What do you consider to be the most important determinants of value in business today?
If you are like the 744 finance executives surveyed for CGMA’s recent study Digital Finance Imperative: Measure and Manage What Matters Most, customer satisfaction, customer relationships, and human capital, are likely at the top of your list.
As a CFO, you likely spend much of your time measuring productivity in terms of traditional financial metrics: net profit margin, current ratio, EBITDA versus cash flow, and so on. However, if you wish to address the top value drivers, then managing metrics that optimize the customer and employee experience are just as important.
Addressing Customer Satisfaction and Relationships
Fortunately, many CFOs have begun recognizing the importance of evaluating customer satisfaction and relationships. After all, customers are the foundation to business success.
There are several areas to examine when seeking to improve customer retention and reduce customer churn:
- Identifying what customers want
- Recognizing the real value of what the company has to offer customers
- Building relationships with customers throughout their lifecycle
Addressing Human Capital
Addressing your human capital is more important than ever as the hunt for talent gets fiercer and employee turnover is at an all-time high. Bloomberg reports that job postings exceeded the number of unemployed people by 659,000 in July of 2018, the highest since 2000. Additionally, the number of quits was at 3.6 million, with the number of quits during the entire month remaining at 2.4 percent from the previous month, according to the Bureau of Labor Statistics. Until now, the highest quit rate was in April 2001, when it was 2.4 percent.
A similar approach to addressing customer churn can be applied to human capital by simply replacing “customer” with “employee” in the bullets above. See for yourself.
Identify what employees want
Employees, like customers, expect ease of execution. Whether it’s summoning a car service or applying for a job, today’s digital natives are accustomed to accomplishing everyday tasks with the swipe of a finger. By providing your team access to the technology and resources they need to excel, not just perform their jobs, you build an engaged and dedicated workforce.
Recognize the real value of what the company has to offer employees
Channel your inner marketer and think about your company as a product. What do you have to offer employees? How does that differ from others who are competing with you in the hunt for talent? Once you identify your “unique selling point” then HR can tailor messaging and hiring tactics to appeal to the right candidates.
Build relationships with employees throughout their lifecycle
Recognize the importance of nurturing the employee relationship throughout their lifecycle. This begins with applicant tracking (by making a good first impression) and ends with offboarding (by making a lasting impression). Seemingly mundane processes like onboarding, benefits enrollment, performance reviews, time tracking and payroll all go into creating a positive employee experience, a necessity when it comes to addressing your organization’s human capital needs.
Armed with the right HCM technology, you can address these areas to help reduce employee turnover and achieve a more productive and empowered workforce. HCM technology, like Balance Point’s solution, can also provide essential business intelligence. Robust reporting capabilities provide decision makers with analytics to help guide recruiting, hiring, and compensation. Learn how it can enhance your efforts by setting up a consultation with an HCM expert.
Dive Deeper With Your Free CFO Guide To HCM
Want to take a more strategic approach to managing your workforce? This guide will give you what you need to for better collaboration with HR, attracting and retaining talent, and identifying soft costs, and of course several other key topics for CFOs.