Handling Talent Shortages in Tech Departments

Technology advancement has brought about great digital transformation. Unfortunately, this has come with a global tech talent shortage. IT executives highlight the shortage as a huge barrier to the adoption of emerging technologies, as reported by this Gartner study.

It is estimated that the demand for tech talent will keep increasing, and this could result in an estimated 85 million global talent shortage by the year 2030. Therefore, companies need to rethink their approach to hiring and retention.

Reasons Behind the Tech Talent Shortage

It is worth trying to first understand what is causing the tech talent shortage. A few of the reasons that have led to the shortage include:

  • Advances in technology – Technology is advancing at a high speed, requiring workers with skills to match the new technology. Unfortunately, the tech education system can’t keep up with the speed, hence a shortage of people with the required skills.
  • The great resignation – This became a buzzword with work from home that came with the Covid pandemic; unfortunately, even after the pandemic, people are still leaving their jobs. A survey by TalentLMS and Workable found 72 percent of employees working in tech are considering quitting their jobs or exploring other opportunities.
  • High demand for tech talent – There has been an increase in the demand for tech workers in recent years as more businesses and industries turn to technology for daily operations. New technology creates new roles such as data professionals, data security specialists, and software engineers among others that are highly competitive.
  • Challenges in training and development – some companies might not have the resources and time to invest in employee development.

Business Challenges of IT Talent Shortage

Businesses are feeling the effect of the tech talent shortage, especially when it comes to digital transformation. Emerging technologies such as robotic process automation (RPA), artificial intelligence, blockchain and augmented reality that promise to keep a business ahead of its competition require skilled workers.

Hiring new talent or reskilling employees also comes at a cost, and companies struggle to fill positions. On the other hand, failing to have skilled employees results in unrealized annual revenues.

As a result, businesses of all sizes find themselves failing to develop projects on time and hence fail to meet deadlines. In other cases, the existing employees end up overburdened with too much work, and this may lead to them quitting. Eventually, a business experiences slow innovation and slow growth.

How to Handle the Tech Talent Shortage

A few strategies to help address this issue include:

  • Investing in employee development and training

Providing ongoing training and development opportunities for current employees can help them acquire new skills and knowledge. This will not only make them more valuable to your organization, but also less likely to leave.

  • Attract top talent through a strong employer brand

Building a strong employer brand can help in attracting top talent to your organization. This can involve highlighting your company’s culture, values, and mission, as well as offering competitive compensation and benefits packages. A good reputation will also help attract new talent.

  • Partnering with educational institutions

A company may also partner with local colleges and universities to gain access to a pool of talented students who are looking for internships or entry-level positions. Additionally, setting up mentorship or internship programs helps build a pipeline of talent for your organization.

  • Increase recruitment efforts

Sometimes it might be difficult to find the right talent, which makes it necessary to increase recruitment efforts. This could involve working with recruitment agencies, posting job openings on job boards and social media platforms, and attending job fairs and industry events.

  • Consider hiring remote workers

Even with all efforts in place, it may still be difficult to find the right talent in a business location. Today, technology has enabled people to work remotely. This offers access to a larger pool of candidates and also can help attract top talent from other parts of the country or even the world. It is also possible to work with freelancers or contractors to fill specific skills gaps on a project-by-project basis.

  • Enhance the recruitment process

An inefficient recruitment process will cost the company good talent. Therefore, any poor communication or delayed communication will affect talent acquisition. A company might need to streamline its recruitment process.

Final Thoughts

The global tech talent shortage is already negatively affecting businesses. Since the shortage is expected to rise, business leaders need to decide on the best way forward so they are not left behind in digital transformation. A good decision should fit business goals whether choosing to hire internal talent, remote workers, or outsource technology needs.

Close up of businesswomen or accountant using calculator calculate while working analytic business report on the workplace, Planning financial and accounting concept.

Inventory Valuation: How Companies Can Calculate It

By 2021, there were 20,000 warehouses in the United States and growing, according to the United States Bureau of Labor Statistics (BLS). With more warehouses expected to pop up in 2022 and beyond, one important consideration for businesses of all sizes is to keep track of their inventories. With different tracking and valuation methods, it’s important to understand how they work and what they can tell business owners.

