Small businesses are incredible places to work. They offer plenty of opportunity for additional responsibilities. For those multi-taskers, for those who get bored when there isn't enough to do, there is always something you could be doing, another hat to put on or fire to put out. But be wary of the job descriptions and make sure you understand the full responsibilities of these multi-hat positions.
For small business owners in growth mode, people placement is critical. It’s not just about finding the right person for the business's current challenges, but piecing together the right skill sets for the team as a whole.
Small businesses are saddled with another unique challenge. Sometimes they need a COO and a financial analysis expert (CFO) but have the budget for one of the two. Since COO is the daily firefighter and executor, that’s the obvious first hire.
When unable to hire two full time people, many business owners strive to find a two-in-one employee. COO + Marketing, or COO + Finance. Depending on the stage and complexity of your business, this can work.
But have a bit of caution. Usually, a two-in-one employee is a bit of a myth, or if this employee is genuinely multi-talented, expensive. Often, it’s more like one and a half people in one. With one strong skill set and one less robust skill set. There are great COOs with scaling and operations expertise who can handle some bookkeeping or number tracking. There are some CFOs who can execute daily operations.
Hiring a person with the wrong expectations for their true skill set usually ends in heartache. The employee is stressed by the tasks they are not prepared for or do not have time to complete. And the employer ends up with a mess to clean up when they finally cut the cord. Usually it is a matter of a bad skills match-up rather than a bad employee, but the results can still be extremely painful to clean up.
It’s important when interviewing candidates to identify their stronger skill “half” and determine if you need to hire fractional support or find another team member with the skill set. Another option is to hire a less expensive person to help support the other half for the skill set. For great COOs, a part-time bookkeeper/analytical Fractional CFO combo can be a great way to make sure the daily business is executed, fires are put out, AND bills are paid on time with clean books to review at the end of each month.
How can you tell an employee is struggling with multiple rolls? There will be early warning signs of missed deadlines and incomplete reports. Sometimes there is an easy solution, a bookkeeper or administrative assistant for a few hours a week can be a huge asset at low cost. A simple solution like this can save an otherwise good hire from a bad result. Identifying problems early can also save money later on cleanup work and late fees.
If you, as an employee, find yourself in this situation, speak up. If you are being asked to do two jobs and one would be better served by some fractional support, suggest hiring support as a way to improve efficiency. It will probably save your job in the long run and may save the company as well.
The conclusion for business owners is that the skill sets for two positions may not be possible in one person. But this doesn't mean your business has to forgo expertise or that certain tasks must be left undone or constantly completed late. With some careful thinking about the whole picture of skill sets your company needs, you can piece together the right team with a combination of employees. Hiring two fractional people or one full time and one fraction versus one person may seem like a lot to juggle. But think of it this way: you are diversifying your risk. If that 2-in-1 person doesn't work out or drops one of the two balls he or she is juggling, how does that affect your business?
For further tips on how a financial team should be structured and a description of roles and responsibilities for financial team members, see my post on how to structure a financial team or email me at blair@relieffinancialconsulting.com