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The prospect of hiring new personnel can be terrifying. It’s large investment with a substantial
amount of risk. According to Mercer’s 2015 Turnover Survey, in 2014 the average involuntary
turnover rate in the U.S. topped 6%, while voluntary turnover topped 13%. That means about
1/5 of all workers leave a company in a given year. According to the Society for Human
Resource Management (SHRM) it costs an average of six to nine months’ salary to replace an
employee.
To give an illustration, imagine hypothetical company ABC Corp. which has 1,000 employees,
with an average salary of $40,000 per year. If the company experiences the average turnover
rate, it will have to replace 200 employees in a given year, and will cost $4,000,000 to
$6,000,000. From this example, it can easily be seen how costly employee turnover can be,
but how can these costs be reduced? One of the major ways to do so is to outsource certain
activities to advisory firm instead of bringing on a new employee.
When to Hire a New Employee
1. If the work requires full time attention – If the work that requires a 40+ hour work week,
then hiring someone is the clear decision.
2. If the position requires the strict management of other individuals – There are
supervisory positions that need the constant attention of an individual. Many lower level
management positions fit in this category.
3. If the task provided requires manual labor – You simply cannot replace a skilled welder
with an advisor. Certain jobs need to be done by an individual in-house, and will always
need to be done that way.
When to rely on an Advisory Firm
1. When the issues being dealt with have a strategic impact – Strategic plans and goals
are what advisors specialize in. They know businesses, what has made them
successful, and what will make them successful in the future.
2. When the work does not require constant attention – Sometimes a company faces
major obstacles, but these problems only arise every once in a while. It is impossible to
hire an employee to effectively cover these sporadic and wide ranging business issues.
Hiring an advisory firm makes perfect sense.
3. When the work is out of the scope of the company – Most companies have something
they are really good at, but not many companies are good at everything. Calling on
experienced professionals to handle certain accounting, finance, marketing, or
operational issues may be the best course of action.
Using these samples as a guideline should give you a better idea of the right course of action
for your business. If that course of action happens to align better with hiring an advisory firm,
you will find yourself spoiled for choices. There are many consulting firms offering a dizzying
array of business advisory services. Here at CS3 Advisors, we have a powerful solution for
your needs.
CS3 Advisors Access-Direct Plan is a unique tool that gives decision makers direct access to
the highly knowledgeable and trusted team at CS3 Advisors. With CS3 Advisors right at your
fingertips, decisions can be made quickly, confidently, and effectively. C- Level support is
provided for any business need, whether it is a solution for a troubled marketing campaign,
help with cash flow planning, or even an annual compliance audit. A CS3 Advisors DirectAccess
Plan gives you the support you need for the important business decisions, right when
you need it.
A team of experienced professionals from varying expertise and backgrounds, we know that
each business has unique problems, and deserves a plan that is tailored exactly to them. We
provide plans that do exactly that. Each client will be provided LinkedIn membership to “The
Boardroom”, an exclusive group that is updated with helpful tips and advice covering a wide
array of business topics, and will be provided a hotline to an experienced professional over a
given topic area. Beyond this, each CS3 Access-Direct Plan provides customized solutions for
any operational area. The major problem areas and a sampling of services under each one
are listed below.
CS3 AccessDirect Plan for…..
Leadership/CEOs:
• CEO Hotline to C-Level Executive
• Annual Review of Business Plan
• Rolling 5 Year Goal Setting
• Periodic SWOT Analysis
Finance/CFOs:
• CFO Hotline to CPA Professional
• Cash Flow Planning
• CPA Firm Coordination
• Attendance at Board Meetings
• Budget Development and Oversight
• Quarterly Review and Strategy Planning
• Customer/Product Profitability Analysis
Controllers:
• Hotline to CPA Professional
Monthly Preparation of:
• Financial Statements
• Cash Flow Statement
• Critical Ration Analysis
• Bank Reconciliation
• Review Tax Reports and Payments
• Financial System Reconciliation
Human Capital:
• CEO Hotline to C-Level Executive
• Annual Compliance Audit
• Compensation Benchmarking
• Employee Engagement Survey
HR Tools Access:
• Personality Profiles
• Background Checks
• Drug Screening
• Employee Assistance Programs
Marketing/CMO:
• CMO Hotline to C-Level Sales Executive
• Development of Annual Marketing Plan
• Facilitate Annual Marketing Budget
• Annual “Online” Effectiveness Assessment
• Customer Satisfaction Survey
• Blended Marketing and Sales Plan
Sales:
• Hotline to C-Level Sales Executive
• Facilitate Development of Annual Sales Forecast
• Facilitate Annual Sales Funnel KPI’s
• Sales Manager Coaching
• Monthly Pipeline Review with Sales Manager
Operations/COO:
• COO Hotline to C-Level Operation Executive
• Annual Review of Operational Activities
• Facilitate Development of KPI’s
• Customer Satisfaction Survey
• Customer/Product Analysis
The scope of solutions that CS3 provides, its adaptability, and its accessibility make it a costeffective
choice for dynamic businesses and business people. So, next time you are faced
with replacing an employee, consider the circumstances and costs. It may be worth it to hire
an experienced team of advisors to fill that gap.