Through June 2023, nearly 600 U.S.-listed companies reported material weaknesses related to personnel predominantly in accounting – an alarming 40.6% increase over 2019, according to a Wall Street Journal (WSJ) report1. The financial sector faces numerous challenges: a talent shortage, rising labor costs, and the need for digital transformation. Many firms are turning to outsourcing as a strategic solution in this environment.
The War for Talent Is Real
The financial sector is experiencing challenges in attracting and retaining skilled personnel. Open Finance & Accounting (F&A) positions remain unfilled, with over half of these jobs vacant2. Compounding this issue is a decline in accounting graduates3 and a wave of employee burnout, leading to a record number of workers4 leaving the field altogether.
The High Cost of Talent
The competition for skilled F&A professionals drives salary inflation far beyond national averages. Nationally, F&A salaries have outpaced inflation by 10%, but this number jumps to a staggering 48% in major markets5. This fierce competition is particularly evident in roles like financial analysts and collections agents, where salaries have significantly increased.
The Digital Transformation Dilemma
Despite a strong desire to embrace digital transformation, finance departments face significant hurdles. While CFOs are eager to invest in automation, AI, and other advanced technologies, only 30%6 of these projects ultimately succeed. This low success rate stems from a lack of confidence among finance leaders in their ability to leverage data effectively and translate these technologies into real efficiency gains.
Outsourcing to the Rescue
Outsourcing presents a powerful solution to the challenges plaguing finance departments. By partnering with an outsourcing provider, businesses gain access to a wider, global talent pool, overcoming geographical limitations in the search for skilled professionals. This not only improves efficiency and productivity through streamlined processes but also translates to significant cost savings. Furthermore, experienced outsourcing partners can act as catalysts for digital transformation, providing the expertise and resources to implement and integrate new technologies more effectively.
Premier: Your Strategic Outsourcing Partner
In today’s challenging financial landscape, Premier stands out as your ideal outsourcing partner for F&A services. We go beyond simple outsourcing with our Premier Sync framework, a comprehensive suite of solutions specifically designed to address the financial and accounting industry’s unique obstacles.
Premier Sync embodies a collaborative co-sourcing approach. We seamlessly integrate into your existing team, prioritizing cultural fit for smooth collaboration and brand consistency. This partnership extends beyond the initial setup, with feedback loops and continuous improvement techniques utilized throughout. We constantly optimize processes to maximize efficiency and value creation while focusing on outcomes that ensure you achieve the cost savings and ROI you expect. With Premier Sync, you gain access to a wider talent pool, reduce labor costs, and unlock the full potential of digital transformation – all while working with a team that understands your specific needs.
Partner with Premier and let us help you navigate the challenges of the talent landscape. Together, we can achieve operational excellence and drive your business forward.
Ready to learn more about the benefits of finance and accounting outsourcing for your organization? Schedule a consultation with our experts today!
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References
- 1. “The Accountant Shortage Is Showing Up in Financial Statements”
- 2. “2024 In-Demand Finance and Accounting Roles and Hiring Trends”
- 3. “Business Research Insights and the American Institute of Certified Public Accountants”
- 4. “The CPA Shortage”
- 5. “Salary and Hiring Trends”
- 6. “Optimize and Prioritize Your Finance Technology Investments”
