Latest news with #CFOs
Bloomberg
5 days ago
- Business
- Bloomberg
Worries About Tariffs are Easing for UK Firms, BOE Survey Finds
A majority of UK businesses are not worried about US tariffs, a closely watched survey showed, a dramatic change in sentiment indicating that the initial shock from Donald Trump's trade war is already fading. A Bank of England survey found that 47% of chief financial officers said tariffs were not an important source of uncertainty in May. That's almost double the proportion in April when Trump unleashed his global reciprocal levies. Over 70% of firms don't expect any impact on sales, investment or prices over the next year.
Forbes
02-06-2025
- Business
- Forbes
How Corporate Events Are Changing To Fit Business Needs
In this uncertain time for business, a recent PwC survey found that more executives now have confidence in the effectiveness of their boards. That's good news—until you look at the percentage. Only 35% rate their boards' overall effectiveness as excellent or good, up from 30% in last year's study. And that's actually still more of an improvement: 29% gave that rating in 2021 and 2022. In its survey, PwC spoke with 500 executives in different positions, ranging from CEO to chief legal officer and COO. CEOs had the best view of their boards, with 94% saying they were excellent or good. CFOs also viewed them favorably, with 72% ranking them in good esteem. PwC said this may reflect boards getting better in some ways—with members chosen to provide oversight and financial guidance. And the executives that interact the most with boards do tend to rank them the highest. Board members still may be missing some critical expertise, however. Nearly four in five CIOs ranked their boards as fair or poor, which may reflect a lack of knowledge about technology, cybersecurity and AI among members. About 43% of executives said they wanted AI expertise added to their boards this year, but only 10% of board members expected that to happen. Executives and board members both felt that AI is a top priority for boards in the next 12 months. Regardless, the majority of executives believe their boards can come through when needed. Seven in 10 said they believe their board can guide the company through a crisis, while 88% feel their boards can effectively engage with shareholders. And when changes are needed, six in 10 execs are confident that boards can assess their own performance and make needed shifts. Whether that faith in the boards is merited remains to be seen. As the year progresses into the unknown, the strengths of these boards—and executives' confidence in them—are likely to be put to the test. Even though the shutdowns of the Covid-19 pandemic era are in the rearview mirror, corporate events and trade shows are becoming increasingly important to businesses. I spoke with Janet Dell, CEO of events company Freeman, about how events are changing to reflect today's workforce—both in attendees and goals. An excerpt from our conversation is later in this newsletter. President Donald Trump displays a signed executive order imposing tariffs on imported goods at the 'Liberation Day' press conference. The majority of President Donald Trump's new tariffs were struck down in two federal court cases last week, although it's certainly not the end of the issue. A three-judge panel at the Court of International Trade ruled that the so-called reciprocal tariffs announced as part of Trump's 'Liberation Day' press conference should be 'set aside.' The panel ruled that Trump did not have the authority to impose unlimited tariffs under the International Emergency Economic Powers Act, which gives presidents the power to impose sanctions during national emergencies. In a second lawsuit brought by a group of companies, Washington, D.C. District Judge Rudolph Contreras also found the tariffs to be illegal. But for now, the tariffs—or threat thereof—are still on. The U.S. Court of Appeals for the Federal Circuit paused the order halting the tariffs while those judges rule on an appeal. In the meantime, there is still action with new tariffs and existing negotiations. Trump announced a 50% tariff on imported steel and aluminum last week, which goes into effect this week, at an event at U.S. Steel. And negotiations continued last week with China, although progress remains unclear. Treasury Secretary Scott Bessent said last Thursday that talks have stalled. Friday morning, Trump wrote on Truth Social that China 'HAS TOTALLY VIOLATED ITS AGREEMENT WITH US.' Monday morning, Chinese authorities shot back, accusing the U.S. of breaching the agreement