According to data from the Office for National Statistics, the UK finance industry had more than five vacancies unfilled for every 100 jobs between April and June 2022 – putting the sector behind only hospitality and tech firms.

Finding the best way to embed new talent into the finance team is crucial in ensuring they stay committed to the business for the long haul, but as times have changed, so have the challenges. This was the very topic of conversation at our recent Tipalti Illuminate event, where a panel of finance leaders discussed everything from the automation journey, including key drivers and the implementation process, to the importance of keeping young talent engaged and retained in a competitive market.

Fresh talent want more than mundane manual tasks

When it comes to graduates joining finance teams. Traditionally, they are expected to spend the first few years of their career getting to grips with the intricacies of financial processes. Whilst in years gone by young talent has accepted this as a necessary step within their development, the time in which they are prepared to stick around just working on repetitive tasks within accounts payable (AP) for example, has significantly shrunk.

According to Tipalti research, a third (32%) of young professionals say modernising finance with technology would be the most exciting problem to solve if they became a CFO. Given the ambitions of young talent, entry into the finance profession should no longer be confined to purely budgeting, forecasting and financial operations. Young professionals should be given the opportunity to be part of the pioneering direction that a career in finance can provide – if supported with the right processes.

Capitalise on young talent’s ambitions to add value and thinking strategically

Those entering finance teams start at the very bottom, getting to grips with the basics. But, too much time spent on repetitive tasks will cause an issue much quicker than it used to. Alun Davis, Head of Finance at Plentific highlighted this during the panel, “What I was finding was that our young talent were getting bored quite quickly and losing their attention” - this prevented Davis from getting the best from his team.

Our research revealed that 40% of young professionals see identifying new opportunities to accelerate growth, productivity or profitability as an exciting opportunity as a CFO. It’s clear there’s much to be excited about a career in finance but when stuck in the tedious lifecycle of manually-intensive processes employees, both new to the business and existing, will quickly become disillusioned and churn will be high. Alex Rogers, CFO at Design Cuts, notes that if their junior account hires were carrying out mainly manual, often mundane, tasks then they probably wouldn’t stay at the firm.

Businesses should be capitalising on this passion, instead of isolating them into the back office function. For Maria Liston, CFO at Basebone, she didn’t want her team to be continuously processing. Instead, she said, “I want them to provide useful insights for the rest of the business.” When new talent enters the team, businesses should see this as an opportunity to capitalise on fresh perspectives for strategic insights. But to realise this opportunity, businesses need to be asking how they can limit the mundane tasks to create a more engaged, inspired and motivated team, who are likely to stay at the business long-term.

Facilitate cross-departmental collaboration by increasing efficiency

Crucial to success through global financial instability is ensuring the business is lean, the finance team have an integral role in delivering streamlined operations which are agile enough to withstand change. Currently, 56% of finance teams spend over ten hours a week processing invoices and supplier payments – these inefficient and time-consuming tasks are simply not fit to deliver strategy at pace.

Davis recognises how crucial automation is to increasing efficiency and providing strategic insights for the business. He said: “the automation journey is about getting the information in the timeliest manner in front of my C-suite. And if we can't do that, these guys cannot make the right sort of business decisions.” Liston added, “we’ve grown but our finance team hasn’t…the choice was to invest in technology and not in headcount”.

Not only is the ability to rapidly turn data into insights for the rest of the business key for agility in challenging economic circumstances, but working smarter by improving efficiencies and procedures can result in higher levels of collaboration across the business. Liston said, “I can see much more collaboration, people having conversations about what this data actually means for the business… Automation has elevated the role of my team in the eyes of their peers and in other departments... they’re now a bit more interested in what we do in the sense of where we are adding value.”

For new talent in the business, the ability to see that their insights are not just numbers in a spreadsheet but inform a key part of the decision-making insight for the rest of the business will boost morale and satisfaction in the workplace.

Making the difference

To realise the full potential of the finance team as a strategic asset within the business, and crucially retain that talent, it must stop being siloed and labelled ‘the process department’. Increasing the efficiency of AP through automation can give the team time and autonomy to be integrated, and starting to make the difference as the crucial strategic arm of the business, providing credibility and improved decision-making.

