More than half (56 percent) of CFOs surveyed said they have not yet put into practice a formal job-rotation program. This really shouldn't be surprising, given the logistical challenges of moving professionals from job to job and potentially disrupting the workflows of the functions they're moving into and out of. But job rotation clearly has its adherents in the finance department: Fully 44 percent of CFOs said their companies do promote rotation. Among this set, the most popular destination roles for finance staff are accounting operations (41 percent), accounting (37 percent), finance (20 percent), internal audit (11 percent), compliance (10 percent), and tax (9 percent).

Respondents recognize a number of specific benefits that could come from establishing such a program within the finance function, strengthening organizations by helping management to:

Access diverse viewpoints.  People transferred to a new position, even temporarily, will bring to the job their own work style and way of thinking. This fresh perspective can lead to innovation in problem solving and greater efficiency for the entire team. For example, a treasury professional who spends time in credit and collections could gain valuable insight from a position that handles outbound cash. This could also work in reverse.

In addition to ratcheting up the diversity of experience underlying decision-making, a job-rotation program enables an individual who transfers between functions to serve as an ambassador for his or her prior department. A treasury professional who has moved to internal audit, for example, can communicate treasury's priorities to colleagues who may not otherwise understand the treasury perspective.

Build staff members' skills.  Employees learn new skills more quickly and are more likely to retain them when they're immersed in a role, compared with simply going through a training program. And the abilities they acquire on the job in a different department may help them become more informed leaders as they move into other positions down the line.

This benefit extends beyond specific technical expertise in a field such as tax or accounting. Finance staff who rotate through different roles gain a greater understanding of their colleagues' positions and challenges. That can boost their workplace emotional intelligence, which requires an understanding of co-workers' priorities. Research from 6 Seconds shows that adults with a high emotional intelligence quotient enjoy better career advancement, are more effective leaders, and maintain better personal and professional relationships.

Groom future leaders.  Role rotation boosts succession planning efforts in a couple of ways. For one thing, when a senior position is vacated, an employee will be better prepared to step into that role if he or she has already gained exposure to the position via a job-rotation program.

In more general terms, professionals need to understand the big picture of a business's operations and needs, before they'll be ready to advance to senior roles in the organization. Job rotations enable finance professionals to enhance their business acumen. Participants gain a broader view of the organization and see how different departments and initiatives contribute to the bottom line. This perspective helps them make better business decisions wherever they end up. And those with exposure to many positions, within multiple functions, will be better prepared to take on leadership responsibilities.

Improve employee recruiting and retention.  Providing your team with new challenges and opportunities enables them to grow in their careers, which should heighten their engagement and improve their satisfaction with their job and with your organization.

In a small and specialized department such as treasury, advancement is often limited by the narrow range of senior positions. Role rotation enables professionals to broaden their expertise and experience without changing companies—a boon for both employee and employer.

Finance professionals who are part of Generation Z may find job-rotation programs particularly appealing. When evaluating job offers, these newest members of the workforce prioritize rigorous training and support that will prepare them for success in leadership roles. Of course, the opportunity for role rotation can also be a motivator for professionals of any experience level who are looking for new responsibilities or to round out their skill set.

As a bonus, a treasury executive's willingness to let an employee rotate out of his or her group shows that the treasury function prioritizes staff members' professional development. This can enhance the treasurer's reputation as a manager and increase the likelihood that skilled professionals in other departments—and other companies—will want to work on that treasury team.

How Does Job Rotation Work?

Job rotation programs can be structured in a number of ways to meet different needs. Some companies rotate employees intra-departmentally. For example, a desk-level employee in corporate accounting may do a stint in external reporting, then payables, then accounting operations to learn how all the pieces of the department work together. Other firms' programs cycle employees cross-functionally—a senior-level treasury manager, for example, might benefit from exposure to marketing, IT, or sales. Still yet, some programs might rotate midlevel managers through different geographic sites, domestically or even internationally, which could be especially advantageous for someone in charge of international reporting.

Although programs vary depending on industry and company size, an employee participating in a structured job rotation program will commonly cycle through three positions, with the rotation lasting six to 12 months. It's crucial to establish the structure and duration of the program up front and communicate it clearly so that you can adequately plan for resources and fill any gaps left as selected employees move from position to position during the rotation period.

Planning a Job-Rotation Program

While it's easier for larger companies with bigger teams to administer formalized job rotation programs, it can be done at smaller companies, particularly if you want to limit the rotations to your own department.

