Category Archives: staffing

The Quiet Quitting Trend

The Quiet Quitting Trend 
How to Turn a Potential Financial Loss into a Potential Gain 

Mindy Barker | Barker Associates

Whether you’re on Twitter or TikTok or have simply turned on the news lately, you’ve likely heard of the phrase “quiet quitting.” For those unfamiliar, “quiet quitting” is a re-branding of sorts of the prior “coasting” mentality. This reboot seems to have its roots in both the Covid-19 pandemic and the Great Resignation of 2021. But what does it really mean for companies and their employees? What does it really mean for the bottom line? 

This current “movement” (and I shudder to even call it that) has employees doing the bare minimum to continue to get a paycheck. They show up for work, do as little as possible, and refuse to put in any extra effort whatsoever. This lack of effort not only negatively impacts fellow coworkers who are forced to pick up the slack, but also the company’s productivity overall. This, at a time when companies have already seen a slide in productivity from remote work, followed quickly by mass resignations. According to Gallup’s State of the Global Workplace report, globally, companies have lost $7.8 trillion as a result of decreased productivity over the past several years. 

As always, there are two sides of the argument as to why this is happening (with the truth generally found somewhere in between). Opponents argue that this type of behavior is the result of laziness, disloyalty, and an overall downward spiral of the workforce today. They may ask, “In what world are we now looking up to people who don’t want to go the extra mile (and then proudly post about it on social media)?” Yet, proponents of quiet quitting claim that this is in direct response to the unreasonable demands placed on them by employers over the past couple of years and that it is necessary to ensure a healthy work-life balance and decrease the likelihood of burning out. Whatever the impetus, the end result is the same—decreased productivity and profitability for the company. 

Knowing that this is the current popular employee mentality, how can a company turn a potential financial loss into a potential financial gain?  

The answer to this ever-important question is found at the intersection of communication and employee engagement. These are not new concepts, but many leaders seem to forget that communication is the key to employee engagement and that employee engagement can change nearly everything about workplace culture. If an employee is feeling stressed, overworked, disengaged, and ignored by management, then there has been a breakdown in communication somewhere along the chain of command. Leaders may want to consider taking a step back and looking at the entire picture holistically.  

This is the time to check in with your managers to see how various departments are functioning and if there are any areas where managers and supervisors can benefit from retraining. Managers, in turn, should be checking in with each employee on a one-on-one basis to ask how the employee feels about their current role within the company. Maybe the underlying issue is that the employee is not feeling challenged in their role. If so, speak to them about a shift in position or responsibilities. If the problem is the employee does not feel like they are a value to the company, then work with them to address those concerns accordingly. And if the issue is that they just don’t want to work, it may be time to reevaluate the relationship. 

Whether your company is experiencing quiet quitting or not, take this newest challenge as a valued opportunity to re-engage with your employees. Communicating effectively creates a clear understanding of the roles and responsibilities expected of all employees at every level within the company. Employees who feel cared about will likely want to be more invested within the company and, in turn, willingly put in the work needed to see success. The end result will be a stronger and more financially viable company with dedicated employees who will be happy to go the extra mile.  

Barker Associates provides strategic guidance and outsourced CFO services to companies of all sizes. We can provide the higher level of strategy your company needs to grow. If you need assistance, or have any other questions, please click here to schedule a 30-minute consultation at a rate of $100. 

Financial Roles 101

Financial Roles 101 
Constructing Your Financial Dream Team 

Mindy Barker | Barker Associates

The various financial roles of a company can be confusing to some and overwhelming to others, especially for those just starting out in business. You may be asking yourself—What exactly is the difference between an accountant and a CFO? Aren’t they the same thing because both deal with money? And the answer is a resounding … No.  

While the positions needed will vary greatly depending on the size and structure of a company, it’s important to understand how they build upon each other, particularly as the company prepares for growth. To that end, I thought it was time for a quick review. 

Bookkeepers 

Net Result: Transactional data entry 

A bookkeeper represents the foundational building block of any business. If we were using construction terms, the bookkeeper is the concrete that needs to remain sturdy and level in order for the rest of the building to stand. Bookkeepers are responsible for recording financial transactions (sales, receipts, bill paying, financial coding) that occur on a day-to-day basis. This is the person who enters data and keeps records correct and up to date. A bookkeeper balances ledgers and ensures invoices are paid on time and the exchange of money is logged correctly. This attention to detail is vital for the successful growth of a company at every stage of development. 

