During the recent CIPFA Conference in Manchester, my colleagues at CIPFA-Penna and I spoke to a number of Section 151 officers (S151) and other senior finance professionals. The recurring themes centred around recruitment and succession planning, specifically at the senior end of the market.
Many S151s made it clear that they are looking to retire imminently, transitioning away from the sector, or moving into the interim market. Given that the talent pool for experienced S151s is already very tight, the market for experienced Finance Directors will be an interesting area to work in over the next twelve months.
As a result of the exodus of top talent from local government, the question is who will fill the potential void. The obvious answer is that Deputy S151s will step up and take the reins, however in a number of authorities there are deputies retiring at a similar time leading to a large-scale outage of corporate memory and experiential loss. In some instances, staggered exits have been agreed, but a long-term solution to address the ongoing talent problem is still needed.
It was also evident that in some authorities the Deputy S151 may not be ready or willing to be promoted. In the past, there was a better balance between managing the day job and having time to develop the softer skills needed for managing Elected Members and peers. However, over the last couple of years, with COVID-19, the demands of finance roles have changed significantly, with a large chunk of time being taken up by urgent issues and immediate concerns.
To address the issue, we are seeing an increasing demand for interim resources to help navigate through the difficult period. However, we understand that interim management can be an expensive, short-term solution, and is often considered a last resort.
We have seen good results from introducing innovative assessment solutions, along with mentoring and coaching support that have been effective in enabling clients to identify and support high-potential candidates who are looking to step up.
Nevertheless, recruiting finance professionals for local government remains a challenge. As the issues facing local government persist, so too does the demand for highly-skilled finance professionals needed to close accounts, make efficiencies, balance the budget, develop the Medium-Term Financial Strategy (MTFS) and transform services.
Given the fixed supply of local government finance professionals in the short to medium term, in our view it has become essential to look further afield, beyond local government, to identify new and diverse talent. Specifically, we have looked to the private and professional services sectors, which have a higher number of qualified, experienced, and diverse professionals, as well as to related sectors such as education, health and blue light sectors, where many skills are transferable.
At the most senior level we understand that local authority clients will often need experienced candidates who understand the nuances of local authority finance and treasury management. However, for many roles, the candidate pool can be greatly increased by promoting local government as an employer of choice, and by being open to applicants with a greater diversity of experience. As part of its service offerings, CIPFA provides excellent development support, enabling such candidates to succeed.
Casting your recruitment net further and considering factors such as a candidate's ability to “add to the culture” rather than just “fitting with the culture”, as well as their future development trajectory and capacity to learn will become increasingly important in building resilient and high-performing teams. This is particularly crucial with the increased adoption and reliance on new technologies such as artificial intelligence, machine learning, and automation.
There are, for example, a number of professionals who started their careers in local government, reached mid-management level, and then moved into a new sector which provided them with greater depth and perspective.
As a sector we need to promote the fantastic opportunities and careers that local government provides, championing high-potential talent, and reducing the barriers to entry.
CIPFA-Penna recruits to a significant number of permanent and interim roles each year, spanning positions from Corporate and Strategic Directors at Section 151 level to management accountants. We understand the challenges of finding talent and recognise how much of an opportunity it can be for individuals looking for a more purposeful career path.
Our CIPFA-Penna talent board chaired by Owen Mapley the Chief Executive of CIPFA meets regularly to discuss the talent recruitment and retention issues facing local government. Currently, we are exploring how secondments between sectors (e.g. local government, health, central government, blue light, education, professional services, and more) could be used to support the career development of public finance professionals. If this interests you, please contact us at: andrew.tromans@penna.com or mizan.rouf@penna.com.
Mizan Rouf - Associate Director, CIPFA Penna
LinkedIn: Mizan Rouf
Email: Mizan.Rouf@Penna.com
Andrew Tromans – Senior Consultant, CIPFA Penna
LinkedIn: Andrew Tromans
Email: Andrew.Tromans@Penna.com