There’s no denying it: CFOs are some of the most stressed executives in any organization. They keep the company’s finances at an optimal level, handle financial risks and controls, and ensure the books are always in check.
CFOs also play a managerial role in the finance department as they oversee its performance and mentor future finance leaders.
In fact, a study by Ganesh et al. (2018) found that 51% of executives reported high stress levels. This was based on a survey of 827 executives who answered questions about stress.
With this result, it is understandable why CFOs are often under a lot of pressure to perform well, and this can lead to stress. To help CFOs manage their stress, it is important to recognize what causes it and how it can be managed.
In this article, we will look at some common causes of stress and provide tips for CFOs on how to manage them.
Here’s what we’ll cover:
1. Effects of uncontrolled stress
2. Common sources of work stress of CFOs
3. Why knowing these stressors matter?
4. 8 ways CFOs can manage stress
Effects of uncontrolled stress
According to the University of Cambridge, if stress is left unchecked and unmanaged, individuals—such as finance leaders—may experience these issues:
Physical Problems
When stress takes over, it often manifests physically through sleep disturbances, headaches, digestive issues, and even more severe problems like high blood pressure and cardiovascular disease.
Emotional Struggles
On an emotional level, stress can take a significant toll as it can lead to anxiety, irritability, and depression. It can also cause individuals to feel overwhelmed, helpless, and hopeless at the same time.
Trouble Focusing
In the mental aspect, stress is just as concerning. Individuals who are experiencing this usually have a hard time concentrating. A stressed finance leader, for instance, may lose focus during critical tasks.
Changes in Behavior
Stress can also cause noticeable shifts in behavior. Individuals may exhibit restlessness, social withdrawal, or unhealthy coping mechanisms such as excessive drinking or smoking.
These changes not only impact personal well-being but may also strain relationships within the teams and organizations.
By recognizing these signs early on, finance chiefs can mitigate the harmful effects, which can help them in the long run.
Common sources of work stress of CFOs
Being a CFO is not easy. It’s a role that comes with heavy responsibilities, and according to CFO Dive, below are some of the biggest sources of stress for finance leaders:
1. Too much work to do
CFOs often have way too much on their plates. In fact, a survey by DataRails revealed that 81% of CFOs believe that they endure the heaviest workload among C-suite roles.
This means they are expected to handle many different tasks and go beyond traditional financial management to include responsibilities like human resources, cybersecurity, and even customer service oversight.
With the accumulation of these diverse tasks, it’s understandable that CFOs can feel overwhelmed, leaving them susceptible to stress.
2. Doing Tasks Manually
Aside from having too much work to do, many CFOs still perform a significant portion of their work manually, which can be a bit time-consuming and repetitive. As a result, this can lead to burnout and stress, as well as a lack of time for other important tasks.
3. Lack of Work-Life Balance
Another reason why CFOs are stressed out is that they have to work long hours in order to meet their deadlines and ensure that everything within the organization is running smoothly.
These extended work hours can take away their precious time for their personal life, making it hard for them to spend time with family and friends.
4. C-Suite Dynamics
Working closely with other top executives, like the CEO, can be a source of stress for CFOs.
This is because they often have to balance their own responsibilities with those of other executives, which can be challenging when there are conflicting priorities.
For example, if a CEO wants to focus on growing revenue while the CFO wants to cut costs, it can create tension between the two parties.
Read: Building a Collaborative CEO-CFO Partnership
Why knowing these stressors matter?
Recognizing the factors that contribute to stress is essential for organizations aiming to support their finance leaders.
CFOs play a big role in keeping the organization on track. And, if they’re stressed out and overwhelmed, it affects not just them but the whole company.
By addressing such issues, organizations can help their finance leaders feel more supported and less burnt out.
This is especially important for companies that are growing faster, as they need to make sure that their finance leaders have the bandwidth to keep up with the pace of change.
Read: Creating Harmony: 9 Tips for a Balanced Lifestyle
8 ways CFOs can manage stress
After recognizing the causes of stress, then it’s important to find ways to manage it. Here are eight (8) strategies that CFOs like you can use to prevent burnout:
1. Get the right people for the job.
Nothing relieves a CFO more than knowing that there’s a capable finance and accounting team behind them. While hiring the right people every time remains every manager’s dream, finance chiefs can always turn some of their employees into the best finance and accounting professionals in the industry.
