How CFOs are increasing the value of modern workforces
Many different strategies contribute to the success of a company, but one thing that is always present in successful organizations is the focus on maximizing value. This strategy forms the foundation of a lasting and profitable business and delivers long-term benefits for the company and their staff which results in a better experience for their customers.
A value-driven strategy can be applied to almost any function of a business unit in an organization, but there is one key component of every company that benefits greatly from this strategic thinking with relatively little effort to implement—their workforce.
Why CFOs are restructuring workforces to focus on value
The role of the CFO is critical in determining how well business units work together to reach both their departmental and corporate goals; because they can see deeply inside an entire organization, they have the insight to create strategies that maximize the return of each business unit and ensure it is in line with the corporate strategy.
This thinking is the drive behind the value-driven workforce. The workforce is treated like any other investment, and is expected to deliver a healthy return. As a part of this process, a CFO needs to be focused on the key attributes of a value-driven workforce, understand how they apply to the individual business units, and create the execution strategy based on the unique goals of the company.
- Cost-effectiveness and value
- Quality and reliability
- Simplicity and predictability
- Scalability and agility
- Control and visibility
The value-driven approach to the workforce
Staff are the most valuable asset a company possesses. No matter the size of the business, there are always great staff contributing to the success of the organization. The value-driven workforce strategy considers the workforce to be a key asset, and like any other asset, it needs to deliver strong returns on the investment. Investing in great staff that add value to your organization will produce positive and sustainable growth.
While this is a fairly obvious conclusion, many managers are reluctant to move away from the traditional way of structuring their workforce. Partially because “it is the way we have always done it”, but for many, it might just seem too difficult to implement. The reality is that adopting a value-driven approach to hiring is easier to implement than most people think and it delivers many long-term benefits company-wide.
A value-driven approach simply focuses on the end goal of increasing value. This can be applied to any segment of an organization. In the case of the workforce, business leaders often fail to remember that staff who have purpose are more likely to contribute and add value to the entire organization. Not maximizing the value of their workforce is one of the biggest opportunities companies overlook.
The value-driven approach to its workforce ensures that a company’s behavioral expectations are met or exceeded by its staff. Decisions are made based on the company’s core strategic direction. In this case, it is to add value to any process, outcome, or group that is critical to meeting the company’s goals and vision.
How businesses are embracing remote workforces
Changes to the way we work have allowed companies to reduce their local office footprint. They have embraced working remotely and hybrid workforces (a combination of working remotely and from an office).
Remote workforces offer businesses several benefits including cost reduction, increased profitability, improved employee satisfaction, and higher levels of productivity. While the individual results vary, in most cases, we have seen that these changes have had a positive effect on service delivery and have increased the return on investment.
Remote workforces have become a way of life for most organizations and their staff. They have implemented the systems and processes they need to operate effectively from homes or satellite offices. The ability to support remote work offers a great deal of flexibility for both staff and employers, and many companies will continue to embrace it for the foreseeable future.
Why outsourcing is an essential part of the value-driven workforce
In building a value-driven workforce that will consistently deliver quality and productivity that is essential to a modern business, there is no substitute for great, dedicated full-time staff.
“Our customers initially list cost reduction as the primary benefit of outsourcing, but when interviewed after their teams have been established for some time, they list the most valuable benefit of outsourcing is the ability to quickly find and keep high-quality, motivated, loyal staff.”
Jamie Stewart, CFO
For most companies wanting to be competitive, smarter outsourcing has become an essential part of reducing workforce costs, delivering better service, and driving business growth. The transition to hybrid and remote workforces has been made easier because of the accelerated digital transformation of modern businesses. This has allowed entire businesses to create decentralized workforces without sacrificing quality or productivity. While some companies initially struggled with supporting remote workers, they quickly experienced the benefits and most intend to continue the practice indefinitely.
Technology has also taken a leap forward. Communication, collaboration, productivity, and other cloud-based services have evolved to meet the needs of remote workers. Companies are now much more comfortable with remote workforces, opening the door for those wanting to take advantage of the benefits of outsourcing.
Companies that take a value-driven approach to workforce development and structuring will see higher returns on their workforce investment. This return translates into corporate growth, increased profits, or both. This strategy means that companies can afford the workforces they need to provide the levels of service their customers or stakeholders expect, fueling the continued growth of their business.
Find out more about how CFOs are changing the way we hire and build value-driven workforces. Download our free whitepaper.