CFO's around the globe are increasingly convinced that labor shortages will frustrate the ability of most companies to thrive in the coming year.

According to the latest CFO Signals report from Deloitte, talent and labor are a top priority for CFOs this quarter. Reflecting on the challenges of return-to-work - hybrid or otherwise - and the Great Resignation, the number of times CFOs cited talent/labor and related issues heavily outweighed other priorities for 2022.

The shortage of labor, and overall talent turnover, continues to be CFOs' leading internal risk, especially with respect to hiring, retention, attrition, burnout, employee well-being, and development. Almost all (97%) CFOs agree that talent/labor costs will increase substantially in 2022. CFOs also relayed concerns over return-to-work challenges, including the hybrid work model.

"CFOs are slightly less optimistic this quarter, both about their own company's performance and for the economy. Talent concerns, including rising labor costs, will likely be a defining issue of 2022," said Steve Gallucci, national managing partner, Global and U.S. Chief Financial Officer Program, Deloitte LLP.

"Heading into the new year, the organizations that crack the code on attracting and retaining talent in this turbulent labor market should be primed for success."

“You never get a pass in any labor market, particular a hot one, if you’re not getting the basics right,” Nickel LaMoreaux, chief human resources officer at IBM, said about raising wages on a CNBC Workforce Executive Council LinkedIn livestream in September.

“It’s a pretty dynamic time in the marketplace right now, and you’re seeing some pretty big trends and changes so you need to start with ensuring you are offering competitive wages,” said Synchrony chief human resources officer DJ Casto speaking during the same CNBC WEC livestream. The company recently increased its wages for entry-level workers to $20.

This dynamic creates a particularly good time for talent teams to get additional budget and ongoing funding. CFOs that typically hesitate to invest in talent attraction and conversion are feeling a particular sort of heat right now. Build a plan based on turnover vs net-new hiring, demographic supply data (ie, EMSI etc), tool optimization, and process enhancements. One that does not guarantee results (because this is a market that kills guarantees randomly), but that does show a way to move the lever. Build in adaptability, and pivots - again, this market requires fluidity - then make your asks. The door has never been more open than now.

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