Shifting the Balance of Power

Successful Career Moves in a Changing Market

When looking to take their next career steps, treasurers may find themselves moving in a much-changed market. With employers similarly facing a new set of challenges, TMI asks Pieter de Kiewit, Business Owner and Recruitment Consultant, Treasurer Search, to explain how the realities of the modern employment landscape are altering how potential employees and employers approach each other.

Once upon a time, a company would advertise a vacancy in its treasury, it would interview a number of applicants, select the best candidate, and then make an offer of employment, which would usually be gratefully accepted. But the market for professional treasurers has changed, notes de Kiewit. It has become a lot tighter, and companies seeking the best understand that the interview process must now become a two-way street.

Indeed, he believes that the most responsive recruitment managers are at last recognising that in the treasury market, a widening range of skills are needed to be effective in this role, and that an even wider spectrum of working conditions must be on the table to secure and retain top talent. They also accept that potential employees will seek to grill their prospective employers in a way that a decade ago would have been unthinkable.

Companies today believing they still hold all the cards in the recruitment process may be surprised to discover that the balance of power has swung to a more equitable point. But this is a positive outcome because it sets the scene for treasurers and their potential employers to explore, discuss, and negotiate on an equal footing, creating longer-term benefits for both parties.

However, as a word of warning, de Kiewit says those companies refusing to acknowledge and respond to this long-overdue shift are finding that the market for high-calibre treasurers, both senior and junior, is becoming ever more difficult to navigate. Without an adjustment in thinking, the best talent can, and will, head in the direction of the competition. In a world where the value of a good treasurer is obvious, this represents a serious risk.

Changing world

The treasury recruitment market has been busy for the past few years, picking up noticeably just before Covid-19 emerged. The impact of the pandemic brought the market to a standstill but only for a relatively short time. It did not take long before de Kiewit saw a rapid increase in treasury job movements across continental Europe, even while the pandemic had much of the rest of the world in its grip. This uptick was followed by a clear spike in activity towards the end of summer 2022. As many more regions moved to post-pandemic status, he says the treasury recruitment space is only now settling into more typical patterns.

With almost 30 years of experience in global recruitment, de Kiewit believes that while there are fewer additional people seeking jobs, more companies are willing to invest in additional staff. This imbalance of supply and demand is driving up the market price of recruitment, extending the selection process, and forcing up average salaries (the impact on peak salaries more noticeable on junior and middle-ranking roles than on senior).

More interesting perhaps in this constricted treasury market is the willingness of companies to consider applicants that previously (whether rationally or otherwise) would not have been on their list. In some markets de Kiewit notes that this has seen a rise in the number of female, mature and non-native candidates being placed.

Another interesting development he notes is among the mature treasurer demographic, with a growing preference not to seek senior leadership positions as the next step, but instead to take a step back into team roles. “‘The only way is up’ mindset has gone,” he states. “It’s a new way of thinking that was accelerated by the pandemic as people had time to reflect, but today more professionals are accepting demotions not as a last resort but as a way of achieving a new work/life balance. And employers are beginning to – or having to – accept this new mindset.”

Shining a light on treasury

At the junior end of the treasury market, incumbents have often tended to “fall into it”, rather than actively select treasury as a career at graduate level, comments de Kiewit. This is borne out by many TMI ‘My Life in Treasury’ interviews, with several claiming that treasury selected them, rather than the other way round.

Obviously it’s not an indictment of the profession itself, as all proceed to share their enthusiasm for their work. The problem of accidental recruitment, he feels, is more likely to be one of awareness. “If you don’t teach students that there is something called ‘corporate treasury’, then they will not consider it as a career choice. This is why a lot of treasurers land here by chance.”

In his home country of the Netherlands, de Kiewit notes many finance graduates head towards financial controlling, audit or consultancy positions. The raised profile of these roles makes it relatively easy for graduates to secure challenging and high-paying jobs; treasury is rarely on their list.

Despite the underselling of corporate treasury to graduates, and the consequential relative scarcity of junior and mid-ranking treasurers, in recruitment terms it does not seem to de Kiewit to be an issue of any greater magnitude than it is for the other finance professions. As he remarks: “The labour market in some regions is simply tight.”

