How CFOs can triumph in the war on talent
Anders Liu-Lindberg
Leading advisor to senior Finance and FP&A leaders on creating impact through business partnering | Interim | VP Finance | Business Finance
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The world of work is changing. Automation and AI are taking over many tasks previously done by humans. That’s particularly true in Finance, where much transactional work is rule-based and can be done faster and better by machines. This could lead you to think that abundant talented finance professionals would be available. That is not the case. That’s why closing the talent gap is also one of the top 10 priorities for CFOs in 2024.?
There are two primary reasons for the scarcity of talent in Finance. In the US, for instance, data reveals that 75% of the members of the AICPA have reached retirement age. Conversely, enrollment in the CPA exam program has decreased by 33% from 2016 to 2021 [source]. Not even vast technological advancements can keep up with the retirement rate and lack of talent in accountancy.?
The second reason is that the skills needed to be successful in finance and accounting today are also changing. There’s less emphasis on technical skills and more focus on people skills. These skills are not native to most finance professionals, and consequently, the people already working in the profession are suffering to perform to the heightened expectations of CFOs and business leaders.?
There are no easy fixes to winning the war on talent. Simply paying more is a short-term strategy that only leads to defeat. Instead, we need to fix the talent supply and capability gap. In today’s blog, we discuss strategies and provide practical next steps for CFOs to win the battle for talent and end the war for good!?
Rebranding the accounting profession?
The most critical problem to fix is the supply gap. If we don’t fix that, ultimately, we’ll run out of people in the profession. Looking at it from the outside, being a college grad or similar, it’s no wonder why accounting is not the first major on your radar. Often cited research from 2013 had a wide range of accounting-related jobs at 90+% risk of being automated, with “Accountants and auditors” at 94% risk. If this is the story you’re being told, most would think twice before they enter the profession.?
However, as highlighted in a 2018 article, “What is the Accounting Profession Paradox”, the truth is more nuanced than that. The American Bureau of Labor Statistics (BLS) has said that the accounting profession will grow more than the average of all other professions in 2026. Hence, the demand is there and getting more acute by the year. Therefore, we must dispel the myth of accounting being something boring that will be automated in just a few years.?
We do that by highlighting what accounting is evolving into today. We see three main paths:?
All these career paths vastly differ from the traditional view of accounting and accountants. They offer a significant opportunity to impact a business and your career. That’s precisely what graduates are looking for today. It may be difficult for individual CFOs to do the rebranding alone; however, from everything in your job ads, employer branding, and working with educational institutions, companies can brand their finance function differently.?
However, there is a catch to the rebranding. Each path outlined here requires new skills compared to traditional accounting education. Technical accounting is probably the closest path; however, building significant data and technology literacy is essential. While related but a different professional field, data science requires data literacy, statistics, math, and more. Finally, business finance requires the people skills that we referred to earlier.?
Establishing capability-building programs?
It would be great if educational institutions would adapt to the changed reality. However, change in the educational system could be faster, and CFOs must take this on themselves. That’s why they must establish capability-building programs to develop the skills their accounting and finance professionals need to succeed.?
In recent years, we have seen many such examples from the clients we work with. ?rsted built the Finance Impact Program and Electrolux, the Business Partnering Academy. Previously, I was also part of creating a Finance Academy at Maersk. CFOs at these companies recognized the need to build capabilities that weren’t native to most accountants. They also identified the need for continuous capability building throughout the careers of their staff members, no matter how long their tenure was at the company. They didn’t subscribe to the old discussion between the CEO and CFO.?
“CFO says, what happens if we train our people, and they leave? CEO responds, what happens if we don’t, and they stay?”?
One thing is to offer these learning opportunities, and another is to empower people to use them honestly. We can all relate to having been sent on a training course by our manager, almost like a reward or for retention, but not using any of what we learned. Training is to be used at the exact time in our career when we have a practical need for what we know. With practical application of what we learn, it will be remembered.?
Therefore, to make the capability programs meaningful, CFOs must establish structured career journeys within their finance function. This doesn’t necessarily mean a one-way ticket to the CFO role but provides guidance on the skills needed to succeed in specific roles and what learning opportunities are available to build those skills.?
This will create a very purposeful conversation around talent management and employee development. Given that individuals perform in their roles, they can quickly ascend to the next level or a role in a different department, fully knowing that development support will be provided. This will highlight fascinating career paths in the finance function that graduates and more senior professionals would jump at the opportunity to pursue.?
Don’t wait for talent, grab and develop it?
Talent is not something that will be supplied to CFOs. They must grab it already from the entry-level professionals’ careers and even earlier to fuel the supply of graduates into the educational system. CFOs need to make it fun and exciting to work in a finance function and highlight the meaningful impact of finance teams across the organization. You need to take a starting point in your current finance function, of course, so here are some relevant questions to ask to consider how you’re currently fighting in the war for talent.?
Answering these will give you concrete guidance on actions to win the war on talent and clear indicators of how you’re currently doing. If you struggle to recruit people or are never headhunted by others, you probably don’t have a strong employer brand and struggle in the war for talent. If, on the other hand, people are thriving in your organization, frequently get promoted or take on more complex roles, and feel supported in their development, you’re doing something right.?
Rome wasn’t built in a day, which is a famous saying, and the war for talent isn’t won in a day either. Becoming an attractive finance function to work in and continuously building new and more vital capabilities is a longer journey. It’s one that, if done right, will change the culture of your finance function and is guaranteed to create strong business results. It’s a winning path, we may say. How are you attracting people into your finance function and developing them once they have arrived?
This was the seventh blog post in our new series, "The Top 10 Priorities for CFOs in 2024." In this series, we will explore the issues even more deeply, share candid perspectives from the frontlines, and share actionable advice on what the Office of the CFO should do to create more value. Read the previous articles in the series below.
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Catch the insights from our latest series "The Modern Finance Function" here.
You can read all blog posts in our previous series "Demystifying AI in Finance & Accounting" below.
Continue reading below for more articles about trends in finance and accounting.
Anders Liu-Lindberg is the co-founder and a partner at Business Partnering Institute and the owner of the largest group dedicated to Finance Business Partnering on LinkedIn, which has more than 12,000 members. I have ten years of experience as a business partner at the global transport and logistics company Maersk. I am the co-author of the book “Create Value as a Finance Business Partner”, a long-time Finance Blogger, a LinkedIn Learning instructor, and a Top Voice on LinkedIn with 335,000+ followers.
Finance leadership & transformation
10 个月Rebranding the accounting profession is indeed a great vision. Data science and analytics have already been combined to improve forecast accuracy across several industries for some year. It's time we systematize finance efficiency through process automation, in particular when collecting payments and managing disputes.
Manager Sales | Customer Relations, New Business Development
10 个月Exciting times ahead in the finance world with automation reshaping tasks! Anders Liu-Lindberg
Unlocking the People Power of Finance Leaders: Coaching for Communication & Influence.
10 个月What would you say is the number one people skill that a finance business partner should have at the top of their list Anders? And I know someone's personal focus would be what they specifically need to develop on, but as a general rule here.
Helping finance professionals to gain the knowledge, skills and confidence to drive efficiency, error reduction and innovation in their finance function, through AI & Automation.
10 个月I love the idea of rebranding the accounting industry Anders Liu-Lindberg and combining data science and analytics what a great role that would be.