Can outsourcing help your organization neutralize rising labor costs?
With the labor market shrinking and wages increasing, nonprofit organizations are currently facing several issues when hiring for key finance, accounting and information technology (IT) roles. Hiring and retaining qualified talent is already highly competitive, and organizations must have a plan in place for these critical functions. An outsourcing strategy can help nonprofits address staffing concerns, while also controlling costs, leveraging experienced resources and focusing internal employees on the core mission.
Accounting, finance and IT require specialized knowledge to understand and implement evolving technology and enhanced business processes. Unfortunately, due to budget constraints, many nonprofits may not be able to afford enough in-house resources. As a result of these trends, organizations must consider new strategies to improve operations, manage risks and regulations, and ultimately increase success.
In the past, nonprofits may have avoided outsourcing because of negative perceptions about losing control or quality. However, the strategy has evolved greatly in recent years, and can help organizations quickly become more strategic with qualified resources that understand the intricacies of the industry, technology strategies and finance and accounting processes and reporting. While outsourcing may begin as an initiative to cut costs, today’s providers can recruit and retain better talent than many organizations, due to effective training programs and the attractiveness for employees to work in several settings and scenarios.
Your organization can benefit from this experience, and should at least evaluate the potential of outsourcing strategies for your critical accounting, finance and IT functions. And the cost component cannot be ignored, as you can take advantage of fractional employees from an outsourcing provider that are more cost-effective than full-time employees. In addition, outsourcing can help you become a more proactive organization, implementing best practices and systems and aligning with current trends to enhance decision-making and flexibility to grow your organization.
For more information on how outsourcing strategies can support your success, read RSM’s recent article, Utilizing outsourcing to counteract rising labor costs. In addition, make plans to join RSM’s nonprofit specialists for a webcast on Wednesday, March 1 at noon EST. During the event, we will discuss how increasing labor costs are affecting the industry, how to drive innovation through strategic outsourcing partnership and developing best practices in outsourcing models and approaches. Register for the webcast now.