It is certainly not a major issue for treasuries in terms of ensuring the correct technical skills are available. Students with the right aptitude and core expertise can be trained. On-the-job learning is often augmented with courses offered by professional bodies such as the Association of Corporate Treasurers (ACT), and other educational settings such as this course in International Treasury Management at the UK’s University of Birmingham.

However, the underwhelming way in which treasury is presented to finance students is having a Catch-22 effect. Because corporate treasury as a career does not attract the numbers drawn to other finance roles, universities around the world seem reluctant to start full undergraduate programmes. Without these courses, few will be aware of, and attracted to, treasury, and so it continues.

Some educational settings offer it at a minor level, such as the University of Applied Sciences in Utrecht. But through his supervisory board position on the postgraduate course at Vrije Universiteit Amsterdam, de Kiewit knows that the treasury student cohort remains comparatively and consistently small.

The result is interesting in that junior treasury positions in the Netherlands, for example, are often taken by non-native finance graduates from Dutch universities who, because they do not speak Dutch with native proficiency, are not considered for higher profile finance jobs. He notes a similar effect in Belgium and Germany, where a relatively high percentage of non-natives are filling junior corporate treasury roles.

The lack of direct entrants in a tight market has seen different solutions adopted by companies in need of treasury skills. As well as bringing in non-natives and considering mature candidates who wish to ‘downsize’ to lower-ranking roles, many companies are opening up to the idea that flexible working – including part-time, and hybrid office/home or even remote working – is now on the agenda. It is a notion that gained huge momentum during the pandemic but shows no sign of waning now. Where once treasury did not lend itself to remote activity, the pandemic confirmed that it certainly could.

For many people, their careers just happen. This is not the wrong way to do it, but making conscious career decisions can often lead to greater satisfaction.

Skilling up

Anyone within the treasury profession today will know that the role has been changed in recent years by the arrival of new technologies into many different aspects of the job. However, de Kiewit sees the adoption of technology as a generic business development, not one that has changed the educational requirements of the role. “Fifteen years ago, anyone studying business economics did not need to understand, for example, what a pivot table does in Excel. Now they do. And that understanding is a given,” he explains.

But there has been no mad dash to learn about these tools, rather those entering roles such as treasury come at it with a deep societal understanding of technology. Indeed, de Kiewit believes in the concept of the ‘digital native’, where everyone of a certain generation and younger is so immersed in technology in their day-to-day lives that it naturally reflects in their professional lives.

With a firm grasp of technology now taken as read, he argues that the most successful treasurers “are those who can connect to the business”. Indeed, he adds, the mysterious ‘ivory tower’ that once may have been home to corporate treasury has been toppled and it is no longer sensible or practicable to remain detached from the rest of the business. In employment terms, treasurers who can demonstrate their ability to work collaboratively with functions such as accounting, procurement, production, sales, and even the board, are the ones who will succeed over and above those who are deemed more technically proficient.

Of course, it’s still essential for treasurers to possess an eye for detail, strong numerical skills and a well-developed ethical stance on dealing with large sums of money. Mental agility is another skill that treasurers seeking the top jobs must be able to demonstrate. In a constantly changing world, hiring managers are looking for people who are able to adapt quickly, says de Kiewit. They want people who know what works now, but can see that it may not work in a few years’ time and so be willing and able to change course as new challenges arise.

Finding the balance

While, for many treasurers, being able to handle interviews extremely well is not a core skill, recruiters still use this process to assess if a candidate has the right capabilities, says de Kiewit. He feels this can be a mistake, especially where trying to assess a candidate’s capacity to take ownership within their role. “I believe that companies can no longer afford to make a decision in the first couple of minutes as to whether someone at this level really has what they are looking for. The labour market is too tight for that. Each and every candidate should be afforded the time to show what they have to offer.”

But, equally, de Kiewit argues that a company should take the opportunity to show what it has to offer too. Progress to mutual exploration between interviewer and interviewee marks a cultural shift. Interviewees have always had to find ways to stand out, but now it’s necessary for companies to demonstrate their USPs to potential employees if they want the best people. They also have to respect candidates through a fair selection process. “The number of applicants saying no to an offer has increased dramatically over the past year,” he warns. “Companies keeping candidates waiting for a long time, for example, are of the old-school recruitment style, and they are now suffering for it.”

