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If you, a CFO, feel like there’s more on your plate than ever before, you are not alone.
More than four out of every five CFOs (82%) said their role has “significantly grown” in the last five years, according to a new survey report from Egon Zehnder.
The consulting and leadership advisory firm surveyed nearly 600 CFOs globally, with the biggest share of respondents working for US-based companies (20%). A majority of finance chiefs said they’ve added environmental, social, and governance (ESG) responsibilities in the past two years.
Other common new CFO responsibilities include M&A and corporate development (44%), corporate strategy (38%), risk management (36%) and—this one’s a doozy—co-leading the enterprise with the CEO (35%). Those CFOs now handling M&A may want to get ready for a busier 2024. Jake Henry, senior partner at McKinsey and coleader of the firm’s M&A practice, recently told CFO Brew he expects “a return towards the mean levels” of M&A activity after a down 2023.
Nearly half of CFOs said they would like to spend more time on strategy (47%) and developing finance talent (46%). Few said they needed to spend more time on accounting/controls (3%), tax (3%), or financial reporting (4%).
CFOs also indicated that, among a list of new and emerging technologies, artificial intelligence and machine learning will have the greatest future impact on their job functions.
Help wanted. It’s also clear that many finance chiefs are struggling to fill out their rosters with talented workers. Two-fifths of CFOs said it’s harder to attract finance talent compared with two years ago. Explaining the struggle for talent, CFOs cited reasons such as layoffs, a tough labor market, an increase in demands of roles, and skills gaps.
Most CFOs said that, in order to build the right finance team, they’re giving more open feedback, rotating talent to different roles, and using targeting development programs. Mark Schwartz, CFO of employee recognition platform Workhuman, recently spoke with CFO Brew about how learning and development can be used as an employee retention tool. “I don’t think you can be successful if you’re not measuring yourself in part on your ability to create the next set of leaders and do that succession planning,” Schwartz said.