that both countries came to last month, saying the U.S. introduced 'discriminatory restrictive measures against China' after the talks, including expanded export controls on AI chips and other chip-building technologies. Regardless of the broader tariff fight, companies are now starting to reflect the impacts—or projected impacts—in their earnings reports. Forbes senior contributor Shelley E. Kohan analyzed how the nation's five largest retailers—Walmart, Amazon, Costco, Kroger and Home Depot—are handling tariffs. Companies with significant non-grocery sales have pulled forward inventory purchases before tariffs took effect, trying to stay ahead of the impacts on price. Home Depot executives said they can maintain competitive prices and don't expect broad increases, while Walmart executives indicated that they will not be able to completely mitigate tariff-related increases. Costco, Kroger and Walmart are all trying to keep their food prices down, especially since consumers have been paying more over the last several years—though popular products, including bananas, coffee, avocados and flowers, are almost always imported. Meanwhile, many of the companies are changing their supply strategies, not relying on any one country for goods or manufacturing. Many businesses continued to lower their outlooks for the rest of the year, given tariff uncertainty. Last week, Best Buy, Macy's and Abercrombie & Fitch all reduced their sales and earnings projections for the year. President Donald Trump walks with Federal Reserve Chairman Jerome Powell in 2017. Last week was another bumpy ride for the stock market, with ups and downs related to tariffs, government financial reports and Big Tech. April's inflation figures remained relatively mild, not yet showing the impact of President Donald Trump's tariff policies. Personal consumption expenditures increased 2.1% above April 2024, the lowest PCE inflation rate since last September, and getting close to the Federal Reserve's sweet spot of 2% inflation. However, economists at Bank of America and Goldman Sachs both forecast a jump in tariff-related inflation to 3.6% by December—though they say it is not expected to be as sharp of a jolt in price as the post-pandemic inflation of 2021 and 2022. The lower inflation rate, however, doesn't mean that interest rate cuts are set to happen anytime soon. Minutes from the Federal Reserve's Open Market Committee's early May meeting were released last week, and they indicated that the Fed is planning to continue to watch the impacts of Trump's planned policies—which to date have been sudden, jarring and unpredictable—before making any moves, writes Forbes senior contributor Charles Lloyd Bovaird II. Forbes senior contributor Erik Sherman writes it's unlikely there will be any changes to interest rates before the end of the year. Federal Reserve Chairman Jerome Powell met with Trump last week, and Powell reaffirmed that the Fed would continue to make policy decisions 'based solely on careful, objective, and non-political analysis.' Regardless of the indicators last week, small businesses are feeling decidedly less optimistic, writes Forbes' Brandon Kochkodin. The April Small Business Optimism Index, published monthly by the National Federation of Independent Business, showed optimism down to 95.8, below the 51-year average of 98, and down 1.6% from March. Retail business owners had the lowest scores, with optimism of 93.7. More than three-quarters said supply chain issues were impacting their business, and 14% said their inventories were too low. But negative feelings are running high across all sectors; the most confident sector in April was construction, and that was down nearly 4 points from January. getty As federal government attitudes on diversity, equity and inclusion push the issue to the back of corporate priorities, companies are talking about it a whole lot less. According to an analysis by Gravity Research, references to DEI and associated terminology in Fortune 100 company reports dropped 72% between 2024 and 2025. The acronym DEI saw the largest drop in mentions—down 98%—while more neutral terms about diversifying, such as 'inclusion' and 'belonging' were down by more than a third. The only place where mentions of DEI increased was on earnings calls, where the term came up 390% more often—but usually because of more shareholder questions about it. Gravity Research Vice President of Thought Leadership Joanna Piacenza said the report 'speaks volumes to the current political environment,' which has made diversity initiatives a polarizing issue—as well as a