CFO Challenges To Watch Out For In 2023: Labor Problems (1 of 5)

How can CFOs approach new problems in 2023? Recent shocking incidents demand creativity and a revamp of business procedures to flourish in 2023.   

Since 2019, CFOs have experienced a deluge of significant shock events that have affected their strategic growth plans and daily operations, ranging from Covid-19 and its associated lockdowns to varying political gridlocks.

Many CFOs will need to take further action as 2023 gets underway to support their businesses through macroeconomic challenges, including inflation and rising interest rates in the shadow of the pandemic.   

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According to David Carrick, CFO at global financial services firm Apex Group, "Covid-19 lockdowns proved to be the most stringent stress test that most CFOs have ever — and possibly will ever encounter."   

Employees' welfare and health and safety must remain a significant focus for businesses today. He claims that hybrid working models have kept the efficiency of the finance function and the service we are providing.   

"Now that the worst is over, it's critical for CFOs to recognize that the workplace has irrevocably altered, necessitating the evolution of their finance function."   

For forward-thinking companies, investment in technology and delivery of a digital-first response has allowed the business to offer dependable service to its clients worldwide throughout COVID-19.   

Challenges in The Labor Market   

Due to early retirements from the workforce and an aging population, attracting and maintaining talented workers have become a significant issue for many businesses and their finance departments in the post-pandemic era.   

According to a new McKinsey & Company research, the battle for talent is still intense. At the end of May 2022, there were 11.3 million job opportunities in the US alone, up from 9.3 million in April 2021.   

Additionally, when given the wrong atmosphere to grow in, workers are typically more willing to switch employment more frequently.   

According to a global poll, 40% of workers are likely to quit their employment in the next few months. To combat this, a stronger emphasis on additional employee advantages, such as the provision of hybrid working, will help counteract today's labor market challenges.   

As the chief financial officer and an executive committee member, he says, "My primary focus is on investing in our finance team to make sure we have the people, resources, and capabilities appropriate for a firm of our scale." Organizations can explore a broad mix of incentives to retain top people, including retaining hybrid working patterns.   

Deploying resources in the face of an economic downturn   

Business leaders should implement hiring, retention, and employee reward strategies that foster long-term loyalty and employee satisfaction rather than making one-time cost-of-living payments to employees.   

Given that Covid-19's restrictions on international travel have been lifted and that travel abroad is once again on the agenda, multinational corporations should consider the global distribution of talent and mobility options and adopt cutting-edge strategies to ensure their talent is retained and deployed where it is most needed.   

CFOs worldwide have faced a myriad of challenges, from COVID-19 to Russia's invasion of Ukraine, which has resulted in higher energy prices and pressure on financial institutions.   

As central banks globally try to contain inflation by raising interest rates, CFOs must also manage expectations of a global recession, the length and depth of which will determine whether a company will be successful this year. In addition, there is much uncertainty over energy supplies, especially for the coming winter, coupled with weakening global and regional demand. All of this is bound to affect the growth outlook of companies in Europe.   

When it comes to corporate spending, CFOs need to be more disciplined in how it deploys talent and finance. Businesses and their finance teams can succeed if they accept uncertainty and look for opportunities to innovate to support their customers and their employees.   

For 2023, CFOs can address labor challenges by directing their attention to increasing operational efficiency in a sustainable way. This can be done by investing in technology in areas such as AI and blockchain.   

Epicor Financial Planner   

Today, financial reporting software like Epicor Financial Planner (EFP)is becoming indispensable in helping organizations streamline their strategy. Epicor Financial Planner helps finance teams work closely with executives to help them improve financial performance by uncovering performance metrics.   

Epicor Financial Planner is more than just a reporting solution though. It is a robust FP&A solution that empowers finance departments to manage data well. It allows finance to reduce manual and repetitive work, streamline processes, and automate where necessary in order to shorten cycle times.  

EFP offers four product packaging levels that support small to medium businesses and large enterprises. EFP has no functional limitation in its support for large organizations needing advanced reporting and consolidation. 

As an FP&A software, EFP can enrich your business continuity plans with financial budgeting, cash flow automation, scenario management, and reliable forecasting so you can plan for the future.  

Book a free demo today and find out how it can afford your organization the needed efficiencies and compliance controls.