Recruitment, Development Major Concerns in Finance Departments of Large Companies, say Finance Executives

NEW YORK, July 22, 2013 /PRNewswire/ -- Finance executives at large companies are increasingly concerned about their ability to recruit, retain and develop talent in their finance organizations. According to Deloitte's Global Finance Talent survey, 39 percent of finance executives state that today they are either "barely able" or "unable" to meet the demand for the talent required to run their organizations. Looking forward, 33 percent forecast the same problem in three years' time.

(Logo: http://photos.prnewswire.com/prnh/20120803/MM52028LOGO-a)

The survey, which polled 312 chief financial officers (CFOs) and other executives in finance departments in large companies globally, also found that finance leaders are concerned about identifying their future replacement within their organizations, with many suggesting that the leadership pipeline is poor. Only 40 percent of finance leaders reported finding highly skilled finance leaders internally in the last three years, with the problem particularly acute in Asia and Europe.

The concern over securing and developing talent reflects the evolving role of the modern finance organization, in which executives are expected to be strategists and partner with leaders of other parts of the business to drive growth. The critical role of talent in this equation is reflected by the 34 percent of respondents who state that talent management is now their top concern in their overall finance strategy. Of the remainder, almost all describe talent as "somewhat important" to their finance strategy.

"The requirements of the modern finance organization have shifted. Finance should now serve as more than just a steward of a company's resources and also help chart a path to growth in partnership with other parts of the business," said Rich Rorem, principal, Deloitte Consulting LLP and Finance Transformation leader for the Americas. "Business leaders are looking to their finance organization for a deeper, more hands-on, collaborative approach. While CFOs and other finance executives understand this, many of them lead finance organizations that simply weren't built for that purpose."

Rorem continued, "Finance organizations haven't historically hired talent or built themselves to meet this demand for partnering with other areas of the company to drive growth. Consequently, there is a significant talent gap developing, which CFOs are now trying to address."

The majority of finance executives (72 percent) state that they have a strategy in place to recruit and develop the talent they need. However, according to the survey findings, in many cases talent development is not aligned with the future talent needs required in finance organizations. For example, finance executives list the ability to communicate effectively with senior management as the number one requirement for career progression in the finance organization. Additionally, the opportunity to learn and deploy this skill ranks only fifth in availability in finance organizations. 

The main barriers to recruiting talent to finance organizations often come from the notion that finance cannot offer sufficient career development or rewards. Finance executives list the top three barriers to successful recruitment as the belief that there are insufficient opportunities for development and career advancement; that potential strong recruits continue to be lured by managerial or non-finance positions instead; and the fact that compensation and benefits are not competitive.

"The perception of a career in the finance organization is out of step with the modern reality," said Tina Witney, director, Deloitte Consulting LLP and U.S. Human Capital leader, Finance Transformation. "High priority roles in finance such as financial planning and analysis require an in-depth understanding of the business, strong relationships with peers across the company and many other capabilities not associated with the traditional finance skill set. This is one of the reasons why finance leaders are increasingly recruiting internally from departments like business strategy, operations and marketing analysis."

Witney continued, "Despite this, the outdated view of the finance function clearly remains given the problems recruiting and retaining talent. Finance is still seen by external recruits as a scorekeeper's role, rather than a true partner in developing and executing business strategy. Finance executives, who only ranked the marketing of a career in finance eighth out of nine components for their talent strategy, should address this quickly."

Additional findings from the Global Finance Talent Survey include:

Financial planning and analysis skills in-demand. Thirty-eight percent of finance executives list financial planning and analysis as an area where they have difficulty identifying qualified, high-potential talent, the most of any skill area. Internal control and audit (31 percent) and tax (28 percent) rank second and third.

Partnering, strategic planning key today. Finance executives rank communicating with senior management; partnering with business units; participation in strategic planning; leading special projects; and leading/participating in financial systems implementation as the top five essential experiences needed for career progression in finance today.

Increase in internal recruitment channels. There has been a sharp increase in recruiting finance talent via internal job boards, demonstrating the wider net finance executives are casting internally. Nearly half (47 percent) of finance executives state that they are now recruiting via this method, an increase from 31 percent in 2007.

Increase in external recruitment channels. There has also been an increase in recruiting finance talent via a range of external tactics. The use of search firms has increased from 45 percent in 2007 to 51 percent today, while campus recruiting has increased to 34 percent from 27 percent in 2007. Nearly one-third (32 percent) of finance executives state that they use online job boards and social media for recruitment.

To download a copy of the survey, please visit: www.deloitte.com/us/financetalent.  

About the Deloitte Global Finance Talent Survey
This survey was conducted by Deloitte Consulting LLP in the first quarter of 2013 and included 312 respondents from three regions: North America; Europe, the Middle East and Africa (EMEA); and Asia Pacific (one-third of respondents came from each region). Industries represented in the survey were: consumer and industrial products; life sciences and healthcare; technology, media and telecommunications; energy and utilities; and financial services. The largest groups of respondents were from financial services (43 percent), and the second-largest group came from consumer and industrial products (23 percent).

All of the respondents were from companies with revenues of at least $800 million. One-third of respondents were from companies with revenues from $5 billion to $20 billion, and 23 percent were from companies with revenues higher than $20 billion. Roughly three-quarters of respondents had a title of vice president or higher. Almost half had the title of CFO, Business Unit CFO, Treasurer or Controller. The majority, (78 percent) has been with their companies for more than five years and has worked in finance for most of their careers (75 percent).

About Deloitte
As used in this document, "Deloitte" means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

SOURCE Deloitte