By Ringside Talent
May 15, 2025
For the second consecutive year, technology investment is outpacing compensation increases in CFO budget plans.
According to Gartner’s latest survey of 300 finance leaders, 77% plan to boost tech spending by at least 4% in 2025. Compensation? Still a priority, but slipping. Only 61% say they’ll raise pay by that same margin next year, down sharply from 71% in 2024 and 86% in 2023.
If you’re leading an accounting firm or financial department, that gap has real consequences. While investing in AI, automation, and analytics tools is crucial to future-proofing operations, undervaluing people, especially your accounting talent, may come back to bite.
Pay Raises Are Cooling Off and CFO Budget Priorities Are Changing
Falling inflation and lower turnover may explain why CFOs are pulling back on aggressive salary increases. But as Gartner VP Randeep Rathindran put it, “CFOs must balance the potential risks of attrition and low engagement as employees still face stubbornly high costs for household necessities.”
Translation? Employees are still feeling the pinch. And they’re watching closely to see how their employers respond.
Even with the labor market cooling, accounting professionals, especially early- and mid-career talent, are rethinking their options. They want more than just a paycheck. But if that paycheck lags behind what tech, finance, or consulting roles are offering, expect resumes to start circulating.
The Talent Shortage Isn’t Over—Compensation Still Matters
- 88% of firms have raised starting salaries in the past year.
- 82% have bumped pay for talent with 3–5 years of experience.
- Nearly half plan to continue those increases in the near term.
Still, she cautions that accounting continues to lose out to higher-paying fields like data science, engineering, and IT. Without competitive starting offers, the profession struggles to attract the next generation of CPAs.
But there’s hope: college enrollment in accounting programs is up 12% year-over-year. If firms can pair that momentum with attractive pay and career growth, they can begin to rebuild the talent pipeline.
Why Tech vs. Talent Is a False Choice
Yes, technology is transforming the accounting world. Cloud platforms, AI audit tools, and process automation are eliminating grunt work and increasing efficiency. But here’s the thing: tech doesn’t replace talent—it amplifies it.
To get the most from your tech investments, you still need smart, capable, adaptable professionals who can:
- Interpret and communicate data-driven insights,
- Navigate complex client relationships,
- Understand regulations, and
- Think strategically about business outcomes.
Cutting corners on compensation while ramping up tech spend is like buying a racecar but hiring a novice to drive it. Talent and technology need to move in lockstep.
Your Advantage: Partnering With a Talent Specialist
At Ringside Talent, we help accounting firms and financial organizations:
- Benchmark competitive salaries across roles and regions,
- Build compelling compensation packages that balance pay, perks, and growth,
- Attract talent who not only fill the role but stay, grow, and lead.
As the market rebalances, firms that prioritize both digital transformation and talent attraction will win.
The 2025 budget forecast is clear: tech investments are soaring, and salary increases are slowing. But that doesn’t mean you have to follow the trend blindly. Let’s talk!