Accountants 

Net Result: Manages accounts, invoices, and financial statements 

Similar to a bookkeeper, an accountant also deals with financial data and numbers. The difference, however, is often found in the level of trained experience. An accountant, as the title suggests, will have a degree in accounting. While the bookkeeper logs transactions, the accountant is in charge of balancing each company account. In smaller companies and startups, it is possible for the accountant to also be the bookkeeper, but as the company grows and evolves, it is important to separate these roles. 

To continue with the construction analogy, the accountant would be the outer support structure of the building. An accountant looks closely at financial statements to make sure they stay accurate and up to date each month. They review data presented by the bookkeeper and analyze profits and losses within the company. They also may do taxes. 

You may be wondering then if an accountant is the same as a CPA (Certified Public Accountant). While both deal with financial data, a CPA is an accountant who has met certain state licensing requirements. Think of it this way—while all CPAs are accountants, not all accountants are CPAs. 

Controllers 

Net Result: Controls cash flow 

We have the bottom support and the strong outer walls, so what’s next? Now comes the controller, who “controls” and oversees all financial accounting within a company. Think of the controller as the manager or direct supervisor of the bookkeeping and accounting departments. The controller can be thought of as the internal walls of the building that make sure the ground floor and outer walls maintain their connection and are able to keep standing and communicating efficiently. A controller generally oversees payroll, ledgers, cash flow, and financial statements.  

You may be questioning why you would need to have a bookkeeper, an accountant, and a controller all within the same company. And, in some respects, you would be right. Smaller companies do not need each of these roles in place. However, as the company grows, it’s important to have a clear separation of duties and of financial checks and balances within an organization. The controller is there to double check the work of both the bookkeeper and the accountant and to provide a report of past and future spending to the CFO or owners of the company. 

CFO 

Net Result: Future strategic growth 

Our construction is nearly complete. Next comes the CFO (Chief Financial Officer) or “roof” of the finance department. The CFO is part of the executive board of a company and has direct interaction with the controller. One of the primary differences between the CFO and other financial roles is that a CFO has business leadership acumen. With a strategic mindset, the CFO has the ability to extrapolate data to formulate a financial roadmap for the future of the business, including projections of company growth, opportunities, and risks.   

The CFO understands the company’s strengths and weaknesses and knows how to use that information for these projections. For some companies, the CFO may be the owner (or one of the owners). For others, the CFO is a third party specifically hired to help an existing company navigate its financial future. 

As a company grows from concept to seed to established, so does its financial needs. Make sure you start with a strong foundation, then build your walls to help support the roof. It’s important to remember that separating financial responsibilities helps provide a system of checks and balances. Then, the CFO can help ensure that the future of the company remains on solid ground. 

Barker Associates provides strategic guidance and outsourced CFO services to companies of all sizes. We can provide the higher level of strategy your company needs to grow. If you need assistance, or have any other questions, please click here to schedule a 30-minute consultation at a rate of $100. 

Managing an Underperforming Team

Managing an Underperforming Team 

Mindy Barker | Barker Associates

It’s no surprise that a company will only ever be as strong as the people in it. Strong teams that collaborate, communicate and possess a strong drive and passion can help propel the company to new levels of growth and success. However, an underperforming team can have quite the opposite effect, not only decreasing productivity and profitability, but also the overall morale and company culture. And while leaders know this, it’s not as if they can just go clean house, especially today, when competition for talent in the market is fierce. So, what can they do? They can do what highly effective leaders always do—face the challenge head-on and learn how to manage it.  

Leading an underperforming team can be complicated, to say the least. Whether it’s a team you’ve been working with for a while or you’ve just been brought on as a new lead, the threat of failure lurks just beyond every individual mistake, instance of poor communication, or strained relationship. But don’t throw in the towel just yet (would we really ever do that?). Here are a few tips to help turn your lackluster team into something that shines.  Take a deep breath, walk in with a positive attitude, and commit to making clear-headed decisions, not reactive ones. 

1. Start Small 

The desire to get in there and make big changes will likely be compelling. However, rushing to judgment like this will only push team members further away—from you, from each other, and from the company. The more effective approach is to start small by listening, observing, and collecting as much information about what is going on with the team as possible. Get a better understanding of where the problems are, so that you can address them one at a time. 

2. Provide a Safe Place 

With all that we’ve been through, people are still struggling. And often, they are doing so silently. In fact, they may not even realize how much it is affecting their work. Provide your team members with a safe space to give feedback and voice their professional grievances or even personal issues (we all know they don’t stay outside the office door). Try to pick up patterns and pinpoint weaknesses, so that you can help redirect them on a more productive path. You can also promote a greater sense of unity and collective purpose by co-creating goals with your team that everyone can work toward together. 

