Three Things the Staffing CFO Should Know About Risk MaNagement
Aug 17, 2023
Wrenching changes in the staffing business have forced the Chief Financial Officer to challenge long-established conventions, find new ways to reduce costs, and re-think every aspect of their company’s operations. Nothing is off-limits, including the risk management function. But not all CFOs possess a deep understanding of risk management, and actionable advice can be difficult to come by.
This message is meant to help address that gap by presenting three difference-making risk management observations.
Culture: The Driver of Quantifiable Success
Superior risk management isn’t just about the most creative financing scheme or the most persistent effort to weed out costs. Most fundamentally it is about instilling and sustaining the right culture and attitude toward risk throughout the organization. When everybody is on board and pursuing the same objectives, the results can be far more powerful than what the CFO and risk manager can achieve on their own.
This means that everyone involved in customer relationships is motivated to attract good business partners and avoid customers who aren’t invested in the well-being of all stakeholders. It means that when faced with a substandard risk condition, the first instinct is not avoidance but rather an assessment of whether and how things can be made better. It also means that people are equipped to efficiently and accurately assess risk and to collaborate with customers to ensure safe working conditions.
The most profitable and lasting customer relationships are those where interests are aligned and a true partnership exists. It’s up to the staffing executive to build and sustain that culture.
Operators Need Less To Do, Not More
New risk management programs tend to collide with the reality that people already have too much to do. An initiative that seems like nothing more than the latest demand from headquarters isn’t likely to gain much support. Yet, without talent buy-in, true culture change (and quantifiable improvement of results) is unlikely.
Though it may seem like a paradox, an effective way to give business operators less to do is to equip them with the right technology. Workflow management platforms replace tedious and time-consuming personal tasks with automated connectivity, while filling in gaps in process expertise and ensuring new levels of visibility and accountability.
Automation of safety inspections, for example, makes it possible for even a day-one employee to perform a competent site review while giving immediate visibility to the management chain. Accident reporting workflows ensure things are done correctly: pulling necessary information from HR and applicant tracking systems, filling in mandatory forms, and producing better outcomes by reducing reporting lag time. All factors that can tally up to expensive worker’s compensation claims, if dragged out by not adhering to the correct processes. Additionally, high-level analytics empower management to spot vital-few risk concerns without hours of spreadsheet manipulation.
Time To Value, And Certainty Of Value, Are Essential
There is a strong correlation between implementation scope and complexity on the one hand, and the duration and certainty of time to favorable results on the other. The best technology initiatives have a manageable and compact deployment timetable, a high degree of visibility, and a track record of consistent and timely achievement of financial benefits.
Though it is increasingly clear that technology must be central to the cost management and outcome improvement mandate, It behooves the CFO to consider the implementation journey as part of their evaluation. Prospective vendors should be challenged as to the expected financial payback, but also the certainty that such expectations will be achieved in a timely fashion and without overly taxing limited internal resources.
At Aclaimant, we pride ourselves on delivering practical solutions with proven financial benefits. We equip staffing companies to achieve better financial outcomes while realizing drastic productivity efficiencies. We enhance staff satisfaction and effectiveness by replacing un-rewarding tasks with boundary-crossing technology using automated follow-up actions - so you know the job is done right. Schedule a free demonstration of these benefits and learn how Aclaimant has delivered substantial measurable financial results for leading staffing companies.
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