Nearly a quarter of AP units today (24%) are facing an issue that extends throughout most finance departments, specifically, and businesses as a whole: Staffing shortages threaten to slow an AP department’s momentum and mute its overall impact.
Current staffing shortages are straining teams, leading to increased workloads and potential delays in invoice and payment processing. Without adequate staffing (and technology), there can be a heightened risk of exception and compliance issues, impacting overall department efficiency.
While AP has never been a corporate beacon for top talent, today’s labor market presents a series of new challenges that appear unlikely to fade any time soon, including historically low unemployment and new Future of Work-led concepts like work-life integration, the “gig economy” approach to employment, and remote work models which have combined to alter the talent landscape. These challenges are not unique to AP, so hiring managers should not go it alone, but rather collaborate with the talent acquisition (“TA”) team to help find sustainable hiring solutions.
AP teams pressed by workforce shortages should leverage TA’s unique expertise to leverage internal talent communities and, possibly, harness the power of the company brand and culture to attract employees that will help transform the impact of AP. As part of this new approach to hiring, AP leaders will be wise to craft forward-looking job descriptions that incorporate both core AP skills as well as the expected needs to analyze data, master technology, and incorporate/harness AI capabilities into new workflows. Positioning current talent needs with an eye to the future will help the unit thrive.
As AP managers continue to face staffing shortages, the following strategies will help transform their outlook on the team’s core talent as it reimagines how to position the department toward new talent:
Outline clear career paths within accounts payable AND finance at large. AP has become a career launching pad, so entry-level AP positions can and should be considered a “stepping stone” to bigger things. The truth is that a hardline wealth of expertise within this unit is a formidable edge in advancing into broader operational roles within finance. Businesses should position AP experience, especially when mapped to the innovative technology that new hires will leverage, as a building block toward a career within financial operations.
Develop and communicate clear performance targets that link to compensation. As noted above, there is a large gap between organizational targets and individual performance targets and compensation. Work with finance leaders to clearly set and share organizational and individual goals. Then, work with HR leadership to develop a compensation plan with proper incentives that is also competitive in the market.
Position “technology” as a major benefit to working in AP. Innovative technology can be a way to position AP as an ideal place to work. Exposure to advanced automation, particularly within the artificial intelligence realm, will be an attractive benefit for finance-minded professionals to start their careers in AP, especially if they are inclined to build analytical and operational skills.
Leverage a common Future of Work attribute, flexibility, in all AP roles. For most AP roles, it can be difficult to perform everyday tasks outside of the main office. However, as learned throughout the earliest days of the pandemic and continuing into today’s corporate operations, many workers desire flexibility in their everyday lives … including how and where they work. Throughout the “Great Resignation” and even today, more and more workers crave the ability to eschew commutes, attend children’s activities, and do more to attain real work-life integration. AP’s hiring managers and leadership team need to infuse some level of flexibility into their AP operations — this can include hiring remote workers, outside contractors, and ensuring that full-time staff have opportunities to work remotely in ways that align with overall enterprise policies.
