Why an inflationary economy could be good news for finance executive vacancies
With no sign of the war in Ukraine ending, businesses are still steering their way through the insecurity of an inflationary economy. But the one consistent factor that Finance executives can be certain of is that vacancies will continue to open.
With core costs for businesses (food, energy and fuel prices) all rising significantly (some by as much as 50%) there has been an inevitable impact on wages. But with so much pressure on costs, finance departments have never been more important. Who better to guide a business through economic turbulence than the finest finance minds?
How will price rises affect positions in finance moving forward?
Fixed costs inflation
High inflation in core costs, or overheads, causes a ‘domino’ effect, where most organisations feel price pressure from internal expenses, external suppliers, and a down-force on profits causing the following
- Closer monitoring of overheads
- Recruitment for new positions slowing, or put on hold
- Costs passed on to consumers through higher prices, causing further inflation
- Alternatively, companies absorbing prices rises leading to reduced profits
- Re-evaluation of the cost of labour
This means companies employing finance professionals face tough choices to make where the cost of their existing workforce is concerned.
On one hand, guaranteeing that an organisation runs smoothly, costs are scrutinized and profits are monitored effectively is the finance team’s responsibility. That’s why keeping the finance department intact should be crucial through these uncertain times. If inflation has caused damage to your business overall, there is a strong reason to make savings in other areas to keep a finance department fully operational. Monitoring the cost of labour is something that organisations will need to assess from all angles.
On the other hand, inflation should really require organisations to recruit MORE finance professionals to monitor and manage the impact on company funds and identify the best areas cost savings. It’s this reason why the impact inflation is having on the finance sector is actually POSITIVE rather than negative.
Despite a lot of organisations tightening their purse strings to stay afloat as inflation increases, many businesses are also in a position to invest in their finance team in order to monitor profit margins.
ONS data points to increase in finance executive vacancies
After an initial downward turn in 2022, vacancies in the finance sector are now higher than in 2021. Statistics published by The Office of National Statistics (ONS) late last year stated that unfilled finance vacancies posts ran at 5 vacancies in every 100 as against 3 the previous year.
Trading conditions of course vary from industry to industry, but the overall picture for the UK finance sector is one of hope, not fear. With the expertise of finance professionals in public and private sectors, the UK economy appears to be well-placed to recover quickly.
Finance teams are essential: especially when times are tough
Despite variations in the volume of positions, and recruitment campaigns being scaled back by some and amplified by others, the skills and knowhow of finance executives will continue to be in high demand by those companies best placed to ride the current inflationary storm.
So, despite a year of financial and political turmoil in 2022, and considerable challenges to business growth, finance professional have never been more in demand.
If your business needs a finance professional to steer it through the current economic challenges, call Lily James on 01925 637871 or email LilyJ@kpir.co.uk for advice on how best to approach your recruitment campaign to fill your finance executives vacancies.