Keys to success

So how do candidates and companies ensure the other is seen in the best light? For those seeking employment, evolving a strategic career plan needs to be given sufficient time, says de Kiewit. “For many people, their careers just happen. This is not the wrong way to do it, but making conscious career decisions can often lead to greater satisfaction.” He suggests finding the time at least twice a year to reflect honestly on career wants and needs.

Many people do this subconsciously, often using their summer vacation or end-of-year break to consider their working life. Bringing some structure to these thoughts will help form an action plan. Without action, nothing will happen, and another year passes, advises de Kiewit.

“To begin guiding your career, it’s a good idea to start with personal specifications and expectations. Question yourself, and ask family, friends and colleagues, to help work out what really motivates you,” he says. “It’s partly about the technical aspect of the work, but at this stage in the process it’s more important to discover whether you’re money or status driven, whether you’re seeking to make an impact, to have a friendly team, to set your own work-life balance, or pinpoint whatever else you need. Once you’ve specified these elements, use this self-knowledge to screen any job opportunities.”

Having done this, it’s possible to begin working on the ‘sales’ part of the process. This means finding the ‘personal USP’ and the best way to demonstrate this to potential employers. The process includes creating a CV and interview approach tailored for each job opening.

“I find with a lot of candidates that they have the skills and self-belief but fail to see themselves from the employer’s side,” notes de Kiewit. “Ultimately, the potential employer has a problem or an opportunity and is looking for someone who can solve it for them. This is the starting point from which candidates should build their presentation. In other words, instead of broadcasting every personal and professional attribute they can think of, they should find out what that problem or opportunity is, and then shine a spotlight on the relevant aspects from their background that solve it.”

In terms of finding new jobs, there are three main channels, notes de Kiewit. First is the candidate’s own ‘warm’ network of friends, contacts, former colleagues and so on. Second is the company advertising its vacancies, and third is recruitment agencies.

The most appropriate channel will depend on seniority. At group treasurer level, success will be mostly via the warm network and head-hunter approach. At mid-management level, it will be an even three-way split. And at the junior level, the direct application and agency channels will prevail. “It’s important to know that each channel requires a slightly different tactic to shaping and presenting the message but knowing this will open doors that might otherwise be closed”.

For the company, enhancing its likelihood of finding and retaining the right employee first requires it to accept that the treasury market has changed. With the tightness of the labour market having rebalanced the power between applicant and employer, the view that the new employee should be grateful to the company for the job offer is archaic and misplaced, states de Kiewit.

Companies now need to show they understand the needs of employees. “Quite often the assumption as to what an employee wants is fixated on remuneration, or the company takes a one-size-fits-all approach. But it makes more sense from a recruitment and retainment perspective to ask potential and existing employees what is important to them.”

Adjusting to the new

Indeed, if companies are not giving employees what they really want, they will leave. “And losing people is costly. Recruiting and onboarding is expensive and hard work, so it’s better to ask employees themselves what makes them happy in their work,” counsels de Kiewit. “Some may want to work remotely, others may prefer the office. Some may want to continue learning, others may be financially motivated. There is no single answer; listen to your existing and potential employees, find out what’s important to them and consider if that is feasible.”

When it comes to acquiring that information, among the senior ranks there will be few qualms now in telling management what is expected for the betterment of their working life. But de Kiewit is now seeing the push against blanket conditions coming from within the junior ranks too, and he notes personalised requests being more likely to be heeded.

In all of this, he states that the aim is not about the respective struggle and resistance between employee and employer but about the mutual exploration of balance between what is being offered and what is needed.

The pandemic accelerated the adoption of new working models, and now many have had the opportunity to discover what suits them, that genie is out of the bottle. But there is a changing demographic in regions such as Europe for all to consider too. Many older employees are walking away from long-held senior posts, or seeking to scale back or create a hybrid working week. This comes at a time when younger recruits are pursuing different ways of working, driven by new motivations such as sustainability.

The bottom line is that there needs to be more open and equitable discussion between employee and employer. And for those treasury departments that understand this, the best recruits will be coming their way.

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