Businesses focused on growth continue to prioritize talent acquisition and retention as critical objectives. Senior leadership recognizes that strategic investments in workforce development directly influence both revenue and profitability, particularly as artificial intelligence reshapes the business landscape.
AI’s anticipated future impact on talent management is creating a complex landscape for organizations. While pressing talent challenges persist in Accounting and Finance, there’s a need to address near-term issues immediately rather than waiting for AI’s potential effects to materialize.
CFOs are more attuned to immediate talent concerns than CEOs, as revealed in Gartner’s CFO Perspective on the 2024 CEO Survey, and can provide cost-based insights to guide action plans, such as offering flexibility to improve retention and reduce attrition costs.
CFOs concerned about near-term challenges and persistent talent shortages are becoming more involved in human capital and talent development. Their growing leadership role includes recruiting, retention, and talent development.
The CFO’s Role in Talent Development
As we reported in Q3, beyond their ability to oversee finances, CFOs have the capacity to assess and measure an organization strategically. That is a key asset in business innovation and positions the CFO as the lifeline for sustainable success. Capability building and corporate culture are critical to business performance—without good people, a company will not grow and thrive. The chief financial officer has become a strategic leader in elevating performance within the organization, ensuring business and workforce strategies are aligned.
Here are four trends we see as financial leaders take a more significant role in nurturing talent and shaping the future workforce:
Developing a Balanced View
Finance reporting provides a historical view of operational activity and results. However, CFOs focused on human capital need a holistic perspective that blends past, present, and future views of organizational success. They consider questions like:
- “What has happened?”
- “Where do we want to go?”
- “What are we doing now to get there?”
They must also extend the lens of business performance reporting and partner with the CHRO to review employee performance reporting. Employee data and feedback are invaluable tools in understanding where to invest in company culture and professional development to further business goals.
Creating a People Strategy
Beyond headcount and an org chart, developing a comprehensive people strategy keeps the company on budget while supporting innovation and growth. A robust talent strategy focuses on employee relationships and retention. From recruitment to offboarding, the objective should be growing talent through connections and alignment.
Nearly 70% of people are not engaged at work, which leads to high turnover and low retention, according to a study by Bridge, an expert in employee development and ongoing education.
To create a high-performance culture, your people strategy should prioritize:
Connection: Relationships matter between peers, managers, and mentors and should be built upon individual skills, interests, and motivation to increase satisfaction and retention.
Alignment: Company values and goals are clear and transparent, and everyone understands how their individual contributions contribute to the larger vision, mission, and organizational success.
Growth: Opportunities exist at every level of the company for personal and professional development, including mentoring, formal training, stretch assignments, and coaching.
As you plan your people strategy, ask yourself: “What is the optimal structure for achieving business goals? Are employees trained and empowered to succeed? Are they connected to and engaged with company values and culture?”
Tracking and Measuring Progress
The success of talent management must be measured like all other business goals. CFOs, partnering with peers in the C-Suite, can help develop a strong framework for measuring people’s success that can be interpreted to draw conclusions and analyze the effectiveness of increasing employee growth and satisfaction. Every department, team, and individual should have performance KPIs that clearly ladder up to organizational goals. The success framework should:
- Be quantifiable
- Track how the individual is advancing business goals
- Identify where to make adjustments in organizational alignment
- Determine where to allocate more resources and attention when needed
- Empower you with data for informed decision-making
Results should also be shared transparently and regularly with employees and teams to increase performance, celebrate wins, ensure accountability, and build trust to enhance corporate culture.
Nurturing a Performance Culture
One of the best ways to raise employee engagement and highlight corporate values is by recognizing outstanding performance and exceptional work. When individuals understand how they contribute to their team, department, and across the enterprise, they have more buy-in for business success. They also feel greater pride in their work and are driven to achieve excellence.
People like to be part of a winning team and appreciate a corporate culture that emphasizes personal achievement and results. Celebrating individual and team success builds morale and boosts engagement, which can directly impact company growth.
As the talent agenda remains a consistent top priority for C-teams, the CFO plays a vital role in integrating financial and people strategy. Optimizing and aligning the management of these critical areas will help organizations successfully navigate the current business landscape.