3. Don’t Forget Other Leaders 

While weaknesses may be obvious among your entry- or mid-level team members, are they as clear with regard to your managers? Unfortunately, the answer is usually no. Take some time to explore how your management could be improved upon. If there was any criticism in your team’s feedback, take it seriously. Getting defensive does nothing but hurt the entire team. Think about what adjusting to their criticism would look like and what you are able to implement with your current management. You may also want to look into leadership training or coaching to help your managers understand their role more thoroughly and work better with the team.  

4. Know When to Make Tough Decisions 

A team could be underperforming for a wide variety of reasons. However, if performance does not improve after some time and effort, it may be time to consider going your separate ways. Sometimes, despite your best efforts, it just isn’t the right fit. And prolonging a bad relationship will only make it worse in the end. Be aware that terminating a team member can be a heavy blow to team morale in the here and now, but the long-term benefits will more than make up for it. 

There’s no doubt that an underperforming team can be frustrating, creating its own unique set of challenges. With these tips and remembering that you can handle this responsibility, your team will rise to the challenge with you. 

Barker Associates provides strategic guidance and outsourced CFO services to companies of all sizes. We can provide the higher level of strategy your company needs to grow. If you need assistance, or have any other questions, please click here to schedule a 30-minute consultation at a rate of $100.  

How Remote Work is Influencing Financial Recruiting and Retention Strategies

Mindy Barker | Barker Associates

Over the past few years, we have learned that we are entirely more adaptable than we ever thought possible. We’ve learned that we can not only survive, but actually thrive in extreme disruption. And much of that adaptation and success is based on the ability to work remotely.  

Today, remote work has become a priority for most employees … in some respect. In fact, in the 2022 Salary Guide from Robert Half, 75% of workers said they wanted to work at least part of the time remotely, and 34% said they would quit a company that didn’t allow remote work.  And those who work in finance or accounting departments are no exception to these numbers. 

While our new remote or hybrid workforce has been around for two years now, it is no longer about logistical prowess to achieve social distancing in a global pandemic. Rather, it’s about the reprioritization among us all that includes increased flexibility and enhanced employee experiences. And while these are incredible benefits for candidates and employees, CFOs and other leaders aren’t lacking in advantages either – namely, a massive widening of the talent pool.  

In the same survey, 35% of finance and accounting leaders said they expanded their searches geographically to find the right candidates. Having employees across time zones also leads to the ancillary benefits of nearly automatically increasing the organization’s customer service, while helping with work-life balance at the same time. Consider an employee on the east coast who no longer has to solve a problem at 7:00 pm because they have a west-coast colleague who can easily take care of it within business hours.  

Realizing our remote world is not going anywhere, CFOs are now considering how to revamp their recruiting and retention strategies around it. It’s no secret that competition is fierce. To successfully recruit top talent and keep them, they need to have structured strategies that have been adjusted to our new realities.  

Recruiting 
When recruiting for finance or accounting positions, there are, of course, the “typical” qualifications and skills needed – certain degrees and designations, attention to detail, accuracy, confidentiality, ambition, embracing continuous learning, and problem-solving skills. That’s not changing. But now, more recruiting efforts are shifting to look not merely at the skills for the specific position or the necessary education and certifications, but the skills needed to work in a remote environment successfully.  

To work remotely, CFOs need to look for candidates who can exhibit discipline, initiative, and the following abilities to:  

  • stay focused,  
  • be a self-starter,  
  • work well without supervision, and  
  • work well under pressure.  

Additionally, by the very nature of remote work, they need to have more advanced technological skills or, at a minimum, be willing to learn them quickly.  

Retention 
So much of retention is based on organizational culture – whether we are in-office or remote. And the flip side of the flexibility advantage that remote work provides to employees is isolation, especially when some employees are in the office and others are not. Remote workers could feel less appreciated or valued, or think that they will be passed over for opportunities since they are not directly in front of their leaders. They can also start to feel detached from their work and those with whom they work. 

To ensure the organization has a people-first culture, these fears (real or perceived) must be minimized. Leaders should ensure remote workers are getting the time and attention needed – that they are acknowledged, promoted when justified, and provided equal opportunities to training, continuous learning, and resources, including access to the financial tools needed to do their jobs efficiently. Proactively sharing information, providing peer mentoring or coaching, and focusing on clear, timely communication, with opportunities for feedback are other helpful ways to keep them involved. Essentially, it comes down to the human connection, even when you aren’t physically together. Remember, technology is great, but alone, it will not build a culture your employees won’t want to leave.  

