Article
November 2022
Even with limited resources, leaders can create a powerhouse Office of the CFO by optimizing talent elasticity and density.
The labor market has been in a neutral state as leaders grapple with economic and geopolitical concerns. This market stagnation has caused compensation to plateau, making lateral moves a popular career transition for professionals in Orange County.
On a larger scale, the continuing accounting talent shortage has led to growing financial restatements and weaker internal controls. Bloomberg stated that in 2024, there were 340,000 fewer accountants than five years prior. Consequently, material weaknesses resulting from accounting talent deficiencies have increased for four consecutive years, with 60% of annual filings citing “lack of accounting talent/expertise” as a challenge in 2024 (KPMG). This poses a few challenges:
Challenge #1: Current employees face overwhelming workloads, resulting in inaccurate reporting and missed deadlines.
Challenge #2: Organizations can’t efficiently scale their workforce to meet changing workload demands, especially during periods like year-end close or an annual audit.
Challenge #3: Slowed hiring widens skill gaps as teams miss out on current expertise and new perspectives, limiting their ability to innovate and meet business needs.
To navigate the changing labor market and the accounting talent crisis, CFOs must optimize their workforce for both short-term and long-term impact. Finance leaders can maximize the ROI of their talent investments by growing talent elasticity and talent density.
Talent Elasticity: Agility in a Competitive Market
For finance leaders prioritizing cost efficiency, risk mitigation, and effective resource allocation, talent elasticity is an agile solution. Talent elasticity is an organization’s ability to quickly scale its talent resources up and down to adapt to different workforce demands.
An organization’s hiring velocity (speed of the hiring process) and hiring friction (inefficiencies hindering success) determine whether it can scale talent proficiently. Lower friction leads to faster scaling.
On-demand interim consultants are the most effective way organizations can build talent elasticity. These professionals can help finance teams accelerate productivity on day one, all while remaining cost-efficient.
Project-based consultants help finance teams create long-term impact through executing time-sensitive assignments like ERP implementations and “quick-hit” process automations. Similarly, interim professionals help organizations rapidly boost capacity and capability during periods of increased workload demands. Cost-effective and agile, interim consultants accelerate month-end close, power M&A deals, and more.
Make the most of your talent investments by seeking interim consultants who embody these key traits:
- Trusted Partner: Leverage their subject-matter expertise to establish credibility, communicate effectively, and collaborate with key stakeholders.
- Proactive: Forecast future client needs and implement high-impact solutions.
- Results-Driven: Deliver specific, tangible impact for high-value projects.
- Team Catalyst: Empower internal teams through process improvements and help organizations retain expertise after they leave.
- Triage Expert: Quickly assess and prioritize critical activities, solve complex problems, and minimize disruption.
Talent Density: Lasting Impact with Force Multipliers
CFOs can also increase leverage, bridge skill gaps, and position their teams for long-term success with talent density. Developed by Netflix alum Patty McCord, talent density is the amount of high-performing professionals compared to an organization’s total workforce.
To grow talent density, organizations must attract and retain high-leverage professionals known as force multipliers. These individuals have a compounding effect on your organization’s workforce, resulting in greater innovation and productivity. Start developing talent density by defining your why (organizational mission and needs), what (expected hiring outcomes), how (strategic human capital strategies), and who (force multipliers).
Why: Organizational Mission and Needs
Begin with clearly defining your mission. Next, examine your talent needs from both a top-down and bottom-up perspective. For example, finance teams may aim to improve compliance and risk management, fill skill gaps, increase productivity, meet deadlines, and improve processes.
What: Expected Hiring Outcomes
Detail hiring outcomes like key deliverables, performance metrics, and ramp-up time (time to adjust to a new role).
How: Human Capital Strategies
Diagnose workforce skill gaps, define success, and deliver excellent hiring outcomes. Optimize the candidate experience to attract and engage top applicants. Finally, create an employer value proposition highlighting the opportunities and benefits employees can expect.
Who: Force Multipliers
Force multipliers create disproportionately higher impact through time savings, process improvements, risk mitigation, and strategic decision-making. They bridge skill gaps and future-proof workforces through driving insights, innovation, and collaboration. For example, they can implement new automation tools that free up bandwidth, allowing finance teams space to upskill and work on more impactful tasks.
Impactful Resources: Execution. Redefined.
CFOs can overcome labor market challenges and maximize talent ROI by strategically building talent elasticity and density within their teams.
Locally owned and managed since 2012, Impactful Resources is a leading provider of accounting, finance, and IT resources based in Southern California. As a full-service human capital firm focused on supporting emerging growth and middle market companies, we help firms scale to meet the needs of rapidly changing market conditions. Whether the solution is a special project, interim backfill, or a permanent placement, Impactful Resources can satisfy a wide range of client needs. We’ll help you find your next force multiplier!