Scale-up businesses will quickly outgrow their current systems – and indeed their young talent – if they do not build a finance department that channels teams towards more exciting, strategic endeavours. To support finance professionals as they craft their trade, it is crucial that finance leaders lean on automation to unleash time for these opportunities. The business will be paid dividends in increased productivity and the ability to capitalise on their talents’ analytical expertise.

John Forword, Reed Finance expert, says finance companies need to match the career aspirations and values of a generation which knows what it wants from prospective employers.

For some firms, this already means investing in organisational change in order to compete for and secure the employees they will need for a stronger commercial future.

Generation Z – those born from 1995 onwards - offer a unique and prized set of skills and aspirations. The combination of being tech-savvy, entrepreneurial in outlook and collaborative by nature in order to co-create, are some of the key characteristics that separate Gen Z from previous generations.

And finance companies want what they offer.

But in the face of increasing competition to attract the very best talent from a pool that is in demand, the need for finance industry employers to take a holistic look at their cultures and structure to ensure they chime with what Generation Z is looking for becomes increasingly pressing.

In the face of increasing competition to attract the very best talent from a pool that is in demand, the need for finance industry employers to take a holistic look at their cultures and structure to ensure they chime with what Generation Z is looking for becomes increasingly pressing.

For many companies, these changes are well underway with some businesses already looking to leave others behind in the race for Generation Z. Reed Finance recently conducted an in-depth survey of 500 senior finance professionals to see what companies were doing to attract this generation to help companies not only keep up but get ahead in the race to capture Generation Z talent.

1. Initial changes being made by firms include the redefinition of existing training, development and succession models, which 36% of companies questioned said they were undertaking. 
2. A third of firms are already looking at broadening workplace technology and systems deployment, and a quarter admitted that they were striving to develop more collaborative working environments. 
3. In recognition of the need to reshape reward and remuneration models to more accurately match the demands of a new, aspirational workforce, 22% said this process was currently underway within their organisations.
4. Companies have also been working hard to develop more collaborative working environments, with 25% saying they had already put plans to achieve this into action.
5. The majority of employers (60%) said they believed that their company is not doing enough to adapt in many areas and entice talent from Generation Z.

In short, employers know that this generation is completely different from what came before and they are making changes but there are key opportunities for attracting the next generation.

1. Potential recruits will be judging organisations on a number of criteria to determine if the firm is the right one for them in terms of opportunity, development, job satisfaction and enjoyment. So companies must demonstrate these in clear, progression lines.
2. Aside from the actions already undertaken by companies, it is clear, from a number of studies that Generation Z seeks out greater flexibility in the workplace when compared to predecessors. If flexibility is on the table then it will make a major difference.
3. Technology and the opportunity to work with developing and innovative advances in tech is also near the top of the priority list, alongside the demand for a transparent and achievable career progression vision. 

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In order to succeed in attracting the next generation, companies must be clear about creating the right type of workplace scenarios and addressing the critical areas outlined above. They must also recognise the personality characteristics that drive the ambition and vision of Generation Z talent.

This next-generation has a fearlessness and confidence to articulate what they want and are happy to demand it from prospective employers. They want to work for a firm that matches their desire to progress and develop, as well as operate by shared values. If they do not find it, they are likely to vote with their feet and look elsewhere.

But making these changes isn’t easy. Nearly a quarter admitted that redefining training, development and succession models would be the most difficult to achieve, followed closely by the task of altering reward and remuneration practices and creating more collaborative working environments.

However, the message is clear. If you want to attract the best Generation Z talent, finance organisations need to be mindful of the need to provide flexible working conditions, more imaginative rewards and remuneration structures, cutting edge technology, proven career progression opportunity and invest in developing and sustaining collaborative and sociable workplace environments.

Companies that ignore the working demands of Generation Z will end up losing them to rivals.

However, if you fail to spot the right candidates, your firm runs the risk of needlessly overspending and wasting resources across the searching and recruitment process.

