Talent is enshrined as the main challenge for financial directors until 2023 | Finance

Hiring and retaining staff are two of the toughest tasks facing CFOs in the next twelve months. This is revealed by the latest survey promoted by the research firm Gartner. Tight labor market is part of a trifecta of factors including persistent inflation and supply chain disruptions that will continue to challenge corporate profitability until 2023. Thus, according to the consultancy, to develop the research, 234 CFOs were surveyed during the month of July. Then, they were asked to indicate the three most difficult tasks to face during the next 12 months. Hire and retain staff was the only task selected by the majority of respondents. The forecast, selected by 36% of respondents, and the correct cost reduction, selected by 35% of respondentsconstituted the top three challenges facing CFOs ahead of 2023.

The context, decisive in the future

“The data from CFOs aligns with what we’re hearing from HR leaders, which is that competition for talent is expected to become fiercer in the medium term, so retaining that talent will become more challengingsaid Marko Horvat, Research Vice President, Finance at Gartner. “CFOs will need deploy a variety of strategies to ensure critical roles remain covered while protecting margins.”

In this sense, Horvat continues, “these three challenges are a reflection of the struggle of financial directors to manage in a context of persistent inflation and unusually high macroeconomic uncertainty”. For this reason, “the CFOs identify the few critical areas where investments need to be acceleratedsuch as human capital and digital investments, while optimizing costs in a context of stubbornly high inflation”; and this, he stresses, “is not an easy task”.

While it is inevitable to increase the pay of top performers, higher pay alone won’t solve the talent challenge. Also, it will ultimately put pressure on the margins if it is spread too wide. In this scenario, organizations also they should focus on perfecting their value proposition for the employee (EVP) with the purpose of recognizing a new reality of expectations of greater flexibility. In addition to reinventing EVP, CFOs should reevaluate their organization’s recruiting efforts in collaboration with HR partners to ensure critical roles are prioritized and more talent discovery pathways are activated throughout the organization.

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