When an employee leaves the fold, the instinctive reaction is to seek to replace; to try and find a ‘like for like’ replacement. But it’s not always the most efficient answer.
For most Accountancy firms, staff payroll will be the singular largest expenditure by far. Employees are not only the biggest cost, but indeed the biggest asset for a practice, and getting the balance right is key to long term success.
Productivity is a big driver of profitability, and every Practice Manager will already closely monitor the relationship between fee income and the cost of employing their team. Furthermore, every Practice Manager worth their salt will also be able to tell you pretty accurately when their peak periods are planned.
Controlling recovery on individual jobs, managing WIP and Debtors effectively, are all (quite rightly) key focuses of every firm. But ask a Practice Manager if they have a ‘Human Asset Management Strategy’ in place and I can bet they will look at you blankly. Yet having the wrong mix of staff and/or having too many unproductive man hours can be tantamount to burning ten-pound notes.
By utilizing both short term and long-term strategies to track ROI for individual team members and/or classes of employee it is fairly straight forward to gain a deep understanding of where the workforce is profitable (and where it is not). This in turn allows for informed management decisions about the ‘When’ and the ‘Who’ of your recruitment planning (and therefore maximum profitability). Thinking through your strategy before placing that next recruitment advert could pay huge dividends in months to come (see what I did there).
How can we help?
Consider the seniority, skill set and cost of the individual you want to hire, and where this will fit into the overall Human Asset Management Strategy. Think carefully as to whether you need to replace with another permanent member of staff, or whether utilizing temporary or interim staff would give you more flexibility/be more cost effective.
Here at Public Practice Recruitment Limited we have over a decade of experience within Accountancy Practice Recruitment. We can help you recruit the right mix of staff to suit your practice, including the use of creative solutions for a flexible workforce. Using a mix of short term and long-term contract workers alongside permanent hires can greatly aid your agility and profitability as a practice.