The role of the finance team in corporate success
A company's success stands and falls with its employees. Particularly in the finance area, where decisions have a direct impact on liquidity, strategic direction and competitiveness, qualified specialists are indispensable. But it's not just about expertise. The ability to overcome complex challenges, think strategically and adapt to a constantly changing environment is just as important. An inefficient or poorly positioned team can slow down decision-making, cause poor planning and jeopardize long-term competitiveness.
Find the right talents in finance
Recruiting the right talents requires a well-thought-out and systematic approach. The following steps have proven successful:
1. Create a clear job profile
The first and most important step is to be clear about the technical and soft skills needed for the role. Let's take the role of a controller as an example. A job profile could look like this:
- Technical requirements: Experience in budget planning, reporting and analyzing financial data. Knowledge of modern ERP systems such as SAP S/4HANA is a plus.
- Personal skills: Analytical thinking, accuracy and the ability to present complex information in an understandable way.
- Additional requirements: Experience with ESG reporting standards, as these are increasingly becoming part of the controller's remit.
The more specifically the job profile is defined, the better the right talents can be addressed. This is how efficient recruiting works.
2. Use a variety of channels
In addition to traditional methods such as job ads and headhunting, digital networks, career fairs and direct approaches to talents are gaining in importance. Networks such as LinkedIn and Xing offer access to a wide range of experienced professionals. In addition, directly approaching suitable candidates can be particularly effective for experienced managers and specialists.
3. Foster long-term retention
The recruiting process doesn't end with hiring. It's important to transition seamlessly into talent management. Onboarding, training programs, and a work environment that enables development are crucial to retaining the best talents over the long term.
4. Evaluate potential correctly
Selection processes should be designed not only to test qualifications but also to assess cultural fit and a candidate's willingness to learn.
Companies that specifically look for personalities who can support both the corporate culture and the strategic goals achieve the best results.
The role of the CFO in building a resilient finance team
Responsibility for building an effective team does not lie with the HR department alone. CFOs also play a crucial role here. By effectively conceptualizing financial planning and analysis teams, they help create value across the organization. The following points are crucial for finance leaders when building and managing resilient teams:
- Strategic workforce planning: CFOs should ensure that the composition of the team reflects the medium and long-term business objectives. This includes identifying at an early stage those skills that may be relevant in the future.
- Fostering team culture: Studies show that leaders who create a collaborative team culture not only increase productivity but also employee satisfaction.
- Mentoring and leadership: CFOs who act as mentors not only strengthen the individual skills of their employees, but also the resilience and flexibility of the entire team.
- Setting the tone: The actions and priorities of the CFO can create a clear focus on topics such as efficiency, innovation and sustainability.
Coordination between the CFO and HR department is particularly important for finance positions with a complex or specialized job profile.
Job enrichment through ESG
Since the introduction of the Corporate Sustainability Reporting Directive (CSRD) by the European Union, CFOs are expected to take on a key role in the area of environmental, social and governance (ESG) reporting, in addition to their traditional responsibilities, such as tax, controlling, accounting, budgeting, risk management and treasury.
<<Find out more about the role of the modern CFO here>>
CFOs are responsible for integrating ESG criteria into financial reporting and strategic decision-making processes. They are required to identify and transparently present both risks and opportunities related to ESG. They are also responsible for ensuring that the company meets increasing regulatory requirements and stakeholder expectations.
The integration of ESG criteria significantly expands the traditional areas of responsibility in finance positions. By incorporating sustainability aspects into financial reporting and strategic planning, finance professionals take on a much more diverse and future-oriented role. They no longer work only with numbers, but actively shape the company's sustainable direction. This expanded area of responsibility not only offers exciting professional development opportunities but also strengthens the strategic importance of the finance department as a driver of innovation and sustainable growth.
How ESG contributes to job enrichment in finance departments:
- Extended areas of responsibility: Financial experts not only analyze figures, but also evaluate ecological and social risks and opportunities for the company.
- Strategic co-creation: Finance departments play a central role in integrating ESG criteria into corporate strategy and are significantly involved in decision-making processes.
- More complex risk management: Integrating ESG factors into risk analysis expands traditional risk assessment and makes it more forward-looking.
- Promoting innovation: ESG criteria require the development of new approaches to reporting, data analysis and decision-making.
- Improved reputation: By working with ESG reports, financial experts contribute directly to strengthening the company's reputation with investors and other stakeholders.
What skills does a modern finance team need?
Implementing ESG criteria requires specific expertise. A resilient finance team must be able to:
✓ Analyze relevant data: ESG reporting requires processing large amounts of data. Data analysis skills and proficiency in modern reporting tools are essential.
✓ Understanding regulatory requirements: Knowledge of legal requirements and international standards is a must.
✓ Thinking strategically: The team must see ESG not only as a mandatory task, but also as an opportunity to create competitive advantage.
Conclusion
From working directly with and consulting closely with CFOs across a range of industries, one thing is clear: CFOs set the direction for finance teams. Although it is clear that CFOs are not involved in operational recruiting, it is still crucial that they work closely with the HR department. They must clearly communicate which skills are needed in the team to further drive the company's success. Building a competent finance team is not a task that should be left to chance. It is one of the most important investments in the future of a company. Because: Great people build great companies.
