Nearly 60 percent of treasury and finance functions are facing a talent shortage, according to the 2023 Association for Financial Professionals (AFP) Compensation Survey. But while business leaders are eager to fill open positions, they struggle to find candidates with the necessary skills. Meanwhile, employees have been leaving their jobs in droves as they seek better opportunities, higher salaries and benefits, and flexible work arrangements.

These trends can be traced back to the post-pandemic economic recovery, when we saw an uptick in hiring as business leaders were eager to restore normalcy. Employees, on the other hand, were coming off a very challenging couple of years. Some had lost their jobs as businesses experienced closures, downsizing, or financial constraints. Others, who faced high workloads and elevated stress during the pandemic, were yearning for a better work-life balance. Additionally, many employees who got used to the flexibility of working from home during the pandemic were reluctant to return to the office.

Talent scarcity is certainly a problem for business leaders and human resources, as the time and cost it takes to hire and on-board a new employee can be significant. However, employees are also negatively impacted. They may be asked to take on additional work to cover vacant positions, even if they are already stretched thin. In this year's survey, 42 percent of respondents cited limited resources (financial, personnel, managerial) as the biggest challenge employees face right now. Their volume of work (40%) and the recruitment of personnel (37%) follow close behind.