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Analytical CFO-Thinking Drastically Saves Company From Near-Constant Turnover


A manufacturing service company faced two significant problems: high employee turnover and a performance issue. The constant departure of skilled workers not only disrupted productivity but also resulted in increased hiring and training costs.


Employees were not satisfied with their work environment, their compensation, or their value and as a result, they were disengaged. Additionally, morale and satisfaction were low, leading to high turnover. The company asked MetaExpert, Clark to use his analytical skills to solve the HR problem.


To tackle these problems, MetaExpert Clark implemented a series of strategic actions:


Aligned compensation with employee value: The company adjusted compensation packages to improve employee retention and reduce turnover. Instead of a time-based approach to compensation, they paid based on value-added.


Provided new and functional equipment: The company invested in new and functional equipment to address downtime and improve productivity. With the new equipment, the organization aimed to enhance job satisfaction and overall performance.


Focused on engagement and understanding employees: The company prioritized employee engagement by implementing initiatives such as regular feedback sessions, surveys, and open communication channels.


Implemented a CFO mindset in managing HR: The company adopted a strategic approach by incorporating financial principles into HR management. This involved analyzing the cost and return on investment of HR initiatives, ensuring that resources were allocated effectively to maximize employee engagement and productivity.


Developed People Profits assessment process: The company developed an assessment process called People Profits, which helped identify HR issues and areas for improvement within the organization. This systematic approach enabled the company to address specific challenges and implement tailored solutions.


Emphasized the involvement of CEOs and COOs in implementation: To ensure the success of HR initiatives, the company emphasized the involvement of top-level executives, including CEOs and COOs. Their active participation demonstrated the company's commitment to creating a positive work environment and set an example for the entire organization.

Return on Investment

The implementation of these actions resulted in significant returns on investment for the company:

● Decrease in employee turnover and rehiring of former employees

● Improved productivity and satisfaction

● The reduction in employee turnover resulted in significant cost savings for the company. Hiring and training expenses decreased, while the continuity of skilled employees positively influenced productivity and customer satisfaction.

● Additionally, improved employee engagement led to increased innovation and better problem-solving, further benefiting the company's financial performance.


Skills Needed:

HR and finance expertise

Understanding of employees' needs and desires

The ability to align HR strategies with company goals and strategies


By combining these skills and implementing the recommended actions, the manufacturing service company successfully transformed its HR practices, improving employee engagement, reducing turnover, and enhancing productivity and overall performance.

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