We’ve been exploring the ways a virtual or outsourced CFO can help CEOs manage common challenges. In the first two sections, we looked at how a vCFO can help you navigate changeand map a plan for growth. Now we’re going to focus on an issue that’s at the front of many CEOs’ minds today: employee retention.
We’re currently in the midst of what’s been dubbed the Great Resignation. For nearly the past year, quit rates have been at all-time highs. There are many factors contributing to employee separations, from lack of satisfaction with pay to a desire for a better work-life balance. If you’re not sure what to do to keep your best employees on board and retain the top talent at your business, a virtual CFO can help you develop a retention strategy and create a workplace culture that makes your company an attractive place for people to work.
Develop an Employee Retention Strategy
Your company’s employee retention strategy should begin with its hiring strategy. Your outsourced CFO can review your hiring practices with you to help you determine if you’re making the right moves when bringing on new talent.
For example, it’s important not to rush the hiring process. You might want someone in the role ASAP, but going too quickly and making a snap hiring decision can lead you to overlook qualified applicants and hire someone who might not be the best fit.
One thing to look for when hiring people is longevity in previous positions. A candidate who’s spent years with a company is more likely to be loyal and resilient than a candidate who hops from job to job every year.
Looking for objectives and missions that align with your company’s own can also help you choose employees that are likely to stick around. If you both want the same things from work, your company and potential hires are likely to be a good fit for each other.
Once you’ve brought employees on board, do what you can to make your company an attractive place to stay. That can mean offering opportunities for work-life balance, such as flexible scheduling or remote work opportunities. Your vCFO can help you determine the cost benefits of having some employees work remotely most days of the week versus requiring people to be in-office all the time. They can also help you determine how to go about offering flexible scheduling and other perks. You want to make the workplace attractive without overspending.
Create a Culture of Promoting From Within
Your employees want to grow just as much as you want your company to grow. One way to encourage employee growth is to create a culture that promotes people from within. Your virtual CFO can work with you to create a leadership or management training program that allows your team members to move up the career ladder within your company.
Promoting from within can help your company’s bottom line. It’s less expensive to promote someone who already works for you than it is to find and hire a new manager. When you promote a current team member, you’re not going into the process blind. You already know their work habits and whether they have the skills needed to take on the new role. You can also focus on training them to develop the management style that works best for your company’s culture.
Know When to Outsource
Sometimes, it makes more sense to outsource certain roles and positions than to hire a full-time employee. If you’re working with an outsourced CFO, you’ve already seen the benefits of outsourcing versus hiring full-time.
When you outsource, you can take advantage of a person’s skill and expertise without having to pay their full-time salary and benefits. You also don’t have to worry that they’ll quit your business and move on to greener pastures.
Your vCFO can help you discover other outsourcing opportunities that can improve your company’s profits and save your money. For example, if you’re struggling to retain customer service representatives, you might be better off outsourcing that department.
The virtual CFOs at New Direction Capital can help you solve many of the problems you face as a CEO. Contact us today to learn more.
How to Solve Challenges With a CFO Part 2: Planning for Growth