Partnership between Fractional CFOs and Tech Staffing Companies – Does It Make Sense?

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Fractional CFOs have gained momentum in recent years, empowering startups and SMEs with affordable financial leadership. In today’s turbulent economy, part-time and project-based cooperation is a key to value for both clients and service providers, as the former receive the necessary support and financial management under optimized prices and the latter has more freedom in managing their work activities. 

The demand for fractional CFOs and their financial expertise is growing, and more and more financial professionals choose this career path. The competition becomes harder, and fractional CFOs must provide extra value to stand out in the market. 

And this is the place where tech staffing companies like TurnKey come onto the scene. At first sight, the benefits of cooperation with such agencies might not look obvious, but let us assure you – this partnership can strengthen your position as an even more valuable financial leader. So, what’s the catch? 

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Tech Staffing Company + Fractional CFO = Formula for Clients’ Success

Formula for Clients Success 💸

So, how can the partnership between a fractional CFO and a tech staffing company look like? It is quite straightforward: a financial specialist can suggest to their clients to cooperate with a staffing company in cases where such collaboration will bring real value. As a result, the CFO receives a percentage of the profits from each contract opened by their recommendation or our direct discount for your client.

For example, if the CFO’s client is a tech company that is looking for a way to optimize their development expenses, a staffing company like TurnKey can offer a solution. Our offshore recruitment allows for cutting costs by up to 50%, retaining the same level of development capacity

The other cases when we can be helpful for CFO’s clients include:

  • when the clients need to rapidly onboard developers who work in a specific, narrow niche like machine learning or data science;

  • when the client struggles with the quality of their tech product, which triggers extra costs, complicated financial planning, or difficulty in attracting funding;

  • when your client wants to hire offshore tech staff but doesn’t know how to navigate this field;

  • when your client is paying their offshore staff directly, which creates extra liability risks;

  • when your client struggles with high developer’s churn;

  • when the client isn’t satisfied with the performance of the current dev team;

  • when the client struggles with the current EOR platform as it is not customized to their needs.

What Benefits Does a Fractional CFO Get from a Partnership with a Tech Staffing Agency?

As a tech staffing company, we have a set of market-tested solutions for effective offshore recruitment; on the other hand, CFOs have customers with specific needs and requirements that are related to their tech workforce. By uniting efforts, all the parties access extra business value and successfully move forward. 

End-point clients get practical solutions to their business challenges, and we get new customers, so what does a fractional CFO get from this equation?

  1. You provide additional value, which makes you stand out among competitors. Your authority will grow in the eyes of your clients, and you might also get a neat case study in your portfolio.

  2. You get an additional source of passive income that you can use to grow your business or for personal needs.

  3. You also increase your brand awareness and receive additional promotion of your services. We at TurnKey Staffing promote our fractional CFO partners to our clients, so you can grow your presence in the niche of tech companies.

How Can You Launch the Partnership with a Tech Staffing Company?

Such an exquisite partnership requires several rounds of negotiations and alignment. But this is the case if you want to cooperate with any other staffing company. At TurnKey, we have already conceptualized and streamlined the referral program. 

Let's discuss our possibilities together! Learn more about our cfo referral program

Why Recommend TurnKey to Your Clients?

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At this stage, you might ask: Why should I as a fractional CFO recommend TurnKey to my clients? 

First, unlike the majority of our competitors, we use custom recruitment for each position. Usually, staffing agencies have a bench of pre-vetted specialists who are waiting to be onboarded on projects, and this brings several downsides: the clients get not the most matching candidate for their request, but the ones that are available at the moment. Our approach is different: we take 21 days or even less to find 5 candidates that are the best fit for your vacancy, and you select one of them. We hire from two regions: Latin America and Eastern Europe, where we have access to the top 3% of the local talent pool.

Second, we offer a retention program that allows our clients to reduce churn by 50% and build a strong and loyal team that will stay with the clients for years. Each month, our talent retention experts assess the developers we staff based on a range of important retention factors. Using our proprietary algorithm, we then create a Talent Retention Index Score for each staffed developer that defines their level of churn risk. Next, we implement comprehensive retention programs designed for each level of risk. This keeps developers happy and boosts the retention score of those at medium to high risk of churn. All of this data is regularly communicated to clients so they are constantly aware of the retention risk across their development team — and what steps can be taken to minimize it.

Third, we guarantee 100% transparency in developers’ compensation and our pricing. We invented a “cost plus” model: we tell our clients exactly what their developers are paid and then have capped fees on top that don’t rise with developers’ salaries. This way our clients always control how much their developers get paid, build their financial strategies effectively, and dictate all promotions, raises, and equity grants.

Fourth, we act as an employer of record, taking care of all legal and administrative matters. We shield our clients from any employment and tax liability, ensure compliance with local laws, and streamline the payroll and employment processes for the development team. 

At the same time, we ensure no reputational risks for you: we have a wide range of clients across industries and revenue sizes and thus can provide customer references for almost every client type. Check our Clutch profile to see the latest reviews from our clients.

Closing Thoughts

We believe that our partnership with a fractional CFO can bring a lot of benefits for both of our parties. We would be glad to assist your clients with tech staffing challenges and help you enhance your customer offering. So, let’s connect and discuss our possibilities together!

FAQ

What are the key benefits of joining TurnKey's CFO Referral Program?

Exclusive Referral Discounts: Members of the referral program are eligible for significant discounts, which can either be kept as a reward or passed on to clients, offering financial incentives and cost savings.

Cross-Promotion Opportunities: TurnKey provides a platform for the cross-promotion of a CFO’s services to their extensive customer base. This exposure is particularly beneficial as it encompasses a wide range of startups and high-growth tech companies, potentially expanding the CFO’s client network.

Dedicated Account Manager: The program includes access to a dedicated account manager. This is a valuable resource for quickly resolving any challenges or needs that might arise, ensuring smooth operations and efficient problem resolution.

Self-Service Access to Online HR Platform: Participants gain access to TurnKey’s online HR platform. This tool offers comprehensive oversight of offshore staffing, enabling better management and monitoring of offshore teams.

Enhanced Value to Client Base: By offering TurnKey’s offshore tech staffing solutions, CFOs can add significant value to their services, helping their clients save costs, comply with local labor laws, and manage offshore employment risks effectively.

How does TurnKey ensure compliance with local labor laws and mitigate offshore employment risks?

TurnKey adeptly navigates the complexities of offshore staffing by acting as the Employer of Record, thereby taking on the legal and administrative challenges associated with hiring tech talent in Eastern Europe and Latin America. We ensure full compliance with local labor laws and tax regulations through their specialized legal and HR teams. We simplify the administrative process for clients by handling all aspects of legal, tax, pension, benefits, compliance, payroll, and accounting with a single monthly invoice. 

Can you describe the process of setting up a custom-recruited dev team through TurnKey?

TurnKey's method for assembling a custom-recruited development team combines the recruitment of elite talent from Eastern Europe and Latin America with a swift and thorough screening process. This approach ensures that teams are composed of the top developers, perfectly aligned with client needs. TurnKey distinguishes itself by focusing on custom recruitment rather than selecting from a pre-existing talent pool, which allows for a better fit for specific client requirements. Their transparent and performance-based fee structure, along with a no-deposit policy, offers flexibility and cost-effectiveness. The entire process, from the initial kickoff meeting to the final onboarding, is designed to be completed in weeks, emphasizing speed without compromising on quality.

January 30, 2024

Fraction CFO Referral Program

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