By spending time with them, keeping them motivated, and recognizing significant achievements, CFOs can help them go the distance. In addition, when you set aside a part of your schedule to mentor the team, you’ll see the benefits reflected in their performance in no time at all.
2. Be clear about your goals and expectations.
The worst thing about stress is that it can distract professionals from reaching the goals that are set out to accomplish. In the heat of the moment, even the most experienced professionals can forget about the necessary steps in hitting their targets, and even the most basic tasks they have at hand.
Here are a number of activities that CFOs can take to prevent this from happening:
- Set realistic goals with your team and make sure that everyone is on the same page. These keep you aligned with your team in every step of the way and provide checks to ensure that tasks are handled properly.
- Synchronize your calendars or maintain a master calendar in scheduling deadlines and other activities. Doing so eliminates the possibility of uneven distribution of tasks over time.
- Create a task checklist with reminders to properly track progress and automatically send notices on unfulfilled tasks.
3. Check your corporate culture.
Do you still feel like a conscious human being whenever you are in the office? Or do you see yourself as a machine programmed to accomplish the job requirements? If you agree with the latter, then you have to re-evaluate your corporate culture.
According to the 2024 Workforce State of Mind Report, 77% of U.S. workers report that workplace stress negatively impacts their physical health, and 47% pinpoint workload as the main cause of their stress in the workplace.
Given these percentages, it is worth taking time to check if your corporate culture still caters to the needs of your finance teams for proper work-life balance and human interactions or relationships in the workplace.
This means giving them the opportunity to voice their opinions, providing them with opportunities for growth and development, and ensuring that they have access to resources that will help them succeed in their roles.
If you can do this while also making sure that your employees are able to maintain a healthy work-life balance, then you will be well on your way to creating a work environment where everyone feels happy and productive.
4. Remember to take a breather.
No matter how important you are to the organization, keep in mind that you still have your limits. It might be hard for you to find ample time in your schedule for vacation and leisure, but it will all be worth it.
Taking time off work to travel, enjoy leisure activities, or to spend time with family and friends de-clutters your mind and resets your entire system. This gives you a fresh and invigorated disposition once you get back to your office.
5. Build a support network.
Even if you are part of the top management, don’t try to do everything alone. Reach out to peers, mentors, or even close friends who can provide guidance, share their experiences, or simply listen to what you’re stressing about.
A supportive network can be a great source of advice and encouragement, which can make a big difference in your ability to manage stress
6. Practice mindfulness and relaxation techniques.
Take a few minutes each day to practice mindfulness or relaxation techniques such as deep breathing exercises, meditation, or yoga. These simple activities can reduce stress levels, which can help you feel more relaxed and less overwhelmed by the demands of your job.
7. Prioritize your health.
A healthy body supports a healthy mind. Make time for regular exercise, eat nutritious meals, and ensure you get enough sleep. When your physical health is in good shape, you’ll find it easier to handle the pressures of your role as a CFO.
8. Lighten up your workload.
To lighten up your workload, you should evenly delegate whatever tasks you can to your team, automate routine and manual tasks, or consider outsourcing back-office tasks that your finance department can no longer accommodate.
The latter is a great way to lighten up your load, and that of your team, so you can focus on addressing more complex issues that need your full attention.
By implementing these strategies, CFOs can take better control of their stress and lead with clarity and purpose.
Read Next: 6 Ways CFO Support Services Lessen the Stress of Finance Executives
How Outsourcing Can Alleviate the Stress of CFO
When you work with a reputable third service provider, you can trust that your repetitive tasks will get done the right way—as long as you set your expectation from the start of the engagement.
Here’s more reason how outsourcing can alleviate your stress:
- You can focus on the strategic aspects of your role, rather than getting bogged down in day-to-day tasks.
- You’ll have more time to spend with your family and friends, which will help reduce stress levels.
- You won’t have to worry about hiring and training new employees when they leave or retire.
- You won’t have to worry about finding new employees or training them properly—outsourcing takes care of that for you.
The Bottom Line
Managing stress is not as straightforward as it seems. In fact, you need a continuous and conscious effort to keep your stress levels at bay and prevent it from interfering with your job as a CFO.
Hopefully, these stress management tips will come in handy when you need them the most!
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This post was first published on 07 September 2017 and edited on 03 March 2025 for relevancy and comprehensiveness.
Edited by: Angelica Garcia
