CFO to CEO: “What happens if we invest in developing our people & then they leave?”
CEO to CFO: ‘What happens if we don’t, and they stay?”
From SMEs to MNCs and as far back as you would like to think, this conversation, in one form or another, is regularly occurring.
One of the biggest worries for business owners and managers is training and investing in quality employees and then losing them to a larger company, or worse a competitor, that might be able to offer more money, greater perks or better career opportunities.
Curiously, a business will regularly put more thought into what capital equipment to buy than whom to employ. And they will ensure there is a maintenance schedule for plant and equipment. When you look at the annual cost of a staff member, they represent significant investment…and cost.
Businesses that show genuine commitment to their people, involve them in the business, provide open and clear communication and invest in their development will find they become more engaged with the business.
Why is engagement important? A study by American research and global performance-management company, Gallup, found that companies with more engaged employees outperform others by over 200%. And the global management consulting firm, Hay Group found when employees are engaged in the company business, they’re less likely to jump ship, they’ll be more productive and they’ll make the company more money.
The reality is that with or without you investing in the person, the argument between the CFO and CEO will not disappear. So why not show your staff you are keen to engage with them, help them develop and reap the rewards of this investment?