Before inventory can be valued, it’s imperative to understand how it can be expressed mathematically:

Ending Inventory = Starting Inventory + Net Acquisitions – Cost of Goods Sold (COGS)

Now that inventory is better defined, understanding different approaches to inventory valuation are essential to keeping track. The first type of inventory valuation is referred to as FIFO or First In, First Out. This means that businesses sell their earliest produced inventory first and new inventory last.

Assume a company produces 500 widgets on day 1, costing $2 per widget. The same company then produces 500 widgets on day 2, costing $2.50 per widget. This method says that if 500 widgets are sold over the next week, the cost of goods sold (COGS), derived from the Income Statement, is $2 per widget because that’s how much the first 500 widgets cost to produce for inventory. The remaining widgets, 500 widgets at a cost of $2.50 per unit, would be accounted for under the ending inventory on the balance sheet.

One consideration, especially in an inflationary environment, for remaining inventory on the balance sheet is that a business might see a higher tax obligation. This is likely to occur because of higher net income due to a lower cost basis from the older inventory when assessing the COGS. Newer, more expensive inventory will naturally lead to a lower tax basis, especially if inflation falls and the retail cost is mitigated by decreased demand.

The next option is referred to as LIFO – or Last In, First Out. This means that businesses sell what they’ve produced first, then move on to the older inventory. If any inventory is left at the end of the accounting time frame, it’s accounted for accordingly. Assuming the same 500 widgets were sold in the particular accounting period, the time frame’s COGS would be $2.50 per widget, with the 500 widgets left over in inventory valued at the $2 per widget cost. 

One important caveat to this type of valuation concerns inventory that’s perishable or becomes obsolete quickly (cell phones, televisions, etc.). It is not an effective method because the product will either spoil or become worth next to nothing due to highly competitive industries. For this approach, using the most recently produced goods first would lend their COGS basis to be higher. In one respect, the higher COGS basis can lower profits, but can also offset taxes due to the same effect. The third type of inventory valuation is referred to as Average Cost. This method is a way to blend LIFO and FIFO, which takes the average of inventory across all production and storage timelines. This approach averages costs in proportion to the number of widgets produced in each run, then calculates the mean cost to determine the ending inventory and COGS figures.

[(500 x $2) + (500 x $2.50)]/1,000 = ($1,000 + $1,250)/1,000 = $2,250/1,000 = $2.25

Therefore, the average cost for inventory using this method would be $2.25 per widget.

With different types of inventory valuation explained, there are considerations that businesses should be mindful of for each approach. This can make a difference to those running the company and potential investors and lenders contemplating investing in or loaning the company money.

Business women the stairs in a rush hour to work.

RBG Announces Promotions

RBG is pleased to announce the following promotions:

Thames Kennedy has been promoted to Tax Manager.

Since 2017, Thames has been a valued member of the RBG team. She began her time at RBG as an Audit Intern and quickly advanced to her current position of Tax Manager. In this position, she participates in a variety of tax assignments for various individuals and entities. 

Rachel McManus has been promoted to Tax Senior.

A 2018 graduate of Texas A&M University, Rachel holds a Master of Science in Accounting. Rachel McManus serves as a Tax Senior in the firm’s Tax Department. In this role, she fulfills a variety of tax assignments for various individuals and entities. 

Alexis Crews has been promoted to Audit Senior.

In 2020, Alexis joined the RBG team as an intern in the Audit department but joined the firm full-time in 2021. She now serves her clients as an Audit Senior. 

Ricardo Gonzalez has been promoted to Audit Senior.

Ricardo joined RBG in 2021 as a Hybrid Intern working with both the Audit and Tax Departments. He has since joined the firm full-time as an Audit Senior.

Fred Atkins has been promoted to Audit Senior Manager.

Fred has worked diligently to achieve the best outcomes possible for his clients. He currently serves as an Audit Senior Manager in the firm’s Financial Institutions Department. 

Nick Morris has been promoted to Audit Senior.

