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“It’s hard to find good help these days”.
That may sound like a tired old cliché, but it’s also very real complaint from CFOs who are facing the headaches of a talent crunch. And it’s all too common. The job market for finance professionals is red hot, and good people have more choices than ever. Unfortunately that’s not likely to change anytime soon. If anything, the finance job market will only become more competitive over time.
 Are the most talented, highest potential candidates knocking on your door? Or are you having enough trouble just hiring the people you need? Are you getting the most out of your best people? Or are they too busy sending out their resumes?
The answers to these questions may depend a lot on your talent management strategy.
You do have a talent management strategy, right?
From our experience, most finance organizations don’t. Your company might have a broad talent management strategy, but that doesn’t mean it has the specific needs of finance in mind. In a recent survey that Deloitte Consulting LLP (Deloitte Consulting) conducted with the help of the Economist Intelligence Unit, only one-third of respondents indicated that their finance organization has a talent management strategy in place. Chances are the other two-thirds are merely filling job openings rather than developing the people that they need for the future.
You need to have a talent strategy specific to the finance function. Your ability to execute your broader strategy business goals is tightly linked to the quality of your people. Talent is absolutely crucial input to achieving your business objectives. If you don’t have a good strategy to manage it, you’re simply filling the gas tank, not improving your engine.
The key distinction is between skills, potential and talent. It’s not just about making room for more bodies in the budget. Talent management means thinking broadly about the types of people you need now, while also preparing for what you’ll need over a three to five year horizon. And you can’t get there unless you give it some serious thought.
Calling Human Resources or a headhunter isn’t a “talent strategy”. While HR and recruiters obviously play an important role in the process, finance needs to own the strategy, to drive it, to execute it. Talent is a key input to the results of YOUR strategy. Ownership means active participation. If you rely on others your strategy will fail.
Ah, but there’s plenty of untapped talent overseas, you say. We can always outsource or offshore certain functions to fill the gaps. Not so fast. The talent squeeze is a global phenomenon. Sure, there may be lots of great finance people in China and India, among other places, but you won’t be the first to discover them. There are a lot of other organizations bidding for their services too, and that’s rapidly eroding both the supply of talent and the cost advantage. And it will only get worse over time.
So if you can’t rely on HR and you can’t outsource the problem, how can you get started?
It all starts with a long-term plan and strategy. One that recognizes the people you have working for you today represent your most significant talent pool. What must you do to develop your talent from within? What are you doing to deploy your resources most effectively…both for you and for their career? And with today’s multi-generational workforce your plan no doubt reflects a sensitivity connecting with your talent in ways that matter to them most, right? Of course, your immediate needs will still need to be filled as soon as they arise, but you also need to start thinking about the future.
Source: “The Finance Talent Challenge: How leading CFOs are taking charge” Copyright 2007 Deloitte Touche Tohmatsu, in association with the Economist Intelligence Unit.)
A good talent strategy begins with a close look at the most critical workforce segments. You can’t fix everything overnight, so you need to prioritize. Take financial planning and analysis (FP&A). Our research shows that within the finance function, FP&A is prime hunting ground for future CFOs. If you have a dearth of talent in this area, it might be time to take action. Remember – don’t just think in terms of technical skills or the stewardship role. The best people should also bring business acumen and other experience to the table.
As you understand the competencies required for your finance organization, chances are you will find plenty of gaps. Some of these can be taught, some can’t. That’s why it’s important to understand your required competencies and assess your staff on a person-by-person basis. Find out exactly what is lacking across the finance function, within a given business unit or department and for each current member of your Finance team. Once you know the gaps you can develop a prioritized, multi-pronged strategy and roadmap to address your shortcomings. This will likely include elements including succession planning, performance management, rewards and recognition, recruitment, workforce planning, knowledge management and leadership development. Each of these can help “finess” your existing broad HR programs to work most effectively for finance.
Ultimately, branding finance as a career launcher is an essential strategy for attracting top-notch talent. It will also do wonders for the expansion of finance’s role as a strategist within the organization. With better talent, finance can generate more value-creating ideas for the business. That can provide more opportunities for finance to play a leadership role in the organization, which in turn can help attract better people. It’s a virtuous cycle.
Again, this is something that a lot of companies talk about, but never quite master. In our survey, for example, 51% of respondents agreed that branding finance is important, but only 33% said their organization was doing a good job developing the brand. The lack of career opportunity is often cited as a main reason why talented people leave finance departments – or never join in the first place. And remember, the actual employment and career experience must deliver and reinforce that finance brand!
This perception needs to change. Your talent must have exposure that goes beyond finance, and finance must be a feeder to the broader organization. That requires finance people who understand the business and vice-versa. It’s not easy, but the companies that have done this well – such as General Electric – have reaped the rewards many times over.
Finally, if you’re the CFO, don’t forget that a good talent management strategy involves you too. Getting broader assignments that take you out into the field to understand the business units or international experience will help your own career while enhancing finance’s profile in the organization. It’s a win-win.
Creating a culture of talent is hard work. But with most companies – and probably many of your competitors – choosing to ignore the problem, there is a huge opportunity for the few who are willing to rise to the challenge. Finance professionals are in demand and the shortage of talent is only going to get worse as time goes on. The sooner you get busy building a talent strategy, the better.
1 “The Finance Talent Challenge: How leading CFOs are taking charge” Copyright 2007 Deloitte Touche Tohmatsu, in association with the Economist Intelligence Unit.)
This publication contains general information only and Deloitte Consulting LLP is not, by means of this publication, rendering business, financial, investment, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte Consulting LLP, its affiliates, and related entities shall not be responsible for any loss sustained by any person who relies on this publication.
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