Focusing on talent management, retention, and hiring has become crucial for CFOs as competition for skilled employees increases and workforce dynamics shift. Here are some specific challenges CFOs are struggling with in this area, along with some strategies for talent management, retention, and hiring:
Challenge: Talent shortages in key skill areas, driving up competition and salaries.
Solution: Time-to-hire is critical, especially in competitive markets. CFOs who invest in recruiting technologies, such as applicant tracking systems (ATS) and AI-powered tools, to streamline hiring, improve the candidate experience, and reduce costs associated with lengthy hiring processes. A refocus on hiring policies to target skill-based hiring instead of direct experience can also prove beneficial. For example, if there is a need for great communication skills, hiring an accounting manager with expertise in internal communications but no experience in the company’s industry may be more beneficial than hiring someone with a lot of industry experience and little experience communicating internally. Diversity and inclusion have also been shown to improve organizational performance and advancement. CFOs collaborating with HR can expand hiring practices that promote diversity, such as recruiting from historically underrepresented groups or non-traditional backgrounds, which can also widen the talent pool.
Challenge: Rising compensation costs. CFOs are tasked with finding cost-effective ways to attract and retain talent in high-demand areas without overshooting budgets.
Solution: Competitive pressures are driving up salaries, benefits, and incentives, prompting organizations to explore non-traditional perks such as remote work flexibility and wellness programs. CFOs can collaborate with HR to design packages that balance salary with attractive benefits such as stock options, performance bonuses, mental health resources, and budgets for professional development – while keeping an eye on costs. Additionally, offering to sponsor employees’ professional licensures, coupled with a required minimum tenure after licensure, helps enhance employee expertise while ensuring the organization benefits from its educational investment. Building an internal pipeline of skills can help the company mitigate talent shortages and save on hiring costs. Many CFOs are funding professional development programs, certification courses, and cross-training to create a more agile and adaptable workforce. Upskilling is often more cost-effective than constant external recruiting, and it helps with retention by providing career growth paths. In situations where full-time hiring is not feasible or necessary, CFOs should turn to freelancers and contract workers. This approach adds flexibility to staffing and enables access to specialized skills on an as-needed basis, reducing the long-term financial commitment of a full-time hire.
Challenge: Increased Turnover and Retention Challenges. Building a Strong Employer Brand
Solution: Voluntary turnover has risen, especially in professions like accounting that require high-skill roles. High turnover leads to increased recruiting costs, loss of institutional knowledge, and a negative impact on team morale, which can affect overall productivity and collaboration. Embracing flexible work arrangements can enhance employee satisfaction and retention, which also saves on office space costs. CFOs should analyze the financial implications of hybrid or fully remote setups while investing in wellness programs, from mental health resources to fitness reimbursements, which are increasingly valued by employees. A strong employer brand also makes hiring easier and retention higher, as it attracts candidates who align with the company’s culture and mission. CFOs must invest in employer branding initiatives to highlight the company’s culture, values, and benefits, helping to attract a better-fit workforce and reduce turnover. Investing in mentorship programs, internal mobility initiatives, and regular recognition programs can help boost morale and reduce turnover, which is cost-effective compared to the expenses of high attrition rates. Recognizing employees’ contributions and offering career advancement opportunities are key to retention.
CFOs play a critical role in shaping talent strategy by balancing competitive compensation and benefits with budget constraints and long-term strategic goals. In this competitive landscape, effectively managing talent requires a blend of financial planning, strategic investments in employee well-being and development, and close collaboration with HR. By adopting these strategies, CFOs can create a sustainable talent model that supports the company’s growth while addressing the evolving needs of the workforce.
About Sherrika
With over 15 years of experience in corporate accounting within private equity-backed and privately held companies, Sherrika Sanders established Transform the GAAP (Goals Assigned Achieving Purpose) to share her expertise as a seasoned corporate accountant. Her passion is to empower accounting teams and high-potential yet often under-recognized accountants by equipping them with the essential skills to succeed and move from career stagnation to strategic growth. Focused on increasing productivity and creating clear paths for career advancement that foster overall company growth, Sherrika supports accountants in reconnecting with their core values, refining their professional presence, and developing strategies for thriving in any corporate environment. Her approach draws from her own journey; she once faced similar challenges and learned to advocate for herself, gaining respect, recognition, and compensation that reflected her contributions. Sherrika holds a Bachelor's in Accounting, an MBA, and a Master’s in Organizational Leadership, and she is dedicated to helping others achieve similar success in their careers.
At Transform the GAAP, our mission is to empower and mentor accountants struggling to advance in their careers by providing personalized guidance and practical skills development. We aim to foster growth, confidence, and professional fulfillment, helping our clients navigate their career paths with clarity and purpose. Visit https://www.transformthegaap.com/ to learn more.
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