Treasury and finance professionals received a modest increase of 4.4% in their base salaries in 2023, according to the 2024 AFP Compensation and Benefits Survey Report. Though less than 2022 (5%), the rate mirrors that of 2021.

When broken down by tier — executive, management and staff — those in the management tier fared the best in 2023, with a 4.6% increase in base salary, while executive and staff tiers saw a 4.2% increase.

Sixty-eight percent of organizations provided bonuses in 2023, down 2 percentage points from the previous year. The majority (89%) of employees received cash bonuses, and 41% received stock options.

Information on salaries and bonuses are just some of many key findings from the 2024 AFP Compensation and Benefits Survey Report.

Job Performance and Career Advancement

What measures are used to evaluate job performance — the main determinant of bonuses and promotions? The number one criterion cited by survey respondents was meeting pre-determined objectives and goals (71%). This was followed by the quality of their work (60%) and company performance (48%).

When it came to career advancement, the majority of respondents (78%) to this year’s survey cited increased job responsibility as the factor primarily responsible for impacting their upward mobility. Company growth was the next most impactful factor (62%), followed by individual contribution to the department or company’s profitability (46%).

Flexible Work Schedule Remains Popular

Flexible work schedules remain a high-value benefit. In 2023, 77% of organizations offered flexible work schedules, and 85% of respondents considered them a high priority. The majority of respondents reported that they worked a hybrid schedule, while 14% reported they worked fully remotely.

Another high-value benefit is the option of additional leave (e.g., birthdays, longer lunch breaks, early closure on Fridays), which 60% of respondents cited, though only 41% of organizations offer it. Additionally, nearly half of respondents listed a mentorship program as high-value, even though only a little over one-third of companies offer it.

Challenges Faced by Employees

Employees reported limited resources (41%) and a high volume of work (39%) as the most significant challenges in their current positions. In 2022, recruitment was the third-ranked challenge, but in 2023, it was replaced by outdated technology.

When we break down that number between finance and treasury, the rankings change a bit. For the finance segment of respondents, volume of work (50%), limited resources (39%) and outdated technology (28%) are the top three challenges. For the treasury segment of respondents, volume of work (44%), limited resources (40%) and forecasting (33%) are the top three challenges.

Upskilling and Retainment Remain Challenging

Many organizations still face the challenge of recruiting skilled talent — 60% of survey respondents reported it to be the case at their organization. Two other significant issues affecting talent management are upskilling (48%) and retainment (41%).

Upskilling is vital to the future effectiveness of the workforce and a key element in recruiting and retaining talent. Half of organizations upskill their employees through in-house training, and 46% subsidize professional development of the employee’s choice.

Skills Needed vs. Skills Gaps

Treasury professionals reported in the survey that the most significant job responsibilities for them are: 1) treasury management, 2) managing bank relationships, and 3) forecasting and cash flow (which were both tied for third).

Finance professionals reported the following to be the most significant job responsibilities: 1) FP&A, 2) forecasting, and 3) budgeting.

The top business competencies — a combination of skills, abilities, knowledge, and possibly also behaviors — for finance and treasury differed only slightly. When looking at the responses overall, the business competency respondents consider most important is strong analytical skills. This remained true when broken down between treasury (52%) and finance (61%).

The Treasury cohort had a tie for the number two slot: leadership and people management skills and change management skills, i.e., the ability to adapt to external and internal volatility. The second most important competency for finance practitioners was emphatically leadership and people management skills, with third place going to change management skills.

Respondents’ answers to where the talent gaps lie in treasury and finance listed the following three as the top gaps to fill: problem-solving skills, strategic and innovative skills, and leadership skills. A very close fourth was interpersonal skills, making soft skills an area of focus.

Looking for more? Dive deeper into the findings with the 2024 AFP Compensation and Benefits Survey Report.