Barker Associates provides strategic guidance to companies of all sizes. We provide the higher level of strategy your company needs to grow, especially as it relates to using the right strategies to keep your company running efficiently. If you need assistance, or have any other questions, please click here to schedule a 30-minute consultation at a rate of $100.  

Remote CFOs – Is Success Really Possible?

Remote CFOs – Is Success Really Possible? 
It’s All a Matter of Trust 

Mindy Barker | Barker Associates

More people are adjusting to the idea that our “new normal” includes remote work in some capacity. And this realization brings along new considerations, including which positions are better suited for remote work and the opportunity to attract additional top talent in various geographical areas. But when you’re talking about a leadership role, there are a number of other factors to consider, especially when that role is based in accountability and highly sensitive, confidential information, like a CFO. As such, many wonder if it is possible for a CFO to have success remotely. 

As we all know, the CFO holds the top financial position of an organization. Some focus more on financial planning and strategies, while others focus more on budgeting, accounting, reporting, and risk management. In either case, the CFO ensures that the organization’s numbers fairly reflect its performance. Also, in either case, the foundation of the CFO role is relationships, which are generally viewed as stronger when individuals are physically together. 

The key to working remotely is developing solid relationships with your direct reports. You need them to feel comfortable reaching out to you, as they would if you were in the same office.  Previously, when we all worked together, you could see fear and anxiety in someone’s face and body language when they were nervous about something. It was palpable because, in large part, it was right in front of us. Now, we no longer have that ability, as it is far easier to hide nervous tendencies when you are in front of a computer camera. As the CFO, it is your responsibility to build trust in any situation, including when you are not physically present.  

Remote CFO … In the Beginning 

If this is a new role and you are just coming into an organization, spending one-on-one time with each team member is crucial in developing a strong foundation. If you do not live in the same area, that will essentially mean more travel in the early stages, but it will pay dividends in the long run. Simply, there is no better way to establish trust in a relationship than being face-to-face, sharing a cup of coffee (or your beverage of choice), and empathetically listening to the other person with whom you work.  

In these meetings, learn their strengths and weaknesses, their aspirations, and their fears. Further, be abundantly clear about how and when you will be available when you are working remotely, as well as your expectations. Setting boundaries and clearly communicating them from the beginning will save you headaches down the road. 

Building Trust as a Remote CFO 

Continuing to incorporate relationship-building and trust as you perform your day-to-day responsibilities is key. Schedule weekly one-on-ones with your team and other stakeholders, and keep that time sacred. These meetings should be non-negotiable for anyone, including the CEO, to continue to build trust. One tip on virtual meetings is insisting on the use of cameras, despite everyone’s fatigue of them. Seeing the person with whom you are working, even though a camera, is better than not seeing them at all. Finally, when your team members reach out to you when you are not available, make sure you respond to them as soon as possible. 

Another tip with virtual meetings is to be cognizant of differences in time zones. More than ever, you could be working with team members and clients across the globe. It is not always easy to accommodate others due to their various locations, but in your position as CFO, and to continue to garner trust, you must be flexible. If that means getting on a call at 5:00 am or 10:00 pm, that’s what you do. However, be nimble only where it counts. If other stakeholders or team members are reaching out to you off-hours (and time zone is a non-issue) regarding ordinary work activity, then put a stop to it immediately. Determine how to proactively communicate to them to keep it from happening again.  

As always, boundaries are a key piece of trust, and they are never more important than with remote work when we are seemingly available at all times.  Of course, if there is an emergency, all bets are off. In your position, you must answer that call and help find a solution. But be aware of the distinction between the two scenarios. 

Your team members are not the only ones with whom you need to build trust. To build trust with other C Suite members, take time to understand their issues and challenges.  For example, if you find out that an SVP is spending hours a month on a manual task that the accounting or IT department could easily automate, offer the solution, and help make their lives easier. These instances become huge wins all around, as you build stronger relationships within the organization.  

More than ever, after a global pandemic and resulting economic crisis, organizations understand that a CFO is an investment and not an expense. And to have the best fit, that may mean hiring someone as a remote CFO. While this will require a different type of critical thinking and creativity in addition to the ordinary technical knowledge and risk mitigation skills of CFOs, many will find it more challenging and fulfilling. Their success is not only possible, but likely when trust is established from the beginning. 

