CFOs Must Embrace Key Labor Trends to Thrive in 2025 and Beyond

January 17, 2025

As we approach 2025, the labor landscape is undergoing significant transformations that Chief Financial Officers (CFOs) must understand and adapt to in order to ensure their organizations thrive. The evolving labor trends are driven by shifts in workplace dynamics, regulatory requirements, and technological advancements, all of which present both challenges and opportunities for finance leaders. For CFOs, staying attuned to these trends is crucial for maintaining a competitive advantage and fostering a resilient, productive workforce. This proactive approach will help them navigate the complexities of the future with greater ease and efficiency.

Changes to CPA Requirements

One of the most significant labor trends is the evolving requirements for Certified Public Accountants (CPAs). The American Institute of Certified Public Accountants (AICPA) and the National Association of State Boards of Accountancy (NASBA) have proposed a new pathway for CPA certification. This proposed pathway aims to address the ongoing shortage of accountants by making the certification process more attainable and aligned with contemporary skill demands. CPA candidates will now require a bachelor’s degree, a year of relevant work experience, and competency in specific professional and technical areas, reflecting the changing landscape of accounting.

By implementing this new competency pathway by the end of the year, the AICPA and NASBA hope to alleviate the shortage of accountants and better equip finance departments for future demands. CFOs need to be aware of these changes and how they can impact their finance teams. Understanding the new requirements will help CFOs ensure they have the necessary talent to meet future challenges, and create a more robust and dynamic workforce. These new changes are expected to rejuvenate the profession and attract a diverse range of candidates, ultimately benefiting the entire financial sector.

This shift in CPA certification also emphasizes the need for continuous education and professional development. As the criteria for certification evolve, CFOs must encourage their teams to stay updated with the latest skills and knowledge. By fostering a culture of learning and adaptability, CFOs can ensure their finance teams remain competitive and capable of handling the complex financial landscapes of the future. These changes are a step toward a more inclusive and efficient certification process, reflecting the dynamic nature of the industry.

Return-to-Office Initiatives

The trend of returning to office work is another significant development that CFOs must navigate with strategic precision. Many companies are mandating employees to come back to the office partially or fully as a means to enhance productivity and manage labor costs. Companies such as Toyota, AT&T, Dell, and JPMorgan have adopted various approaches to bring back their workers, each tailoring their strategies to the unique needs of their operations. CFOs must ensure proper financial planning for this transition, including budgeting for the return, conducting attrition risk analyses, and reevaluating productivity metrics.

Additionally, CFOs should address potential logistical issues like workspace availability to ensure a smooth transition back to office environments. The return-to-office trend will play a significant role in redefining post-pandemic work structures and may positively influence the commercial real estate market by revitalizing businesses that depend on office workers. CFOs will need to balance the benefits of enhanced in-office collaboration with the flexibility that remote work offers, ensuring that the transition is seamless and well-received by employees.

Proper planning for this transition also involves revisiting existing policies and considering new ones that cater to a hybrid work model. CFOs will need to assess the cost implications of maintaining physical office spaces while accommodating remote work setups. This dual approach requires meticulous financial management to optimize resources and drive productivity. By strategically implementing return-to-office initiatives, CFOs can create more resilient work environments that support both organizational goals and employee satisfaction, leading to long-term success.

Multi-Generational Workforce Collaboration

Navigating a multi-generational workforce is another crucial trend that CFOs must consider to ensure effective collaboration and productivity. With baby boomers delaying retirement, companies now have to manage four generations simultaneously — baby boomers, Gen X, millennials, and Gen Z. Each generation brings differing values, experiences, and definitions of success, which can present challenges in collaboration and communication. However, with the right strategies, these diverse perspectives can be harnessed to drive innovation and growth within organizations.

Creating objective, widely accessible datasets can help address these challenges by providing clear directions and goals based on actionable data. Companies like DUDEWipes, Milo’s Hamburgers, Chipotle, Vertiv, and Liquid Death are examples of organizations planning to adopt such strategies by 2025. By leveraging data-driven approaches, CFOs can ensure that company goals are aligned and collaboration is effective, regardless of generational differences. These initiatives help create a more inclusive and harmonious work environment, where the unique strengths of each generation are recognized and utilized.

