2019 Trends in Finance, Part 5: How to Adapt to a Changing Workforce

The past decade has seen a major shift in the economic landscape. Between Brexit, trade wars, new environmental and financial regulations, the introduction of GDPR, and more, uncertainty has become a constant in many industries. A recent survey of leaders in finance reports that nearly 50% feel more exposed to risk and uncertainty now than ever before -- and that uncertainty can have major consequences for businesses.

 

In part five of this six part blog series, we look at how organizations are attempting to adapt to changes in the workforce. If you haven’t read the other blogs in this series, we recommend taking a look:

 

Part 1: The Changing Role of the CFO

 

Part 2: Shifts in Customer Demand

 

Part 3: How to Leverage Technology to Reduce Risk and Improve Decision Making

 

Part 4: How to Manage the Financial Impact of Uncertainty

 

How to Adapt to a Changing Workforce

Today’s workforce is both older and younger than ever. On the one hand, employees over age 55 are the fastest growing segment of the US workforce. Simultaneously, however, members of Generation Z are entering the workforce out of high school and college. Meanwhile, Millennials are beginning to take on management positions.

 

The Importance of Diversity

As of today, almost half of the US population is comprised of Generation Z and Millennials.

 

These two groups of young American workers are demanding greater accountability from their employers, particularly when it comes to inclusion and diversity. As a result, corporations are having to work to improve transparency around various social issues. There are tangible results, too: a 2015 report showed that companies with more racial and gender diversity provide better returns for investors.

 

Gen Z Graduates and Millennial Managers

Many Millennials are now entering their 30s, which means they’re beginning to take on leadership roles within organizations large and small. This effect is intensified by the fact that Millennials are entering management positions at a younger age than previous generations.

 

Millennials make for a new kind of manager. Many of them are highly entrepreneurial, and some companies have made conscious efforts to direct this entrepreneurial energy in order to foster innovation and creativity on the job.

 

In many ways, Generation Z is even more tech savvy than the Millennial generation. But given their lived experience of the Great Recession, many of these workers are more risk averse. Further, members of Gen Z are reaching many personal and professional milestones later in life—like driving and entering the workforce for the first time--than Millennials. This means that they often require additional training in order to acclimate well to a new job position.

 

Skills on the Job

Now more than ever, the role of the CFO is shifting. CFOs are now tasked with added responsibilities, and they need young professionals with the right technological skill set. Unfortunately, many companies are finding that there’s a skill gap amongst young graduates of finance-focused higher education programs. According to a 2016 Ernst & Young survey, 64% of corporate respondents were experiencing reductions in productivity as a result of this skill gap, while over half of CFOs reported that it was impeding their ability to focus on strategic goals.

 

Managing the Changing Workforce with Help from AKA

As a CFO, you need the ability to manage company finances. But just as importantly, you need a platform which allows young, innovative employees to work together towards a common goal. With AKA’s suite of technology solutions including Dynamics 365, Office 365, and more, your employees can access the data they need, both at their desks and on the go.

 

With help from AKA, your organization can improve communication and collaboration across entire departments. The end result is a better company culture for a changing workforce.

 

In the final blog in this series, we’ll look at how organizations are addressing a whole new set of concerns including corporate transparency, cyber-crime, and the consumer demand for corporate social responsibility. Don’t forget to check out the other blogs in this series:

 

Part 1: The Changing Role of the CFO

 

Part 2: Shifts in Customer Demand

 

Part 3: How to Leverage Technology to Reduce Risk and Improve Decision Making

 

Part 4: How to Manage Uncertainty