Two Birds, One Stone: How Improving Recruitment and Retention Can Also Attract Investors

By Mike Whitmire, CEO and co-founder of FloQast, CPA

Over the past few years, we’ve seen a variety of trends and movements emerge from within the workforce. What started as the Great Resignation became the Quiet Quitting movement, and now, many companies are struggling to recruit and retain employees. Today, 77% of employers report difficulty in filling roles and, even further, the 2023 employee resignation rate in the US was 17.3%. While this is 7.4% less than it was in 2022, it is still much higher than the rate of involuntary turnover (4.8%), where the employee is let go.

There are many consequences for recruitment and retention issues, including employee burnout and low productivity and efficiency. However, one stands out: organizations that fail to retain talent will be overlooked by investors. Simply put, investors do not want to put time and money into a company that cannot hold on to or hire talented individuals. It can be seen as a reflection of overall company health and is a major red flag. 

With personnel and budget planning for 2024 still fresh in many leaders’ minds, improving recruitment and retention is key to ensuring the company is set up for success in the coming year. Fortunately, there are two surefire ways to improve recruitment and retention and, as a result, attract investors: 

Provide More Strategic Opportunities

First, it should come as no surprise that employees are tired of the mundane and tedious work. Let’s take accounting, for example — most accountants’ time is spent managing finance and accounting functions (16%), capturing and classifying transactions (14%), preparing and issuing financial reports (12%), and executing the Financial Close (13%). However, most accountants don’t want to spend considerable time on these tasks and, instead, aspire to be seen as more of a strategic partner. In fact, 83% of accountants report that they would like to help set the strategic direction for projects. Unfortunately, only one-third or fewer of accountants believe that their organization’s leadership sees them as a valuable strategic partner.

When employees are presented with an opportunity to be strategic and play a larger role in the organization's success, they feel much more fulfilled in their roles and, as a result, are more likely to stay on board. In fact, when fulfillment levels are high, accountants are almost five times more likely to stay with their current employer than when fulfillment is just average. They’re also more than 12 times more likely to stay compared to someone with low fulfillment.

It’s clear that when employees have a chance to participate in big-picture strategy and planning, it gives them the fuel to keep going and love what they do. This not only helps improve recruitment and retention but shows investors that the company has longevity, loyalty, and strategic thinking. 

Implement Better Technology

Second, as our workforce becomes more and more technologically driven, it’s critical for companies to focus on implementing useful and usable tech tools. These are critical for job satisfaction as they can help employees do their jobs quickly, efficiently, accurately, and easily.

Taking a look at the accounting industry, once again, many accountants believe that having the right technology in place allows for better work (75%), improved performance (75%), more strategic decisions (74%), and a stronger company culture (67%). However, it cannot just be any random tech tool. It must be implemented intentionally and with great care. A recent study from FloQast found that accountants who work with an integrated technology solution — a unified system designed with the needs of the accounting end users in mind — have an 80% chance of staying in their jobs. These workers say their tech stack is a reason their job is easier, whereas those who don’t work with integrated systems often note the complexity of their systems and have to identify workarounds to get their job done. 

Technology will only become more critical for employees’ ability to do their jobs well. Not only is instilling a greater focus on tech — and integrated technology tools in particular — a key way to improve retention and recruitment, but it also shows investors that the company is adaptable, forward-thinking, and efficient. 

Recruit and Retain Employees and Investors

As more and more companies face recruitment and retention issues, the consequences of not addressing these issues extend beyond internal operations and begin to impact investor confidence and support. 

Leaders must recognize the dual strategies of providing strategic opportunities and implementing purposeful technology when considering personnel and budget planning. Together, these approaches make employees more likely to join and stay at a company, leading to improved company health and, in turn, greater investor interest. 

In advance of the upcoming year, employers would be wise to put these strategic initiatives in effect and position themselves for success in an ever-evolving landscape.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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