Staff Impact on Succession Planning By Mark Holton on Dec 9, 2022
Many accounting practitioners would agree that it is becoming increasingly difficult to attract and retain good staff that can assist not only in compliance procession but also in business advisory service delivery. There is increased reporting on the skills shortage in various industries and there are no immediate signs that this is going to change. So how important are key staff to your firm?
A lack of suitably qualified, motivated staff is a major issue restricting the growth and security of many businesses. This has several significant adverse implications. If not managed, it will adversely affect your business, your lifestyle, and consequently your exit from the business. These implications include:
- Difficulty in attracting new staff
- Retaining existing staff
- An increase in labour costs
- Less stability in the workforce
- Increased stress for the business owner
- Commercial opportunities are foregone
- Business owners spending more time on staff and less time on clients
Without good staff, you are unable to grow your business and your business will remain owner reliant. Both of these issues will adversely affect the value of your business and hence the quality of your retirement lifestyle.
It is critical for every succession plan to include strategies for staff recruitment and retention. It is also vital that staff are committed to contributing to the objectives of the business
Staffing issues that need to be considered when strategising your succession plan include:
- Effective use of staff
- Future Ownership
Clearly, key staff play a major role in your succession. Firstly they determine the value of your firm. Secondly, they provide an excellent ‘pool’ from where your future successor may be sourced. An effective Staff Incentive Program will focus your staff on growing the value of your firm, retain your staff and provides an excellent building block for your business succession.
Mark is an expert in helping accounting firms optimise practice management. If you would like to set up a complimentary 45-minute practice management assessment, please contact us.