Barker Associates provides strategic guidance and outsourced CFO services to companies of all sizes. We can provide the higher level of strategy your company needs to grow. If you need assistance, or have any other questions, please click here to schedule a 30-minute consultation at a rate of $100. 

When It’s Time to Outsource a CFO

Graph on document with pen
Mindy Barker | Barker Associates

I often get asked about why companies should outsource CFO services. As small- to medium-sized businesses grow, they need additional financial resources, including data and expertise to help them better understand the company’s financial health, plan where they can feasibly go based on that health, and improve performance overall. In the past, many companies reaching this phase would bring on a full-time Chief Financial Officer (CFO). But, as we all know, times change … and so do needs and resources. Now, more businesses are deciding to forgo the large salary expense and still get the expertise by outsourcing those financial services.  

You may need high-level financial strategy, but you may not need, or maybe you can’t afford, a full-time employee. Essentially, the finance function of your company can be outsourced to a third-party service provider who acts in the same capacity as a CFO.  You gain expert financial insights, advice, skills, and resources that will help you grow your business, without the huge paycheck that historically goes with it. 

Why Outsource to a CFO? 
The reasons you may decide the time is right to get someone in your financial corner are plentiful. However, as I touched on above, your company experiencing rapid growth, such as the development of new products or market expansion, is one of the most common reasons. Growth like that needs cash for manufacturing, distributing, and marketing. Does the company have enough? Where will it get the money from over time? These are the questions a CFO can help you answer. 

Other reasons to bring on an outsourced CFO include resolving a financial challenge (cash flow, inefficient processes), scaling systems to handle the complex transactions aligned with rapid growth, and needing an accurate, up-to-date financial forecast for budgeting, restructuring, or funding purposes. These major decisions and company crossroads require a financial expert that many companies do not have on staff. 

How an Outsourced CFO Helps 
An outsourced CFO will take their knowledge and broad experience to analyze the company’s financial picture and provide strategic planning and solutions to move forward with the best financial footing. Equally important, they will help ensure the company has the checks and balances needed to keep stakeholders accountable as the company grows. For example, if the company needs to secure additional funding, prepare for a merger or acquisition, or increase oversight to minimize the risk of fraud.  

While each set of circumstances and needs vary, an outsourced CFO can: 

  • Develop a financial roadmap to navigate the company’s future 
  • Help make the numbers more understandable  
  • Help overcome obstacles to business growth 
  • Implement reporting for financial and accounting functions 
  • Oversee financial controls  
  • Identify weaknesses and capitalize on strengths  
  • Develop KPIs and metrics 
  • Develop forecasting and budgeting models 
  • Provide strategies to move forward  
  • Put accounting and reporting systems into place 
  • Provide regular financial reporting  
  • Manage cash flow  
  • Help acquire funding from investors 

The End Benefits of Outsourcing a CFO 
It’s appropriate that the largest benefit of outsourcing a CFO is cost savings. And while many people believe that the costs are actually higher, according to an article in Forbes, the idea that outsourcing is too expensive is a fallacy. In the article, they compare the salaries of full-time CFOs (companies with approximately $10 million in revenue) to the costs of outsourcing. The full-time CFO earned about $200,000 to $250,000 per year as a base, plus bonuses, benefits, taxes, overhead, and long-term incentives (equity), adding up to $300,000-$400,000 per year or more. However, an outsourced CFO for the same size company averaged $7,500 per month, or $90,000 per year (assuming they were retained every month, all year, which is not always the case). The outsourced CFO was about a quarter of the cost of the full-time CFO (at the higher end). 

In addition to the cost savings, an outsourced CFO provides access to a financial expert with various experiences, and the flexibility to utilize that expertise only as needed. The relationship can start part-time or be project based and, as the company grows, so can the services and time. But in either case, you can get back to the business of your business. 

Barker Associates provides outsourced CFO services to companies of all sizes. We can provide the higher level of financial analysis and strategy your company needs to get to grow. If you need assistance, or have any other questions, please click here to schedule a 30-minute consultation at a rate of $100.  

The Prioritization of Employee Experience in 2022

The Prioritization of Employee Experience in 2022 

Mindy Barker | Barker Associates

We’ve been inundated with various headlines regarding the Great Resignation. And while they all have different perspectives, one commonality exists – the value placed on employee experience. Employees are making it very clear that while money is important, it isn’t everything. They want to be valued and appreciated, and find meaning in their work and in those with whom they collaborate.  

