After the Fed’s half-point rate cut in September, RGP surveyed financial leaders to get a pulse on their plans for 2025. Scroll to explore what we discovered.
scope of research
Research Overview
Between September 19 and October 2, 2024, we asked decision-makers from companies making over $500 million a year about their top investment and workforce priorities. Our goal? To learn how they’re preparing for growth, handling workforce planning, and tackling challenges in today’s economy. From the 204 finance experts who participated, we uncovered key trends and priorities shaping financial strategies for the coming year.
respondents
204
Companies surveyed
poll duration
2
Week Poll Reveals Insights from Decision Makers
revenue
$500M+
Annual revenue per company
trends revealed
8
Key Investment Trends Revealed
Key Trends Shaping Workforce Investment in 2025
1
Trend
Organizations Expect the Fed’s Interest Rate Cut to Have an immediate Impact on investments
2
Trend
Employers Continue to Face Skill Gaps
3
Trend
Increasing Investment in Outside Talent
4
Trend
Digital Transformation Spend Remains Significant
5
Trend
C-Suite Leaders and Finance Teams are Driving Digital Transformation Projects
6
Trend
AI is Having Varying Impacts on Workforce Strategy
7
Trend
ERP Has Become a Critical Factor in M&A Decisions
8
Trend
Cybersecurity is a Chief Concern for Leaders
Organizations Expect the Fed’s Interest Rate Cut to Have an Immediate Impact on Investments
More than half of financial decision makers (51%) expect their organization to increase some investments before the end of 2024, while four in five (81%) expect to increase investments by the first half of 2025. Nearly one in five (19%) anticipate increasing some investments immediately.
Respondents cited business process optimization and automation (56%) and digital transformation (54%) as top areas of increased investment if a lower interest rate environment were to unlock new capital in 2025. Other areas of increased investment included workforce development (43%) and enterprise resource planning (ERP) and other technology migrations (42%).
56%
Respondents cited business process optimization and automation as top areas of increased investment if a lower interest rate environment were to unlock new capital in 2025.
top challenges
Key Considerations
17%
17% of financial decision makers said they’re pausing some investments until after the election
37%
37% of financial decision makers confirmed they are not holding off on new investments
10%
Only 10% of respondents said they are pausing some investments until further interest rate cuts
25%
25% or respondents cited delays due to other macroeconomic conditions
Biggest Talent Shortage Areas Over the Next 12 Months
Key Insight
One in four financial decision makers (27%) cited widening skill gaps as a factor that could have the biggest impact on their organization’s investment in workforce development over the next 12 months. Other top-cited factors included budget constraints or other financial pressures (50%), growing urgency to better leverage AI and automation (49%), increased focus on employee retention and engagement (46%), and hiring challenges in a tightening labor market (32%).
Employers Continue to Face Skill Gaps
Two in five respondents (42%) said their organization’s skill gaps have widened or remained the same since the start of 2024. More than one-third (37%) said it has been more difficult to acquire new skillsets since the beginning of the year. Cybersecurity and risk management, AI and digital transformation represented the biggest talent shortage areas cited by respondents.
42%
of respondents said their organization’s skill gaps have widened or remained the same since the start of 2024
top challenges
Organizations are Increasing Investment in Outside Talent
88%
9/10 financial decision makers said they are currently planning to increase overall investment in workforce strategy development in 2025
24%
1/4 financial decision makers are planning to increase investment in outside talent to fill skill gaps
39%
Two in five respondents are prioritizing resources to reskill and upskill existing employees
22%
22% of respondents are planning to increase investment in internal headcount
AI Investment Priorities Over the Next 12 Months
Key Insight
Three in four respondents (71%) said their organization is spending $5 million or more on digital transformation projects in 2024 and 42% reported that their organization is spending more than $10 million this year. Financial decision makers cited IT operations and security as the top priority within their organization’s AI investment over the next 12 months
C-Suite Leaders and Finance Teams are Driving Digital Transformation Projects
Almost half of financial decision makers (47%) said their organization’s CEO plays a significant role in its digital transformation efforts. Respondents also noted that CFOs (36%) and CHROs (25%) and other C-suite leaders (32%) are playing key roles in such efforts. One-third of respondents (35%) also said their organization’s finance function has greater influence over strategic decision making than it did 12 months ago, with more than half expecting to take on more responsibility in the implementation of AI within key functions (55%) and technology migrations (52%). Half of financial decision makers (49%) expect to take on more workforce strategy and planning responsibilities, while 37% expect to take on mor enterprise-wide digital transformation.
AI is Having Varying Impacts on Workforce Strategy
Most respondents (66%) believe that AI will account for 10% or less of job elimination within their organization in the next two years, while half (47%) expect AI to account for 11-30% of job creation in the same period. One in four respondents (24%) said their organization has narrowed its skill gaps with AI and other digital tools.
Meanwhile, more than half of financial decision makers (58%) said their organization currently employs someone in an AI leadership role. One in four (24%) said they do not currently employ anyone in an AI leadership role but plan to fill such a role in the next 12 months.
58%
more than half of financial decision makers said their organization currently employs someone in an AI leadership role
top challenges
ERP Has Become a Critical Factor in M&A Decisions
Organizations are placing greater emphasis on ERP within their M&A plans.
85%
Among organizations that are considering M&A over the next 12 months, 85% said ERP and data are important or critical factors in their search criteria
41%
41% of organizations cited these as critical factors
53%
53% of respondents said their organization either completed a cloud migration within the last 12 months or is currently going through one
13%
13% reported that their organization has not yet gone through a cloud migration
Cybersecurity is a Chief Concern for Leaders
Key Insight
Nearly half of financial decision makers (46%) cited cybersecurity concerns as having the biggest impact on their business over the next 12 months. This aligns with our other findings that pointed IT operations and security as a top AI investment area.
more research