To find top talent, Molly Evans, an administrator for StellarSelect.co.uk, suggests switching to these creative strategies:

1.       Interview first before relying on an algorithm

Companies make use of computers in candidate selection to remove bias from the equation. However, algorithms are not yet that sophisticated to gauge important human traits like influencing skills. Such limitations are probably why big companies like Amazon have temporarily suspended their online recruitment platform.  So consider interviewing some of the applicants before letting the algorithm eliminate them.

2.       Don’t limit the interview with questions

After selecting a group of potential candidates, your next step is probably to ask standard sets of questions. However, don’t stop there. Aside from asking them about their work experiences, you can ask them to demonstrate their skills.

For example, you can set a scenario where they have to advise clients about their mortgage needs. See what strategies and ideas they come up with on how to meet the client’s needs. Such an assessment can tell you right away if they will be a valuable asset for your company.

3.       Consider the talents working for you in the long term

Hiring the best talents is hard, but retaining them is harder. Many top performers are aware of their skills and abilities. Keep in mind that high salaries are not enough to keep them. Instead, you can give them:

• Opportunities to showcase their talents
• Recognition
• A chance to participate in your company’s growth

Also draw attention to their current role’s importance and status, as well as possible promotions or greater responsibilities for staying with your company.

4.       Pick people who are willing to learn

Changes in an organisation’s structure are inevitable. You’ll need people who are agile, excellent communicators, and willing to collaborate. You’ll also need people with a creative mindset who can innovate and adapt. You’ll need candidates that are:

• Resilient
• Able to handle failures
• Adapt quickly to change

You can learn these qualities by making your interview questions detailed and specific. For example, you can ask them how they would handle a lost account.

5.       Hire people from your community if possible

One of the best places to start looking for potential employees is within your community or industry. You can do this by reaching out through:

• Sponsorship of professional development events.
• Selecting some of your current employees to share their career paths and reasons why they continue to work for your company.
• Helping candidates learn about the company by letting them see or meet the organisation’s leaders.

6.       Get thinkers not taskmasters

Successful candidates know how to delegate tasks. However, if you want your company to grow, you’ll need thinkers. They are the people who are always asking ‘why?’, pushing for quality and efficiency. If implemented correctly, they can change the company’s culture for the better. Consider encouraging and supporting these kinds of talents. You may have to adjust or change the old ways but this is a small price to pay for raising your company’s competitiveness.

7.       Get referrals

There are advantages to getting referrals both from within and outside your company. Your staff will usually refer you to top performing people rather than underperforming ones. Consider providing incentives to your current employees for their referrals. Outside the company, you can look for job candidates from financial recruiters like StellarSelect.co.uk.

8.       Develop talents for the job

Finding and hiring the best people isn’t cheap and could take time. So why not try to develop those talents within your company? Consider investing in your employees through training, coaching, seminars, and workshops. Also, don’t forget to give them continuous feedback to sharpen their abilities. By recruiting the best talents from within, you could boost loyalty and productivity in your company.

9.       Use trial periods

If it’s possible, you can ask potential employees to undergo trial periods first. Once they’ve passed, you can then choose to offer them full-time work. Trial periods are like internships except that the pay is better with more serious work responsibilities. You can run it for several weeks or months – just enough time to assess their performance.

For example, you can get the candidate to start by assisting or handling minor client accounts. During that time, you will be able to gauge their attitude and skills for the job. It’s also important to pay the candidates fairly to avoid any legal and moral complications.

Conclusion

CVs and algorithms are useful for providing a list of skills. However, to build a great team of talent, you need to ask more than routine questions. Use the interview to learn how they work based on their skills and capabilities. By doing so, you’ll know that you’ve found the right people. Remember also to cast your recruitment net wide to increase your opportunities for finding the best-skilled people. This means maintaining links with your industry and community and using incentivised candidate referrals. Follow all these strategies and you’ll be in the best position to encourage top talent to beat a path to your door.

Using Google and O*NET data from the past 10 years for typical finance roles, Reed Finance developed the interactive online tool on stateofskills.reedglobal.com. It found that written and verbal communication is prized by employers of finance professionals, with ‘oral comprehension’ (an understanding of what people are trying to say) and ‘written comprehension’ (understanding written ideas and information) ranked as the most valued skills. This is in comparison to traditionally assumed skills such as ‘economics and accounting’ and ‘deductive reasoning’ which are ranked as the fourth and 10^th most important.

