Bridging the skills gap in finance functions

The role of finance teams within businesses is evolving. Once seen as purely technical, finance professionals are now expected to act as strategic partners, providing insights that drive long-term financial stability and business growth. This shift has created a demand for new skills within finance functions, requiring professionals who combine strong technical expertise with exceptional communication and stakeholder management abilities.

Key Insights:

• Skills Gaps in Finance Teams:

  • Only 39% of senior finance managers believe their teams have the necessary skills to work effectively as strategic business partners.
  • The most critical skills gaps identified include commercial aptitude (60%), persuasion and influencing skills (48%), and stakeholder management (39%).
     

• Challenges in Recruitment:

  • 61% of CFOs report difficulties sourcing candidates from traditional talent pools.
  • Many recruitment strategies focus on technical skills but fail to assess soft skills like communication and collaboration, which are increasingly vital.
     

• Upskilling vs. External Hiring:

  • 49% of CFOs prefer to address skills gaps by upskilling existing employees, citing benefits such as maintaining company culture and reducing risk.
  • However, external hiring remains essential in cases where immediate expertise or fresh perspectives are required.

Strategies for Bridging the Skills Gap

1. Upskilling Existing Teams:
   Internal training is a preferred strategy for many CFOs, offering long-term benefits such as improved retention and adaptability. Popular approaches include:

   • Mentoring and Coaching: Identified by 88% of CFOs as the most effective method for developing soft skills like stakeholder management.
   • Job Rotation: Helps team members gain a broader understanding of business operations, cited as effective by 58% of CFOs.
   • Formal Training Programs: Used by 50% of CFOs to enhance technical capabilities through classroom or online learning.
      

2. When to Hire Externally:
   External recruitment is often necessary when:

   • There are no internal candidates ready for promotion (41%).
   • New insights or ideas are needed (25%).
   • Internal training would take too long to address urgent needs (23%).
      

3. Expanding Talent Pools:
   To overcome challenges in sourcing talent, CFOs should consider:

   • Recruiting candidates from other industries—52% of CFOs are open to this approach for certain roles.
   • Hiring professionals from non-finance disciplines, such as IT or legal backgrounds, who bring transferable skills and fresh perspectives.
      

4. Improving Interview Processes:
   Traditional interview techniques often focus on assessing technical competencies but may overlook soft skills. To better evaluate candidates’ communication and stakeholder management abilities, consider incorporating:

   • Presentation exercises to assess how candidates process and communicate information.
   • Psychometric testing to understand thought processes and working styles.
   • Case studies to evaluate past experiences with key stakeholders.

Why It Matters

As finance teams take on more prominent roles within organisations, bridging the skills gap is essential for meeting new demands. By combining upskilling initiatives with targeted external hiring and expanded talent pools, businesses can build finance functions that deliver both technical excellence and strategic insight.

For further insights or assistance with your hiring needs, please contact us at contact@robertwalters.com or visit our website at www.robertwalters.com.