into a rainmaker. i am about to withdraw from a lead share group and substitute greg in my place. life is beautiful.<\/p>\n

preeta (i\u2019m especially gifted at making up foreign-sounding names) isn\u2019t an employee yet. we\u2019re stalking her. she was an intern for us this past summer. she\u2019s a senior at a local college. she worked for fred over the summer. fred tells me she\u2019s a perfect fit. she picked up our systems over the summer and knows all of our software. we moved to a new office a few weeks ago. preeta attended our open house. i smell victory, or better yet, another profit distribution check.<\/p>\n

what years of experience really get you<\/strong><\/p>\n

so far, my examples are all about hiring younger staff. there\u2019s reason behind this. when i look back at the history of our firm, i see very clearly a lot of hiring mistakes. one mistake that i have repeated over and over is assuming that years of experience on a resume mean anything.<\/p>\n

when you hire a newbie out of college, you know you\u2019re getting zero years of experience. when you hire someone with 20 years of experience, you probably aren\u2019t getting 20 years of real experience. you are possibly getting five years of real experience followed by 15 years of chair warming.<\/p>\n

you may not even be getting five years of good experience. you might be getting five years of learning the wrong way to do things. you may have to unteach a lot of bad habits. worse, you are paying for 20 years of experience that you aren\u2019t getting.<\/p>\n

hiring newbies isn\u2019t foolproof. you\u2019ll make hiring mistakes, but the mistakes will be less costly. you can also change a newbie\u2019s attitude more quickly. they haven\u2019t developed that six-inch-deep layer of skepticism about everything. they haven\u2019t learned to hate life yet. they are capable of change.<\/p>\n

you can hate me for that last paragraph, but you can\u2019t deny the truth. in mid-march, don\u2019t be surprised when that person with 20 years of experience stops following your workflow and resumes bad habits picked up from a miserable career in a half-dozen different loser firms. the newbies know only your systems.<\/p>\n

this has been a long post. i am tempted to end it with some platitude like \u201cthink outside the box.\u201d however, changes in our industry lead me to believe the box doesn\u2019t even exist. create your own box.<\/p>\n

to summarize this very long post:<\/p>\n

    \n
  1. better talent reduces wip and increases capacity.<\/li>\n
  2. small firms are great places to work.<\/li>\n
  3. lay the groundwork for hiring better talent with a full new client pipeline.<\/li>\n
  4. get competitive with salaries and benefits.<\/li>\n
  5. create a great work environment.<\/li>\n
  6. find better talent ponds in which to fish.<\/li>\n
  7. hire younger people.<\/li>\n<\/ol>\n

    as i conclude this post, i\u2019m having breakfast at chick-fil-a. i start a lot of mornings here. i like the attitudes of the employees. there\u2019s something great about hearing, \u201cmy pleasure\u201d as they refill my large diet coke.<\/p>\n

    i\u2019m certain the employees here have bad days. i\u2019ve witnessed a few idiot customers call them names. the employees have learned an essential talent that\u2019s as useful in our business as in the fast-food world \u2013 fake cheerfulness.<\/p>\n

    isn\u2019t it great to have employees who can stay cheerful with clients in early april, despite being ready to kill most of them? as i finish my sausage muffin, i\u2019m mulling over our need to hire another admin person. i may be sitting in a great pond of customer service. it\u2019s time to take out my fishing rod\u2026<\/p>\n

    \"\/\/www.g005e.com\/2020\/09\/18\/better-talent-drives-better-results\/\"<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

    how small firms can beat the staffing shortage.<\/strong><\/p>\n

    by frank stitely<\/em>
    \n    the relentless cpa<\/a><\/em><\/p>\n","protected":false},"author":1362,"featured_media":56466,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[1363,3120,3002,2246],"tags":[],"class_list":["post-82177","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-pro-member-exclusive","category-special","category-busy-season"],"acf":[],"yoast_head":"\nseven ways to win the talent wars - 卡塔尔世界杯常规比赛时间<\/title>\n<meta name=\"description\" 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