Reed Finance suggests that this is due to the future strategies of companies wishing to see finance executives take on leadership roles which entail not only technical soundness, but also an ability to inspire and work as a leader of teams – with ‘active listening’ and ‘oral comprehension’ some of the most important skills for a CFO to have.

Firms value ‘human skills’ such as communication over technical accounting skillset.

As such, ‘human’ skills are prominent in successful candidates for roles such as management accounting and FP&A management. This may suggest that these workers have the skillset to take upon more senior roles.

Securing the right talent

Reed Finance found that the level of interest from candidates for the majority of roles in accountancy and finance had been consistent over the past decade, but there are some notable exceptions.

Interest in CFOs peaked in April 2013, higher by 111% in comparison to January 2012. The trend is even starker for finance business partners. From only modest interest in October 2009 popularity has continued to increase rapidly over the decade hitting a peak in July 2018 that is almost 2500% higher. The stark rise reflects a change in the industry towards finance professionals with strong communication skills informing and guiding the business.

Interest in finance business partners has increased from near non-existence in October 2009 by 2333% to a peak in July 2018.

Rob Russell, director at Reed Finance, says: “Businesses are in direct competition for employees that can bring ‘human’ skills to the table, not just technical accounting and number crunching. The influx of AI in the workplace is helping to enhance the numerical skillsets within these teams, so there will be greater time for high-level creativity. Companies want candidates that can communicate, secure business wins and manage teams so that they perform to the best of their ability. These changes to a more fluid, creative workplace are creating great opportunities for those within the finance sector.”

Software use is essential to success but becomes less important with greater seniority

The research conducted also investigated the tools that must be mastered for success in these roles, encouraging businesses to upgrade their software where necessary.

Rob Russell continues: “Every day working with businesses we find that tech is there to enhance the performance of individuals. While candidates should endeavour to keep up with the latest accounting tools on the market, businesses are increasingly looking for those that can win new business and demonstrate a return on investment.

“For candidates, developing the ability to take complex finance information they deal with on a daily basis and using it to answer the question, ‘what does this mean for the business?’ will set them aside from colleagues. This, coupled with commercial nous, has always been an advantage, but now it seems it is even more sought after as business leaders search for the candidates that can secure the future of their business.”

(Source: www.reedglobal.com/finance)

More than a third (38%) of IT decision-makers across the UK financial sector believe it has become more difficult over the past five years to find staff with the right skills and experience. Over a third (34%) believe the problem is going to worsen in the coming five years. This is according to a survey across a range of financial and banking sector organisations, including retail and investment banking, asset management, hedge funds and clearing houses.

The survey, commissioned by software vendor InterSystems found a shortage across a variety of roles. Almost a fifth (18%) of respondents cited a lack of data scientists followed by 17% who revealed a shortage in security consultant/specialists, while 16% referenced application developers and 12% mentioned financial analysts.

“IT skills shortages are clearly a major concern for banking and financial services firms across the UK and this is only likely to escalate in the future,” says Graeme Dillane, financial services manager, InterSystems. “Skills shortages are a barrier to innovation in the banking and financial services sector. And as firms upgrade their legacy systems and look to innovate to meet the latest wave of regulations, that represents an increasingly serious concern.”

When survey recipients were asked to name the key qualities that technology can bring to help mitigate the negative affect of skills shortages within businesses today, 44% of respondents said: ‘simplicity of use’, 42% cited ‘ease of implementation’ and 36% ‘high-performance’.   

The study also found that skills shortages are one of the biggest barriers preventing innovation as cited by 35% of the study, behind only cost (41%) while compliance was referenced by 31%.

“These findings match with our experience in talking to customers and prospects across the sector,” added Dillane. “IT employees with the skills that banks and financial services companies are looking for are in short supply. Knowledge transfer is therefore increasingly key alongside solutions which combine ease of development; simplicity of use; high-performance and intuitive workflow transfer.”

(Source: InterSystems)

So here we are in 2018, year in which, if the deal-junkies at Citi are to be believed, portends to be a ‘monster year’ for M&A. Given the globally-synchronised economic upturn, continuing low interest rates, suppressed inflation and roaring capital markets, they could very well be right. Below Carlos Keener, Founding Partner at BTD Consulting, talks Finance Monthly through some of the most anticipated M&A activity of the year.

