How to prepare for the 2030 Talent Shortage
Finance teams are staring down the barrel of a pretty alarming global talent shortage – one that could possibly reshape the industry as a whole.
Korn Ferry estimates that by 2030, we could be looking at a staggering shortfall of 85.2 million skilled workers globally.
For finance and analysis teams, this means that seasoned pros like the (infamously dubbed) ‘Excel Ninjas’ will begin retiring, leaving behind a less experienced workforce to grapple with increasingly complex financial demands. But not all is lost. Next-generation FP&A tools like Pluvo are helping to pick up some of that slack by equipping the workforce with easy-to-use tools that can provide the same insights as a CFO with 15+ years of experience.
So how are FP&A tools helping struggling companies through this upcoming talent crunch?
Read on to find out!
There’s going to be a global talent shortage?
Not only does the global consulting firm predict a 85.2 million person talent crunch, but Korn Ferry also estimates that this shortfall could cost organisations up to $8.5 trillion in lost revenue annually.
For FP&A teams (which are critical in guiding financial strategy and decision-making) this shortage could mean fewer skilled professionals available to tackle the increasingly complex challenges of modern finance.
The question is: where is all this coming from?
1. An Aging Workforce
According to a 2023 Statistics Canada study, labour force participation has declined since the early 2000s and is expected to continue until 2030 when the last group of baby boomers reach retirement age, at 65. With them will go many of the infamous ‘Excel Ninjas’ that have spent decades mastering the art of financial modelling, scenario planning, and data analysis– skills that are not easily replaced.
Source: Statistics Canada
2. Evolving Skill Sets
Today’s FP&A landscape is far more complex than it was even a decade ago. With the rise of big data, advanced analytics, and the need for real-time decision-making, the skills required have evolved as well. The talent pool has not kept pace. Marked by the recent decline of finance degrees awarded by undergraduate institutions, there is a growing gap between what’s needed and what’s available.
3. Growing Financial Complexity
As the financial landscape becomes more intricate, organisations need to juggle multiple revenue streams, comply with ever-changing regulations, and adapt to current trends in order to operate in a global market.
As the complexity grows, so too does the need for analysis, insight, and strategic thinking. The need for better tools has never been higher, and at a time when the talent to perform these tasks is dwindling.
The impact of a Talent Shortage on FP&A Teams
The global talent shortage will have a ripple effect on FP&A teams, impacting everything from strategic planning to day-to-day operations. Here are some things to look forward to:
- Increased Pressure on Existing Staff: With fewer skilled professionals available, the workload on remaining team members will rise, leading to burnout, higher turnover, and a decline in productivity, worsening the talent shortage.
- Loss of Institutional Knowledge: Retiring professionals take years of experience and knowledge with them, creating gaps in your team’s capabilities and impacting financial reporting and strategic planning.
- Challenges in Scenario Planning: As the talent pool shrinks and turnover rates soar, headcount planning will become more difficult to manage in traditional labour-intensive tools like Excel.
Leveraging Technology to Mitigate the Talent Shortage
The looming talent crisis is a serious threat to success and profit, but embracing FP&A technology like Pluvo will mend the rift that is created.
Pluvo automates low-value tasks like data collection or reconciliation, freeing your team to focus on strategic activities such as scenario planning and financial analysis. Its user-friendly interface allows even less experienced team members to model and compare financial scenarios, ensuring accurate forecasts and preparedness for the future while maintaining data integrity.
Pluvo also lets your team create custom metric formulas tailored to your unique organisational needs, providing critical insights for decision-making. By centralising financial data and integrating with existing accounting software, Pluvo improves data accuracy and facilitates cross-departmental collaboration.
As experienced professionals retire, Pluvo offers an accessible alternative to Excel – empowering your team to conduct complex financial analyses without needing deep technical expertise.
Ready to future-proof your business finances?
Pluvo’s next-generation FP&A software is designed to help your team work smarter, not harder. By automating routine tasks, enhancing scenario planning capabilities, and providing tailored financial insights, Pluvo can help your team stay ahead of the curve, even as the talent pool shrinks.
Invest in Pluvo, your future-proof solution to uncertainty. Book a demo today! 🌧️
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