CFO’s for Rent? The Cost of Outsourcing High Level Exec

This article is from the archives of the Wall Street Journal, and while a trend in recessionary times, it might be more true today.  What do you think?

For Rent: Chief Financial Officer
Firms Outsource a Top Job as Cheaper Than Hiring Their Own Executive

Updated Sept. 22, 2009 12:01 a.m. ET

This past year, Al Lovata, chief executive of Be Our Guest Inc., cut expenses for his party-equipment rental business by laying off staff and reducing workers’ salaries. He credits an “outsourced” chief financial officer with helping him prepare for the worst of the economic downturn.

for rentThe Boston-based company had sales growth in the double digits for the past few years, when revenue fell flat last fall. Now, thanks to the part-time CFO’s guidance, the company is stable with revenue down 20% to 30%, but profitability higher than in the previous months, he says.

If we hadn’t had this service, “we would still be struggling,” Mr. Lovata says.

Some small-business owners in need of accounting help to balance their books and guide them out of a financial black hole are renting CFOs rather than hiring them. The strategy comes at a time when the deep recession has forced small companies to look for money-saving alternatives that can yield good returns yet avoid substantial overhead costs.

Read more

Benefits of Being a Contract Employee

Why do you choose to work on a contract basis? There certainly are lifestyle benefits that seem to outweigh the seemingly dwindling employee benefits like healthcare. Read this from eHow.com and tell us what is the number one benefit for you?

By Lucy Friend, eHow Contributor

A contract employee typically works for one or several organizations on a project or temporary basis. Many employers hire contract employees to supplement their staff for a variety of reasons.

Flexibility

  • Because businesses often hire contractors for temporary projects, they offer some flexibility with work schedules and locations. Many contractors work from home, and visit their clients periodically to report their progress.

Higher Wagesmoney

  • Because a contractor is not an employee of an organization, benefits such as health insurance and paid vacation are not offered. Employers may pay higher hourly wages to contractors because they have no additional costs and the commitment is short-term.

Commitment

  • A contractor is not committed to an employer after the assignment, or project, is completed, and can find one or several other opportunities while working on an assigned project.

Read more : http://www.ehow.com/facts_5748121_benefits-being-contract-employee_.html

Why It’s Good to Be a Contract Employee

We love this article we found in the archives of ABC.com. It ‘s a great read and still rings true today, maybe even more so.

The other day, a friend who’s halfway through a year-long contract as a technical editor said what today’s temporary workforce is never supposed to say aloud:

“My boss keeps telling me she wants to bring me on permanently, but I’m not so sure I want that. It’s funny how everybody assumes that’s my goal.”

Sure, my friend is thankful to have a decent-paying job this year, especially in the wake of her big, fat, soul-sucking layoff in 2008. But after a couple years of cobbling together a paycheck from various contract, part-time and freelance jobs, she’s no longer sold on the sanctity of shacking up with one employer — despite the promise of 401(k) matching and a group health care plan.

Read more and tell us: Why do you love being a contract employee? What would make it even better for you? We want to hear your feedback!

Contractors: New Year, New Way to Get Hired

We’ve been compared to Monster and iTunes when it comes to hiring temporary contractors for quality projects. Our founder was just like you and decided there had to be a better way to find great projects and to earn closer to what his experience deserved, and not to be negotiated down by staffing agencies.

It’s a new year and VouchedIn is the only alternative that provides contractors everything they need VIHomePage to meet your earning potential/goals and make a comfortable living doing what you love.

Sign up today. It’s totally FREE. There are employers looking for and waiting to hire you, and VouchedIn is known for having the highest quality contractors available for companies in need of temporary finance, accounting and auditing department needs.

Change your life in 2015 by joining VouchedIn and helping us spread the word to employers and fellow contractors. There is room for everyone!

www.VouchedIn.com

Keep Your Temporary Staff Motivated

motivationAccording to a report (PDF) from the National Employment Law Project, the number of U.S. workers working in temporary jobs has reached an all-time high of 2.8 million people.

