Treasury requires specialized skills and is typically a small group, making rotations in and out of the department a challenge. Still, at a May meeting of the Assistant Treasurers’ Group of Thirty (AT30), members pointed out that providing rotational opportunities and regular development talks help to keep employees engaged and communications open.
At the meeting, members agreed that employee rotation and even some turnover can be a good thing; generating new ideas and keeping employees engaged and developing new skills. However, treasury departments generally have “blockers,” employees who are quite comfortable staying where they are functionally, performing the same job for many years. Members noted that despite this seeming resistance to change, there is value in blockers, such as loyalty, a high skill, and people less error-prone in critical transactions. This should be considered when weighing the benefits of moving employees within and outside of treasury.
Similarly at The NeuGroup European Treasurers’ Peer Group, members also discussed various efforts at getting resources into treasury. The solutions ranged from formalized internal “talent exchange programs” to internships and low-cost gap-year students. This adds an extra body to the team on a temporary basis and can work wonders on finalizing discrete projects or research.
And sometimes people stuck in the same position look elsewhere. And if offered, is a counteroffer a good idea? The majority of AT30 members felt counteroffers were not effective and agreed that it is often too late to cut a deal with an employee who has accepted a position outside of the company. When turning in a resignation the person is already out the door. With this in mind, members suggested finding out why someone is leaving, being sure “not to pollute the employee pool” by retaining a dissatisfied employee.
But at least one member company is rethinking counter offers are good idea. That’s because despite training and succession planning in place the company is losing people due to the significant changes at the company. As a result the treasurer used counteroffers due to the high turnover rate and also provided incentives which are not always compensation-related, to retain and reward those employees who stay with the company.
Benefits of Trust
Creating an environment of trust has its benefits. Most employees are not candid and open about offers until making a decision. One member offered that partnerships with employees focusing on compensation, career development and expectations, often creates a healthy environment of trust. Another member concurred, suggesting that when you get the opportunity to have that conversation you might be able to solve employees’ issues and prevent their eventual departure.
So having a process in place to identify top performers in order to develop and retain high potential employees is one way member companies encourage key employees to stay on board. But even with an open proactive approach employees leaving to diversify, take a promotion or otherwise test the waters elsewhere will remain a fact of life.