legal one. Freeman CEO Janet Dell. Events have retained their popularity through the pandemic, but are changing based on attendees and preferences. I talked to Janet Dell, CEO of global event company Freeman, about why events are still so successful and vital for business. This conversation has been edited for length, clarity and continuity. During the pandemic and soon afterwards, many Baby Boomers retired, and the workforce now has many more Millennials and Gen Zers. How have events changed to reflect the age of the attendees? Dell: Each of the demographics has a different preference in general. The younger demographics—Gens Z and Alpha and Millennials—want that face-to-face engagement. They're looking for ways to get more professional development opportunities, connect with buyers, learn about what's cutting edge in their industry in particular, because there's a lot more hybrid working arrangements. Events are turning into 'bleisure' events, where you're going out for the event and staying a few days after. People are looking at ways to make it easier because talking about the digital native versus a digital hybrid. We're helping support the events, partnering with someone with AI tools that can help you match-make. Or it can help you understand dwell times and engagement when you go through a booth. So our exhibitors know: Is this impactful content? Am I optimally set up? [We also make] sure there's more time in the events for people to talk to one another. I would say one of the bigger changes pre- and post- pandemic is not overscheduling, and trying to give people more time to engage and immerse, and not just going back-to-back-to-back on things, straight into a happy hour, then a dinner, et cetera. There's more of a consumer slant versus B2B, where they're really thinking about the customized individual experience versus a blanket use-the-same-formulas-as-they-did-before. We've got a lot of new, fresh ideas, married with a lot of long-tenured people that have been in events, experience and exhibits for a long time. Looking at some of the recent research Freeman has done, people place a huge amount of trust in what they see, learn and experience at events. Has it always been that way? It's always been the most powerful medium for building trust is face-to-face. You can't beat bringing someone together, having a conversation, reading the verbal and the nonverbal cues, and then interacting live. That's what people missed in the pandemic, and why there was this incredible pent up demand. We saw virtual events be adopted. They have a place, and it's much more inclusive. But then when people came back,[there was] just incredible demand, and it held up. Ninety-four percent say this is the biggest trust-building medium. It allows you to grow your interpersonal skills. You can gain professional confidence, and you stay on cutting edge in the industry. It also helps close business, in terms of commerce and retain clients because you're showing them all the benefits of what you're doing. Once you leave that event, 87% of the people that have attended are more likely to go to your website. You've got that 365-day connection, which is what you want to see with your clients to make sure that they stay loyal to your brand. What do executives need to know about events? They need to be clear on what their objective is. We do thousands of events a year and we bring in 400,000 to 500,000 exhibitors. They have to be clear on what their objective is for the event. Why would you be attending? You can get matched up with the right event to be able to take advantage of that. If you can do that, then you can start planning out how you're going to take advantage of it, whether it's through sessions, keynote speakers, the trade show floor, experiences or one-to-one special events like hosted-buyer-type scenarios. All those things can have a more personalized experience and therefore a better return on it. Send us C-suite transition news at forbescsuite@ Running a business is challenging in the best of times, but the chaos around tariff policies has injected a new level of uncertainty. Here are some tips for navigating business in this environment. EF World Journeys CEO Heidi Durflinger runs her business the same way she trained for her first ultra-marathon: breaking a large task into more manageable steps. Here are some tips to apply the same strategy to your business—even if you're not a runner. Whose recent earnings have reinstated them to the Forbes billionaires list? A. Lisa Su B. Gary Lauder C. J.K. Rowling D. Whitney Wolfe Herd See if you got it right here.