Indeed the deal frenzy has already begun, with the final half of 2017 witnessing GVC’s takeover of Ladbrokes Coral and the Standard Life/Aberdeen Asset Management merger among others. But a word of caution, at least for those considering acquisitions in the UK: Brexit – soft, hard, or otherwise, is now less than 13 months away, and still we’re without (at time of writing) any certainty on even the outline shape of our future relationship with Europe.

No doubt the lawyers and bankers will continue to talk up the Brexit boom, but the reality on the ground may be rather less clear. At a recent conference, a leading M&A professional representing a FTSE100 organisation disappointingly stated "I think someone in the company is looking into the likely impact of Brexit, I’m sure they’ll tell us if we need to do anything differently as soon they’re ready.” While we all can sympathise, that’s not nearly good enough.

Making a rational assessment of the likely risks UK firms may see over the coming years doesn’t require a crystal ball view of what form Brexit will ultimately take. A look at some upcoming or predicted deals for 2018 illustrates this well.

1. Prompted by its recent struggles, Capita, the outsourcing and professional services group, has just announced that it will be disposing of its less profitable and strategically-central assets and services. Firms heavily reliant on professional service revenue are typically the first to be hit hard in a downturn or in times of uncertainty, and even with a clear, decisive Brexit, lack of business certainty may extend for many years as post-Brexit regulatory and trade conditions – and how they are to be applied – crystallise and settle.

Divesting in an effort to return to core is a traditional approach when the future is relatively predictable and fairly speedy recovery is anticipated. But that’s not exactly the scenario ahead of us. Capita will need to prepare its balance sheet for an extended period of uncertainty while retaining sufficient service diversity and operational agility to accommodate new market demands, conditions, constraints (and yes, opportunities) as they emerge. It is adaptability and not strength which may win the day.

2. The global Pharma sector is likely to see significant M&A activity in 2018 as new drug pipelines soften and US corporate tax reductions take effect. One of the most prominent deals in recent years in this sector was the asset swap and joint venture creation between GlaxoSmithKline and Novartis. And last month GSK’s new CEO, Emma Walmsley, expressed an interest in acquiring Pfizer’s Consumer Health division, estimated to be valued at over $15bn.

Like any global manufacturing organisation with highly-complex supply chains in which materials may cross borders multiple times before reaching the market as a finished product, GSK will need to be extremely careful to scenario-plan the potential impact of new hard, soft or otherwise cross-border tariffs and associated regulations as they come into force.

Business cases that assumed free trade across the EU should be re-examined, and supply chains reviewed to minimise any potential increased cost. Acquisitions of EU-based manufacturing capabilities with the ability to serve local markets may help buffer the firm against any emerging trade barriers.

3. News appeared in January that Fox still wants full control of Sky, despite rejection of the deal by British regulators. The rejection shows the growing importance of political and economic nationalism which can trump investor returns, competition or corporate tax repatriation.

A report in October 2017 by Latham & Watkins describes governments and regulators taking an increasing interest in ’foreign’ acquisitions of nationally important companies in the name of national security. In a twist on this, at the time of writing GKN, the FTSE100 aerospace and automotive giant was fending off an unsolicited £7bn takeover bid by Melrose. While a ‘UK only’ deal, politicians including Vince Cable were commenting on the risk the deal may pose to the UK’s industrial strategy.

Economic nationalism begins at home. So, any UK business looking to buy or sell across borders will need to consider how the deal would look to the public and politicians, not just the shareholders.

4. One area in which everyone agrees change is upon us is FinTech. 2017 deals included Vantiv/Worldpay and JPMorgan Chase/WePay. Brexit’s impact on London’s financial sector will accelerate M&A in the coming years within a sector that’s evolving at warp speed. It will be more important than ever to predict the effects of changes. How will the financial regulatory landscape diverge between the UK and the EU post-Brexit? How will GDPR, data protection and safe haven legislation and practices impact market opportunities and operational challenges across borders? And more tactically – if the FinTech gravity moves or disperses (say to Paris), how will FinTech firms find and retain the top technical talent they need?