According to a recent Gallup survey, the percentage of engaged workers declined in 2021 for the first year in more than a decade, in large part because organizations have forgotten about the basics. “Among the engagement elements Gallup measures, the greatest declines were in clarity of expectations, having the right materials and equipment, and the opportunity for workers to do what they do best. These elements are foundational to employee engagement.” 

For employers, prioritizing the employee experience has arguably never been as important as it is right now.  

What Exactly is Employee Experience? 

Think of the employee experience as a journey that includes every interaction and observation during an employee’s lifecycle with your company — from recruitment and onboarding to development and retention to exit. It encompasses all that they encounter and observe during that lifecycle, including their role, workspace, leader, team, and company culture. At their foundation, employee experiences should be aligned with the company’s purpose, values, and mission, and have the full support of leadership at every level.  

Why Should You Care? 

I don’t know of any leader who would object to decreased absenteeism, low turnover rates, or increased productivity. And these are all very valid reasons that every leader should care about employee experience. In fact, it should be given the same time, attention, and resources as launching a new product or service.  

An enhanced employee experience results in increased engagement, a stronger company culture and brand, growth, and better customer service. Think of it this way – your employees are on the frontlines of customer experience, helping to build and represent your brand. And whether they have a positive or negative experience at work each day will invariably impact these crucial relationships, and by extension, your company.  

Additionally, as we discussed in At the Intersection of the Great Resignation, Professional Services, and Those Who Stayed, the employees who did not join the Great Resignation are burnt out and often feel underappreciated. These employees, who have more leverage than ever before, could still choose to leave in search of something better, and that often means a better employee experience. However, if their leaders are proactive and look at this instead as an opportunity to enhance employee experience before it’s too late, those employees are more likely to stay. Simply, companies who place value on employee experience have a significant competitive advantage over others who don’t.  

What Can You Do About It? 

Overall, improving employee experience means improving the company culture, having more touchpoints, and ensuring your efforts align with the company mission, vision, and values. Gallup recommends focusing on the basics, providing clear and frequent communication, and managing your managers. “Managers can only keep employees informed and engaged if organizational priorities are clear and well communicated as changes occur.” 

Other tips include:  

  • Conducting an audit of current processes (including hiring and onboarding) 
  • Listening to employees to understand their challenges  
  • Collecting regular feedback from employees 
  • Evaluating company culture from their viewpoint 
  • Creating experiences around the information learned  
  • Creating an action plan for each phase of the employee lifecycle 
  • Using metrics to measure the results at each phase  
  • Ensuring all strategies align with the company’s mission and vision 

Barker Associates has extensive experience as an outsourced CFO. If you need assistance or have any other questions, please click  here to schedule a 30-minute consultation at a rate of $100.   

At the Intersection of the Great Resignation, Professional Services, and Those Who Stayed

At the Intersection of the Great Resignation, Professional Services, and Those Who Stayed 
Shifting Perspective from Those Who Left to Those Who Remain 

Mindy Barker | Barker Associates

The Great Resignation of 2021 has left more than vacant seats … although it has left plenty of those too. In its wake are thousands of desperate CEOs and the often forgotten-about, frenzied, and burnt-out workers who chose to stay. In their desperation, what these CEOs aren’t realizing is that while they struggle with finding new talent in this overly saturated candidate market, they are often not paying enough attention to, or completely disregarding, those who are still right in front of them.  

These employees, whether they stayed because they had no choice (after all, not everyone can quit), felt a sense of loyalty to the company and/or their co-workers, or simply loved their jobs, are now feeling undervalued and underappreciated at the same time they are working harder than ever. And, while they pick up the slack and feel underappreciated by their supervisors, they are often also dealing with increasingly demanding clients and customers. It’s as if the country is in the grips of a new pandemic of impatience, rudeness, and intolerance, and these employees are left to deal with it all. Additionally, the resulting shift in power and bargaining positions of the Great Resignation have forced companies to offer more money than ever before … to secure new talent. That’s great for them, but what about the others?  

As it stands today, in return for all that they’ve done and sacrificed, these employees are getting depressed, having panic attacks, and getting sick, with some turning to alcohol or drugs to try to ease their physical, mental, and emotional exhaustion. With our nation already struggling with massive mental health issues, something must be done to curtail this destructive path. 

