Finance teams found their way in 2024 to keep up with the ever-changing market landscape brought about by a number of factors.
The accountancy profession, as we know it, faced challenges in technology--what with the concerns on how artificial intelligence poses threat on their jobs regarding the way it can take over their roles.
It also went through hurdles in talent management, as finance leaders grapple with the evolving roles--mastering the art of reskilling, upskilling, and talent retention.
Undoubtedly, this part of the Finance department put talent management on the priorities list to help finance professionals get through transformation and change, continuing to bring value to the organisation as a whole.
As 2024 draws to its close and companies now turn to wrap up the year on a high note, it is important that they have a good grasp of how the accountancy profession gears up towards progress and success for the new year ahead.
2024 at a glance
Looking back to how the year has gone by, Michele Manabat, manager for accounting & finance at Robert Walters Philippines, observes that organisations are realising the advantage in being agile and flexible to address the needs of talent while consistently maintaining upskilling opportunities across an inclusive workforce.
"First, flexibility remained a strong priority for finance professionals," she explains. "The option to work remotely or hybrid has given the opportunity for employees to have a better work-life balance."
Additionally, Manabat says organisations fostering a strong support system through career coaching and having regular discussions on career development and growth opportunities have helped employees consider a long-term future with the company.
"More and more organisations have started to use data analytics to tailor training and upskilling to fit the employee's needs and to ensure that the initiatives were effective and in line with business goals."
Meanwhile, Zeeshan Pervez, president at ACEN Shared Services, thinks automation and digital skills stepped in to take the centre stage, saying he is seeing this as a trend that is attracting talent and people are hungry to learn.
"Manual work is being challenged and companies need to invest in Automation and Digital experience for people to stay engaged," says Pervez. "Work-life balance and well-being continues to be a top priority for people as well, and companies must do more to ensure employee well-being is forefront in their strategy."
Evolution for the profession
Pervez believes the accountancy profession continues to evolve each year, noting that he has been seeing fresh graduates with much refined and pragmatic approach to accountancy.
"They can apply accountancy to real life aspects as AI and ML applications are supporting a deeper understanding of finance and business," Pervez says, adding that the limited opportunities for face-to-face skill development caused by the COVID-19 pandemic opened doors for broader learning opportunities online.
Manabat, on the other hand, thinks there is a heavier demand for finance and accounting professionals with the need for more accurate reporting in more complex regulatory environments especially following the pandemic.
"While the Philippines houses over 200,000 certified public accounting (CPA) professionals (as of May 2023), the country is seeing a concerning decline of certified professionals – with a 35% dip in the number of examinees since 2019."
Despite this, Manabat says the country continues to be one of the top destinations for accounting outsourcing services, as the business process outsourcing (BPO) industry is currently in a robust growth trajectory, and professional services companies have been looking into maximising the talent of Filipino accountants bringing in a solid track record of providing quality services and excellent communication.
"With the pandemic shifting the economic landscape of many countries, the appetite for more cost-effective and efficient measures intensifies. The opportunity to work remotely coupled by the advancement of technology brought a realisation from companies that talent can be employed wherever the skillsets are present."
This, Manabat thinks, in turn had increased the preferences for remote accounting professionals allowing organisations to provide hybrid structures and higher compensation.
The thing about tech
Contrary to the concerns arising, for many Finance teams, AI-powered technology does not replace humans as it functions more like a highly specialised team member.
According to software company Esker, AI-driven automation does the mundane “heavy lifting” so the team is free to perform more strategic tasks.
In a guidebook, Esker says after years of continuous change, adapting a more human-centric accounts payable approach is now a prerequisite for keeping a business competitive. This, of course, involves the adoption of technological advancements such as artificial intelligence within the team.
Given this and echoing what many experts have already said, Manabat believes the accounting profession will have to adapt to an ever-changing financial landscape.
"The increasing use of new technology has been the post-pandemic trend with organisations maximising the power of technology to expedite their recovery, identify new ways to enhance efficiency and identify new strategies through data analysis."
She says the familiarity with financial software systems and ERP tools is encouraged; and organisations will need to upskill finance professionals in emerging technologies like AI, data analytics, and blockchain to enhance their analytical and problem-solving skills.
Manabat adds that the function will also need to cultivate a culture of data-driven decision making and shift the focus to strategic financial management with professionals being a key advisor in strategic business decisions. Moreover, organisations will have to invest in sustainability and Environmental, Social, and Governance (ESG) training as these factors are becoming a significant aspect of business operations and reporting.
Pervez agrees to this, saying there must be a focus on Automation and AI as a subject, diving deep to find out how accountants can and should rely on core accounting and judgement skills versus manual work.
"We have a shortage of these skills, which must be matched up with accountancy core skills," Pervez says.
Improvements and boosts
The landscape of finance has dramatically shifted, driven not only by advances in technology and changes in regulatory environments but also in the expectations of finance professionals to shift into a more business partner function by providing strategic business insights to drive business decisions.
For Manabat, while there are efforts in upskilling finance teams that are driven by these changes, the pace and scope of these initiatives still fall short of what is required for the rapidly changing landscape.
This in turn leaves finance and accounting professionals to personally take initiative to upskill in areas relevant to their field and industry, and generally engage in comprehensive training to address the demands for their roles.
"Companies should invest in the continuous professional development by taking a more holistic approach to upskilling to stay ahead and be equipped for the future."
Additionally, the Robert Walters PH manager says flexibility and work-life balance remain a core priority amongst finance professionals, with preferences to work-from-home or hybrid.
"A competitive compensation package with the highlight of healthcare extending to family as well as transportation and parking privileges are also seen as top priorities."
On top of these retention factors, Manabat explains that talent in the finance function also expect job stability and professional development with access to training programs and certifications to enhance their technical skills.
Meanwhile, Pervez thinks the spotlight must also be shone to diversity and inclusion, highlighting the importance of the employees' well-being, including physiological safety, continued career progression, training and development and work-life balance.
He says culture plays a huge part, and leaders need to step up and engage with workforce more often.
Retention
"Retaining talent in a conservative market can begin with regular check-ins to address future career pathways and plans within the organisation," Manabat says. "It is crucial that employees' current roles are aligned with their professional goals, and that they have access to company’s internal resources to address career development and upskilling – cross-functional projects, mentorship programs, and regular feedback sessions."
She stresses that in a digitally driven market where technology has shaped a new way of working, balance and flexibility are at top priority for talents when considering opportunities.
"The work-from-home and hybrid structure play a crucial role in shaping a family’s routine and, for most, financial priorities. As a result, it is important for companies to understand market trends on compensation and benefits, intentionally addressing employee
feedback and potential gaps by making data-driven decisions and ensuring employees' needs are met."
Onwards to 2025
Looking ahead to 2025, Manabat says finance professionals should expect a rapidly evolving business environment with digital finance and automation being integrated into business operations.
"It is beneficial for employees to embrace the digital transformation, to understand how these technologies can play to their advantage, and to upskill in business partnering to stay relevant."
She says finance professionals should also be aware of the growing risk associated with cyber threats as financial transactions and data move online, noting that they will need to work alongside IT and risk teams to ensure data is protected.
For Pervez, finance professionals must look out for concerns similar to 2024: work-life balance, too much manual work, and the lack of spending on organisational capability.
