Strategies for attracting and keeping the best people
The strength of an organization rests on the quality of its people. But finding and keeping the best people doesn't just happen. It's the product of smart thinking and careful planning both on strategic and tactical levels. Here are five key steps in the talent-planning process:
The balancing act
Whatever the future holds for interest rates, multiple and distinct opportunities exist today to squeeze more mileage out of available cash. Choosing among them requires carefully balancing the goal of maximizing yield with satisfying liquidity and safety requirements. Performing that balancing act begins with a fresh review of the sources of your current cash balance and how you are using it.
Each source has its own implications for understanding your situation. For example, depending upon the regularity of your gross revenue and expenses, cash generated from operating accounts could be very reliable—or the opposite.
Cash from earnings credits could be very predictable if the assets generating those earnings are equally so. Interest rate fluctuations generally impact this source of cash.
Cash from outstanding debt must be evaluated according to the cost of that debt and loan terms.
That first step of your analysis will produce a general dynamic perspective on your short-term cash. The second step is to compile an investable cash profile taking into consideration the size of the cash portfolio, your time horizon and your goals for a return on that cash.
Finally, the third level of analysis to apply in determining how to optimize your use of cash is to gauge your risk appetite, including your sensitivity to price loss and your confidence in your assessment of your liquidity needs.
An institutional money manager can guide you through the steps of your liquidity needs analysis and optimization process, and help you consider three types of liquidity products. Yields on these vehicles will generally increase as you go down the list:
- Immediate liquidity products include bank deposits, money market funds invested in government agency securities, and prime money market funds, invested in a combination of government and top-rated corporate notes.
- Ultrashort-term liquidity products include enhanced-cash taxable and tax-free separately managed accounts (SMAs).
- Short-term liquidity products include managed certificate of deposit (CD) portfolios, short-term government-only SMAs, short-term government and private-issue blended security SMAs, and short-term corporate SMAs.
A broadening array of available solutions
Cash is the lifeblood of your business and increasingly less of a cheap commodity whose utility and availability can be taken for granted. As you give cash its due and manage your liquidity needs accordingly, take advantage of the broadening array of available solutions, and seek the support of an institution that can help you put together all the pieces of the liquidity management puzzle.
Interested in more detail?
Want to explore more topics?
Traditional bank deposit products are FDIC insured.
Services and products featured herein may include some offered by affiliated companies of BB&T Wealth. The fees for those services and products are in addition to the fees charged by BB&T Wealth. As a result, BB&T Corporation, as a whole, receives more compensation than would otherwise be received if a non-affiliated service or product was used. When we offer any service or product to a client, we use the same process to offer both affiliated and non-affiliated services and products. When we have authority to select any service or product on behalf of a client, if our process shows affiliated services and products to be competitive with corresponding non-affiliated services and products, then we may select affiliated products and services. BB&T Wealth expresses no opinion on the use of BB&T affiliated services and products when the client selects such services and products in a client-directed account.
The information provided should not be considered as tax or legal advice. Please consult with your tax advisor and/or attorney regarding your individual circumstances.
New York City residents: Translation or other language access services may be available. When calling our office regarding collection activity, if you speak a language other than English and need verbal translation services, be sure to inform the representative. A description and translation of commonly-used debt collection terms is available in multiple languages at www.nyc.gov/dca.
Branch Banking and Trust Company is now Truist Bank. Learn more.
BB&T and SunTrust have merged to become Truist. Both institutions will continue to offer independent product lines for a period of time. This may include differing underwriting guidelines, product features, terms, fees and pricing. Our friendly teammates at your local SunTrust branches will be happy to walk you through their respective products. You can also learn more by contacting them at 800-SUNTRUST or SunTrust.com.