The Impact to Professional Services 

While this challenge has impacted nearly every industry, professional services, including accountants, lawyers, finance, and IT professionals exemplify it even more. The mental and emotional anguish of a professional who is trying to do a good job when it is physically impossible to do so (because they have too much work to do) takes away their ability to think clearly and make quality decisions. All accounting firms – from the Big 4 to regional companies – are short staffed. And the ones who stayed are having to work extra to cover multiple jobs. Despite this dynamic, it seems companies are reluctant to increase their salaries to meet current market demands. According to one recruiter, if you want an accounting professional work in the office, the rate will be 130% of the market because they are demanding to work from home. 

Like millions of others, professionals are tired, burnt out, and frustrated. And money isn’t everything. The pandemic shook people to the core – they are looking for more meaning and know that meaning rarely comes in a paycheck. In fact, there are professionals walking out of jobs that pay $250,000 per year because they can no longer cope with the constant stress of doing everyone else’s jobs. That’s a lot of money to walk away from, demonstrating the increasing severity of this situation. 

It’s About Retention 

It’s incredibly short-sighted to keep working those employees who chose to stay to a breaking point, while keeping them at below market salaries. It’s time for employers to shift some of that focus from securing new talent to securing the talent they already have. If they don’t, they will never find the right balance, as those who chose to stay before will likely soon also leave. According to Harvard Business Review, “employers need to recognize that it takes significantly longer to recruit someone than it does for them to give their two-week notice and depart.”  

Increasing retention can come in many forms, including: 

  • Incentivizing loyalty 
  • Providing opportunities to grow 
  • Elevating the company’s purpose (and communicating it with the team) 
  • Prioritizing culture and connection 
  • Investing in taking care of employees and their families 
  • Embracing flexibility 

Further, while we are at a time when there is increasing emphasis on Environmental, Social, and Governance (ESG), we cannot decrease emphasis on the health and welfare of our employees. It is counterintuitive to work on ESG initiatives while the company is short-staffed and burning out the employees they have.  

A word of advice … 

  • For Professionals. Know your worth!  Do your research and ask for a raise with your current employer or seek a new position in this market to increase your salary. 
  • For CEOs. Retain the talent you already have by treating them well! Pay more attention to the professionals you already have on staff than those you are attempting to get on staff.  

The Great Resignation may have been considered empowering for those who were taking a stand, demanding more, and walking out the door. But for those chose to stay, it has been anything but empowering. And the resentment and exhaustion they feel isn’t going away anytime soon.  It’s time for decisive action now to retain those who remain. 

Barker Associates has extensive experience as an outsourced CFO. If you need assistance, or have any other questions, please click here to schedule a 30-minute consultation at a rate of $100. 

2021’s Great Resignation

2021’s Great Resignation 

Mindy Barker | Barker Associates

We are all fully aware of how the pandemic affected the labor market last year. In March and April of 2020 alone, more than 20 million workers lost their jobs, with many of them remaining out of work for months or longer. The economy was clearly crashing, and then, very tentatively, started to ascend earlier this year.  

While we may have thought that was the end of it, we’re seeing it was only the beginning of the pandemic’s effects on our economy. Somehow, within a year’s time, the leverage shifted drastically from employers to employees. In fact, I recently read a Washington Post article reporting that a record number 4.3 million people quit their jobs in the month of August alone.   

The Whys of the Resignation Letter 

One of the things that struck me most is that over the past twenty years, when we’ve experienced higher numbers of employees resigning, there was also higher confidence in a very strong economy, providing the cushion most people need to risk the security of their regular paycheck. It typically does not happen in a volatile and unpredictable economy or during challenging times fraught with unknowns.  

It made me wonder how we went from millions of people out of work, scrambling to find any job to now 2.9% of the workforce leaving those jobs in under a year. It seems that when the pandemic shook our mindsets in countless ways, it completely revamped how we view our jobs, or lack thereof. And questions abound – Is it that there are other opportunities out there, with better pay? Is pay no longer as prioritized because people are searching for something more fulfilling? Are people more restless now?  

There are indications that it is some combination thereof. This is coupled with the fundamental shift in employees’ thresholds for what they will, and will not, deal with as it relates to work. Most have become accustomed to working remotely, and as such, are not as willing to partake in stressful commutes or long hours. Others are taking a more scrutinizing look at what they are being paid compared to what they feel they are worth. Still others continue to have direct pandemic related issues, such as concerns over safety, healthcare, and childcare for their children. Whatever the reason for the shift, the data demonstrates an abundance of confidence among employees and stronger bargaining positions overall. 

