Top and Bottom Line Financial Benefits of Employee Engagement
Over the last several years we have been conducting research into the reasons people stay or leave organizations. We focused on the ability of organizations to attract and maintain employee engagement as this substantially affects both top and bottom line financial and operational performance. The results are skewed towards younger workers in their 20s and 30s. The results are as follows:
- Organizations with a positive reputation, particularly in terms of their culture, values, and treatment of employees, are more likely to be recognized and attractive to job seekers. Applicants tend to research a company’s reputation and reviews before deciding to apply. Particularly when looking to hire people from specific schools, organizations, and professional skill sets, a positive word-of-mouth recommendation from current or former employees can be significant. This helps top line financial results by the ability to engage top talent with innovative skills and expertise. It reduces bottom line costs in turnover costs. It helps maintain consistency of operations, customer interface, and internal functioning thus increasing top line and reducing bottom line costs.
- The pandemic has brought an enhanced level of comfort for flexible work arrangements for employees and companies. As you have heard from multiple research results, many employees today value flexible work arrangements such as remote work or flexible hours. It offers the option of hiring employees from different physical locations, overseas, different states, and communities thus expanding the organizations diversity of skills and insight. Offering these options improves employee morale by reducing their commuting costs, child/pet care costs and employee time. These benefits increase top line financial performance by maintaining a skilled and experienced workforce. This strategy reduces turnover and reduces turnover costs. It can also help the organization save money on the need for office space, heat, light, electricity, parking and other overhead costs.
- Finally, in both surveys from 2010 and 2023 corporations offering training and development are very attractive to younger employees (20s and 30s). It makes sense as these employees are looking to grow in their professional experience and value. Investing in employees’ skills and knowledge improves their performance and increases their value to the organization. This can lead to increased productivity and higher quality output, which can lead to increased revenue and profits.
By considering these areas and others that may be specific to your organization, you can identify opportunities to make savings in your HR department while also improving overall employee engagement and performance. If you would like help and support creating an HR strategic plan identifying top and bottom-line opportunities, let us know.
Major Changes Coming to the Employer of Record Model in Europe
New directive threatens the use of self-employed contractor models in Europe
If you are using an outsourced AOR/EOR model or similar platform to employ people through a third-party provider-be advised the European Parliament published new directives which, if implemented (and it seems likely) will significantly change your company’s ability to hire employees through this model.
Many staffing companies, AOR/EORs and platforms may need to also start planning changes to their commercial models soon.
Our colleagues at Osborne Clarke have prepared an analysis of the changes which we encourage you to read and consider.
If you are looking to establish an entity outside of the US, contact us for advice and assistance. Birchtree Global, LLC (www.birchtreeglobal.com) provides the legal, financial, tax, and HR strategy and tactics for globalizing businesses.
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The Importance of Training to Corporate Financial Performance
Birchtree Performance HR helps companies and private equity (PE) firms increase financial performance through employee training. The objective of training varies based on the organization’s strategic objectives. For example, PE firms tend to have a narrower focus than corporations, a shorter return on investment horizon, and a more hands-on approach as they are investing in the development of specific employees for the benefit of their portfolio companies. Corporations tend to have a longer time frame for the investment, broader metric measures and view training as an HR cost center.
For example, training in PE helps employees analyze investment opportunities, identify risks and opportunities, and make sound investment decisions. They can train employees on operational improvement techniques, helping employees identify inefficiencies in the operations of portfolio companies, implement best practices, and reduce costs. Due diligence is a critical aspect of PE investments. where training helps employees identify potential risks, evaluate market trends, and make informed investment decisions. PE firms can also invest in training employees on communication and negotiation skills helping employees build relationships with portfolio companies, negotiate better deals, and resolve conflicts effectively. Developing strong leaders is crucial for the long-term success of PE firms. Training employees on leadership skills can also help them manage teams effectively, motivate employees, and drive results.
Corporations on the other hand, can use training to help employees to become more efficient and effective in their roles, completing tasks more quickly and accurately, leading to cost savings and improved performance. Risk reduction in operations, financial decision-making, and business development is also improved through training. Employee training can also stimulate innovation by encouraging employees to think creatively and develop new ideas. This can lead to the development of new products, services, or processes generating more revenue and improving competitiveness.
Research shows a major benefit to both PE and corporations is in the way in which training contributes to employee satisfaction and retention. When employees feel valued and invested in, particularly younger, ambitious employees, they are more likely to stay, reducing turnover, recruitment and onboarding costs, keeping intellectual capital, and positive client relationships.
Finally, for both organizations improving customer or client satisfaction is the ultimate end goal of a training activity. Contact us for more information and ideas on training and financial performance. We’ll share our research, programs, and customer case studies to help you increase the financial performance in your organization through training.
Unprepared to go global? It’s going to hurt!
Join the January-February cohort for the Global Market Entry Training Program. Here’s what participants say about the program:
“The Global Strategy Module is highly recommended as a refresher into the fundamentals of global expansion or for those looking to start engaging in an international opportunity. The content was engaging, informative and very detailed and truly exposes resources available that most companies don’t realize are there for assistance. I was highly impressed at the quality of the content, videos and resources shared throughout the certification process.” Gina, Marketing Executive
The Global Market Entry Training Program was created to educate business leaders and senior MBA students in the steps CEOs go through when taking their business global. The program is presented in four modules with accompanying videos, webinars, discussions and materials from CEOs, senior business executives, and functional specialists. Upon completing the program participants have built a competitive and actionable global market entry strategy significantly increasing financial performance and reducing risks.
