Hiring and retaining staff is the most difficult task facing CFOs over the next 12 months, according to a survey from Gartner, Inc. The tight labor market is part of a trifecta of factors including persistent inflation and supply chain disruptions that are set to continue challenging corporate profitability through 2023.
“The data from CFOs align with what we are hearing from HR leaders, namely that competition for talent is expected to become fiercer over the medium term, and retaining that talent will become more challenging,” said Marko Horvat, vice president, research, in the Gartner Finance practice. “CFOs will need to deploy a variety of strategies to ensure critical roles remain filled while also protecting margins.
While raising compensation for top performers is inevitable, higher compensation alone will not solve the talent challenge and will ultimately pressure margins if deployed too broadly.