Cf os optimizing performance reducing workforce costs


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Back in 2000 Harvard Business Review published an article: "Leadership That Gets Results," reporting the use of rewards was the single highest predictor of 'organizational climate' and in turn had a direct correlation with financial results.”

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Cf os optimizing performance reducing workforce costs

  1. 1. CFOs Optimizing Performance-Reducing Workforce CostsKeeping up with the expanding role of the CFO isnt easy. Knowing the right questions to ask doesnt always translateinto providing instant, perfect solutions. You are your organizations cost guru, so no one needs to remind you ofyour challenging and ever expanding role.I ask: Whats important to CFOs today? Answer: Everything!Growth strategies, scorekeeping, cutting workforce costs, effective financialstewardship, expenditure operator, sales performance, safety risk, wellness,health care costs, turnover, employee loyalty/retention. Then you crunch thenumbers and have to make them all add up.In addition to everything else you do, many times you even sit in on sales calls.In this blog we hope to illustrate a proven solution to help you improve your companys bottom line.As your organizations chief financial navigator, understanding the benefits of implementing a recognition/rewardbased incentive program will serve you well.Fact: engagement and motivation of employees positively impact their behavior and translate into improvements inspir-de-corp, loyality, communication and performance. Areas that impact your bottom line.Incentive programs have shown themselves time and time again to cut workforce costs. The US Office of PersonnelManagement reports that group incentives can result in as high as a 200% increase in productivity.By implementing well-defined performance drivers, Public Service Electric & Gas, the 105-year-old New Jersey-basedutilitys new president Ralph Izzo adopted a well-rounded program of incentives boosting across the boardimprovement.Back in 2000 Harvard Business Review published an article: "Leadership That Gets Results," reporting the use ofrewards was the single highest predictor of organizational climate and in turn had a direct correlation with financialresults.”Share This Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: © 2012 Taico® Incentive Services Inc.
  2. 2. The point is that there is a plethora of research on how engagement and motivation programs drive positivebehavior, cut costs, increase profits, acquire new customers, reduce workforce turnover and improve safety. Not bythrowing cash at your employees but by using tangible awardsSoliciting the assistance of a professional incentive expert can guide you while saving you a lot of valuable time inhelping to identify:1. What is the specific performance that needs to improve, and how is it measured?2. How can reliable and credible estimates of the value of this performance improvementbe collected and calculated? ROI3. How can these improvements be linked to organizational results and then converted todollars?4. What tools are also available that can improve our inter-organizational communication?What? Implement an incentive program, in this economy?Even if you support the idea of incorporating a performance based incentive program, you still may not be certain ofthe level of your influence.According to a recent study by CFO Research Services, in conjunction with Expense Reduction Analysts, manyfinance chiefs say their positions to influence were actually enhanced by the turmoil of the economic downturn.From CEO to junior staffers, more are looking to the finance leader for guidance on how to cope with volatility onboth the micro and macro levels.CFO Research released a study showing that CFO influence was on the rise. And by a pretty wide margin with 17%indicating their influence was “greatly” enhanced and 55% weighing in at “somewhat” enhanced.“The CFOs role is transforming over time to be much more focused on general business leadership. That reallybrings strength to your whole organization.”—notes Sarah Urban, finance director for the Americas, BradyCorporation “Strengthening the whole organization” is rapidly becoming the new role for CFOs today.Share This Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: © 2012 Taico® Incentive Services Inc.
  3. 3. Finance leaders’ responsibilities span many different areas, reaching throughout the organization. The CFO of todayoften acts as a pivot point between the corner office and the shop floor.According to CFO Research Services, “having your finger on the pulse of the business is critical”For example, more companies are beginning to address their employee’s health and wellness as a financial problem(or opportunity) rather than just a Human Resources issue. By implementing a wellness plan for example, healthieremployees will naturally slow down the increase in the cost of insurance, productivity will increase, and absenteeismwill decrease.As a result many CFO’s are taking an active role in developing solutions.Here’s a compelling statistic:• 5% of a company’s employees drive 50% of the claims.• An employee with 3 out of 5 critical risk factors is 7 times more likely to have a claim of at least $30,000.Turnover of your valued employees will also cost you big time. Talk to any Hospital CFO about the crisis of nurseturnover and the huge costs of re-hiring and re-training. Download our Free ebook on ways CFOs are solving thisissue.The economic challenges of today seem to make necessary the importance of looking deeply into what can createthe type of changes that impact growth and success. Its beyond just tweaking.Perhaps you might view bringing in an incentive program as a measured investment risk.Reduce that risk by consulting with a professional incentive expert. They can provide you with the knowledge ofwhat works and doesnt.It all comes down to leadership and getting the right information about what will best change workforce behaviorand boost production.Share This Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: © 2012 Taico® Incentive Services Inc.