The Surging Demand for Finance Talent: Navigating the Evolving Landscape

In the ever-changing business landscape, the demand for skilled finance professionals has reached unprecedented levels. As companies across various industries grapple with economic uncertainties and the need for robust financial management, the spotlight has firmly shifted to those who can navigate the complexities of balance sheets, audits, and financial reporting. This article delves into the factors driving this surge in finance talent demand and the strategies organizations are employing to attract and retain the best and brightest in the field.

Unlocking the Key to Success in 2024 and Beyond

The Finance Talent Goldmine

The year 2024 presents a remarkable opportunity for finance professionals, as the most successful companies in nearly every industry sector are actively seeking out top talent. This demand should come as no surprise to seasoned CFOs and controllers who have closely followed the trends in the Resourceful Finance Pro community. Over the past three years, the topic of finance talent scarcity has been a recurring theme, with organizations struggling to find the right individuals to fill critical roles.In this competitive landscape, employers must be proactive in reviewing and enhancing their compensation packages, benefits, and growth opportunities to retain their best finance talent. Competing companies are aggressively seeking to poach the most skilled and experienced professionals, often catching employers off-guard when their numbers-crunchers leave for perceived greener pastures.

The Most In-Demand Finance Skills

A recent report from Business Talent Group (BTG), the "2024 Skills Index: The Year's Most In-Demand and Fastest Rising Independent Talent Skills," provides valuable insights into the specific finance-related skills that are in high demand. The report, which collates data from thousands of companies listing job openings, reveals the 15 most sought-after skills for 2024:1. Financial Controls, Accounting, and Audit2. Project Management3. Financial Planning, Analysis, and Modeling4. Technology and Systems Implementation5. Organizational Design and Workforce Planning6. Process Optimization and Transformation7. Program Management Office8. Strategic Planning9. Market Landscape and Research10. Growth Strategy11. Corporate and Business Unit Strategy12. Post-Merger Integration13. Market Access and Value14. AI and Machine Learning15. Operational ExcellenceThe report highlights that seven out of the nine industry sectors studied by BTG are most in need of finance talent. Financial Controls, Accounting, and Audit abilities ranked as the top priority for businesses in the Financial Services, Healthcare, Industrial/Manufacturing, Services, and Private Equity sectors. Meanwhile, Financial Planning, Analysis, and Modeling skills are in high demand for the Tech and Consumer Markets sectors. The exceptions are the Life Sciences and Nonprofit and Government sectors.

The Evolving Role of the CFO: Risk Management Takes Center Stage

The traditional role of the CFO has undergone a significant transformation, with risk management now emerging as a top priority. According to a Travelers survey, 52% of the more than 600 CFOs surveyed identified "identifying and mitigating various business risks" as one of the most valuable abilities needed to perform their duties effectively. This finding is particularly noteworthy, as the traditional CFO role was primarily focused on business growth strategy and financial risks, which were often the responsibility of the owners and CEOs.The survey also revealed that 62% of CFOs consider "strategic planning for future company success and resiliency" as the most valuable skill, while "the ability to manage a complex network of internal and external stakeholder relationships" tied with risk management at 52%. This shift underscores the evolving nature of the CFO's role, as they are now expected to be at the forefront of risk management, strategic planning, and stakeholder engagement.Interestingly, the Travelers survey found that among the companies surveyed, CFOs mentioned that almost two-thirds of their risk management activities are proactive in nature, while the remaining one-third is reactive, implemented only after an incident has occurred. In the current economic climate, where one too many reactive moves can jeopardize a CFO's job, the importance of proactive risk management cannot be overstated.

Addressing the Talent Shortage: Outsourcing and AI to the Rescue

The search for finance talent is not without its challenges. One significant obstacle is the declining interest among college graduates in the accounting track, as many are unwilling to complete the 150 required hours of coursework to sit for the CPA exam, especially if employers are not willing to cover the cost of their education.This trend is particularly concerning, as starting accountant salaries often trail those of other finance positions, despite accounting being one of the safest occupations during recessionary times. As a result, companies are increasingly looking beyond the traditional talent pool, exploring options to source finance professionals from outside the United States.To address the talent shortage, organizations are also turning to emerging technologies, such as Robotic Process Automation (RPA), which utilizes AI and software to create bots capable of handling repetitive tasks like data entry, document management, financial transactions, and accounting. These bots can automate various administrative tasks, freeing up finance professionals to focus on more strategic and value-added activities.According to the article, the top areas where financial directors want to implement AI include financial planning and analysis, cybersecurity and privacy, administrative tasks, and financial reporting. By leveraging these technological advancements, companies can alleviate the burden on their finance teams and better position themselves to attract and retain the top talent in the industry.