Additionally, the employees that continued to be employed last year, who often worked with a skeleton team (or no team at all) are completely and utterly burnt out. For a year, they carried not only their own weight, but the weight of their absent team members, trying desperately to help sustain their company in any way they could. They’re exhausted. And they want (and quite frankly, deserve) to be appreciated. Unfortunately, some employers haven’t handled those situations post-pandemic as well as they should have, causing those loyal employees to search for greener pastures where they will be appreciated.  

Is It a Matter of Supply and Demand? 

Regardless of the reason though, there were a reported 10.4 million job openings at the end of August. And plainly, that’s a lot of leverage for employees looking for “something else.” Maybe it all comes down to Economics 101 – Supply and Demand. The supply of well-paying jobs is outnumbering the unemployed, and employees are, whether consciously or unconsciously, reevaluating their options.

One thing is for sure – we haven’t seen the full effects of the pandemic on the workforce yet. It remains to be seen when the leverage will balance out, causing more stability. In the meantime, many employers are reacting with increased pay to try to find and retain qualified candidates. They are also (or should be) investing in retraining and skill analysis for their employees, who need new skills to work in the hybrid model for which so many employers are opting. 

Barker Associates has extensive experience in helping corporations shift and maintain alignment with the changing needs and requirements of the economy. If you need assistance, or have any other questions, please click here to schedule a 30-minute consultation at a rate of $100.  

The High Cost of Poor Leadership

Mindy Barker | Barker Associates

We talk a lot about leadership and how strong leadership is required for success in any organization. Strong leaders guide the company and the team along the mission-paved path, leading to the alluring vision of what the company will be one day. Strong leaders are confident enough to help grow skills in others without being intimidated. They can also manage various personalities and determine the strongest course of actions. But what happens when there is poor leadership? Is it just a matter of not liking the boss, or are there more dire consequences? 

Think back to a time when you worked for a manager who didn’t know how to manage, was irritable, gave no direction, had unrealistic expectations, etc. You probably dreaded going to work every day. Maybe you even quit your job – a job you actually liked – because you just couldn’t stand working for this person one more day. You may have gotten out of a bad situation, but what effect did your leaving have on the company you worked for? 

The Real Costs of Poor Leadership 

Most people don’t realize how much poor leadership costs an organization. There are the more obvious financial implications caused by poor leaders such as bad decision-making, higher expenses, and lower revenue from an operational standpoint, but what about the cost in terms of the staff? Bad leaders can cost companies millions of dollars a year by negatively impacting employee retention, customer satisfaction, and productivity. The health of the team can quickly deteriorate right alongside the financial statements. 

Bad leadership comes in many forms, but having poor communication skills is one of the worst. When leaders don’t know how to communicate effectively, they can’t adequately direct employees. Consequently, employees don’t truly understand the mission and vision of the organization and have difficulty visualizing their own goals. Instead, they become methodical in their accomplishment of tasks, with no innovation or stake in the outcome. This can lead to unmet deadlines, a reduction in productivity, and unhappy customers, all ultimately leading to a toxic environment and high staff turnover. 

Staff turnover is more than inconvenient; it is extremely costly to a company. With additional exit interviews, followed by interviewing, hiring, onboarding, and training new employees, constant turnover can directly affect the bottom line. Statistics show that 57% of staff leave a company because of their boss. That’s more than half of the staff. Further, each staff turnaround costs an average of $5,500. So, in an organization of 100 employees, that costs the company $550,000 in staff turnover alone.  

At the end of the day, bad leadership causes damage that is difficult to repair. It incurs higher costs for a company and lower profits. But the good news is that being proactive can help eliminate these risks. Be aware of the following signs of poor leadership before an employee you value walks out the door:  

  • disengagement by employees,  
  • lack of cohesiveness among the team,  
  • decrease in productivity, and  
  • poor morale.  

You might consider instituting employment surveys and manager reviews to help spot these signs faster. But remember nothing is a substitute for truly listening to your employees. And once you spot a problem, keep in mind that it is only half the battle – you also have to address it. And that may mean firing or reassigning a poor leader for the larger benefit of the whole team.  

You can also prevent bad leaders from developing by investing in your future leaders. Provide meaningful opportunities to learn and improve leadership skills to even entry-level employees who show initiative and promise. A small investment at the outset can lead to improved staff retention, which leads to increased productivity, profits, and success. Remember the adage, “employees don’t leave companies, they leave managers.” Keep your employees around longer by developing managers they actually want to work for.  

Barker Associates has extensive experience in leadership issues and their overall effect on the team. We can assist in determining effective solutions that will help your team stay engaged and onboard. If you need assistance, or have any other questions, please click here to schedule a 30-minute consultation at a rate of $100.