Businesses are experiencing high turnover at all levels of the organization, but the C-Suite is proving particularly hard to fill. High turnover among Chief Financial Officers (CEOs) is challenging companies to find alternative solutions just to fill the position, including adding responsibilities and offering dual C-Suite titles.
According to Global Trading Magazine, CFOs turnover has increased each year since the pandemic. In 2019, CFO turnover was 17 percent in S&P 500 companies. In 2022, the rate will increase to 20 percent. Executive search firms like Teneo are helping their clients attract and keep the leadership they need.
Financial chiefs are finding new opportunities to add new roles and take on new titles. According to an article in the Wall Street Journal, boards are doing whatever it takes to keep CFOs by creating more direct paths from CFO to CEO. For example, Newell Brands promoted CFO Christopher Peterson from CFO to a dual role as company president in addition to his CFO duties.
Recession fears also pressure businesses to have a CFO in place before the economy turns. While tech companies like Facebook and Alphabet are freezing hiring or even rescinding job offers, executive search companies like Teneo’s Firm are actively hiring. After acquiring a major stake in WestExec Advisors, Teneo has expanded its advisory capabilities to global leaders who are facing unprecedented challenges as the Russian invasion of Ukraine continues.
According to Staffing Industry Review, the current trend in CFO turnover will likely continue for the next few years. In addition to the war in Europe, concerns about the reemerging COVID-19 problems, and an upcoming recession, CFO Brew warns that the rapidly changing workplace is adding more difficulties as companies try to find new workplace solutions. More employees, even in the C-Suite, are demanding hybrid and remote alternatives to working in the office.