We continue to see a shift in the role of CFOs as tech-enabled automation affects day-to-day processes and long-term procedures, and there’s an increasing need for financial leaders who possess the skills and understanding required to manage these responsibilities and to keep their firms competitive. The last half of 2023 saw a general decrease in executive search activity across all asset classes, but an early perspective from the market suggests a stronger year ahead.
Current State of the Talent Market
The VC executive search market experienced a 12% decline in Q3. The PE sector also faced a significant impact, with a decrease of 15% in opened searches and a 41% quarter-over-quarter drop in exit values, marking the second-worst quarter since 2008. Despite the challenging quarter, there are reasons for optimism in the long term, with the spotlight on strategic planning, networking, and building talent pipelines. [Read more here: The Current State of Executive Recruiting]
“PE firms need CEOs to run their fast-growing portfolio companies and are draining succession talent from public companies.” We continue to witness firms eager to find capable CEO talent. PEs and search firms have been targeting executives from public companies and very often looking to attract executive leaders at the level down (CFO/COO/etc.) to lead portfolio companies. [Read more here: How Private Equity’s Hiring Spree is Upending the C-suite at Public Companies]
Automation and Processes
The emergence of automation has significantly changed the way businesses operate, and this effect is particularly noticeable in how CFOs manage processes and workflows, from automating routine tasks like reconciliations and reporting to implementing advanced systems for budgeting, forecasting, and analysis.
Consequently, we’re seeing a growing demand for CFOs and their direct reports who have experience with the latest technological trends and advancements. New hires and existing team members alike are expected to adapt and develop new skills, and they must have the ability to find and implement innovative automation tools that can streamline financial operations, reduce costs, and improve overall efficiency. Identifying and attracting multifaceted, tech-enabled talent that can lift the function’s performance is our expertise!
Interested in learning more about these topics and how Spire Search Partners is solving the industry’s talent challenges? Please reach out to Dennis Grady with your availability.