WHY SOFT SKILLS CAN’T BE OUTSOURCED

While U.S. payroll growth for July was lower than expected, it is still solid and points towards a soft landing ahead. Regarding employment, there are some things that you can expect for the rest of the year, and it’s not all bad. Accounting and finance hiring will remain robust, as companies need people to keep track of and manage company finances.

Something that Upside Management has reevaluated is the continual increase and need for interim staffing by companies. In the past we viewed this as a possible indicator and precursor to a strengthening in overall hiring. During the recession companies relied heavily on interim staffing to control costs and test the economic waters before hiring full-time. We believe the increase in demand for interim staffing is more than just an indicator of change but a fundamental shift in the makeup of our workforce. Because companies are running leaner these days, they are increasingly needing to rely on interim staff for their complex finance-related projects and continue to use contractors for strategic projects, particularly during month and quarter-end close. Specific types of positions and skill sets we expect to see demand for are Compliance, Technical Accounting, SEC Reporting, International SEC Reporting, especially projects related to International Financial Reporting Standards (IFRS), and Revenue Recognition.

In this competitive environment, for a company to have a good hiring methodology in place is more important than ever. Make sure you understand who you are hiring. Bad hires can cost companies a lot of money. The loss can equate to several times an employee’s salary. From wasted training to lack of production in critical areas, bad hires can be destructive to a company’s growth. However, as we mentioned in our previous blog post, in connection to full-time hiring, but good hiring practices are also essential when you go out and contract consultants that you rely on to lead essential projects or bring in expertise that you don’t have internally.

Soft skills are in more demand than ever but remain elusive to quantify. These encompass interpersonal skills such as team building to having sound judgement (aka critical thinking) to personal drive (aka business development skills). Companies are now spending money to figure out who has these coveted skills and how best to retain them.

Like technical skills, soft skills can be learned. While some people may naturally be more proficient than others, everyone can improve their interpersonal communications skills and foster an improved team atmosphere. Companies often have programs to improve teamwork with current employees, but now companies are increasingly focused on only hiring people that have highly developed interpersonal skills and the work ethic needed to be successful.

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