Navigating the Talent Shortage in Treasury and Finance

In today’s increasingly competitive market, finding the right financial talent has become more difficult than ever. According to the 2023 Association for Financial Professionals (AFP) Compensation Survey, nearly 60% of treasury and finance functions report facing a talent shortage. This shortage is creating widespread challenges for businesses as they struggle to recruit and retain top-tier financial professionals, especially at the executive level.

The Impact of the Talent Shortage

The scarcity of qualified financial leaders is putting immense pressure on business leaders and HR departments, who must invest significant time and resources into filling these critical roles. The shortage also places additional strain on existing employees, who are often already stretched thin. In the absence of key financial personnel, many employees are asked to take on extra responsibilities to cover vacant positions, which can lead to burnout and decreased productivity.

The Time Investment in Finding Executive Financial Talent

So, how much time is typically required to find and onboard an executive team leader, such as a full-time CFO? The process is often far more extensive than anticipated, spanning anywhere from 6 to 12 months. Here’s a breakdown based on industry research:

1. Recruitment and Search Process (4-6 months): The search for a qualified CFO is complex and detailed. Businesses often rely on executive search firms, go through multiple rounds of interviews, and conduct rigorous vetting processes. Finding the right fit requires significant time and effort, especially when industry-specific experience is a prerequisite.
2. Negotiations and Offer (2-4 weeks): Once the ideal candidate is identified, the next step is negotiating terms such as salary, benefits, and contract details. For executive roles, this stage can be time-consuming as both parties work to ensure the offer meets expectations.
3. Notice Period (3-6 months): Many CFO candidates are already in senior roles, where they often need to serve a lengthy notice period before transitioning. Some executives may also be bound by non-compete or other contractual obligations, further delaying their availability.
4. Onboarding and Integration (2-3 months): After a CFO is hired, it can take additional time to fully integrate them into the company. They need to become familiar with the company’s operations, team dynamics, and financial landscape before they can begin implementing new strategies and driving decisions.

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Navigating the Shortage: Interim Solutions

Given the extended timeline required to recruit and onboard a full-time CFO, many businesses are exploring interim solutions to meet their immediate financial leadership needs. Fractional CFOs have become an increasingly attractive option for companies navigating the current talent shortage. These experienced financial professionals can step in quickly, offering high-level leadership without the long wait and cost associated with hiring a full-time executive.

Fractional CFOs bring the same level of expertise and strategic insight, often with the added benefit of flexibility and lower overhead costs. By opting for fractional financial leadership, businesses can address pressing needs, maintain momentum, and avoid the risks associated with delayed decision-making while waiting for a permanent CFO to be hired and integrated.