To effectively manage a multi-generational workforce, CFOs should also focus on fostering an inclusive culture that values diversity and encourages cross-generational mentoring and learning. Implementing training programs that emphasize communication, teamwork, and respect for differing perspectives can bridge gaps and enhance collaboration. By promoting a culture of mutual understanding and support, CFOs can unlock the full potential of their workforce, ensuring that all employees feel valued and engaged. This approach not only boosts morale but also contributes to a more dynamic and innovative organizational culture.

Human Capital, Compensation, and DEI

The evolution of human capital, compensation models, and Diversity, Equity, and Inclusion (DEI) initiatives is another critical area of focus for CFOs. As artificial intelligence (AI) becomes increasingly integral to business operations, the nature of skills required from employees is changing. The Federal Reserve’s stance on wage growth to match inflation implies that companies need to be prepared for more payroll allocation requests as employees seek cost-of-living adjustments. This shift presents CFOs with the challenge of balancing financial resources while ensuring equitable compensation practices.

Salary transparency and a push for larger raises beyond the average 4% are becoming more common, especially among younger employees who seek fairness and equity in pay structures. Additionally, the shifting landscape of DEI requires companies to reevaluate their strategies. CFOs are advised to collaborate with HR and legal departments, and even audit hiring-related communications, to mitigate risks associated with discriminatory practices and ensure compliance with laws like Title VII of the Civil Rights Act of 1964. This proactive approach helps in building a more inclusive and equitable workplace.

The integration of AI and advanced technologies also necessitates a reevaluation of human capital strategies. Upskilling and reskilling initiatives become essential as the demand for new competencies rises. CFOs must ensure that their organizations invest in continuous learning and development programs to equip employees with the skills needed to thrive in an AI-driven environment. By fostering a culture of innovation and adaptability, CFOs can enhance the organization’s competitive edge and drive sustainable growth. These efforts contribute to creating a future-ready workforce that is agile, diverse, and equipped to meet evolving business demands.

Preparation for CEO Role

The evolving role of CFOs positions them as strong candidates for CEO positions, requiring a comprehensive understanding of business functions beyond finance. CFOs who aspire to become CEOs should proactively prepare by joining leadership groups, networking with those who have successfully transitioned, and enhancing their understanding of strategic, operational, and interpersonal competencies. Perfecting soft skills and demonstrating the ability to align finance with corporate strategy effectively are also crucial for this transition.

The transition to a CEO role may require CFOs to develop a skill set that goes beyond traditional financial stewardship. This involves gaining insights into various business areas such as marketing, operations, human resources, and technology. By broadening their skill sets and focusing on strategic, operational, and interpersonal competencies, CFOs can position themselves as well-rounded leaders capable of steering their organizations through the complexities of the future workforce. Continuous learning and professional growth are key to successfully navigating this career path.

Additionally, CFOs should seek mentorship and guidance from experienced CEOs to gain valuable insights and perspectives. Engaging in leadership development programs and executive coaching can further enhance their capabilities, preparing them for the multifaceted challenges of a CEO role. By actively seeking opportunities to lead cross-functional projects and initiatives, CFOs can demonstrate their versatility and readiness for higher leadership positions. This proactive approach not only broadens their experience but also showcases their ability to drive organizational success through effective strategic and financial management.

Conclusion

As we look ahead to 2025, the labor market is experiencing significant shifts that Chief Financial Officers (CFOs) need to comprehend and adapt to for their companies to succeed. These evolving labor trends are influenced by changes in workplace dynamics, regulatory requirements, and advances in technology. Each of these areas presents unique challenges and opportunities for finance leaders. For CFOs, keeping an eye on these trends is vital to maintaining a competitive edge and building a resilient, efficient workforce. Understanding these shifts will enable finance leaders to anticipate and address potential issues before they become major problems. By staying informed and proactive, CFOs can navigate the complexities of the future workplace more effectively and implement strategies that support organizational growth and stability. Embracing these changes with a forward-thinking perspective allows them to foster innovation and adaptability within their teams, ensuring that their organizations remain robust and productive in an ever-changing environment. This strategic approach will be key to thriving in the evolving landscape.

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