Yahoo
23-05-2025
- Business
- Yahoo
Deloitte-IMA survey reveals growing impact of AI on cost accounting
The Deloitte Center for Controllership and Institute of Management Accountants (IMA) have reported that finance and accounting professionals are increasingly using AI, machine learning, and advanced analytics to boost business performance. According to the survey, titled Unlocking profitability insights: How companies are leveraging data to enhance business performance, the development was despite the continued dominance of traditional cost accounting and profitability management methods. The survey, which included more than 440 finance and accounting managers, directors, controllers, and CFOs, found that spreadsheets remain the most widely used tool for performance modelling. Nearly 30% of the respondents relied on them compared to just 3% using AI analytics and 1% employing blockchain. Despite this, many professionals anticipate significant changes, with 19% expecting emerging technologies to automate routine tasks and processes. Meanwhile, 18% foresaw use of real-time data analysis and reporting and another 18% predicting a shift from historical to predictive analytics models. More than half of the respondents (53%) said their organisations have either integrated (24%) or plan to integrate (29%) technologies such as AI, blockchain, or advanced data analytics into their cost and profitability management models. The survey also explored the use of cost-to-serve analytics, revealing that only 38% of organisations utilise this approach to assess business goals or adapt strategies to boost profits. Additionally, 54% of the respondents indicated a lack of available reporting or a need to enhance the transparency of cost and profitability reporting within their organisations. Complex and disparate systems were cited as the primary barrier to obtaining meaningful cost data by 15% of respondents, followed by 14% citing data availability issues due to interdependencies between functions, operating units, and departments. Nearly 12% said reduced time for data collection was a benefit of adopting emerging technologies, reported by professionals. While 11 % said it could increase efficiency in reporting and analysis preparation, and 10% noted that the move will improve accuracy in cost estimations. Deloitte & Touche controllership partner Colleen Whitmore said: 'Traditional business performance management methods are not as responsive or as precise as newer tools are at generating data and insights on drivers of cost, critical in today's fast-paced and dynamic operating environment. 'As such, many controllers and CFOs recognise that transformation in cost and profitability management approaches is needed to drive operating performance and better strategic decision-making.' "Deloitte-IMA survey reveals growing impact of AI on cost accounting" was originally created and published by International Accounting Bulletin, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
20-05-2025
- Business
- Forbes
How CFOs Are Preparing For A Looming Recession
For months, economists and analysts have looked at the numbers and tried to predict if a recession is coming. And while the official declaration depends on indicators such as GDP, employment figures and economic activity, CFOs are already preparing. According to a recent study from Billtrust, more than four in five financial decision-makers see recession as either likely or possible in the next year, and they're adapting policies to get through it now. Almost all of them—97%—reported having specific plans in place. These preparations include a much more conservative approach to cash management, spending and planning. About six in 10 are actively strengthening their financial positions through cash reserves and debt restructuring. The same proportion are reducing discretionary spending and capital investments. Just under a third are diversifying revenue streams or pursuing strategic acquisitions. And they're reviewing their forecasts much more often—38% reassess at least monthly—so they can make changes as needed. Complicating everything is the looming presence of tariffs, which a quarter of financial decision-makers said has the biggest impact on their financial planning. More than four out of five report moderate to significant cost increases from tariff changes over the last six months, with 23% reporting increases of more than 15%. About 84% said they are actively managing those challenges—55% through increasing customer prices—but that's not the only method. Four in 10 are rebuilding their supplier networks, 34% are changing approaches to inventory, and 30% are reconfiguring manufacturing footprints. One area financial leaders aren't cutting back on is AI investments. The study found that about 90% rely on AI for financial decisions, and 83% said that it has positively influenced their approach to managing financial risk this year alone. Two-thirds of financial leaders said they are dedicating more than 10% of their 2025 budget to AI and automation technology. But even if the economic disarray means your company has no additional funds to spend on technology upgrades, there's still likely money available through careful cost management. I talked to two executives at enterprise tech consulting firm Rimini Street—CEO Seth Ravin and CFO Michael Perica—about how companies can cut their IT budgets without sacrificing technological advancements. An excerpt from our conversation is later in