%20(1).jpg)
When someone has been with your company for decades and announces they are going to retire, it’s a big event which needs to be handled more seriously than a routine replacement. Finding this colleague’s successor can have monumental impacts on your organization, so preparing to replace this person requires more rigor and due diligence than most other hires. The first thing to think about is immediately starting your search.
Let’s assume this colleague gives a 12-month notice before their retirement. At the very least, you need to start the hiring process three months in, giving yourself three months to hire and six months for this person to train with your outgoing employee. Your tenured employee will need to transfer decades of their institutional knowledge to the new person. This isn’t just about day-to-day activities, but also where the bodies are buried, how things truly get done, and what landmines to avoid.
The interview process will be more drawn out and methodical, requiring multiple in-person meetings with all levels of management. Additionally, introductions to staff members who will be supervised by this new employee will also be warranted. If this individual is taking over a department, the culture fit must be vetted not just by management but by those who will be with them eight +hours a day. This is why you should start your search much earlier than you think. The standard two-week notice period does not work. Each new person that becomes involved in the hiring process adds an additional week to the timeline. People take vacations, their kids get sick, deadlines pop up from nowhere, and suddenly the time you thought you had has run out. And perhaps to make matters worse, the candidate you assumed was a shoe-in takes another job. The initial search start is now over and you have to start again.
Stay ahead of these speed bumps and start now.
The answer to the question you might be asking as you read this is “yes,” you will have overlapping payroll for the time period when the new person starts and the outgoing person leaves. But remember this is worth the added cost in order to achieve the most seamless transition possible. You would rather have overlap than nothing, but some choose nothing to save money. If you take the cheaper route, your new colleague enters on day one to a complete mess instead of a calm, controlled situation. Evidence taken from many exit interviews has specifically mentioned the onboarding and training processes as major factors in success at the job (and why they are now leaving). Put in the extra time and effort to begin your search early and your organization will thank you later.
To learn more about how HHM Talent addresses hiring challenges faced by their clients, including those of replacing long standing employees, reach out to Joe Arrigo at jarrigo@hhmcpas.com
%20(1).jpg)
Sometimes you can take an old idea and apply it somewhere it’s never been tried, resulting in something fresh and new. In the CPA industry - and in the broader professional services industries in general - fee structures have generally been designed using “per hour” rates. These structures are, in essence, selling your time, and are built around some sort of fixed fee, project-based model but still designed with an hourly rate in mind. This has been the standard way to evaluate cost, efficiency, profit, and all other key performance indicators.
On the contrary, in the talent agency world, the standard operating procedure is to charge a fee based on a percentage of the first-year salary of the candidate you hire. Normally, this fee is around 25-30% and is usually a fixed amount. Companies generally play ball as alternatives do not really exist. In some ways, the pricing model across the recruiting industry could be an example of price fixing, something we see prominently in the airlines and real estate industries.
What HHM Talent has done is apply the traditional hourly billing method to the talent agency space. Clients appreciate this approach, especially when you consider the actual time it typically takes to fill a position.
Let's take an example of what a 25% fee will cost for a management level accounting position. A Controller on the market now will typically cost $125-$150k. Taking the lower end of this range, 25% of $125k is a fee of $31,250. One may argue that the value of this hire is worth $31k, but the mental gymnastics to make it make sense consistently can be taxing.
HHM Talent typically takes 15-20 hours of real time to hire a candidate for any position. In the previous example, if you take $31,250 and divide it by the high end of the range - 20 hours - you are paying $1,562/hr. Even if you are hiring for a role paying $60k, you are paying at least $15k or $750/hr. It starts to make less financial sense once you slow down and think deeply about the cost versus the value.
The goal of any professional services firm, be it a CPA, lawyer, or talent agency, is to establish a partnership that grows over time. Talent agencies do themselves a disservice by charging steep fees, as the relationship feels lopsided and uneven.
Evaluating all your hiring options is part of being a good steward of your company’s finances by not allowing your bottom line to suffer at the hands of excessive fees. By exploring forward-thinking options like HHM Talent, your company’s resources are used to not only fill a vacant position but also to establish an ongoing relationship with a talent agency committed to your recruitment needs beyond today.
%20(1).png)
Dealerships that experience turnover in the Controller position point to three specific factors:
Technical skills can sometimes be the reason a Controller doesn’t work out, and for a smaller organization with less resources to train and a short runway to get up to speed, technology may be a dealbreaker. While it’s true that knowing the DMS is crucial, that is a piece that most experienced Controllers can learn quickly and is not the reason a Controller doesn’t succeed.
The day-to-day duties of a Controller might change depending on the size and scope of the store or group, but often these duties are very similar across the board.
The degree to which a Controller is compatible with the personality of the owner and their accounting team, along with their ability to handle the pace of the role, will determine whether or not they stick.
Pace and technology are intertwined because adapting to new technologies is a perpetual task. A new CRM for leads, a new fixed operations tool, a new warranty platform, or a new customer satisfaction solution—there is a constant stream of getting up to speed on new tech.
The size of the store, the ownership complexities, the number of real estate entities, and the pure volume of units sold will all factor into the culture of the organization.
A Controller that comes from a large dealer group might have a vastly different work style than a Controller from a single owner or buy here/pay here store. A Controller from the Northeast might not be compatible with a store in the Deep South. These are legitimate factors in considering the right Controller.
Ultimately, finding a Controller that fits your organizational personality and maintains an ability to adapt to new technology, is what all owners want in a person tasked with the financial health of their stores.
HHM Talent knows our clients and the dynamic of each office environment. We are consistently successful in finding Controllers across the United States. To learn more about working with HHM Talent, please reach out to Joe Arrigo at jarrigo@hhmcpas.com or 423-702-8152.
.png)
.png){kind=spacer}
.png){kind=spacer}
.png)