For more information contact: email@example.com.
Global Market Entry Leadership Program New Cohort
Expanding internationally? Thinking of going global? Concerned your leadership team is under skilled in global market entry? Don’t make uniformed decisions and risk losing your competitive edge. Join the final 2022 Global Market Entry Leadership Program cohort and confidently expand into new markets in 2023.
This six-week program enables you to graduate having completed a global market entry strategic plan. The program is taught by experienced, informed, boots-on-the-ground, presidents, CEOs, COOs, and subject matter experts. From finding accurate information, creating a global strategy, harmonizing the legal, financial, tax, and HR infrastructure to leveraging marketing, technology, and communications, you’ll outperform your competition, increase your revenues, and reduce risks.
Graduates from the program have uniformly discussed how this program made their global expansion successful and increased the financial performance of their firm.
Bring your leadership team along with you as you go global.
For more information on the program: https://www.birchtreeglobal.com/global-market-entry-course/
To sign up for the November/December cohort, email: firstname.lastname@example.org.
HRCI Appoints Dr. Janet L. Walsh to its Board of Directors
ALEXANDRIA, Va. (September 27, 2022) – HRCI®, the premier HR credentialing and learning organization for the human resources profession, today shared that it has appointed experienced global business leader Dr. Janet L. Walsh to its board of directors.
“We are thrilled to welcome Janet to our Board of Directors. She brings a deep knowledge of human resources combined with global expertise that aligns directly with the HRCI mission,” said board chair, China Gorman. “Her record of achievement and extensive board service complements HRCI’s values and enhances our strategic vision.”
President and CEO of Birchtree Global, a consultancy that provides global market entry services, workforce training and research, Dr. Walsh has established business operations on-site in 81 countries and all 50 U.S. states, directing teams of lawyers, CPAs and HR leaders. With experience in global startups, finance, infrastructure and human capital performance, she has also headed initiatives in Asia, Latin America and Egypt. Prior to Birchtree, Dr. Walsh worked as Vice President of HR at Minerals Technologies; Director, Global HR at Mead Corporation; and U.S. Head of Human Resources at S.W.I.F.T.
She is an adjunct professor of global business at Columbia University and the New York Institute of Technology.
Dr. Walsh holds a BA in Economics from Bucknell University with a concentration in Japanese, an MBA from Loyola University and a Doctorate in Business from the University of Phoenix.
Dr. Walsh commented, “Having served as and alongside HR leadership throughout my career, I am acutely aware of the challenges and opportunities these professionals face in today’s business world. Because of this, I understand and value how HRCI supports the advancement of HR and look forward to elevating the organization’s work.”
As part of the HRCI Board of Directors, Dr. Walsh joins a team of HR and business experts, which includes Gorman as well as HRCI CEO Dr. Amy Dufrane, Andre T. Allen, Gardiner Hempel, Jr., Kathy Claytor, Franz Gilbert, Janet Hanofee, Nancy Hill-Davis and Rajesh U. Kothari.
HRCI®, headquartered in Alexandria, Virginia, is the premier credentialing and learning organization for the human resources profession. For over 45 years, we have set the global standard for HR expertise and excellence through our commitment to the development and advancement of businesspeople in the people business.
Congratulations to NYIT Class in Multinational Business Management!
Congratulations to NYIT Class in Multinational Business Management!
Students in the class followed the Global Leadership Program outline to create a US market entry strategy for Cascade’s Aqua Gratis product (https://lnkd.in/eZW3pMvU). They did a terrific job in the class and made their final presentation to Carolyn Hogg, Managing Director, and Robert Parry-Jones, Executive Consultant.
Ten students from China and the US worked on the project and completed the assignment in two weeks…. All received top grades and will certainly go on to leadership positions in global business.
Thank you Shelie Gustafson, for speaking to our class at Columbia
Thank you Shelie Gustafson, Executive Vice President and Chief People Officer of Jacobs for taking the time and making the effort to talk to our class on Leading Cross Cultural Global Organizations. Jacobs is a Fortune 250 multidisciplinary engineering firm (https://www.jacobs.com/) delivering impactful global solutions from intelligence to infrastructure, space and cybersecurity.
Shelie’s advice and counsel stood out as she talked about employee engagement, strategic objectives, and global business. She talked about the finer points of engaging with employees through group discussions and individual talk sessions. Her advice and suggestions made a big difference to the business and HR professionals in the class. Thank you, Shelie!
Giovanni Giordano Speaks to Columbia Students
Thank you, Giovanni Giordano, for coming to Columbia University from London to talk to our Masters class on
Leading Cross Cultural Global Organizations. Giovanni spoke compellingly about his experiences as a global
CHRO and HR leader for BAT, Ferrero, and Procter and Gamble. Leading in a global environment, he said,
requires the same focus on the company’s strategic objectives as it does in a domestic business. However sometimes,
domestic agendas don’t always translate well internationally. He gave a number of examples of solving complex HR
problems in Asia, Europe, and the Middle-East. His 40-minute talk, lasted 2 HOURS with never-ending questions
from the students. So glad to have Giovanni share his expertise with the class.