this newsletter. Traders work on the floor of the New York Stock Exchange on Monday morning. While President Donald Trump was in the Middle East forging business deals last week—many dealing with technology, AI and defense—the stock market saw a tech bump. But Wall Street's underlying issues didn't go away. On Friday, financial ratings firm Moody's downgraded the U.S. government's credit, citing rising government debt and interest payment ratios. Moody's was the last of the three ratings agencies to rank the U.S. as Aaa, and lowered it to Aa1. The markets reacted slightly to the ratings cut. As trading opened on Monday, stocks briefly fell, but the market as a whole rebounded by closing time. Meanwhile, yields for 30-year Treasury notes hit 5%, an area that they've spiked to a couple of times in the more recent past—when Trump announced sweeping tariffs on all nations at his 'Liberation Day' press conference last month and when the Federal Reserve sharply increased interest rates in October 2023. Other than that, the last time 30-year yields were at 5% was in 2007. Forbes senior contributor Jim Osman writes that Moody's downgrade has a deeper impact than the immediate market response. It means that the world's trust and confidence in the U.S. economy is eroding, a long-term problem that policymakers need to solve together. Businesses are still wrestling with tariffs. On Monday, U.K.-based alcoholic beverage company Diageo said it expects to lose $150 million in annual profits to tariffs. Last week, Walmart CEO Doug McMillon told investors that despite the company's attempts to hold the line, tariffs would result in higher prices in coming weeks, especially on items including bananas, avocados, coffee and roses that primarily come from other countries. Trump responded on Truth Social that Walmart should 'EAT THE TARIFFS,' especially because of Walmart's large profits. Sony also said last week that tariffs could drive the company to increase prices on its games and systems, and analysts say U.S. consumers may see higher prices soon. The U.S. Capitol on Sunday night, as the House Committee on the Budget voted to approve President Trump's massive tax package. The Moody's rating drop hits at an interesting time. The ratings agency wasn't just looking at the volatile economic situation in the U.S. right now, but also the ever-growing national deficit and its repayment. Forbes senior contributor Erik Sherman spoke with analysts who defined the problem succinctly: The deficit has been too high for an Aaa rating for at least 17 years. And that doesn't seem like it's about to change anytime soon. On Sunday night, Trump and Republicans' mega budget bill, which includes $3.7 trillion in tax cuts over the next decade, writes Forbes' Kelly Phillips Erb, passed the House Budget Committee. The bill is expected to add up to $4 trillion to the national debt, and five Republicans initially voted against moving it out of the committee last week. Four of them voted 'present' on Sunday night so it could advance. The bill includes a host of Trump's tax priorities, including extending his 2017 tax cuts, no taxes on tips, no taxes on overtime and no taxes on car loan interest. Erb runs down exactly what the bill does in terms of taxes right now—though it's highly likely that it will not pass Congress in its current form. People walk in front of a Foot Locker store on 34th Street in New York City. Retail behemoth Dick's Sporting Goods announced last week it plans to buy specialty retailer Foot Locker for $2.4 billion, writes Forbes senior contributor Pamela Danziger. The acquisition will nearly triple store count for Dick's Sporting Goods, which has 856 locations in the U.S. It will also expand the company to international markets. Foot Locker makes about 30% of its revenue internationally. It has about 2,400 retail stores in North America, Europe, the Middle East and Asia-Pacific. Dick's plans to continue to operate the two stores separately. Dick's has reportedly been eyeing a Foot Locker acquisition for some time, and the athletic shoe store has seen its profits decline in the recent past. Its total revenue in 2024 was down 1.9%. Meanwhile, Dick's sales were up 3.5% last year. Analysts say the deal has potential for success, and while not an immediate and guaranteed slam dunk, the merger could provide opportunities for value. The transaction, which still needs to be approved by Foot Locker shareholders, is likely to close in the second half of 2025. Rimini Street CEO Seth Ravin and CFO Michael Perica. As tariffs loom, companies are making as many changes as they can to keep their goods and services on the market without losing profits, but budget cuts are on the table everywhere. And while the vast majority of companies are putting a priority on tech transformation, it's likely that IT budgets are among the first things cut. I talked to two executives at enterprise tech consulting firm Rimini Street—CEO Seth Ravin and CFO Michael Perica—about how companies can cut their IT budgets without sacrificing technological advancements. This conversation has been edited for length, clarity and continuity. A longer version is available here. About how much does your average company spend on tech that they don't need, like outmoded programs, updates, unused logins? Ravin: I would be surprised if you didn't see at least 30% wastage—or more—in the IT budget. We believe even we have 30% we can take out. About 30% to 50% could be cut and streamlined in