Strategy and risk management specialist Franco Azzopardi has identified inadequate governance and leadership as the key reasons why many quit their jobs for other opportunities.
In a social media post on Tuesday, Mr Azzopardi stated that while there might be a number of reasons for workers choosing to change jobs, such as “perceived incongruent ideology” with the employer’s purpose, “the root cause finds itself in governance”.
He questioned what the overall mood is in the boardroom, and how often the topic of people is on the agenda. “How does the board look at Employee Net Promoter Score (eNPS) results (if ever carried out)? How do board committees and the executive resonate with and support the board? Are there key performance indicators (KPIs) and objectives and key results (OKRs) focused on people attraction and retention,” he said.
Mr Azzopardi remarked that the first thought of many is that such an issue is a “human resources (HR) responsibility”, yet he explained that this “goes beyond HR”.
“The whole enterprise success is a function of its people. People are the gold dust. But people are complex. They need constant care, training, upskilling, opportunities within the company, good compassionate and persuasive leaders,” he added.
He reaffirmed that people are the “engine of the company”, and the “fabric in the success even in the financial results”. While compensation is an “important part”, people are “more than creatures that are lured by bait”.
“Beyond compensation, there needs to be the music they want to dance to. And that is aired from the boardroom studio, echoing right through the halls and corridors,” Mr Azzopardi explained.
“The root of good people retention is in good governance,” he concluded.
Mr Azzopardi is currently Non-Executive Director and Chairman of the Audit Committee at APS Bank plc, along with Director and Chairman of the Audit Committees at both RS2 Software Group and Grand Harbour Marina plc. He is also Freelance CEO at FrancoAzzopardi.com, a firm he set up to offer his “technical competence and experience” to corporations on a contract basis.
Mr Azzopardi also served as Group CEO at Express Trailers Ltd for more than 10 years, a position that he left earlier this year.
He holds a Master of Science in Finance from University of Leicester and is a Fellow Member at both Malta Institute of Accountants and UK-based Institute of Directors.
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