Making Treasury Sexy

How to Attract Young Talent

With skills shortages reported across Europe and companies competing to attract talented young professionals, is corporate treasury regarded as an attractive career path by graduates? TMI learns about the next generation’s expectations and considers whether companies are doing enough to meet them.

Corporate treasury offers good career opportunities, but as Europe’s skill shortages intensify are they enough to attract young financial professionals and graduates? It’s an important question given the shifting nature of the role, but also the fact that many industry professionals do not start their career with ‘treasury’ as the ultimate destination.  Often, treasurers we have interviewed in TMI, have explained how they moved into the function at a later stage in their career, or in several cases their role in treasury came about “by accident”.

Making treasury into a sought-after profession from the get-go, and encouraging young talent to enter the ranks of the profession early on is no mean feat. But there are individuals who are taking up this mantle on behalf of the treasury community. Cornelia Hesse, who recently retired from the board of the European Association of Corporate Treasurers (EACT), for many years headed the cash management department of the European shared services organisation at German chemicals producer BASF. For many years, she has been dedicated to encouraging young talent to consider a career in treasury.

“It’s probably still true to say that many financial professionals enter treasury at some point during their career rather than at the start of it,” she reports. “However, the situation is  improving and Germany’s universities now offer treasury and finance streams as well as holding ‘treasury days’ to give students an idea of career opportunities.

“One of the attractions of working in treasury and cash management is that you’re involved and have an interface with all parts of the company. Treasurers are no longer simply the money keepers or payment processors. They act as business partners, who are listened to much more and, in return, demonstrate how they support the business.

“My own impression is once a new entrant learns about treasury, they become addicted. But it’s important to catch talent early on, so we go out to the universities and colleges. We find that young people like the challenges and opportunities to take on responsibility.”

Great expectations?

But what does the next generation of treasurers expect, and can the profession deliver? Hesse suggests they want the ability to create an impact; they are looking for challenges and to be motivated; they appreciate continuous learning and teaching opportunities; they also want an emphasis on growth – and they expect to be involved in the company’s projects. “So, for example, they want to be a business partner in areas of the company such as procurement. They are also looking to be involved in ESG, given its growing importance.

“Soft skills are increasingly important, as is having a global acumen since you’re working with different cultures. A problem-solving approach and a willingness to embrace technology are also core strengths.”

The manner in which younger generations approach professional learning is also important to securing the future talent pipeline. In the UK, the Association of Corporate Treasurers (ACT) offers young professionals both the Certificate in Treasury Fundamentals (CertTF) as a first step in treasury and corporate finance and the Certificate in Treasury (CertT) for more experienced individuals. Both online courses, which can be completed within three months and six months respectively, they have proved popular, reports Caroline Stockmann, the ACT’s chief executive from 2017 until this April.

“The way in which young people study is changing, with more demand for short, sharp bursts of learning, and the ACT has responded by offering ‘bite-sized chunks’ of education,” she adds.  “They form a sound basis for further education via the Diploma in Treasury Management, a graduate-level specialist course, where there is also a keen focus on what we like to call the ‘behavioural’ skills. Our research tells us that one of the biggest blockers to career progression at more senior levels in particular is the lack of these strategic influencing skills.

“The Association has a number of arrangements with universities that can offer ACT accreditation for their finance programmes via the Accredited University Partnership initiative,” she adds. “Again, this is introducing treasury as a career option to people at a younger age than before. Now the ACT Annual Conference is able to resume its pre-pandemic ‘live’ format, it has welcomed representatives from the Universities of Birmingham and Vienna, for example, which has given students much greater exposure to the real-life challenges of the profession, as well as providing an excellent environment for networking.”

Stockmann suggests that a treasury career will appeal particularly to graduates who are numerate and who are more likely to have an interest in mathematics or economics, rather than an aptitude for sales for example. “However, there is a need for those who are not simply interested in numbers and analysis, but also have a passion for building relationships, being effective in their communication, and being genuinely interested in how business works.” Treasury suits individuals who like to think strategically, “as it is essentially more forward looking than, say, accounting, which tends to be more historical”.

Stockmann continues: “Young professionals are also looking for a different way of life and many will regard banks and accountancy firms as less flexible than corporates in meeting their needs, although this doesn’t dispense with the need to study and ‘know your stuff’. Accompanying this is a growing appetite for work related to sustainability and the environment,” at a time when ESG issues have moved up the corporate agenda and are increasingly scrutinised by investors, other stakeholders, and regulators.

“The ACT surveyed members to ask how they would define their role and a popular response was ‘we look after financial risks and opportunities’. Treasurers are proud of their enhanced role within the organisation, although conversely it can also prove daunting as it has become so broad and strategic.”

Getting stuck in

Another champion of the treasury profession, François Masquelier, Chair of the EACT wrote in 2017^[1] about the challenges of attracting talented individuals. At that time inflation was subdued, interest rates low-to-zero and geopolitical tensions between the US and China had just begun to surface. Today’s increased volatility makes the treasurer’s job more challenging. But is that a positive or more daunting for those considering treasury as a career?

“It’s a tricky question,” he admits. “But those who are most motivated and interested in an exciting career will not be scared off. On the contrary, these events give the job of treasurer a stronger and more important facet.

“This latest generation, which likes to have the means to ‘influence’ and ‘impact’ attitudes and events, will be well served by embracing a position in corporate treasury. The fact remains, however, that this highly challenging function will continue to evolve,” he notes.