the years ahead. How do companies rack up so much in IT contracts that they continue to pay for and don't need? Ravin: Every software company right now is asking its customers to do big migrations and upgrades. If you're Salesforce, I want you to put in Lightning and our AI agents. If you're SAP, I want you to mandatorily upgrade to S/4HANA for potentially hundreds of millions in costs. Microsoft wants you to do Windows 11 across 27,000 workstations. They're sitting there with hundreds of applications and there's literally not enough people, time and money to do everything every one of these vendors wants you to do. The reality is for most companies, these changes are work projects. They really don't change the trajectory of the company. If I change out my payroll system that's working, are my employees going to be happier because the direct deposits somehow comes from a different company? They don't care. If it's working and it's accurate and it lands in their account on time, then they're happy. So what are you going to get out of the change for millions of dollars of the payroll system if it doesn't actually improve your business in a way that makes you more competitively advantaged or helps drive your costs down? There's so many of these projects being asked of the CIO and the CFO, their heads are spinning. Perica: What he just described was the normal operating procedure—and the challenge—prior to 'Liberation Day.' To shift the supply chain—and I did it in a prior CFO chair—the IT organization is a critical component. To have even one major upgrade project that's not going to have impact on operation, other than disruption, because it's forced by the vendor, is just going to be compounding in this environment where one needs to be flexible. The IT organization has to be in lockstep with the operation side to be flexible, to assist with scenario analysis and be ready to move swiftly when there is a plan that has been decided at the C-suite and board level on how to manage one's supply chain. We're at the dawn of bringing AI into businesses, and everything that I've read from analysts and experts has said the same thing about bringing AI to the enterprise level: Companies that get AI and get IT entrenched in it will be the ones who move ahead. If you don't, you're going to be catching up. As IT budgets are going down, how can businesses cut costs and bring AI into their systems? Perica: They don't call me to say hello. They call to get more money. You say IT groups want to put AI into their systems. That's what the vendor tells you. And that's one of the biggest mistakes you can make. We espouse the approach of have AI enterprise wide. Extract the data from your existing system, put it at the user layer or the data layer, and then invest in the AI on top. Vendors are talking about: Here's our AI on this platform, here's our AI on that platform. They're different models, trained in different ways. They give you different answers. You have your hallucinations set in the AI system. The innovation is get your data in one place—all the data, all the information—get it consistent, and then put the model on top as it evolves. Invest there. It's drastically, radically more economical to have this approach. And you're going to get better information from your queries. For a company that is beginning this journey on their own, how do they determine what might be the right things to upgrade, what might be the right things to just keep going with, and what might be the right things to just get rid of? Ravin: The first thing you've got to do is get your full portfolio list together. You have to understand everything you're running because the next step is to go line by line to figure out what I think I could run for longer, which things I think I might need to change out. We help them with this methodology because they don't always understand: If I run Windows 10 longer, does that have any impact on any of my other connectivity? These are things that they didn't think they could do because the vendor's pushing them to make mandatory upgrades. If you're looking at the ERP, you want to know: How am I going to secure it for another 10 years? How am I going to make sure it'll work with other products over the next 10 years, and how will I make sure that I stay compliant with tax, legal and regulatory changes? If I can solve all those things and get support for it, then I would be in a position to say I could use that. If you're going to drive your car another 10 years, we want to make sure there's going to be parts available. We want to make sure there's going to be mechanics that'll know how to fix it. It's important for business leaders to put their values behind their business, building companies with a strong corporate culture that is a positive force in the world. Here are four books on how to bring this kind of cultural leadership to your business. The best teams come to problems with purpose and intent, engage in dialogue marked by active listening, and work together to understand others' perspectives. Here's a guide breaking down what all of that means, and how you can apply this framework to your teams. While in the Middle East, President Trump railed against Apple CEO Tim Cook, who is reportedly looking to move manufacturing of most U.S.-bound iPhones out of China to another country. Where does Trump not want Apple to move its manufacturing? A. Vietnam B. Indonesia C. India D. Hong Kong See if you got the right answer here.
