Financial forecasting efficiency metrics do more than benchmark performance—they can also inform smarter staffing decisions. APQC highlights how finance leaders can use these insights to right-size their teams and assess the broader health of the finance function.
- Review Past Forecast Accuracy to Guide Staffing Needs
Before making any staffing changes, finance leaders should evaluate the accuracy of previous forecasts. If past predictions have been inconsistent or off-target, it may indicate that the current team lacks the capacity or expertise needed—signaling a potential need for additional or more specialized talent.
- Factor in Organizational Complexity and Global Operations
Multinational companies often require more finance staff due to the complexity of their financial models. These models must account for variables like fluctuating commodity prices, exchange rates, and regional regulations. Additionally, using multiple financial systems that don’t integrate automatically can increase manual workload, justifying a higher number of FTEs.
- Align Finance Staffing with Business Strategy and Market Conditions
Staffing decisions should reflect the company’s current goals and external environment. For example, during periods of growth—such as entering new markets or scaling operations—more finance professionals may be needed to support planning. Conversely, during economic downturns or restructuring, organizations may need to invest in forecasting accuracy to navigate uncertainty effectively.
- Assess the Impact and Reliability of Automation Tools
Automation can reduce the number of FTEs required—if systems are well-implemented and produce reliable, timely data. However, if automated tools generate inaccurate or untrusted outputs, organizations may need to increase staffing to manage and validate data, especially during high-demand periods like budget season.
- Hire for Technical Expertise, Communication Skills, and Resilience
Finance professionals must possess strong accounting or actuarial skills, but that’s not enough. They also need to communicate complex financial insights clearly to non-finance stakeholders and senior leaders. Given the high-pressure nature of the role and frequent burnout, resilience and adaptability are essential traits for long-term success.
Discover insights into the average number of full-time employees (FTEs) involved in planning, budgeting, and forecasting per $1 billion in revenue in APQC’s Measuring Financial Forecasting Efficiency.