AFP Press Release

Financial Professionals See Continued Weakness in U.S. Economy

Most men and women financial professionals feel secure in jobs, but are uneasy about fewer advancement opportunities in slow economic times

Bethesda, MD – September 2, 2008 – According to the Association for Financial Professionals’ 2008 Women in Finance Survey, nearly 60 percent of financial professionals believe that the U.S. economy will continue to slow at least into the fourth quarter of 2008, while a third believe economic conditions should begin to stabilize and/or improve over the next 90 days.  Ten percent of financial professionals believe the worst of the current economic downturn has passed.

 

While few financial professionals report having lost their job as a result of the current economic slowdown, two out of five survey respondents feel, at most, only somewhat secure about the safety of their current job. Women financial professionals are, overall, slightly more optimistic than are their male colleagues, both in terms of the likely direction of the economy in the near-term as well as the impact of current economic conditions on their jobs.

 

Twenty-six percent of female corporate practitioners believe that women are “more vulnerable” to job setbacks resulting from the economic slowdown, while only four percent of male corporate practitioners share the same view.  Overall, 14 percent of financial professionals agree with the sentiment that women are more vulnerable to job setbacks resulting from the current economic situation.

 

According to the survey, 89 percent of financial professionals expect their career to be impacted negatively as a result of the current economic slowdown, but they also feel that most of the effects may be short-lived.  Additionally:

 

·                          72 percent of financial professionals expect to receive a smaller bonus over the next year; 

·                          49 percent believe there will be fewer job opportunities outside of their organization; and

·                          38 percent believe the current economic slowdown reduces the likelihood for job advancement with their current employer.

 

“Nearly three-quarters of organizations we surveyed indicate that the economic slowdown has had some detrimental impact on operations,” said Jim Kaitz, President and CEO of AFP.  “During unsettled times, AFP is a valuable daily resource to financial professionals with networking tools for connecting to global communities and professional development.”

 

Most financial professionals indicate that their organizations have not had to layoff employees despite relatively weak economic conditions; if their organizations did have to downsize, the layoffs more likely occurred outside of those organizations' treasury and finance operations.

 

The survey also revealed that nearly three out of five financial professionals report that their organizations are now using more innovative methods to accomplish certain functions.  Additionally, two out of five financial professionals report they have taken on new job responsibilities, perhaps due to departmental downsizings, which represent either career developments and/or learning opportunities.

 

"While this survey suggests our industry will continue to experience significant stress in the near term, it points out that such periods also yield significant innovation which can move our industry forward in ways we may not have imagined.  For financial professionals this innovation can present opportunities for both their individual careers and their businesses," said Julie Monaco, North American Regional Head for Citi’s Global Transaction Services. "At Citi, we will continue to work with our clients to address their needs and help them succeed in this challenging economic environment."

 

 

About the Survey

The 2008 AFP Women in Finance Survey, sponsored by Citi’s Global Transaction Services, asked 3,000 corporate practitioner members – evenly split between males and females – about the impact the current slowdown in the U.S. economy has had on job security and prospects for career advancement. The survey received 571 responses, with a response rate of 20 percent. A full report of the 2008 AFP Women in Finance Survey will be available in the October issue of the AFP Exchange.

 

About AFP

The Association for Financial Professionals® (AFP) is a membership organization that serves more than 16,000 corporate treasury and finance executives. In addition to its Annual Conference, the Association offers executive resources, industry news, financial tools, networking opportunities, continuing education, print and online publications and public policy research representation. AFP is headquartered in Bethesda, Maryland, and its global reach includes AFP of Canada and gtnews, a London-based on-line resource for the finance community. AFP strives to be a daily resource for strategic solutions, best practices and peer collaboration: AFP–Your Daily Resource at www.AFPonline.org.