As ever, change provides an opportunity and a threat to businesses doing M&A. Size alone will not guarantee success. The successful organisation will pull ahead through a clear strategy and use M&A to expand or adapt their propositions and capabilities in the market. Whatever form Brexit takes, one thing is certain – interesting times lie ahead.

The UK’s tech growth over the last decade has been phenomenal, and this very much thanks to technology startups and increased expansion of innovate firms. However, in the midst of uncertainty and instability, expansion is often being pushed to foreign soils, mostly due to a lack of the right people. This week we heard from Adam Hale, CEO of Fairsail, on the role that the UK must continue to play as a global tech hub and the skills crisis that could stand in the way of this.

The unique value of our tech industry comes from the large number of digital businesses starting up and scaling globally out of the UK market. Just look at the hotbeds of innovation in Tech City, Silicon Fen or the Thames Valley areas. To fuel that innovation, and the growth it powers, acquiring the right talent is a pre-requisite. However, despite having the necessary funding and bright ideas, recruiting people with the right technology skills can often being the biggest barrier to global expansion for companies looking to scale up. It’s a barrier we’ve come up against time and time again.

As the CEO of Fairsail, the UK’s fastest growth technology scale up, head-quartered in Reading but with offices and customers around the world, the current skills crisis makes it difficult for us to keep software development in our home market. The skills crisis means that, for companies like us, exports are hampered because we can’t get enough technical skills to keep up the development and innovation that our global market is demanding. Without the right people with the right skills, scale ups are being forced to move development offshore. And without a solid strategy to reverse the skills crisis, the UK tech economy risks losing its momentum. So what can we do?

To start with, there needs to be more recognition of technology as an important part of the UK economy, and government strategy must reflect the real demand for digital skills. Radical action to address the systemic flaws in our education system is at the heart of this. Recent announcements by the government do show improvement in its efforts to address the skills gap, most notably the creation of ‘T-Levels’ announced in the Chancellor’s Spring Budget that will provide 16-18 year olds with vocational technical education to the same level as their academic equivalent – A Levels. However, digital is only one of 15 different technical routes to choose from. So, while £500m investment in skills may be a headline grabbing figure, in reality, it boils down to an insufficient concentration on where we need to radically improve skills – in IT.

Much greater investment is also needed to improve teaching and present the technology industry as an attractive career choice from a young age. Currently, the supply of technical school leavers/graduates is pitiful and does not come close to fulfilling demand. In 2016, only 5,600 students studied Computer Science at A-Level in 2016, and a meagre 600 of these were female. To really change perceptions and address the gender-imbalance in the industry, the government needs to impose increased primary and secondary education focus on tech and STEM. If we are to meet the nation’s demand, we should be aiming for a tenfold increase of students studying computer science over the next five years, with females making up at least 30%.

I have a passionate belief in the UK’s ability to grow and develop world leading businesses; however, as UK-born companies pursue growth, they have no choice but to look further afield in the search for the talent they need to meet their customers’ demands. Only by getting young people interested in and studying technology subjects will we avert this crisis, and cement the UK’s rightful position as a future global tech hub.

A year ago, few chief executives could have predicted the turbulent global environment their organizations would face at the start of 2017. Mushrooming geopolitical and social tensions, policy flux, financial market volatility, and labour market imbalances have coalesced in a level of business uncertainty unseen since the end of the Great Recession in 2010. At the same time, new opportunities for sustained growth and competitive advantage are opening in many regions and sectors. How are CEOs positioning their companies to succeed through the world of shocks, uncertainties, and disruptions likely in the coming year?

It all starts with their people. According to CEO Challenge 2017, a global survey and report released today by The Conference Board, business leaders worldwide are focused on creating more agile, aligned, transparent, and responsive companies able to weather the storm of internal and external uncertainties. More than 500 chief executives participated in this year's survey. Their responses revealed a set of common organizational priorities shared across industries and geographies, including: fiscal discipline, an engaged and resilient workforce, strong and inclusive leadership, and the need to develop and nurture talent with expanded twenty-first century skills.