Treasury is also an increasingly important function, and therefore one with a future, whatever the degree of automation. “Treasury is an exciting strategic function that should, if we as associations and treasurers ‘sell’ it well, be an attractive one. We’ve sinned by forgetting that. The function is undeniably very interesting, but we’re not as good at making it as ‘sexy’ as we once were. We all have an important educational and promotional role to play here.”

The EACT recently organised information and education sessions on the role of company treasurer with stakeholders that have the same recruitment concerns, such as La Sorbonne in France and Solvay in Belgium, reports Masquelier. “We think these initiatives should be multiplied in the future, to help ‘sell’ the profession, which although interesting isn’t necessarily perceived as such, nor known by many students. Our salvation will come from greater involvement and more active promotion of the profession. We’re working on it, but it takes time and a lot of energy for the national associations.

Laws of attraction

Of course, external factors also influence the attractiveness of the profession. The impact of the pandemic and the growing skills shortage, for example, has put an onus on companies keen on attracting young treasury talent to offer better remuneration and more flexible working practices.

“Clearly, the situation has changed radically. Young people have other aspirations and the name of the employer, the prestige of the company and the salary are no longer the factors that attract them,” says Masquelier. “A young person today wants a job offering flexibility, home working, interesting work where they can get involved and have an impact on the company.

“They also want the assurance of using modern IT tools. We’ve recently seen young people turning down jobs in companies without a TMS or clear IT projects to implement modern treasury tools. They have a different approach to work, and we must adapt to this, or risk being unable to attract them.”

Masquelier adds that it is not only attracting talented new employees that has become harder, but also retaining them over time. “The phenomenon of ‘youthism’ also stems from the fact that many treasurers prefer to hire a young person to train, rather than find a senior employee who is expensive and perhaps less loyal in the long run.

“Young people’s more up-to-date IT skills also make them more attractive, as we know the growing weight of IT in our businesses, and with solutions becoming increasingly open source, we’ll see the need to customise the reports in the tools themselves. Competencies and IT skills will also have to be reviewed when hiring. It’s no longer possible to hire people with the same skills as before, as needs change rapidly and dramatically.

“Job mobility is a new and interesting phenomenon. It does, however, have tax and social constraints beyond national borders. Here too, the legislative framework – still lagging practice – will have to adapt to allow flexibility.

More room for promotion

Alan Bluett, who manages the banking, treasury and insurance recruitment practices at Dublin-based firm The Panel agrees the corporate treasurer’s role has steadily broadened and grown more sophisticated, prompting companies to search for young financial professionals with specific expertise. “Some are hiring from the banks, but more graduates now see themselves as pursuing a career in treasury,” he reports. “Many of Ireland’s corporate treasuries are hiring graduates, helped by the country’s status as a major centre of European business activity.

“In the past, it was commonplace for the most senior people in finance teams to become treasurers and they tended to hire accountants – mainly because they had previously been accountants themselves. While that expertise is still a strength, there’s no reason why a treasury specialist should necessarily have been an accountant, so while that bias hasn’t disappeared entirely it has certainly lessened, particularly in international companies that have shared service centres.”

Bluett was a guest speaker at the recent Young Treasurers’ Career Path a seminar held by the Irish Association of Corporate Treasurers (IACT) where younger members of the profession could hear from their industry peers and had the opportunity for speed networking. “For those who are ambitious, treasury is challenging but offers the opportunity to develop a wide range of skill sets and a much broader focus, particularly as typically 25% or 30% of work will be focused on new projects,” he reports.

“Corporate treasury teams have expanded, so even though the same corporate treasurer is often still in place, this is creating space for promotion. There are more individuals coming in but, at the same time, competition to attract the right talent has intensified thanks to social media. The fintech giants will always pay top salaries, but remuneration levels in Ireland for corporate treasurers and CFOs compare favourably – typically by a factor of 15% to 20%.”

Addressing imbalances

Despite the positive steps forward, post-pandemic, one contentious issue is how flexible a company’s policy is regarding employees working from home. Most organisations want their treasury teams to be in the office at least two to three days per week, suggests Stockmann. “Treasury can work very effectively when employees are based at home, but there is also a need to be together to encourage a kind of ‘osmosis’ in terms of learning from others,” she observes.

“However, to ensure the best of both worlds, and the ability to attract top talent, both young professionals and companies must be responsive to each other’s needs. One CEO of a major FTSE company recently said, ideally, junior members of the team should be in the office at least two days per week, and more senior colleagues should aim for three so when the team is together there is always a more senior presence, enabling that learning from more experienced employees to take place. People also need to come together regularly to retain the corporate culture, and young professionals want to be involved in corporate decision-making, which is less practical if they are never in the office.”

A further and more enduring challenge is the male-to-female imbalance in corporate treasury. There is still a predominance of men in senior treasurer and CFO roles with only modest improvement in recent years. The ratio shows little change from about one-third of treasurers being female, but interestingly the statistic is higher in large mid-market companies, reports Stockmann.

“Ethnic diversity is also low. But there is an expectation that this will change over time as new generations move into decision-making roles. Gen Z and Gen Alpha do not accept discrimination on the basis of race or colour, but it remains to be seen whether embedded bias in systems and processes will be removed, and indeed whether technology in the form of AI is going to help or hinder us in this process.”

The good news is that more and more treasury teams are embracing practices such as ‘blind recruitment’ which aim to root out bias at source. And being aware of the issues, and proactively working to address them, can only be a positive step for the future of the profession and the younger workforce.