Nick joined the RBG team in 2020 as an intern and then joined the audit staff full-time in 2021. He currently serves as an Audit Senior on the Audit team.

person checking personal finances

5 Financial Resolutions You Can Live With

For the most part, New Year’s resolutions are hard to keep because many times you either list too many things or ones that aren’t manageable for the long haul – especially those that involve money. Here are a few simple tricks to help you make changes that are bite-sized, easy to implement, and more likely to stick.

Do a five-minute daily money check-in. Life is so busy that sometimes it’s easy to just spend money, then move on to the next task at hand. You might think, “I’ll check my bank balance later,” and then you never do. But if you’re serious about getting a handle on your finances, you might want to try this one thing: give yourself a “money minute.” Select a time of day, maybe after dinner, to log into your bank account. Take stock of what you spent money on. Did you really need that bottled water? That designer coffee? This way, you can nip those small (perhaps unnecessary) expenditures in the bud and make smarter choices in the coming days.

Get a money-saving app. One of the best ones to help you achieve financial goals is Ibotta. Let’s say you want to buy a new pair of running shoes; a good brand that’ll last. With this app, you’ll save on everyday purchases and when you’ve earned enough cash back, you can cash it in for a gift card from your selected store and get what you want.

Consider micro savings goals. This technique is actually about rewarding yourself financially for changing your behavior. For instance, every time you go to yoga or Pilates, stash away $5. Or if you wake up early or finish a difficult task, stash away $10. When you’ve saved enough money to buy whatever it is you’ve decided on beforehand, you’ve not only avoided the trap of putting your goodie on credit (and paying interest) but also most likely started a new, healthy habit.

Set up an automatic savings plan. After you’ve paid taxes, insurance premiums, and perhaps even your retirement account, you might consider tucking away money for yourself that you’ll never miss. Every. Single. Paycheck. That’s right. When you automatically have a set amount deducted every time you get paid, over time you’ll accumulate a bucket of money to use in whatever way you deem important – it could be saving for a vacation or a new car. It could also be a fund for emergencies. The point is, it’s an easy, failsafe way to save and achieve your goals.

Do one frugal thing a day. This is all about a little bit of forethought and then just taking action. And when you adopt this mindset, you’ll be working daily toward your financial goals like paying off debt, saving money to quit a job you hate, or even have enough extra cash to invest in real estate or whatever strikes your fancy. Here are a few things to consider: drink more water than soda. Eat at home. Use public transportation instead of driving when you can. But this just scratches the surface. For more smart ways to start living frugally, check out this super helpful article. You’ll be surprised at all the ways you can cut back and save.

All of these tricks are easy and, in some cases, no-brainers. When you take a few minutes, set your mind on what you want, anything’s possible. Here’s to fulfilling your dreams in the New Year! 

Sources: https://lifeandabudget.com/11-financial-resolutions-that-will-stick/

The Commercial Appeal Names Reynolds Bone & Griesbeck, PLC A Winner Of The Memphis Top Workplaces 2022 Award

Reynolds Bone & Griesbeck, PLC is pleased to announce that the firm was recently named to Commercial Appeal’s list of the Memphis Top Workplaces for 2022. With this award, the firm has now appeared on the list for ten consecutive years, every year since the survey’s inception.

“We are honored to be receiving this recognition for the 10th year in a row,” said Skeet Haag, CPA, Managing Partner of Reynolds Bone & Griesbeck, PLC. “This award validates all our efforts at creating an outstanding work environment for our employees. We are committed to fostering a healthy workplace culture where our team members are able to thrive and achieve exceptional results.”

The Top Workplaces list includes public, private, and nonprofit organizations and is developed solely based on employee feedback gathered through a third-party survey. The anonymous survey consists of 24 questions designed to measure several aspects of workplace culture. This year 1,887 organizations were invited to participate, with 51 employers making up the final winners list. Please visit commercialappeal.com to view a complete list of the 2022 honorees.  

“The fact that this award comes as a direct result of employee input means so much to us,” continued Haag. “It speaks volumes about the values the firm holds and the way that we put them into practice every day to make a difference for our employees, clients, and community.”