Changing role of CFOs

Global - The significant expansion of chief financial officers' role in the past ten years is deemed as unsustainable as CFOs are getting more and more confused about their job responsibilities.

According to the recent survey by Ernst & Young, 88% of respondents believe that CFOs should be more skilful than just "being good with numbers". Of the 97% of C-suite respondents who agree that their roles have widened, nearly a third agree that they lack sufficient understanding on the wider issues that their businesses face.

Global advisory services leader for Ernst & Young, Norman Lonergan, says that the expansion is not sustainable.

"They are being asked to be business partners to their CEOs and commentators to their boards, as well as their more traditional roles as score-keepers of financial performance and custodians of risk management," Lonergan adds.

The report also suggests a gap on where respondents felt CFOs should spend their time and where they actually do. Thirty-five percent of respondents believe that CFOs should focus on working as a strategic business partner to the CEO when only 26% felt that CFOs are actually doing that.

Source: What's next for the CFO? Where ambition meets reality by Ernst & Young

Rewards can only satisfy employees, not retain them

US - Even though employers now offer a variety of employee recognition programmes to satisfy the needs of their diverse workforce, the impact on employee retention remains minimal.

According to the Trends in Employee Recognition 2008 survey, 70% of the surveyed organisations offer both formal and informal recognition programmes so they can be well-placed to achieve multiple objectives. Yet when it comes to employee retention, not all existing programmes are perceived to have a high impact.

Only sales performance recognition was rated by 90% of the respondents as the best retention tool. Yet the same 90% say while it is the best, it only has a moderate impact. Specific motivation programmes and above and beyond performance programmes are next with 83% and 78% respectively.

While impact of recognition programmes on retention seem less than mind-blowing, Alison Avalos, WorldatWork's practice leader for recognition, says: "The consistent, moderate level of impact for all programmes speaks to how strong a contributor recognition programmes are in general to the overall effort of attraction, motivation and retention."

Avalos adds that some level of attrition is expected and is usually healthy for a company. "But when strong performers decide to leave, look at the needs of that individual and how the total rewards package may have failed," Avalos says.

However respondents agree that creating a positive work environment, motivating high performance and creating a culture of recognition remain the most common objectives on their list, not employee retention.

Avalos said organisations have realised that having a culture of recognition do help differentiate them as an employer of choice, thus giving them an edge in the competition for talent.

Source: Trends in Employee Recognition 2008 survey by WorldatWork

Getting logistics talent to stay - at home

Asia - Logistics and supply chain professionals are not feeling the impact of stress even though they think they have a heavier workload and longer working hours than other industries.

According to the Global Logistics HR Survey Series 2007/2008, a majority of the respondents feel they can manage their heavy workload and long working hours well, backed by supportive employers who help them achieve good work-life balance. On the whole, only 23% of respondents globally indicated that they regularly experience stress related to a lack of work-life balance.

The survey also found that Asian logistics professionals value work-life balance schemes such as working from home and flexible work times highly, but their values are not mirrored in their employers. HR practitioners, in logistics companies that do not have such schemes may need to reconsider their work-life policies, the company said, as helping employees to achieve a work-life balance makes companies more attractive to logistics professionals.

Justina Liow, director of Europhia Consulting, says, "Employees today view the ability to have work-life balance as an important determinant of the ‘employability' of a company."

"Companies emphasising this area will definitely have a competitive advantage in attracting and retaining talents," reported the survey.
Overall, 58% of the respondents said their companies are offering the right support for them to achieve good work-life balance. Only 13.8% of them rated "somewhat supportive".

The survey suggested companies should utilise its creativity to come up with new work-life policies to satisfy their employees. They can consider giving their employees more flexibility in where they work and in how they manage their own workload. Taking country and cultural differences into account will also help logistics companies improve their work-life policies significantly.

"On a practical level, employees with a work-life balance have less risk of experiencing burnout at work." says Liow.

Source:Europhia Global Logistics HR Survey Series 2007/2008

Workforce Woes? I've got economic problems instead

Singapore - The scarcity of quality workforce and high labour costs remain the biggest labour concerns keeping leaders of SMEs in Singapore awake at night.

Although most local SMEs view quality employees an important factor in business competitiveness, they find the lack of talent availability and high labour costs a put-off.

Andy Connelly, senior vice president for UPS Asia Pacific's south district, believes the availability and retention of labour is a result of rising market costs, with inflation playing a key factor as well.

"The financial implication in the bottom-line consideration of SMEs is greater this year, most likely brought about by inflation," says Connelly. "Which obviously not only increased here in Singapore but the other Asian markets as well."

According to the recent findings of UPS Asia Business Monitor 2008, local SMEs are more concerned with their speed and flexibility to change (58%), financial performance (43%) and political and economical stability (39%). Retaining quality employees is fourth on their most pressing issues.

SMEs in Singapore are also showing less faith in the current economy with confidence falling to 59%, a 7% dip from 2007. Only 15% of local respondents felt optimistic about their business prospects.

The survey suggests that the US recession is also creating uncertainty in the region. While there are trepidations, 43% of SMEs across Asia feel the financial crunch will not affect their business somewhat. Singapore SMEs however, are more cautious with 20% saying the recession will affect their business significantly.