There is a large disconnect between where the finance function needs to go and the talent it will need to get there, according to a Deloitte global survey, "The Finance Talent Challenge: How Leading CFOs are Taking Charge."

The study, developed in cooperation with the Economist Intelligence Unit (EIU), discovered that a new breed of talent is needed to propel the finance function beyond traditional roles within a company and to a new level of strategic leadership.

"The responsibilities of CFOs are growing as the focus of Finance shifts from traditional accounting and reporting to more strategy and leadership, and the need for top talent intensifies," said Donal Graham, a Consulting Partner at Deloitte.

"The survey found that many organisations lack the ability to align finance with businesses objectives, as well as to help reach company goals.

"Attracting and developing the talent needed to help reach these goals is a challenge.

"According to the survey, 35 percent of CFOs said that recent graduates do not see the finance function as a career launcher."

The issue of finance talent and demand is truly global but is most pronounced in the Asia Pacific region including Australia.

Sixty-seven percent of respondents from Asia-Pacific cited that the current supply of finance talent is either limited or inadequate, with 54 percent of respondents from Eastern Europe; 53 percent from Asia-Pacific; 52 percent from Western Europe; and 47 percent from North America stating that finance talent will be limited or inadequate in three to five years.

The Finance Talent Challenge survey is a compilation of first-hand accounts from CFOs and includes responses from 636 financial executives across a variety of industries.

The study reflects insights on a range of issues, including the evolving role of the CFO, the future of the finance function and the challenges related to attracting and retaining talent.

"Few companies are doing what it takes to lure top talent with only 33 percent of executives agreeing that their finance organisation markets finance as an attractive career option or destination.

CFOs must lead the charge to re-brand the finance function as a career with great potential for growth and advancement," said Lisa Barry, leader of Deloitte’s Human Capital practice.

Despite the evidence that financial executives are not yet committed to solving the finance talent challenge, Graham remains optimistic, citing four commitments that CFOs must take to address the problems.

He noted that CFOs must commit finance to creating value, developing and nurturing new finance leaders, branding finance as a career launcher for the benefit of the overall company and committing to attracting, developing and retaining top finance talent.

However, he warned that CFOs who do not respond adequately will be left with second rate talent pools to draw upon.

He also suggested that the tight local talent pool is likely to result in larger Australian corporates looking to alternative finance talent sourcing strategies such as offshoring.

Key findings of the survey include:

• Financial Planning and Analysis professionals are highly sought-after as future finance leaders - and rank first among the functional groups or positions that provide the primary pipeline for the finance organisation’s leadership, but these people are among the hardest to find.
• Many finance organisations do not capitalise on the graduate pool. Fifty-two percent of CFOs say graduate programs are a valuable tactic in attracting high-potential students and boosting a company’s reputation, but 35 percent of CFOs say one of the most significant challenges in attracting talent is that recent graduates don’t see their company’s finance organisation as a career launcher.
• Career development is critical to high-flyers, and yet many companies prevent high potential finance talent from pursuing opportunities outside of finance. Career advancement tops the list of frequently cited reasons that talented finance people give when they quit, but only 46 percent of respondents agree that their finance leaders routinely develop talent as a part of their career development programs.
• Furthermore, few (28 percent) agree finance routinely provides talent with opportunities outside of finance, and 38 percent say their finance organisations are reluctant to release talent to other departments within the company so they can further develop their skill sets and increase their business knowledge. This runs contrary to the expectation that top finance professionals should have a strong knowledge of, and feel for, the business.
• The competencies cited as being most commonly deficient within the finance function include change management (38 percent), strategic agility (33 percent), critical thinking (29 percent) and business understanding (29 percent).  These are skill sets associated with finance acting as a strategist and catalyst for improved business outcomes.
• Nearly 80 percent of Public Sector respondents cited an inadequate or limited supply of finance talent, with Life Sciences and Healthcare at 65 percent, and Consumer Business at 67 percent. This compares to 58.7 percent of total respondents.

Respondents came from various geographic areas, including 46 percent from Eastern and Western Europe, 31 percent from Asia-Pacific, Africa and the Middle East, and 23 percent from North and South America.

Twenty-five percent were in the Financial Services industry, while 16 percent came from Manufacturing, 13 percent from Consumer Business, and 14 percent were from technology, media and telecommunications companies.

Eleven percent of the respondents were within the Public Sector.

Please click on the attachment below for the full report.