If you're a corporate treasurer who thinks cross-departmental job rotation would be beneficial to your team, first discuss the concept with several internal groups to get buy-in before pushing to formalize such a program. These discussions should gauge other leaders' opinions of not only the value of rotating employees through several departments, but also which types of positions should be included in the program, how long each rotation should last, and how to select employees for rotation. It's important in these discussions to highlight the benefits of the program for each department, so no one feels like they're simply losing valuable employees from their teams, even if only for a finite time period.

If several department heads agree that job rotation would be valuable to the company, the treasurer should next talk to employees in the treasury function. Ask what they want from their career development, including areas into which they'd like to rotate. When identifying good candidates for your job rotation program, start by looking at high performers, high potentials, or solid performers who may have a lot of tenure in the same roles and an interest in a different career opportunity. Don't underestimate the value of enthusiasm: A midlevel performer who is eager to develop and willing to put in the effort could be an excellent choice for such a program. And employees who are enthusiastic about the idea of job rotation can be a great resource in making a case to a wider audience for how the program would help the organization.

You'll also need to determine what training will be needed when an employee moves into a new department or position. Will they require formalized skills training, or will peer-to-peer training suffice? Will you need to budget for classes, equipment, or software, and who will pay for that if the rotation is cross-departmental?

It also makes sense for a treasurer to discuss a possible job-rotation program with HR and with any consultants working in the organization. Consultants have experience across diverse businesses, and they should be able to share do's and don'ts. Meanwhile, the company's HR department may be able to share best practices already in use within the industry, and to assist in developing the necessary processes to support a job-rotation program. Even contacts and peers at other companies who have experience with these programs can be good resources. Ask them about what's worked and what hasn't, and seek advice on how to build a program.

Most important, when it comes time to pitch your plan to the CEO or other senior executives, it's crucial to have a well-thought-out strategy. Don't present your program until you can answer the following questions:

• What type of program is it: intradepartmental, cross-departmental, or multi-site?
• What goals do you have for the program?
• What roles do you want to be included?
• How long will rotations last?
• What types of individual are you looking to have participate, and how do your selections align with your goals for the program?
• What will you do when an individual has completed the program?
• What will you do if the person is not working out during the program?
• What type of training is required?

Alternatives to Job Rotation

For companies that are too small to feasibly allow job rotation, or in organizations where upper management fails to recognize the value of this approach, there are several alternatives:

• Mentoring: Establish a mentoring program and match up employees in various finance positions. Encourage them to meet regularly to talk about their responsibilities and pressures they face, along with the skills they need to succeed.
• Job shadowing: Job shadowing provides a firsthand look at different positions; it also fosters greater communication, empathy, and teamwork. And unlike job rotation, job shadowing doesn't require participants to move out of their assigned role. Job shadowing usually takes place for a few hours a week for a pre-determined period of time—even just a week. The goal of shadowing is for the employee to gain exposure to a typical day of the person they're shadowing and understand the skill sets required to do the job. The action item derived from job shadowing could be a development plan if there is an interest in moving into that role.
• Cross-training: Invite members from different areas of your team or from other departments to facilitate training on skills relevant to their roles. You could make this a regular event and rotate presenters.
• Outside training: Offer traditional professional development programs to allow employees to build their skill sets and see that you're invested in their career growth.
• Assigning staff to cross-departmental initiatives: Appoint top performers to be a part of teams and initiatives involving colleagues from other areas of the organization. This will help the employees learn more about the company—increasing their business acumen in the process—as well as tackle new challenges and grow their internal network. Treasury employees may be asked to bring a finance perspective to a new product development team. Or they could serve on a task force for a new corporate initiative.
• Making them project leads: Ask top performers to oversee high-profile projects. In addition to aiding them in expanding their skills and collaborating with co-workers from across the business, you'll be raising their visibility to senior management—always a welcome gesture.

Don't discount the value—or difficulty—of creating a job-rotation program, even if you have to start small. Given a chance, this underutilized tool can enhance your business and the skills of your employees. And in a competitive hiring environment, it may be the differentiator you need to attract and retain talented finance professionals.

See also the sidebar:

• Making the Case

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Tim Hird is the executive director of Robert Half Management Resources, the premier provider of senior-level finance, accounting, and business systems professionals to supplement companies' project and interim staffing needs.