Offshoring has become a popular strategy in accounting firms looking to cut costs and increase efficiency. By leveraging a global talent pool, firms can access specialized skills and resources that may not be available locally.
However, offshoring also comes with unique challenges that must be addressed to ensure success. In this blog post, we will discuss the best practices for hiring and managing offshore talent in accounting firms.
Don’t Limit the Work to Tactical Functions
When hiring offshore team members, it is a common mistake for companies to limit their work to only tactical functions. However, offshore accounting talents can add significant value by performing high-level tasks and contributing to strategic decision-making. Therefore, it is crucial to identify the necessary skills and qualifications to perform these tasks and provide them with the necessary training and support.
In order to do this, before offshoring it is important to map out the accounting tasks and processes to identify which ones can be delegated to offshore team members. This involves identifying and prioritizing tasks based on their complexity, frequency, and importance. Once tasks have been identified, create clear instructions and procedures for offshore team members to follow.
Do Craft Non-Financial Incentives
Acknowledging offshore team members' contributions is essential to build trust and promoting a sense of belonging. Most companies, and accounting firms in particular, tend to immediately think about many compensations as they are the easiest to implement. But offering non-financial incentives such as recognition programs, training and development opportunities, and career advancement can motivate offshore team members to perform at their best and contribute to the company's success.
Providing rewards such as taking a successful team out for lunch or giving gift cards to top performers are popular ways to acknowledge and motivate onsite employees and contractors. However, these types of rewards may not be practical for offshore team members. If you work with a service provider, it is important to verify what types of rewards they permit, and when you have a captive center, you will need to inquire about local reward options.
Do Plan for Crisis or Accessibility Problems
Offshoring can be challenging due to factors like time zone differences and possible communication issues. It's essential to plan ahead for these difficulties and have backup strategies in place for when the offshore team is less reachable or a crisis arises. This entails creating explicit communication protocols, recognizing alternate resources, and providing sufficient training and support.
Many accounting firms establish emergency plans that cover how to maintain business operations during a crisis. However, these plans may not consider small offshore teams or account for potential internet or power disruptions that can significantly impact an offshore team's well-being and productivity.
If you work with accountants spread out around the world, it's important to take care of them. Developing a comprehensive plan that addresses their unique requirements and includes options like coworking spaces or offline work capabilities can help your offshore team stay productive and connected.
Don’t Overlook Cultural Differences
Cultural disparities can lead to communication problems and misunderstandings when working with offshore teams. To ensure successful collaboration, it's crucial to appreciate and respect cultural differences and provide cross-cultural training and assistance. Communication tools and protocols should be adapted to the cultural context to prevent confusion and promote transparent communication.
Establishing a culture of empathy and inclusion is essential for fostering effective collaboration with offshore teams. Empathy involves recognizing and valuing cultural differences, addressing the offshore team's concerns and requirements, and encouraging candid communication and feedback. By extending a culture of empathy to remote teams, businesses can establish trust and promote a sense of community and teamwork.
Don’t Micromanage Offshore Teams
Overcontrolling offshore teams can lead to undermining trust and autonomy. It is essential to establish clear expectations and guidelines for offshore team members but also provide them with the freedom to innovate and contribute their ideas. Trust and respect are critical for effective collaboration with offshore teams.
This takes us to our next point:
Don’t Set Unclear Expectations
Remote employees who work from home can feel the pressure to ensure the delivery of unrealistic goals in order to maintain the benefits of home working, and staying over our rebalancing their personal life. Unclear project requirements and unrealistic goals can lead not only to misunderstandings but to burnout and a feeling of isolation.
It is important to establish clear project requirements and goals and communicate them effectively to offshore team members. This involves providing clear instructions, establishing timelines and milestones, and promoting open communication and feedback to maintain regular check-ins.
Go Beyond Collaboration Tools
Hiring offshore team members can provide significant benefits for companies but they come with their fair amount of challenges. While real-time collaboration tools can be useful, building trust and showing appreciation are crucial for maintaining a strong connection with your offshore team. By following these expert tips, you can foster a culture of trust and appreciation that helps bridge the distance and creates a sense of unity across oceans.
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Kevin Mitchell, CPA
Senior Manager and CPA with over 20 years of experience in accounting and financial services, specializing in risk management and regulatory compliance. Skilled in managing audits and leading teams to deliver exceptional services. Proud father of two.
References
Sacolick, I. (n.d.). 7 dos and don’ts for working with offshore agile teams. InfoWorld. https://www.infoworld.com/article/3680510/7-dos-and-donts-for-working-with-offshore-agile-teams.html
Hiring Offshore Developers - Key Steps to Avoid 8 Mistakes. (2022, December 19). CodeNinja. https://codeninjaconsulting.com/blog/hiring-offshore-developers-mistakes-and-key-steps-to-avoid/
