Four Strategies for CFOs to Combat the Great Resignation

Four Strategies for CFOs to Combat the Great Resignation

As the pressure of The Great Resignation continues to mount, CFOs should create strategies that will help them to navigate the uncertainty of today’s economic landscape.

The Great Resignation wave is still having a negative impact on the globe. Even after millions of people quit their jobs in 2021, the pace of resignation has still only increased. In fact, as per a recent finding, over 13.2 million people have left their jobs. This highlights the employees’ discontent with their jobs. The situation is even worse for the IT industry, where the job opening has reached an all-time high. For CFOs, this becomes a significant challenge. Along with identifying ways to navigate the financial crisis, they also have to address retention challenges. Instead of only concentrating on financial aspects to retain their employees, CFOs should collaborate with their counterparts to understand the pain points of their employees.

Also Read: Increased Remote Work Demand Responsible for Resignations

Here are a few strategies CFOs can implement to combat the great resignation:

Being the employer people want to work for

It is still unknown how long the Great Resignation will last. While the IT industry is hiring employees at a massive scale, the shortage of employees is predicted to worsen in the coming years. This will put a strain on IT organizations to find the top talent in the marketplace.

Dealing with this scarcity of talent requires organizations to offer attractive compensation packages and provide training and career development opportunities. They should also identify ways to help them engage with the workforce while helping them feel their efforts matter. Doing so will allow them to become recognizable and become the employer that people will want to work for.

Develop a realistic hiring budget

Candidate experience plays a key role, especially in the negotiation phase of the hiring process. But, as the battle for top talent continues, CFOs must lay out realistic hiring budgets. They should ensure their budgets align with the ongoing market reality and that their hiring managers know the boundaries they should stick to. They should ensure that their hiring managers do not let go of a strong candidate from hands due to slow negotiations.

Concentrate on employees’ needs

Retaining employees is always a cheaper option than recruiting and training new employees for the organization. Employees are not always looking for excellent compensation but for their leadership to acknowledge the work and efforts they are putting in. CFOs can assist in establishing channels of communication and identify ways to reward employees beyond their regular paycheck.

Also Read: Four Approaches to Retain IT Talent after the Great Resignation

Develop retrenchment strategies

The rise of interest rates coupled with declining revenue growth suggests that the world can witness another recession. For CFOs, if they miss achieving their objectives and have to cut down their budgets, their organization’s position in the marketplace will be further weakened. Therefore, CFOs should be ready to identify the tradeoffs between various headcount cost reduction methodologies and understand the option that can hurt them least in today’s strong labor market. Having such a model in place will help them uncover the size tradeoffs between such alternatives.

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Vishal Muktewar is a Senior Correspondent at On Dot Media. He reports news that focuses on the latest trends and innovations happening in the B2B industry. An IT engineer by profession, Vishal has worked at Insights Success before joining Ondot. His love for stories has driven him to take up a career in enterprise journalism. He effectively uses his knowledge of technology and flair for writing, for crafting features, articles and interactions for technology enterprise media platforms.