27 March 2023

Protecting Against A Recession: Why Knowing The True Cost Of Staff Is More Important For Businesses Than Ever

As a business owner, you’re no doubt aware that we are potentially staring down the barrel of an impending recession. Right now, it’s extremely difficult to predict what the next 12 to 24 months will hold for the Australian economy, and indeed, the global business landscape. For this reason, businesses like yours need to be more mindful of operating costs and the allocation of resources – especially when it comes to the recruitment and management of your Finance team – and resourcing alternatives, such as Dexterous, may help you to do just that.

How does this protect a business against an impending recession?

We’ve previously outlined the Dexterous Difference for businesses before, and we’ve discussed exactly why working with Dexterous can be a more effective option for your business than hiring an internal or external Finance team. Today, however, we want to take this one step further. We’re going to break the Dexterous Difference down in greater detail – and in the context of the current market – to help demonstrate both the cost and time-saving benefits that you can get from working with Dexterous, especially as we enter a long period of economic uncertainty.

The current state of the typical Australian Finance department

Right now, Finance departments right around the country are struggling to fill their vacant positions and hold onto their staff. Even where they can, these finance employees are becoming more and more expensive to train and upskill, and managing them is becoming more time-consuming and frustrating by the day. This is all before we even consider that we’re about to potentially enter another recession, and things are unfortunately only going to get worse before they get better. With all of this combined, the process of building a Finance team in the modern workplace has become an extremely challenging task. Not only is it costing businesses like yours more money, but it’s also costing much more time as well – time that should be devoted to weathering the impending recession storm.

How much is your Finance team really costing you?

Your Finance team is an extremely important part of your business, but have you ever considered just how much every individual is really costing you? And we’re not just talking monetary costs either. In Sydney, the average Finance Manager will set you back around $120k per annum. Seems reasonable, right? However, let’s look at all the additional ways your internal Finance Manager is costing your business, on top of their salary:

  •       Recruitment costs
  •       Super (@ 10.5% = $12,600 p.a.)
  •       Payroll Tax
  •       Laptop/equipment costs
  •       Rental costs
  •       Entertainment
  •       Ongoing Professional Development

But that’s not all. Often, businesses only consider the tangible and financial costs of recruiting and managing an internal employee. But what about those intangible costs that also have an impact on your time and resources? Things like:

  •       Internal discussions around resourcing
  •       Preparing and posting a job ad
  •       Reviewing and short-listing candidates
  •       Interviewing candidates
  •       Making an offer
  •       Drafting contracts
  •       Waiting for notice periods
  •       Onboarding
  •       Training and development
  •       Performance management
  •       Engagement
  •       Ongoing management oversight

All of a sudden, when you put all these things together, your Finance Manager isn’t just costing you $120k – they’re costing you more like $160k – $170k!

So, what is our Dexterous Difference and how can it work for you?

Here at Dexterous, we offer a Finance department resources solution for your business. We can provide you with the resources you need without the financial and time-based burdens of recruitment and management. To help demonstrate our difference, let’s consider the following: Acquiring an adaptable Finance resource with Dexterous may cost you around $80k – $90k per annum for a customised solution. When you consider that an internal Finance Manager is only around $120k, it may not seem like much of a difference. However, when we dive deeper – as we have above – you can see that the differences really begin to stack up. If a Finance Manager now costs you anywhere in the ballpark of $160k – $170k, Dexterous can save you almost 50% when looking to equip your business with a Finance solution! Not only that, but Dexterous will also take care of all the other financial, time and resource costs for you. We manage recruitment, onboarding, training and performance, while ensuring that your business always has access to the talent that you need to run your Finance department.

Dexterous can help you to stay focused on what matters most in your business – recession or not

With our frictionless, seamless and scalable Finance Department solution, your business no longer has to worry about the most common challenges such as recruitment, retention, upskilling or key person risks. This is especially important during a recession, as it allows you to focus entirely on getting your business through to the other side, rather than having to manage a challenging workforce and replace key staff members during an economic downturn. With Dexterous, you can build more depth and flexibility into your Finance department today.

Want a reliable financial department to help guide your business through the recession?

At Dexterous, we go far beyond virtual bookkeeping and external accounting services. We provide a turnkey managed finance solution that works for you through a financial, operating and growth lens. This means that we leverage all the latest business tools, access global talent and support your financial department with the local expertise of our Sydney team.  We also equip you with a strategic approach and cost-effective function to help you manage the challenges of a possible global recession so you can thrive and achieve more growth in the future. Reach out to Dexterous and transform your finance department today. For more information, get in touch with us today or connect with us via LinkedIn.