The Australian
19-05-2025
- Business
- The Australian
What Gen Zs and millennials want from you at work
The demographics of the workplace are undergoing a major shift. Gen Zs are entering the workforce in growing numbers while millennials are increasingly embedding themselves in management positions. By some estimates these two generations are projected to make up around 75 per cent of the global workforce by the end of the decade. In Australia, as elsewhere, understanding the mindset of these generations is a vital strategic priority for businesses. CFOs and other business leaders who know how to respond to their concerns will be better placed to attract and retain top talent, drive innovation, and cultivate a resilient, future-ready workforce. But as it stands right now, there is an emerging expectations gap between millennial and Gen Z employees and their (often older) management around the issues of work-life balance and opportunities for advancement and skill development. According to Deloitte's latest annual Gen Z and Millennial Survey, younger Australian workers believe their supervisors are failing to provide them with the guidance, support and mentoring opportunities they expect at work. For example, 58 per cent of Australian Gen Zs expect their managers to teach and mentor employees, yet only 36 per cent said this was happening at their workplace. Similarly, half of Australian millennials expected managers to set boundaries to support a healthy work-life balance, but less than one-quarter said this was their current experience. Overall, 92 per cent of millennials and 89 per cent of Gen Zs consider on-the-job learning and practical experience are the most helpful tools for career growth. A similar number of both groups consider a sense of purpose to be very or somewhat important to their job satisfaction and wellbeing. Pip Dexter, Chief People and Purpose Officer at Deloitte Australia The through-line for leaders is that Australian millennials and Gen Zs expect jobs to offer more than just a steady salary. Jobs must feel meaningful and provide opportunities for skills development and advancement, without encroaching on wellbeing. This doesn't come from a place of entitlement, but from a place of circumstance. Younger Australians – and particularly Gen Zs – arguably live a more financially precarious existence than previous generations: 64 per cent of Australian Gen Zs and 59 per cent of millennials say they live pay day to pay day and around 40 per cent of both groups worry they won't be financially comfortable in retirement. The motivation to get ahead is clear – but unlike previous generations, millennials and Gen Zs don't see traditional tertiary education as a ticket to career advancement. Some feel locked out of pursuing it altogether - Gen Zs cite financial constraints as the leading reason for not pursuing further education, while millennials point to family and personal responsibilities. The high cost of tuition is a major deterrent for both generations. This explains why on the job learning is so important to younger workers. So, how can C-suite leaders best provide crucial training and mentorship to their employees? Respondents to the survey identified three top ways employers can help support their development beyond formal on-the-job training. The first is providing one-on-one mentorship opportunities with subject matter experts. Gen Z and millennial workers know that in today's knowledge economy, subject matter expertise is an important asset. One-on-one mentoring also provides opportunities for individualised feedback across a range of non-core skillsets that are nevertheless important to professional development. Gen Z and millennials realise this – almost 90 per cent of them rate soft skills like communication, empathy and networking abilities as necessary to career development. The second is for an employer to offer financial compensation for external learning opportunities. This doesn't necessarily mean paying employees to complete a course – offering paid study leave is a great way to remove financial and resource barriers that may be preventing your people from seeking out learning and development opportunities. The third way Gen Zs and millennials believe their employers can help them grow is by creating opportunities for job rotation. Just as one-on-one mentoring provides the opportunity for deep learning in a specific area, job rotation or shadowing provides the opportunity to learn across the breadth of a business unit or entire organisation. This kind of experience is particularly valuable to both the employee and the employer. By exposing the employee to a more fulsome view of what your organisation does, they will accrue additional skills outside their remit and gain a clearer view of the horizontal opportunities available to them with their current employer, boosting employee retention. Encouraging talent to move horizontally is also important to attracting and retaining younger talent: around a quarter of Australian Gen Z respondents who recently changed their industry or career path did so for career growth opportunities or because they discovered a new interest or passion. Gen Zs and millennials are just as ambitious and hard-working as previous generations. But with career progression pathways less linear and accessible than they were in the past, employers who proactively actively invest in their workforce's skill development while providing meaningful work and opportunities will boost employee satisfaction and retention, ultimately to the benefit of the business. Pip Dexter is Chief People and Purpose Officer at Deloitte Australia. - Disclaimer This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional adviser. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ('DTTL'), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. Please see to learn more. Copyright © 2025 Deloitte Development LLC. All rights reserved. -
