The Human Side of Tax Managed Services

Taking good care of your people

When a strategic shift requires your company to move the operational aspects of your tax function to a managed services provider, the transformation usually adds significant value to your business. But it can also feel highly disruptive to your employees’ professional and personal lives.

That’s why a good tax managed services program devotes a lot of care to rebadging your team members—your friends—in a way that is sensitive to the heavy emotional element that a transition like this involves. There are important considerations around identifying critical individuals, communicating the change to them, understanding what sort of reaction to expect, and knowing how to navigate it. 

A catalyst and a shock

Company transitions are often triggered by a disruption, such as a leadership change, new budgetary constraints, M&A event, or a technology initiative that causes a company to re-examine its operating model. Whatever the catalyst, handing the tax function to a provider where it’s a core competency is often a smart business solution.

But a company is not just a machine. It’s a personal network of relationships and friendships with real people developed over years, maybe decades. In a business with a healthy corporate culture, leadership genuinely cares about their employees and may struggle to separate the “leadership hat” from the “friend hat.” These employees are people you hired, mentored, and spent years with. You want to make sure they thrive.

“I worry about my people. We’re a family.”

Tax managed services can bridge the gap between your business needs and personal relationships through a solution that benefits everyone. As part of the transformation, the best providers will take on your people so that they remain a functional extension of your tax department. They’ll continue to do the same work under similar terms or better, but with a different e-mail address and new access to a vast pool of resources, technology, and expertise, as well as educational initiatives to get them up to best practices. They won’t feel abandoned.

Done well, this becomes a win-win for everyone. Your company gains the efficiency benefits of the transformation while protecting its culture and reputation. The provider gains hard-working employees and a deeper institutional knowledge of your business to serve you better. And your rebadged staff maintains their connection to your business while gaining access to a broader universe of career growth opportunities.

"After being part of the company’s tax function for almost 10 years, I was shocked to learn about our entire tax team’s rebadge and overwhelmed with a flood of emotions. From the initial messaging, it was clear the transaction would benefit the company and provider.  After in depth discussions with both the provider’s personnel and the company’s management as well as working past the emotional aspects of the change, it became clear this transaction would also benefit me - I just needed to lean in and embrace the change." - Chris DeClercq, Director, Tax, KPMG

We’ve been there

At KPMG, we understand the importance of ensuring that the transformation is positive for your employees. We are dedicated to the KPMG Tax Managed Services practice as a distinguished service line within KPMG because most of us have gone through this process ourselves. One of us came from HP and brought 127 people over to KPMG. Three of us came from GE in an engagement that made headlines and, thanks to its success, increased the focus on managed services throughout the industry.

We understand both the practical and emotional elements involved—where the potential pitfalls are, where to be cautious, and how best to communicate with employees during a transition period that will initially feel unsettling. And we have experience making the transition a positive change that not only unlocks value for your business but also improves the professional lives of your employees.