Hiring: True Cost of Finance Hires
True Cost of a Finance Hire
Many business owners don’t realize the true cost of building out a finance team; when hiring internally, you have to consider the hidden costs such as training, recruiting, turnover, and benefits. Even more recently, we’ve seen these costs escalate as the market for strong talent tightens.
With each finance hire below, you are typically recruiting for a specific skill set and expectations. Even when a company is in it’s infant stages, having a CFO or VP of Finance manage the books is not just incredibly expensive, but the employee will become incredibly bored and frustrated with the work. On the other hand, hiring an Accountant and expecting them to provide strategic oversight or scale financial operations can also lead to organizations failures.
- Accountant: The average accountant makes a base salary of $60,000 per year, with a fully loaded cost ballooning out to $95,000 when factors like benefits, taxes, and training are taken into account.
- Controller: A controller’s base salary averages out to approximately $100,000 a year, not including bonuses ($12,500), benefits ($5,000), or taxes ($8,565). When these factors are added, hiring a controller will cost your business about $158,000 a year.
- VP Finance: Boasting an average salary of $150,000 a VP of Finance will often end up being one of the highest paid employees at your company. After adding in additional compensation such as bonus ($37,500), benefits ($5,000) and taxes ($12,848), expect to shell out just over $250,000 for the services of this talented individual.
- CFO: With an average salary of $200,000, you are making a significant investment in hiring for the CFO position. Costs such as equity ($40,000), bonus ($70,000), or rent and equipment ($12,000) add up. Your CFO needs a beautiful office and computer right? The $200,000 initial offering swells to nearly $350,000 when you add in these additional perks.
If you want to learn more about how you can leverage a full stack of financial professionals for your organization while minimizing costs, avoiding the commitment of full-time hires, and avoiding the long hiring cycle and ramp up period, reach out.