‘Employee engagement is under the radar of human resources alone.’

This statement might have been true a few years back, but definitely not now.

As the workforce paradigm is undergoing a total transformation, workforce management is becoming the strategic hand of business. CFOs play a significant role in the business world and in shaping the economy. And this is no news.

But the amount of influence they have on transforming the workforce of the future is even more crucial. It may sound a tad bit weird, but that is indeed the truth. Let us analyze this idea from multiple points in this article.  

The Financial Pulse of Global Business 

The past few years have been nothing less than turbulent for the business world. Supply chains have been disrupted, and the threat of recession is always around the corner. For those in the HR world, the focus has been on employees and customers. But it is high time we think of the financial aspect of business and how the funds are planned to be distributed. 

CFOs (Chief Financial Officers) have always remained behind the curtain, deciding on and distributing money to resources that seem appropriate. Even with an unfavorable wind blowing across the economy, CFOs still consider investing in human resources and talent acquisition a good choice. This is partly because of the shift of companies towards the upcoming digital transformation. In order for such a huge change to take place, companies need the right talent by their side. 

47% of CFOs prioritize developing predictive models and scenario analysis. It helps businesses make the right decisions during difficult economic times that are coming up. And for companies to implement such advanced digital tools, the right talent needs to be present in the company. So, no matter how dire the economy gets, CFOs across the globe remain confident in making investments in talent acquisition and development. 

The Role of CFOs in Talent Development

Finance, operations, and capability are the three legs of performance. For an organization to function in full throttle, it needs to have the capacity to meet its financial targets, the right mechanism to run the company, and the right culture and talent with the right skill set. Of these three, capacity building is most crucial in the current times as it helps companies build a competitive advantage and get far ahead of their competitors. It is up to the CFOs to decide how much of an investment companies have to make when it comes to talent and capacity development. 

Employees look for a sense of purpose and dignity in the work they do. If organizations are not able to provide these, employees soon feel disengaged, bringing down the level of employee engagement. When companies invest their time and money in talent development, it makes the employees feel that the organizations do care for them. It brings back the sense of purpose in them. When CFOs decide to invest in capacity building for a consistent period of time, it helps bring in a shared sense of commitment, purpose, and meaning among employees and the organization as a whole.

When employees are not satisfied, it leads to low productivity and even lower employee morale. All of this leads to the inevitable downward spiral of the revenue of the organization, which is an area that comes under the direct supervision of CFOs. According to Kevin Carmody, one of the founders of McKinsey’s Transformation Practice, to prevent this from happening, CFOs must observe their organization's data and find any possible skill gaps that are present. Once they are spotted, the right upskilling and training sessions can be allotted to employees to fill those gaps. Also, CFOs can help develop career roadmaps for employees so they have something to look forward to. These actions taken towards talent development will surely lead to an increase in employee productivity and engagement.  

How Can CFOs Enhance Employee Engagement?

Corporate strategy and talent management cannot stay apart anymore. The pandemic, as dreadful as it was, helped companies across the globe witness a magnificent phenomenon: the areas that took months and months to complete got done in just a few days when the employees began working from home. This was a huge eye-opener for the employees as well. They found themselves to be more productive at home rather than when they were at the office. 

Naturally, employees preferred the idea of working from home more efficiently than working from the office. When organizations were unable to offer the flexibility and balance the employees aimed for, it led to yet another phenomenon: the great resignation. All of these put the CFOs of companies in a rather tough position. The sudden talent crunch and need for talent management became more important than ever. 

No matter how ambitious and bold the business objectives are, companies need the right set of talent to back things up. In other words, for companies to do better financially, they need to invest in the right talent. CFOs must give serious thought to considering HR as a strategic powerhouse for their business. It will lead to a super-efficient talent management strategy which will make the company goals a reality. Four ways in which a CFO can manage talent and enhance employee engagement are as follows:

1. Succession planning

Employees over 55 are most likely to retire, says Forbes. If you do not want to have vacant superior positions open up in your organization without prior warning, succession planning has to be taken seriously. Analyze the key skills an individual might need to fill up the senior positions that are soon to be vacant. Identify potential employees who have a proven track record of leadership skills to take up the position.

Then, give them an adequate level of training over a period of time to make them ready for the transition. The CFOs can allocate the right amount of resources to make this process a smooth one. This proactive strategy helps the organization run smoothly even when its top-level executives leave. 

2. Post-pandemic workplace

Although employees do prefer working from home, this does not diminish the need for a good workplace that meets the expectations of the current employee mindset. These office locations can be used for conducting team-building activities and other events that are absolutely essential for the organization as a whole to function.

Even when employees work efficiently individually, the need for teamwork and coordination cannot be undervalued. So, CFOs can sit along with the HR professionals to plan the location and infrastructure for such offices to make sure the employees do not get completely out of touch with their co-workers. 

3. Employee retention and upskilling

One of the most prominent areas where the influence of a CFO shines brightest is when it comes to employee retention and upskilling. An efficient way to make sure the employees stay with the organization and do not feel demotivated is by investing in their professional development. Identify the potential skill gaps in the company and give adequate training for employees to upskill them. Conduct employee engagement surveys to identify their pain points. Come up with possible solutions to tackle the same. 

4. Leveraging contingent workforce

There is nothing wrong with making the most of a temporary workforce. Companies nowadays put as much thought and effort into their contingent workforce as they do for their own permanent employees. CFOs and HR managers can come up with strategies tying external consultants, permanent employees, and contingent workforce together to make the most financially sound plans for the organization. 

Workforce Transformation Through CFOs

Organizations across the globe are rethinking their workforce model because of the changing demands and outlook of the modern economic condition. The increasing demand for digital and analytical skills, coupled with the rise of robotic process automation, has made it imperative for companies to adapt. CFOs play a major role in bringing about this workforce transformation as such a change is not contained to one department alone. The change takes place enterprise-wide. A broad financial planning has to be done, which puts CFOs in the limelight once again. Corporate strategy and workforce cannot be kept separate anymore, making it the responsibility of the CFOs more than anybody else. By planning the workforce transformation process focusing on areas like automation, location, and alternate talent models, the CFOs can bring about the positive change that the organization and the employees equally wish for. 

Workplace Of The Future

Value creation has suddenly become the prime responsibility of a CFO. We often associate talent management and employee engagement with human resources, but when we take a closer look at how an organization actually functions, we understand the role a CFO plays in all of this. We suggest you start with the employees. With ThriveSparrow, conduct frequent pulse surveys to gauge the level of knowledge and type of interests an employee holds. After a thorough analysis of the same, CFOs and HR managers can sit together to formulate business models that would inevitably shape the future of the workforce.