Entrepreneurial drive, niche talent shortages and generational divide
cultivate booming "Borrowed Expertise" market
TORONTO, May 13, 2013 /CNW/ - Fifty-two per cent of all Canadian
business executives in a new Angus Reid business study commissioned by
accounting and business advisory firm, Richter, say it's not worth it
to pay for in-house expertise in niche areas of business anymore. In
fact, they think outsourcing for specialized expertise will be a
growing trend this year.
Richter's survey, entitled, The Canadian BizHealth Report surveyed 500
senior executives across the country to get a pulse on the financial
and entrepreneurial health of businesses from coast to coast.
"We're seeing some important shifting tides that are building a new
booming 'Borrowed Expertise' market in Canada," said Mitch Silverstein,
partner at Richter in Toronto. "This specialized knowledge outsourcing
will be a key strategy to drive business growth in the foreseeable
Richter's Canadian BizHealth Report discovered this outsourcing trend is
emerging from a crisis-like niche talent shortage:
Nearly six in 10 respondents (58 per cent) say that for company growth,
they follow their gut instinct to identify where the business should
go, and then they get the experts on their team to chart that path.
The challenge for a full 71 per cent of the survey respondents however,
is recruiting top talent. They say this task is becoming increasingly
difficult, and that they've had to increase salary ranges in order to
attract and retain quality employees.
Moreover, a staggering 77 per cent of respondents said one of their
biggest competitive challenges was finding a support team that could
keep up with them on an entrepreneurial path. This may be an indicator
as to why Canadian businesses are equally divided on where they'd
allocate resources for internal investments. Thirty-nine per cent would
invest in their employees, while another 39% would focus on product and
"The entrepreneurial spirit that's growing among the Canadian workforce
can sometimes feel like a double-edged sword for business leaders,"
explained Mr. Silverstein. "While that spirit is fantastic for fresh
idea generation and innovation, some business executives are feeling
run over by a young labour force who wants to learn everything it can
within a couple of years, and then jump ship for a bigger salary."
On the other end of the spectrum, 41 per cent of business executives
report knowing someone, be it colleagues, friends or family, who has
left his or her job to pursue personal entrepreneurial goals within the
past year. This is a significant talent retention challenge for
"We are most definitely seeing an entrepreneurial psychology taking over
both the youngest and oldest generations in today's workforce - the
rise of the 'greypreneur' and 'solopreneur'," Mr. Silverstein
observed. "They are embracing the mindset of 'Why should I work as
hard as I can so other people can make money?' They want to be their
own boss, and they are okay with the risks that come with that move."
According to Mr. Silverstein, many entrepreneur-minded business
professionals would rather keep their gains for themselves and build a
niche expertise on their own.
Interestingly, the Canadian BizHealth Report also discovered a growing
divide among business philosophies between older and younger
generations. Close to eight in ten respondents (78 per cent) think
their C-suites should be doing more to embrace a triple bottom line
philosophy in their business - balancing people, planet and profits.
About the Canadian BizHealth Report
From February 11th to 15th, 2013, an online survey was conducted among 501 randomly selected
Canadian business executives who are on the Angus Reid Forum, working
at or above a directorial level in organizations grossing over $10
million or more annually. The margin of error is +/- 2.52%, 19 times
out of 20. The results have been statistically weighted according to
age, gender, region and education (and language in Quebec) to ensure a
Richter is a professional strategic accounting, business consulting and
financial advisory firm with full-service offices in Montreal and
Toronto. The firm has consistently been named as one of Montreal's Top Employers and Canada's Top Employers for Young People for the past several years. Founded in 1926, the firm provides a full
range of services in the areas of auditing, taxation, risk management,
litigation and forensic accounting, transaction advisory services,
business evaluation, financial restructuring and insolvency, small
business support, financial reporting advisory services and wealth
management. With more than 50 partners and 350 team members, Richter
offers a comprehensive and integrated approach, often becoming a
natural extension of each organization it serves.
For further information:
or to book interviews, please contact:
Greg Vallentin, DDB Public Relations
416-963-4283 | email@example.com