By Art Wittmann, Editor, NetSuite—March 22, 2023

potential recession is a very real concern and is forcing CFOs to find ways to cut costs, increase efficiency, and improve cash management.

The good news is CFOs are used to tackling the most complex challenges—one look at the role CFOs have played over the past three years tells its own story. Now, as the economy slows, it’s time for careful cost cutting while eying opportunities growth.

To learn how CFOs are balancing budgets and business priorities, NetSuite and CFO.com surveyed 500 CFOs and executives from organizations with $250 million or less in annual revenue. Here’s what our survey found.

Efficiency trumps growth as the economy slows

As the Fed battles inflation, organizations are looking to cut costs and improve efficiency.

  • 99% of business leaders are predicting budget cuts if the economy dips into recession.
  • 100% of CFOs believe inflation will continue to be the primary issue through 2023, and 78% are looking at cutting costs to help fight inflation.
  • To improve cash flow and manage financial health, CFOs identified marketing and advertising, talent acquisition, and expanding products and services as the top three areas for potential budget cuts.

Businesses need to balance budget cuts with talent retention

The survey finds that budget cuts may impact employee retention, as many managers report they are looking to leave and worry about “quiet quitting” among their team members.

  • 83% of business leaders believe they will face a critical talent shortage this year.
  • Despite that, 39% of CFOs expect to reduce hiring budgets, and 37% said they will reduce allocations for retaining talent in 2023.
  • Talent shortages and budget cuts are impacting employee morale. Half of managers are actively looking for new jobs, and 59% of business leaders reported that “quiet quitting” is an issue for their company.

Finance teams are championing tech to help manage the economy and talent shortage

To deal with inflation and a possible recession, CFOs are doubling down on technology to help their teams achieve more with less.

  • 94% of business leaders believe their executive team is taking the right action to manage inflation and prepare for a possible recession. 92% believe their finance department is fully prepared to handle a potential recession.
  • 73% of CFOs anticipate an overall increase in IT/tech spending over the next 12 months.
  • 84% of CFOs will be more involved in developing a technology strategy this year, as they believe technology will increase overall productivity and relieve pressures on an overworked workforce.

There’s no doubt that CFOs face a new reality for workforce management. A confluence of factors including demands for higher salaries, a historically small hiring pool, and increasing employee desire for flexible working arrangements make balancing budgets and business priorities more complicated. The survey reveals that business leaders are confident that their finance teams will meet these challenges in 2023.

Source

16 comments
  1. Very good written story. It will be useful to everyone who employess it, as well as me. Keep up the good work – can’r wait to read more posts.

  2. Hi, Neat post. There’s a problem with your web site in internet explorer, would test this… IE still is the market leader and a big portion of people will miss your magnificent writing because of this problem.

  3. Nice read, I just passed this onto a colleague who was doing a little research on that. And he actually bought me lunch since I found it for him smile So let me rephrase that: Thank you for lunch! “We have two ears and one mouth so that we can listen twice as much as we speak.” by Epictetus.

  4. Hi I am so delighted I found your website, I really found you by error, while I was searching on Aol for something else, Anyhow I am here now and would just like to say kudos for a marvelous post and a all round enjoyable blog (I also love the theme/design), I don’t have time to read through it all at the minute but I have saved it and also included your RSS feeds, so when I have time I will be back to read a lot more, Please do keep up the superb job.

  5. Hmm it seems like your site ate my first comment (it was super long) so I guess I’ll just sum it up what I had written and say, I’m thoroughly enjoying your blog. I too am an aspiring blog blogger but I’m still new to the whole thing. Do you have any helpful hints for inexperienced blog writers? I’d definitely appreciate it.

  6. Amazing! This blog looks exactly like my old one! It’s on a entirely different topic but it has pretty much the same page layout and design. Great choice of colors!

  7. Pretty section of content. I just stumbled upon your web site and in accession capital to assert that I acquire in fact enjoyed account your blog posts. Any way I’ll be subscribing to your feeds and even I achievement you access consistently rapidly.

  8. Wow that was strange. I just wrote an extremely long comment but after I clicked submit my comment didn’t show up. Grrrr… well I’m not writing all that over again. Anyhow, just wanted to say fantastic blog!

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Across the globe, Apple and its teams find new ways to give

The company’s Employee Giving program has raised over $880 million, with more…

New updates to ensure safer learning at school and at home

The Google for Education team continues to build education services with highly…

Introducing Google’s Secure AI Framework

The potential of AI, especially generative AI, is immense. However, in the…