CFO’s optimism about the financial prospects of their companies had fallen from 83% at the end of 2021 to a still relatively strong figure of 75% while the net optimism of CFOs now relative to six months ago dipped into negative territory, at -8%.
Deloitte partner, and CFO program leader, Stephen Gustafson, said: “Over the past 18 months, our survey has reported a curious type of business confidence, where CFOs were rating uncertainty as high, but also thought it was a good time to be taking on more risk – to get on with the job.
“We’re now in a different monetary and fiscal environment compared to only a year ago, and that has seen a dip in net optimism, an indicator that had been in positive territory over the previous three surveys.”
The report showed uncertainty remained high among CFOs – albeit driven by the new risks of rising inflation and interest rates – but risk appetite had fallen significantly.
The result was that only 25% of CFOs now thought it was a good time to take on risk, down from 58% six months ago – the starkest result in this survey.
One thing that CFOs were certain about was that difficulties in securing and retaining key talent continued to pose a risk to their business. Nine in 10 of the CFOs surveyed cited this as one of the top risks on their mind this year for the second time in a row.
Some 85% of CFOs surveyed believed that the best strategy to skill, reskill and upskill their employees was to offer them practical, on-the-job experience which supported productivity and helped employee engagement.
However, the majority of CFOs (77%) believed their company’s limited in-house training and reskilling capability was the biggest factor inhibiting the growth and development of employees.
Gustafson said: “The disruptions created by COVID lockdowns have also emphasised the importance of upskilling employees to equip businesses to adapt to the rapidly changing environment”.
“Nearly 60% of CFOs believe that focusing on improving culture, wellbeing and experience – and including hybrid working options – within their business is one key to lifting business productivity and supporting talent acquisition and retention efforts.”
