Six ways to motivate your finance team

As the head of finance, your responsibilities extend far beyond just calculating figures. Finance leaders need to motivate their teams to achieve challenging objectives, especially when the pressure is intense. However, maximizing your team's potential can be quite a challenge, especially with increasing feelings of discontent within the finance sector. Research from the software company Medius reveals that nearly 71% of finance professionals in the UK are seeking new opportunities outside their field.

An unmotivated finance team can seriously affect the effectiveness, precision, and even the profits of the entire organization. They may fail to recognize inefficiencies or continue to incur unnecessary costs. Their lack of initiative could mean missed chances to save money, and they might not put in the extra effort needed to ensure accuracy. When the finance team is distracted and dissatisfied, it can lead to negative repercussions for the rest of the company. Keeping them engaged is essential. Here are six strategies to achieve this.

Communicate Freely And Frequently

Inspiring a finance team doesn't rely on big displays or occasional motivational speeches; it's more about creating an environment of clear communication. Holding regular team discussions or individual meetings is crucial to making sure that every team member feels backed, especially when dealing with challenging goals.

"Show genuine interest and be open to questions or suggestions," advises Alex Wyatt, the finance leader at digital bank Zopa. "Make sure to create chances for your team to seek clarification and guidance throughout the process—this is particularly important for less experienced team members who may require more direction than a seasoned group. Adapt your leadership style and level of engagement based on the specific needs of the team you are overseeing."

Remote and hybrid work setups have changed the way teams interact, causing chance encounters to fade away. To address this issue, finance leaders need to be more deliberate about communication by setting up clear pathways for interaction and encouraging real conversations, according to Joyda Bianco, CFO of the data management platform Hyperview. "The important thing is to take the initiative: utilize digital tools and establish open spaces for feedback," she advises.

However, it's not just about providing information, she emphasizes; it's crucial that individuals feel genuinely listened to and understood. "Open communication fosters trust, but it goes beyond simply speaking – it requires actively listening and sincerely considering feedback."

Encourage your team to grasp not just their tasks, but also the significance behind them. When each individual knows their role and how it contributes to the overall goals of the company, a collective sense of purpose develops.

Stefan Wolvaardt, the CFO of Simply Asset Finance, emphasizes the importance of clearly communicating your requests. “You should always provide a thorough explanation for why you’re asking for something,” he advises. “For instance, if you request an analysis of a salesperson's coverage in different regions, you might receive a simple report. But if you clarify upfront that the purpose of the analysis is to evaluate whether these salespeople are adequately serving their customers, you’re more likely to get a more comprehensive and useful outcome.”

Make sure to inform the team about the outcomes of their hard work. For instance, if you assign a task at the CEO's request, invite the team member to the meeting where they can see the results of their efforts. “When someone believes their contributions go unnoticed, it can be very discouraging. However, witnessing the positive effects of their work can be incredibly motivating,” says Wolvaardt.

Carlos Sanchez-Arruti, the CFO of the payment platform Mangopay, emphasizes that breaking down departmental silos facilitates collaboration on large projects. He notes, "The finance team needs to comprehend the workings of other departments. Building trust with your colleagues requires a commitment of time and effort," he adds.

Providing feedback can be quite challenging. If it's communicated poorly, it can lead to negative consequences, including a drop in performance or a loss of motivation among team members.

Wyatt suggests setting up regular check-ins to make sure the team is tackling tasks the right way. If they're not, it’s important to let them adjust. "There’s nothing worse than giving feedback after it's too late to make any changes," Wyatt explains.

At the heart of developing a strong feedback culture is the importance of establishing an environment where people feel comfortable making errors. One of the most effective methods to achieve this is to set a positive example yourself. Wyatt suggests being open about your own mistakes and inspiring your team to do likewise.

A positive workplace culture is important, but it can only take you so far. According to Oana Marele, a former CFO and the founder of Marele Accounting, finance teams are more likely to truly commit to their responsibilities and produce outcomes, especially when facing challenges, if they feel financially motivated. "Compensate well," she emphasizes. "I made it a point to offer my team competitive salaries, which has significantly improved their quality of life. As a result, they're more invested in their work, more supportive of each other, and experience less stress."

This might be a great point to begin with, especially since a survey conducted by the recruitment company Sellick Partnership revealed that nearly 50% of accountants in the UK feel they are not adequately compensated.

Rob Russell, the CFO of Virtualstock, a software company, thinks organizations can take their salary strategies even further. He suggests that those who earn more might only receive raises that match inflation rates, allowing the company to provide larger percentage increases to other employees. From his experience, implementing travel and food allowances for lower-income workers can significantly enhance the experience for those commuting to the office.

While money is significant, it isn't the sole factor that people care about. Emma Seymour, the CFO at the shift-work management platform Deputy, emphasizes that providing formal training and career development opportunities for your team demonstrates your dedication to their future. This investment fosters loyalty and inspires motivation among employees.

5. Organize Your Back Office Now

Boring and repetitive tasks are a major source of frustration in finance. These struggles not only hinder employee potential but also restrict the department's overall efficiency and creativity. Sarah Spoja, CFO at fintech company Tipalti, has observed that junior finance staff can easily feel disheartened by the monotony of manual work and the anxiety of possibly making errors.

"Technology can give finance teams back some of their time, enabling them to focus on more rewarding tasks and play a bigger role in shaping the company's future," she explains.

Organizing the finance operations in the back office is key to running things smoothly and advancing our goals. According to Spoja, “Improving financial procedures, boosting the precision of data, and being able to count on the finance team for reliable insights are crucial for fostering a more engaged workforce.”

Burnout is a significant concern in today's fast-paced environment, especially for finance teams that are constantly under pressure. A recent study by accounting software company FloQast found that nearly all (99%) accountants have felt overwhelmed by their workload at some point, leading to burnout.

It's common to find yourself in a never-ending loop of tackling one major challenge after another. To break this pattern, Wolvaardt suggests being open to flexibility whenever you can. For instance, while many people typically work from 9 to 5, some might prefer to take on their tasks over the weekend. Others may adjust their hours to accommodate dropping their kids off at school in the morning. “Understanding when your team performs best and allowing them the freedom to work during those times is essential,” he explains.

Fostering an environment that values employee wellbeing is essential. As a leader in finance, it’s important to lead by example—make sure to take breaks for yourself and encourage your team to do the same.

"Show understanding and remember that especially during tough times, individuals require more than just a solid strategy – they need a leader who understands their struggles and validates them," Bianco explains. "It's perfectly acceptable to acknowledge that you don't have all the solutions. In fact, being open about this can be quite powerful. It encourages teamwork, builds trust among team members, and makes sure everyone has a say in working towards solutions."