By Ritesh Patel, Aston Carter Practice Lead, Accounting and Finance
Uncertainty Makes Cost Containment More Important
Financial leaders are grappling with uncertain economic conditions. Inflation, high interest rates, supply chain challenges, growing costs around employment and uncertainty leading up to the upcoming U.S. election have made cost containment strategies a top priority for many finance executives.
However, focusing on cost containment doesn’t mean deprioritizing growth. Instead, business leaders must consider which of their business functions and investments are the most critical. This will allow them to focus on initiatives that are most likely to help generate revenue while maintaining ways to support all other business areas.
Exploring New Ways of Working
To contain costs while continuing to grow business, leaders will need to make decisions about how to best improve operational efficiency. This may mean weighing the pros and cons of implementing new systems, realigning tasks and functions, and deciding whether to backfill open positions or revamp organizational structures.
Timing Business Transformation Efforts
Many companies are considering the right moment to invest in capital projects, upgrade their systems and refine processes. These initiatives can boost revenue and save time — cutting-edge systems can improve efficiencies and, in some cases, even reduce the need for some staff through automation.
On the other hand, business transformation efforts can come with a high price tag and often include disruptions to day-to-day operations. Revenue growth and returns on investment may also not be seen right away.
Digital transformation initiatives are often in a company’s best interest. However, leaders should consider whether investing in business transformation this year will boost the bottom line, or whether it is best to hold off a few quarters.
Deciding Whether to Backfill Positions
Years of a competitive labor market have left some companies with positions they can’t fill. Others who over hired during the COVID-19 pandemic now find themselves reducing head count to streamline and reduce costs. Both instances leave teams with missing members and work that still needs to be completed on time.
Backfilling these positions can keep teams running smoothly while reducing the burden of an increased workload on other employees. However, the costs of recruiting, hiring and training employees are steep, and reducing head count is often an effective cost management strategy.
The solution may be to consider an organizational transformation.
Prioritizing Organizational Transformation
Some of the key factors companies are assessing during organizational transformation efforts are looking at how to do more work with fewer resources while still ensuring employees and business initiatives are supported. This involves creating efficiencies whenever possible, whether through technology implementation, process reengineering or organizational chart changes.
For some, this may mean looking to automation to take on repetitive tasks, freeing up time for employees to focus on higher-level projects. Leaders can also work with their teams to see how position responsibilities and workloads can be distributed differently to require fewer full-time staff. This can leave space for support through temporary staffing solutions.
Supporting Cost Containment with Temporary Staffing
Temporary staffing is an effective cost management strategy to support both short- and long-term business initiatives.
For companies looking for support during busy seasons, a staffing partner can quickly find and hire the niche skill sets needed, no matter how in-demand. This relieves the pressure to backfill and instead helps companies improve operating efficiency by keeping a leaner year-round team and bringing in extra or specialty support only when needed.
Support can also be brought in for specific projects or initiatives, like business transformation efforts. Temporary staffing can help keep day-to-day operations moving during implementation periods. Subject matter experts can also be brought in to consult on integrations and processes.
Temporary staffing can also bolster long-term goals. Companies in rapid growth mode may not yet know the full range of skill sets they need in the future. Temporary staffing gives them the agility and flexibility to increase or decrease head count quickly while investing in the right skills at the right moment.
A Staffing Partner With Customized Cost Containment Solutions
Working with Aston Carter can give you access to an expansive pipeline of national and local talent. Our network allows us to source the most in-demand skill sets, including corporate and operational accounting, financial reporting, financial planning and analysis, data analysis and shared services experience, among others.
We offer customizable solutions that can be tailored to your needs, from placing talent during ramp-up seasons to sourcing subject matter experts or project managers for larger business transformation initiatives.
Aston Carter is a cost-effective alternative to large consulting firms with access to similar and, in certain cases, better talent to help solve our customers’ business problems while facilitating the successful completion of our clients’ most important projects and initiatives — on-time and with cost effective solutions.
Contact us today to find the talent you need to support your cost containment strategies, reengineering of process and responsibilities, or improving operational effectiveness.
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