In today’s corporate world, the role of CFOs has expanded significantly, with data security and privacy now emerging as top priorities alongside traditional financial oversight. A recent study by Protiviti revealed that 61% of global finance leaders now consider data security a major concern, a sharp rise from its previous position at number five just a year ago. This shift in priorities is largely driven by new cybersecurity disclosure requirements and the increasing pressure from customers and vendors for robust data governance.
A case that highlights this evolving role is that of RR Donnelley & Sons Company (RRD), which faced a $2.1 million fine from the SEC in June following an investigation into the company’s internal accounting controls. In 2021, RRD suffered a ransomware attack that did not expose financial information, but the company failed to act on critical security alerts. This incident underscores the evolving responsibility of CFOs to work closely with IT teams to ensure compliance and safeguard organizational data, highlighting the growing intersection of finance and cybersecurity responsibilities.
In addition to these data security challenges, CFOs also face the complex task of managing recruitment budgets, which often go underappreciated despite being significant organizational expenses. Neil Costa, CEO of recruiting marketing firm HireClix, emphasizes that CFOs must have a clear understanding of recruitment metrics such as cost per application, cost per quality hire, and cost per hire. By analyzing these metrics, CFOs can make more informed decisions regarding resource allocation and optimize recruitment processes.
Recruitment costs can vary widely based on job roles, location, and market conditions. For example, hiring a software engineer in the Bay Area is typically more expensive than hiring a customer service representative in a less competitive region. Additionally, external factors like mass layoffs at large tech companies can temporarily reduce recruitment costs for certain positions. Recruitment expenses also tend to spike in January and February as organizations rush to fill positions at the start of the fiscal year.
Costa also highlights inefficiencies in HR spending, especially with underutilized technologies and outdated career sites. Applicant tracking systems (ATS) and candidate relationship management tools can cost tens of thousands of dollars annually, but are often not fully leveraged. Poorly designed career sites can deter potential applicants, yet they remain a critical point of contact for job seekers. Modernizing these systems and enhancing the candidate experience can lead to significant returns. Additionally, high headhunter fees can be optimized by reallocating that budget toward recruitment marketing, which has shown better results in certain sectors, such as healthcare and industries with high reliance on agency staffing.
Beyond recruitment, economic measures indicate that CFOs will need to prepare for market fluctuations. While the stock market has recently rebounded, poor job creation and increasing layoffs suggest a labor market slowdown. The sluggish job growth in August 2024 points to the need for companies to reassess their hiring strategies and adjust budgets accordingly to navigate the changing economic landscape.
On the tax policy front, there are significant proposals impacting small businesses. Vice President Kamala Harris has suggested raising the small business startup tax deduction from $5,000 to $50,000, while former President Donald Trump advocates for the continuation of existing tax cuts, such as closely held business deductions. These discussions reflect ongoing efforts to stimulate economic growth, particularly in the small business sector, which has direct implications for corporate tax planning and financial forecasting.
As CFOs take on more strategic roles, understanding recruitment budgets, strengthening data security measures, and preparing for economic uncertainty are now critical priorities. By leveraging data-driven insights and optimizing resource allocation, CFOs can position their organizations for sustainable growth and resilience in the face of future challenges.
