Until the economic value of employees' skills, experience, and knowledge is reflected on the balance sheet, management's incentives to hire dissatisfied employees and instill a sense of purpose are highly unstable. may remain.
That's in line with research published earlier this year by Indeed and the University of Oxford Center for Wellbeing Research, which found that job satisfaction and employee happiness are associated with higher company valuations, return on assets and profitability. Despite this.
Fortunately, some companies are making the connection. Two years ago, ITech AG, an Arlington, Virginia-based technology consulting firm for federal, state, and local governments, undertook an 18-month culture transformation project. According to Marvin Soward, CFO of iTech AG, the goal is to strengthen the company's core values and create a workplace that is truly aligned with the company's business strategy and vision.
To learn more about the culture the 157-person organization is aiming for, we spoke to Soward, a veteran finance executive with experience in the technology, payments, and banking sectors. He joined iTech AG in 2017 as Director of Finance and Operations. He was appointed CFO last March and oversees human resources, marketing strategy, customer contracts, project management and finance.
From your perspective as CFO of iTech AG, what is the value of prioritizing company culture and employee experience?
A pure and well-developed company culture is invaluable, and it starts at the leadership level. When leaders drive innovation, collaboration, and a shared vision, they set the tone for the entire organization.
As CFO, I am in a unique position to allocate funds and decide where we can have the most impact. Corporate culture is one of the key areas of influence. Retaining and attracting top talent is essential to our continued success. We embrace learning, strive for excellence in all our endeavors, and value integrity, trust and collaboration.
To foster a positive culture, our team participates in monthly coffee status meetings. We recognize the extraordinary contributions of other team members company-wide through a program called iSee You. You will also participate in Roadshows, which are in-person events where remote iTechians collaborate and participate in fun team-building activities.
Investing in the resources and ideas that emerge from culture-building efforts is fundamental. Our culture thrives on collaborative, open communication, supported by an open-door policy that welcomes genuine feedback. In my opinion, companies need to lead with integrity and put culture at the forefront of their business so that employees are proud to talk about the company.
You've grown with the company and reached the C-suite. What are the benefits of promoting from within?
There are significant benefits for both companies and individuals. For businesses, it ensures continuity, a deep understanding of operations, and valuable insights gained. Employees who have been with us for many years provide us with deep trust and a proven track record. It's one thing to read a resume, it's another to witness professional growth firsthand. Additionally, these employees are familiar with your company's culture and processes, which eases the learning curve and increases immediate efficiency and productivity.
For employees, on the other hand, internal promotions are career milestones and powerful motivators for their co-workers. Witnessing the promotions and successes of colleagues improves morale and fosters a sense of empowerment, creating an environment in which employees can chart their own growth. This atmosphere of celebration and support provides a clear blueprint for progress and encourages them to pursue excellence with the confidence that we value their efforts.
Ultimately, promoting from within benefits both parties. Your company will have leaders who understand business, and your employees will enjoy a rewarding career path. As a CFO, I think these numbers are about right.
Does your approach to decision-making as a CFO strengthen the new culture in any way?
My extensive experience has given me a bird's-eye view, a holistic decision-making approach and a strong appreciation for innovation. Many CFOs rely on predictable and safe decision-making. My diverse experience creates a more proactive and comprehensive approach, allowing me to balance quick and effective decision-making with financial discipline to move iTech AG forward. I am constantly looking at numbers while aligning them with the company's strategic direction.
However, team members play an important role. I learned the immense value of empowering those around me. Our collaborative style allows team members to find inspiration and share their unique perspectives. This leads to balanced decision making.
