Kolleno is thrilled to announce that we have published the A CFO’s GUIDE TO REMOTE FINANCE TEAMS in collaboration with Playroll, a global HR partner for companies building distributed teams or hiring remotely. The guide will provide CFOs and leaders of companies of all sizes with an overview of the trends, tools and approaches that their company can use to help ensure that they are prepared to navigate new norms and ways of working following the disruptive effects of the COVID-19 pandemic.
The key findings of the whitepaper
The Global Pandemic has “Fast-Tracked” Digital Transformation
Whilst a “digital agenda” was in the pipeline for CFOs and business executives, the COVID-19 pandemic has expedited the need for greater digitisation and new ways of working. According to McKinsey , on average, businesses have leapt forward 7 years in terms of their digital adoption as a result of the pandemic.
The numbers of people that work remotely nowadays are pretty compelling and the evidence says it is here to stay.
According to a recent Gartner Report 48% of employees will work remotely at least some of the time in a post-pandemic world, compared with 30% previously.
United States of America:
In the U.S., research by Zippia states that prior to the pandemic, only 6% of American employees worked fully remote. In 2021, this figure reached 26% – a 4-fold increase!
Another survey by Willis Towers Watson found out that employers expected 19% of their workforce to be fully remote after the pandemic, from a baseline of 7% pre-COVID-19.
In the future, experts predict that there will be 36.2 million Americans working remotely by 2025, which represents a 417% increase from pre-pandemic levels, where there were only 7 million people working remotely.
In the EU, WEF estimates that around 5% of Europeans regularly worked from home prior to COVID-19. That figure has now risen to around 12.3%.
Employee Preferences are Shifting
According to Playroll, new employee attitudes and preferences have resulted in a shift in what constitutes a 21st-century employee experience:
“More than 4 million workers in the U.S. have resigned in the midst of the pandemic. Talent across the globe has realised the benefits of remote work. Suitcase in tow, countless employees around the globe have traded their desks for renewed purpose, adventure, family and flexibility.”
As a result, employers must now show that they are open to accommodating these preferences in the hunt for new and capable talent.
Employers Have to Accommodate the Remote Working Arrangement to Acquire & Retain Talent
In a recent Deloitte survey, over 71% of CEOs identified labour and skill shortages as the number one anticipated disruptor for successfully delivering on their business strategy in 2022
This issue was further highlighted in a recent McKinsey report, where it was noted that workers are leaving companies “faster than you can replace them. According to the US Bureau of Labor Statistics, more than 4.3 million people voluntarily quit their jobs in December 2021.
In light of this “great resignation”, employers will have to rethink their talent strategies and approaches to both attract and retain talent. Amongst these strategies will be the need for global hiring and remote working to obtain the necessary talent to address future requirements and talent shortages.
The New Generation of Workers Require New Working Arrangements
In addition to shifting employee preferences and the “great resignation”, forward-looking employers will also have to evolve to consider the talents and needs of a new generation of workers, with “Generation Z” employees expected to constitute greater than 58% of the workforce by 2028.
Some Industries Are Affected More Than Others
Some responsibilities are easier to perform remotely than others, depending on the level of interaction between employees, the tools required or available, the nature of the work etc.
According to research the most “common” remote working occupations are: IT, Accounting & Finance, Customer Service, Healthcare, and Marketing.
For CFOs specifically, an additional study by PEW Research revealed that 84% of finance and accounting professionals believe that their duties can be performed remotely.
The role of the CFO has significantly evolved beyond their traditional finance function
In light of their evolving role, as well as the current challenges faced by CFOs and business leaders due to inflationary pressures, climbing energy prices, restrained supply and the looming threat of a global downturn, a number of senior executives are turning to automation and digitization to help address talent retention/shortages and future-proof their businesses.
In particular, a number of CFOs have begun to invest considerably in the automation and digitization of accounts receivable management and credit collections tools to ensure adequate liquidity and working capital.
Download the guide
To learn more how to about building the remote finance teams, download our guide here.