The Ignite Spot Blog

3 Ways to Improve Employee Retention with Virtual CFO Services

Written by Eddy Hood | Apr 25, 2023

Understanding Why Workers Are Leaving

Punch in, punch out, and collect a paycheck. Not only do most of us not use punch cards anymore, but our priorities have changed, so we expect our jobs to be fulfilling in a wider variety of ways. The result? Workers are calling it quits more easily and often.  

And, of course, COVID-19 happened—nothing like a pandemic to help prioritize what matters most. Environments that make workers unhappy are out, and work-life balance and overall well-being are in. That said, a few must-haves drive workers to stick with their current position:

  • Better benefits, including salary, benefits packages, and better work schedules
  • Remote work opportunities that provide the flexibility to balance emotions, life demands, and work to avoid burnout 

Given these shifts, the truth is clear: Companies need to step up. It takes a lot to rebuild from scratch, and turnover is a major blow. 

 

The Cost of Employee Turnover

“Turnover happens.” Sure, but because it’s exploded in recent years, we need to listen up. For perspective, the last 10 months of 2021 alone saw the largest number of employees quitting their jobs on record.

Still shrugging your shoulders? Let the numbers do the talking. It’s been widely cited that for every worker who quits, it costs a whopping 1.5-2 times their salary to deal with the loss. Both time and monetary costs come from:

  • Shrinking profitability
  • Recruiting, onboarding, and training
  • Lost productivity and knowledge
  • Extra work for the existing team

So, what can you do to ensure your workers stick around? Give the people what they want—and need. A virtual CFO services partner can help craft an employee retention strategy.

 

Developing an Employee Retention Strategy

It's hard enough to manage the day-to-day of the business, let alone get in the weeds on how best to retain key talent. But the right partners can make it easier to align those priorities. Virtual CFO services can assist with analyzing retention, engagement, and benefit options so workers get what they need and you understand the cost and ROI potential of different investments. Your strategy could include:

 

1. Prioritizing Employees’ Value

Externally, the customer is No. 1. Internally? The top dogs should be your team. Open the door to career progression and implement employee development plans and opportunities. Virtual CFO services can help by reviewing job descriptions and/or redefining various roles to align with employee skills and needs.

 

2. Investing in Employees

Retention amounts to much more than cutting a fair paycheck. Your team needs to know you’re all in on them so they can be all in on you. Virtual CFO services can help you bake this commitment into your retention strategy by honing in on career support, such as ongoing training and leadership development, and personal support, such as parental leave and childcare.

 

3. Expanding Benefits

Are your benefits a little meh? Team members could start looking for greener pastures. But virtual CFO services can review your compensation structure. From base pay to bonuses, the right benefits incentivize employees. They’ll help you figure out if it makes sense to introduce new benefits, including:

  • Retirement plans
  • Remote or hybrid work, flexible schedules
  • Well-being benefits, such as therapy or gym memberships

Make changes with your team in mind. What will your new and improved retention strategy look like? 

 

Improving Retention with an IgniteSpot CFO

Whether they want better benefits, remote flexibility, or just want to focus on what makes them happy, workers have set the bar higher. But companies like yours can rise to the challenge by putting a retention strategy in place. Your CFO is instrumental in the process too. Need to outsource your CFO position? Explore how Ignite Spot’s virtual CFO services can elevate your employee retention and your business.