"In the eyes of this year's CEO Challenge respondents, organizational culture and quality talent are the critical enablers of success," said Rebecca Ray, Ph.D., a co-author of the report and Executive Vice President, Knowledge Organization at The Conference Board. "CEOs are clearly awakening to the dangers of static processes, rigid roles, and outmoded thinking at a time when their most pressing challenges all demand leaders and workforces committed to openness, innovation, and agility."

"Despite the rapid technological advances of the past decade, real productivity gains from this era of digital transformation have yet to emerge," said Bart van Ark, Ph.D., another report co-author and Executive Vice President, Chief Economist & Strategy Officer at The Conference Board. "This year, we're seeing CEOs respond to this disjuncture. Internally, they're emphasizing the mindsets and core skills needed not only to implement new technologies, but master them in a manner that enhances efficiency and growth. Whether the challenge is technical, political, or otherwise, the key question for organizations in 2017 is this: Are we driving change and disruption, or are they driving us?"

The Conference Board CEO Challenge® 2017 is the latest in a survey series first conducted in 1999. From lists of choices vetted by a panel of CEOs and other experts, respondents detailed the critical strategies they are employing to improve performance in each of six areas: Human Capital, Customer Relationships/Corporate Brand and Reputation, Operational Excellence, Innovation and Digitalization, Regulation and Risk, and Sustainability.

Alongside these perennial strategic challenges, survey participants were also asked which "hot-button issues" were likely to demand enhanced vigilance and tactical responses in 2017. Worldwide, the potential for global recession was the most cited concern, followed by the need to develop next-generation leaders, cyber security, failure to attract/retain top talent, and global political uncertainty. From these responses, seven big-picture themes emerged:

• Pressure is building from ongoing political, policy, and economic uncertainties.
• In a tightening labor market, an open and inclusive culture that lets talent thrive is critical.
• Innovation is being democratized. Companies that produce innovators will be those based on inclusive, collaborative, internally and externally networked cultures.
• For most CEOs, digital transformation is a longer-term challenge that will play out over the next decade, not an urgent risk to competitiveness in the next 1-2 years.
• The fruits of digital transformation have been elusive, with only around a third of CEOs reporting strong impact on revenue or productivity.
• Customer centricity is a growing priority, and demands high-tech, high-touch, and high-value strategies.
• Relative economic development shapes leaders' worldviews. CEOs in mature and developing economies diverged on a number of strategies and hot-button issues for 2017.

(Source: Conference Board)

Business should focus on people and purpose, not just products and profits according to Deloitte Touche Tohmatsu Limited's (Deloitte Global) fourth annual Millennial survey. This and other findings from the survey suggest businesses, particularly in developed markets, will need to make significant changes to attract and retain the future workforce.

Deloitte Global surveyed 7,800 graduates born after 1982 in full-time employment across 29 countries, including the UK, on effective leadership, how business operates and impacts society.

Some 71% of UK respondents say businesses have a positive impact on society, compared to 82% in emerging markets and 73% globally. However, 77% of UK Millennials, and 75% globally, believe businesses are focused on their own agenda rather than helping to improve society. Just 48% of UK Millennials say businesses show strong leadership on important social issues, compared to 61% globally. Similarly, just 39% of UK Millennials say businesses act in an ethical manner, against 52% globally.

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When asked which sectors they aspire to work in, 40% of UK Millennials say the professional services sector is attractive, with 34% expressing a preference for the technology, media and telecommunications (TMT) sector. This trend is reversed globally, with 46% of Millennials worldwide keen to work in the TMT sector, ahead of professional services at 39%. UK male respondents are more likely to choose the TMT sector, with 40% preferring the sector, ahead of 27% of women.

Steve Almond, Chairman of Deloitte Global, said: “The survey sends a clear and strong message to business leaders that, to stay engaged with Millennials, they need to focus on their broader purpose and their people as much as they do on products and profits.”

Barry Salzberg, CEO of Deloitte Global, added: “Millennials want more from business than might have been the case 50, 20, or even 10 years ago. They are sending a very strong signal to the world's leaders that when doing business, they should do so with purpose. The pursuit of this different and better way of operating in the 21st century begins by redefining leadership.”