Employees are the biggest pillars of strength for any organization. However, the modern-day workforce has evolved. They do not want to be stuck to a 9-5 routine, and they are inclined towards just performing a set of tasks. They are ambitious, they want to achieve more every day. Regardless of their size or industry, businesses need to build a workforce that is in sync with the organization’s goals and vision. To ensure this and to empower them, taking care of their physical and mental health, and overall job satisfaction is imperative.
Accounting jobs are high-pressure ones, they demand a lot from professionals. Long hours and seasonal workload influx are common problems that lead to frustration and burnout. There is no doubt in the fact that this dynamic industry requires some additional help. And that is why, there has been a significant rise in outsourcing across the industry.
However, there are still some apprehensions about the impact of outsourcing on employee morale. One of the most common lines of thought is that when certain tasks are outsourced, it can decrease the perceived value of employees within the organization. When essential functions are outsourced to a service provider, they might question the significance of work in the large context of the company. They might feel stagnant and lack the motivation to invest their time and effort. But how far is this apprehension true and what is the reality? Let us delve deeper.
The apprehensions and reality:
- Loss of job:
Apprehension:
Most accounting firm leaders fear that outsourcing makes way for job losses. It leads to creating an uncertain situation about their future.
Reality:
Outsourcing can lead to restructuring, but it hardly leads to job losses on a massive scale. Outsourcing routine and administrative tasks allows teams to focus on core jobs. When leaders communicate clearly about the outsourcing strategy, it can help reduce the fears and treat the outsourcing teams as an extension of the internal teams.
- Reduced job satisfaction:
Apprehension:
Employees may worry that outsourcing will increase the workloads for the outsourced teams and their roles will be diminished, resulting in reduced job satisfaction.
Reality:
Outsourcing is not about taking away the current workforce’s job, it’s about supporting tasks that take away their valuable time. Modern workforce do not want to perform repetitive tasks, they want to do something meaningful. Offloading mundane work to outsourcing providers allows firms to use their teams for strategic and fulfilling roles. Explaining new roles clearly after the transition can boost the employees’ morale and make them feel valued. As a business leader, if you have decided to outsource, it is key to keep your teams involved in the decision-making process. Merely letting them know the progress and whereabouts is enough to keep them at peace. Firms can involve their employees in discussions about outsourcing plans and provide regular updates. It helps build trust. If the internal teams are too worried, offer support, and training programs and help employees navigate the changes confidently.
- Uncertainty and anxiety:
Apprehension:
The uncertainty around the outsourcing process can create a lot of anxiety and stress among employees, negatively affecting their morale. They are under constant pressure to prove themselves more than before.
Reality:
As a business leader, if you have decided to outsource, it is key to keep your teams involved in the decision-making process. Merely letting them know the progress and whereabouts is enough to keep them at peace. Firms can involve their employees in discussions about outsourcing plans and provide regular updates. It helps build trust. If the internal teams are too worried, offer support, and training programs and help employees navigate the changes confidently.
- Impact on career growth
Apprehension:
A common concern among accounting firms is that outsourcing limits opportunities for career growth and professional development in the firm. When they hear about outsourcing, they tend to look outside for better opportunities. Employees may fear that outsourcing will lead to many changes – both operationally and culturally. They feel that outsourcing will change how things are, making it difficult to adapt.
Reality:
Outsourcing can open up avenues for career growth. It is one of the key ways to enable employees to take on more strategic and complex roles. Firms can create opportunities for professional development by offering training and upskilling programs. Outsourcing your tasks also frees a lot of time, enabling them to focus on career growth and development. While outsourcing can bring many changes, these transitions are managed by the firm leaders. They already have a set organizational culture that was built, keeping in mind the needs of the internal teams. Emphasizing the firm’s core values, fostering collaboration, and promoting a positive work environment can help mitigate the impact of cultural and operational changes.
How can outsourcing help improve employee well-being?
Unlike the popular belief, outsourcing is, in fact, an important tool that helps improve employee morale. Let us understand how this business strategy helps boost the overall well-being of employees:
- Reduce workload burden:
Outsourcing can help offload time-consuming and non-core tasks to experts. Outsourcing partners have a team of specialists who can take on the voluminous work, leaving the in-house ones with just the core responsibilities. The alleviation of unnecessary pressure and stress directly improves the employees’ mental and physical health by fostering a healthy work-life balance and reducing frustration and burnout. In-house employees can align better with their passion and expertise, leading to increased job satisfaction.
- Improved job security and stability:
Outsourcing can not only improve job satisfaction but also aid in overall job security. Outsourcing decisions, unlike what people like to believe, leads to retention of critical in-house roles, while externalizing non-core, voluminous functions. This impact often instills a sense of job security among employees who hold important positions. They also get increased flexibility as well as a reassurance that their expertise is indispensable.
- Access to specialized resources:
By outsourcing, accounting firms get access to a global pool of talent with specialized resources and cutting-edge technologies. These expertise are often beyond what the in-house teams can develop. This availability of expertise and tools can help empower employees by allowing them to streamline operations and do their jobs better. It also helps improve job satisfaction and confidence in their abilities.
- Improved work environment:
One of the key benefits of outsourcing is that it helps reduce operating costs. These costs saved can be reinvested in creating a better workplace. Employers can also allocate resources to improve physical workspaces, conduct learning and development programs, and offer professional development opportunities. The improvements and practices can have a profound impact on morale and well-being. It helps leaders build a supportive and engaging work environment.
The impact of outsourcing on employee morales – End Note
The apprehension that outsourcing harms employee morale is a concern for many firms. However, with the right strategies and practices, these fears can be tackled. Maintaining transparent communication, involving employees in the transition process, focusing on career development, and maintaining a positive culture works in favor of employees, rather than against them.
Outsourcing is not just about replacing employees, it is also about optimizing operations to serve clients better and scale the business continuously. Want to outsource your accounting functions to improve your employee morale and boost business performance? Write to us at connect@finsmartaccounting.com.
Director Growth Strategy & Alliance
Maanoj Shah is a finance and outsourcing expert with strong Business Strategy and Scaling-up experience. Over the last 20 years, he has incubated multiple businesses and helped build global enterprises in verticals as diversified as hospitality, technology, and healthcare.