As the holiday shopping season approaches, your small business might be planning on hiring some temporary workers. But while you’re relying heavily on those temps, they may not feel so passionately about your business. In fact, since temporary workers are often lower-paid than other employees, they might be quite disengaged.

So how can you motivate temporary employees to get the best results? Below are some ideas.

Offer Cash Bonuses

Because of their generally lower wages, temps are highly motivated by money…..Read More

Hiring Accounting, Auditing Help For the Busy Season

For accountants, the New Year means the start of the “busy season”. The busy season means opportunities for temporary contractors hired to fill holes and support corporate accounting teams, and with little time to fill those roles the responsibility mainly falls to temporary employment agencies.

BusySeasonThe big question is whether they really have your best interest at hand. Unlike VouchedIn where you can view, select and hire candidates directly, you lack that opportunity with temporary staffing agencies. Often times, adding a third party into the mix can lead to miscommunication about the available position, skills sets and timeline.

If you’re a company who regularly adds temporary accounting contractors to your staff, you might want to take heed to these tips to ensure you find the right candidates, reduce turnover, stay on hiring budget and ensure you meet deadlines – the three things that increase costs during accounting season.

1. Do you rely solely on the staffing agency’s referrals?  It’s important that you know who you are hiring and feel comfortable with them. You need more than a body to fill a post, you need a skilled professional who can do the job.

2. References are one of the best ways to know whether you are hiring the right professional with the right ethics, and more importantly is the right fit for your team. Before just hiring someone based on a staffing agency’s selection, make the time to find out more and you will save your company, and department, time and money.

3. Double check their background. It never hurts to take a few moments to review a candidate’s resume to make sure they can do the job.

4. Ensure they meet skill demands and time commitment. Your staffing agency should ensure that your candidate meets all of your needs, but it never hurts to ask the candidate yourself to confirm they are truly aware of the position’s demands. Many times contractors will apply for a job and be recommended to you without actually having all the skills and availability required.

5. Fee equals higher quality and motivation. The primary reason many contractors go through staffing agencies because they have no choice. Their reluctance comes from the fact that staffing agencies take a majority of the fee you’re willing to pay a contractor for their own coffers. In turn, you get fewer qualified, experienced candidates willing to take lower pay for a project, leading to problems down the line for your team. Better pay not only leads to higher quality candidates but happier candidates who do better work.

6. Make them feel part of the team. It may seem as if you have no time to on board your temporary staff members, but it can be one of the most important things that you do, aside of everything above. Even though they are not full-time employees, it is just as important to make them feel welcome and part of your team and company culture. After all, they are just as interested in you hiring them again in the future as you are interested in having the ease of knowing you already have solid and tested people you can count on.

Overall, the better experience your contractors have with your company and department can turn them into brand ambassadors. The alternative is one that many companies fail to consider as an important part of company reputation as fodder at a weekend BBQ.

In turn, relinquishing all control to a staffing agency is not in your best interest and can cause more stress than necessary during an already stressful time. it only takes a a short amount of time to take the power back to verify and certify you are getting the right talent.

The Hidden Expense CFOs Are Overlooking

Smart CFOs understand the benefit of working with temporary workers to help supplement departments for specific project work, and this trend is still growing.  You think you’re saving money for opting to outsource and reduce employee costs, but are you really aware of the hidden costs in this strategy?

Turnover2The same impact that traditional employee turnover has on a company (read this article) are the same when it comes to finding the right independent contractors to work on your projects. You believe you’re saving money outsourcing and using a staffing agency to do so, but what happens when the candidate contracted ends up being the incorrect candidate? Budgets to hire increase, project deadlines get pushed back and employee time spent onboarding new contractors increases, decreasing their productivity.

Meanwhile, your staffing agency just keeps taking your money and putting a warm body in the position.

It’s time for a new and innovative way to hire finance professionals for seasonal and project work.  VouchedIn contractors are all background checked and “vouched for” through reference checks.  We guarantee that you will find the right contractor, meet project deadlines and save money.

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