Published: February 02, 2008
In the first article in this series, we talk to Deborah Thomas, responsible for senior financial executive recruitment at Michael Page. We ask her the current state of the treasury market and in a competitive environment, how treasury professionals who are serious about moving to the next stage in their career can distinguish themselves against other candidates.
Over the past two years or so, the top end of the market - Group Treasurers, Directors of Tax and Treasury positions - has got tighter. Treasurers tend to stay in their position for some time as there is not always an obvious next career move, leaving fewer opportunities for their deputies. Also, with more merger and acquisition activity, departments end up downsizing and it is the upper positions which tend to be the ones to go. In some cases, treasury departments are being relocated overseas, particularly as a result of M&A, so when a treasurer leaves, there is no vacancy left behind.
It is important to look at ways in which you and your treasury department can become more involved in the wider business.
Consequently, the market for senior treasury positions is highly competitive. Although there were a number of senior appointments made during the fourth quarter of 2007, there was strong competition for these positions. It is slightly easier for Deputy Treasurer and Assistant Treasurer/manager roles, as there is higher staff turnover; furthermore, in some areas of treasury, such as treasury accounting, particularly IAS 39, there is still a shortage of skills. But in an employer’s market, treasury professionals need to distinguish their talents and their experience from other candidates.
With strong competition for senior positions, few employers should struggle to attract suitable candidates, so long as they are paying the market rate and offer a good career path. It can be more difficult for companies based outside major cities to find staff as they are typically drawing personnel from a smaller pool (this, of course, is also a potential issue for professionals based outside the capital looking to change roles with fewer companies to choose from) but more companies are providing relocation packages to attract a wider group of candidates. Candidates are really looking for positions which will enhance their career and where they can clearly add value to the business. Competition for top talent is always fierce and it is important to weigh up an individual’s potential and organisational fit as much as his or her technical ability. We would certainly like to see more CFOs consider Treasurers for other roles across their business as we feel they can be well placed to take on broader roles whether that be finance, commercial or added responsibilities such as insurance, pensions etc.
Appropriate qualifications, such as accountancy or specialist treasury qualifications such as the ACT’s education programme, are increasingly important particularly for more senior positions. Quite often, we see Director of Tax & Treasury positions being won by tax professionals rather than their treasury peers although they are equally capable and well-qualified to do the role. In some cases, this is because the tax department may have a higher profile within the company. Therefore, treasury professionals need to demonstrate the value they add in ways that can be articulated and understood by areas of finance without treasury experience.
The fit between the Group Treasurer and Chief Financial Officer is crucial to a successful appointment.
Developing profile and recognition within the company for both the way in which treasury adds value, plus the strategic skills which can be applied more widely in the company, can be vital. It is important to look at ways in which you or your treasury department can become more involved in the wider business and get involved in specific projects which enable you to build relationships with colleagues in other areas. The generic skills and experience which these opportunities will allow you to develop, such as project and people management skills, are important in any role, as well as demonstrating how your skills can benefit the company strategically.
These sorts of position, such as commercial or finance director of a business unit, are easier moves to make within your own company rather than competing on the open market, and to be successful, finding ways to gain internal exposure is key. It is important to develop relationships at senior levels, managing upwards to increase profile and opportunity. Many senior candidates have taken on internal or external mentors/coaches to help them develop their wider skill set. [[[PAGE]]]
The fit between the Group Treasurer and Chief Financial Officer is crucial to a successful appointment and both need to trust the other and buy into each other’s objectives. In some situations, companies will look for experience in a particular aspect of treasury, such as raising debt or complex risk management. As treasurers increasingly take on a broader remit of responsibilities, such as pensions, insurance and a wider view of risk, these skills may be specifically sought, so it is worth developing experience and knowledge in broader treasury issues as well as the more traditional areas of treasury. Companies are clearly looking at individuals’ potential and where they can add value to the group. At more senior levels the softer skill sets will come into play e.g. ability to influence, motivate, manage change.
We have seen senior treasury professionals moving into pensions-related roles and also non-executive director roles through the financial expertise which they can bring. Treasury and technology consultancy is another important area, as is banking, both in relationship and product roles.
Treasury equips you with a wide range of skills, but these can be deployed more widely by developing relevant experience and demonstrating the value which you add. By raising the profile of treasury within the company, the career opportunities of treasurers are also enhanced.
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