Why CFOs are Shifting Employee Expectations to Retain Talent

One in three CFOs is focused on 'changing employee expectations' to battle labour market challenges and retain top tech, according to a survey of 500 finance leaders by Grant Thornton.

The findings reveal CFOs are struggling to attract and retain the skills required for their finance function to deliver business strategies, while AI and ESG are identified as other ongoing challenges. 

Contrasting budgets is noted as a significant barrier holding up matters like new hires and upskilling amid a growing skills gap.

More than 90% of CFOs are planning a digital transformation for their finance function over the next year as pressure to deliver return on investment (ROI) continues to rise.

CFOs anticipate financial constraints as the primary blocker to these digital transformation initiatives as they balance quality and speed across their tech and AI projects.

Unsurprisingly, AI is among the top priorities for CFOs over the next 12 months, but it is also among their biggest risks. The research highlights that finance teams remain uncertain of the risks that AI poses and called for CFOs to ensure a robust risk management framework to manage implementation and future threats.

The demand for technology skills

Perttu Nihti, Chief Product and Technology Officer at Basware, says AI has naturally upped demand for tech skills. 

"But," he adds, "as pressure to deliver AI ROI has increased, the challenges of the labour market shortage are rising.

"A shortfall of AI skills can lead to potential delays in projects and innovation, rising labour costs and increased strain on existing business and finance teams. And it is the CFO that is often being tasked to find the answer.

"The strategic goals of the CFO and CIO are becoming increasingly aligned, combining automation technology within finance operations to drive greater efficiency. Our recent AI to ROI survey found that four out of five organisations are set to increase AI investment, but CFOs 'don't know where to start'. An absence of a clear strategic AI vision, as well as the necessary skills to effectively implement AI solutions in some cases, is proving to be a common blocker and the AI tipping point will only accelerate the need for a solution."

The role of the CFO continues to expand

Amid these growing pressures, the role of the CFO continues to expand, increasingly covering areas that were previously outside the remit of finance.

CFOs are being asked to support digital transformation initiatives across the business, assist with talent acquisition and retention activities and play a central role in risk management from cybersecurity to compliance with the evolving regulatory landscape.

Perttu continues: "CFOs are being asked to balance delivering ROI in the short-term with long-term growth and this mindset can apply to talent acquisition and retention. Concentrating resources and expertise in areas such as adopting AI in AP automation activities can provide the shorter-term ROI wins that businesses are looking for.

"At the same time finance and tech leaders can work together to focus on creating a sticky culture through upskilling, flexibility and progression which is vital to talent retention and long-term business growth."

Explore the latest edition of Procurement Magazine and be part of the conversation at our global conference series, Procurement & Supply Chain LIVE.

Discover all our upcoming events and secure your tickets today.

Procurement Magazine is a BizClik brand