Why strategic finance could define 2025

Summary

This video discusses the evolving landscape of finance and accounting talent acquisition, focusing on the challenges and strategies for attracting and retaining top professionals. Experts highlight the growing competition for skilled finance leaders, the impact of salary inflation, and the importance of offering a compelling value proposition beyond compensation. As companies navigate potential market volatility and shifting business needs, the discussion emphasizes proactive leadership and retention efforts to ensure success in the coming months. The panelists share insights from the finance and technology sectors, providing valuable advice for navigating these turbulent times.

Takeaways

• 😀 The year 2024 is expected to be the 'Year of the Controller,' with high demand for controllers driven by retirements, automation, and a decrease in new recruits from public accounting.
• 😀 Controller searches are on the rise, with demand especially high in private equity-backed companies needing skilled professionals to help with retention strategies.
• 😀 There is a growing shortage of experienced accountants, creating challenges for companies to fill critical roles in finance and accounting.
• 😀 In 2025, there will be a focus on FP&A (Financial Planning & Analysis) leaders as organizations move toward more data-driven and strategic finance roles.
• 😀 FP&A leaders will be required to connect business data with strategic decisions, working cross-functionally with teams like sales and marketing to guide company strategy.
• 😀 Companies need to adapt to a more data-centric approach to finance, with tools like PowerBI and other data platforms becoming crucial for leadership decision-making.
• 😀 CFO turnover has reached nearly 9% at publicly traded companies, and private equity-backed firms are experiencing similar trends, leading to a competitive talent market for CFO roles.
• 😀 Key reasons for CFO turnover include external offers, hybrid work expectations, and a lack of willingness to relocate, making it harder to retain top talent.
• 😀 In order to retain top finance talent, companies must offer more than just competitive salaries—value propositions should include career growth, a supportive work environment, and long-term benefits.
• 😀 Companies must be proactive in retaining their finance and accounting talent and consider internal development, cross-training, and long-term retention strategies to meet future workforce needs.

Q & A

What factors are contributing to the increase in demand for controllers in 2024?

The demand for controllers in 2024 is driven by a combination of factors including the retirement of older finance professionals, automation of accounting functions, and the higher cost of borrowing which has made businesses more cautious about their finances.

How has salary inflation affected the finance and accounting talent market?

Salary inflation in finance and accounting has been significant, as companies compete for top talent. Many firms are finding themselves surprised by higher-than-expected salary offers from competitors, making it essential to offer more than just financial incentives to retain talent.

Why is strategic planning in FP&A leadership critical for businesses in 2025?

Strategic planning in FP&A leadership is crucial because it helps companies navigate economic uncertainties, like inflation, tariffs, and other market volatility. FP&A leaders play a key role in steering organizations through these challenges with proactive data-driven decisions.

What role does data play in the evolving responsibilities of FP&A leaders?

Data is vital for FP&A leaders as it enables them to connect the dots across different business functions, assess potential risks, and make more informed decisions. Effective communication of this data to other departments is essential for driving strategic business outcomes.

How is the hybrid work trend impacting CFOs and other financial leaders?

The hybrid work trend has complicated the recruitment and retention of CFOs. The location flexibility that some companies offer is becoming a significant factor in the decision-making process for CFOs. However, some companies are having trouble adapting to this shift.

What is the key takeaway regarding CFO turnover discussed in the podcast?

CFO turnover is high, with many organizations experiencing significant challenges in retaining their financial leaders. Companies need to focus not only on offering competitive salaries but also on creating a broader, long-term value proposition to keep CFOs in place.

What recommendations were given to businesses regarding talent retention in finance roles?

Businesses should be proactive in addressing retention challenges by creating a broader value proposition that goes beyond monetary incentives. This includes offering long-term career development opportunities and fostering a sense of belonging and growth within the organization.

What are the major challenges companies face when trying to recruit top finance talent?

The major challenges include the increased salary expectations in the market, the rising competition for qualified finance professionals, and the lack of sufficient talent entering the workforce. Companies must offer more than just a competitive salary to attract and retain top talent.

How will automation impact the accounting and finance job market in the coming years?

Automation is expected to continue reshaping the accounting and finance job market. While it may reduce the need for some traditional accounting roles, it will also create demand for new skills in technology and data analysis, which will be crucial for strategic decision-making.

What are the broader implications of the increasing need for financial professionals in leadership roles?

The increasing need for financial professionals in leadership roles highlights the growing importance of strategic financial management in driving business success. These leaders must possess not only technical finance skills but also the ability to navigate complex business challenges and lead their teams through uncertain times.