MARKET TRENDS & INSIGHTS
Financial Officers Staying Atop Evolving Market Dynamics
8th August, 2024 | 5 min read
Michael Carlino
In 2024, the executive search market for Chief Financial Officers is bustling with opportunities and challenges. With increasing demand for strategic leadership across industries, particularly in commercial property and technology, CFO roles are more competitive than ever. Companies are adapting by revising compensation structures, focusing on social skills and technological expertise, and evolving team structures. This article explores the latest trends impacting CFOs, from the rise in talent availability and evolving salary packages to the shifting landscape of team dynamics and essential skills. Understanding these trends will help organizations attract and retain top CFO talent in this dynamic market.
MARKET UPDATE
Increased Demand for Strategic Executive Talent
The demand for executive talent is rising across industries, reflecting a competitive landscape for senior roles. Positive growth in the commercial property and technology sectors is driving active searches for key positions. Mid-sized clients are heavily investing in systems, technology, and workforce to gain market share against larger competitors. Despite a slight dip in consumer sentiment, stable market conditions support growth-oriented strategies. The candidate market is highly competitive due to lower unemployment rates and high demand for exceptional talent. The executive search market is experiencing significant activity, driven by new market entrants, significant internal projects, and natural churn as professionals seek new opportunities with the approaching financial year. The commercial sector is showing impressive resilience and adaptability, with a surge in demand for top talent across various industries.
SALARY AND REMUNERATION TRENDS
Embracing At-Risk Compensation
In response to economic challenges, businesses are increasingly incorporating ‘at-risk’ elements into compensation structures, such as long and short-term incentives. These schemes have evolved towards greater transparency, featuring objective scorecards that assess a blend of business and individual achievements. While this practice often entails a reduction in the base salary component, Commercial Leaders are negotiating higher remuneration, recognizing the high demand for their leadership skills. Seasoned executives are showing a growing inclination to transition to different sectors. Individuals from larger corporations are now more receptive to embracing risk, considering opportunities in smaller companies with enhanced long-term incentives. This strategic shift reflects a broader trend among executives seeking new challenges and rewards in the evolving professional landscape.
EVOLVING TEAM STRUCTURES
Expanding Roles and Skills
Team structures across various functions are evolving to meet the demands of a growing and innovative market. In the commercial property and technology sectors, potential expansions in team sizes are notable. The focus is on enhancing the skills and capabilities of sales teams, reflecting their strategic importance. The increased prominence of Chief Growth Officer (CGO) roles is significant, with CGOs driving revenue growth, understanding market opportunities, and leading cross-functional teams. Key skills for CGOs include a visionary outlook, financial literacy, collaboration, change management, and industry-specific knowledge. The role of Chief Commercial Officers (CCOs) is also evolving, with increased collaboration with CMOs to drive company revenue, build brands, and manage vast data and IT infrastructure. Strategic thinking, data analysis, digital marketing proficiency, and leadership are essential skills, alongside the need to create seamless omnichannel experiences and leverage new technologies like generative AI.
SKILLS IN DEMAND
Emphasising Social Skills and Technological Expertise
The rising importance of social skills in C-suite roles is evident, as companies prioritize these abilities over traditional operational expertise. High self-awareness, effective communication, empathy, and the capacity to work with diverse groups are key social skills that are becoming essential. Assessing these skills presents challenges, necessitating new tools such as psychometric assessments and simulation exercises. Industry trends show robust sectors like financial services, distribution, digital media, MedTech, and professional services, while retail and large consumer tech are experiencing quieter periods. There is a high demand for skills related to strategic growth and technological advancement, underscoring a shift towards positions that drive innovation within organizations. Experience and industry knowledge, especially in commercial property and technology sectors, are highly valued for navigating competitive landscapes and implementing growth-oriented strategies.
CANDIDATE AVAILABILITY
Navigating a Competitive Landscape
High-level executive candidates with robust commercial acumen and leadership abilities are difficult to source. The changing market has increased demand for such candidates, making it imperative for organizations to showcase the value of their opportunities. Due to the candidate-heavy market, candidates are open to opportunities in faster-than-normal processes. The focus on diversity is also growing, ensuring a varied talent pool to meet client needs.
In Conclusion
The executive search market for Chief Financial Officers in 2024 is characterized by increased demand for strategic talent, evolving compensation structures, and a focus on social skills and technological expertise. Navigating this dynamic landscape requires understanding these trends and leveraging a diverse talent pool. For tailored executive search solutions, contact our team at Pacific Talent Partners. We are here to help you achieve your strategic goals in this competitive market.
