Resilient by Design: How Finance Directors Can Build and Retain Strong Teams in Turbulent Times

In 2025, local government finance teams are operating in one of the most volatile environments in recent memory. Councils are facing a convergence of pressures: escalating demand for services, tightening fiscal constraints, political uncertainty, and a workforce crisis that shows no signs of easing. The financial landscape is shifting beneath our feet and those responsible for stewarding public money are being asked to do more with less, faster, and under greater scrutiny.

For finance directors, this isn’t just a technical challenge it’s a leadership one. The ability to build and sustain resilient teams is now a strategic imperative. Resilience in this context isn’t just about bouncing back from setbacks; it’s about creating teams that can adapt, innovate, and perform consistently under pressure. It’s about fostering a culture where people feel supported, valued, and motivated even when the external environment is anything but stable. This blog explores how finance leaders can recruit and retain the talent they need to meet today’s challenges and tomorrow’s. Drawing on the latest data, sector insights, and real-world examples, we’ll look at what’s working, what’s not, and how to future-proof your finance function by investing in people, purpose, and performance. Because in times like these, resilience isn’t a luxury it’s a necessity.

The State of Play: Why Resilience Matters Now

The resilience of local government finance teams is being tested like never before. Across the country, councils are grappling with a recruitment and retention crisis that threatens not just service delivery, but financial sustainability itself.

A Workforce Under Strain

Vacancy rates in local government finance teams are alarmingly high and rising. According to the Local Government Association, 16% of finance posts in England are currently vacant, with some specialist roles facing even more acute shortages:

• 26% of accountancy roles remain unfilled

• 21% of internal audit positions are vacant

• 20% of business partner roles are open

• The average turnover rate is 12.5%, and many councils report difficulties in attracting qualified applicants even after multiple rounds of advertising

These figures are not just statistics they represent overstretched teams, delayed reporting, increased risk exposure, and mounting pressure on the staff who remain.

A Perfect Storm of Pressures

This workforce challenge is unfolding against a backdrop of deepening financial and political uncertainty. Councils are facing unprecedented fiscal strain:

• 6% of local authorities expect to issue a Section 114 notice this year, effectively declaring themselves unable to balance their budgets

• A staggering 35% anticipate doing so within the next five years, unless funding models change or demand pressures ease

At the same time, councils are navigating reorganisation, inflation, rising service demand, and the long tail of pandemic-related disruption. These pressures are not only financial they are cultural and operational, affecting morale, trust, and the ability to plan for the future.

“Local government reorganisation will be a distraction from needing to balance the books for all councils … It is making everything much more uncertain and challenging.”— Director of Finance, County Council

In this environment, resilience is not just about weathering the storm it’s about building the capacity to adapt, recover, and lead through it. Finance directors are being called upon not only to manage risk and ensure compliance, but to inspire confidence, retain talent, and create the conditions for teams to thrive under pressure.

Recruitment: Rethinking the Approach

Recruiting finance professionals into local government has never been easy but in today’s climate, it’s becoming increasingly difficult. The competition for talent is fierce, and councils are often outpaced by the private sector in both speed and salary. To build resilient finance teams, local authorities must rethink not just how they recruit, but what they’re offering and how they tell that story.

Key Challenges

• Pay and competition The public sector continues to face an uphill battle when it comes to remuneration. While local government offers meaningful work and job security, it often struggles to match the salaries and benefits packages available in the private sector. This disparity is particularly acute in high-demand areas like financial planning, audit, and commercial finance, where skilled professionals are being snapped up by consultancies, tech firms, and central government.

• Perception problems There’s a persistent narrative that public sector finance roles are “underpaid, overworked, and undervalued.” This perception whether fair or not deters many talented professionals from considering a career in local government. The reality is that these roles offer unparalleled opportunities to make a tangible difference in communities, but that message is often lost in translation.

• Skills mismatch The finance function is evolving rapidly. Councils increasingly need professionals who can blend technical expertise with strategic thinking, digital fluency, and commercial acumen. Yet many job descriptions remain outdated, failing to reflect the dynamic, forward-looking nature of modern public finance. As a result, roles are not resonating with the very talent they’re designed to attract.

Strategies for Success

To compete in today’s talent market, finance directors and HR leads must adopt a more agile, inclusive, and purpose-driven approach to recruitment. Here’s what’s working:

• Modernise recruitment processes Many councils still rely on lengthy application forms, slow turnaround times, and outdated systems. Streamlining recruitment by using CVs, adopting applicant tracking systems, and reducing bureaucracy can significantly improve candidate experience and reduce drop-off rates. Speed matters: the best candidates are often off the market within days.

• Promote purpose and impact Public finance is about more than spreadsheets it’s about shaping communities, funding vital services, and driving social value. Councils that lead with purpose in their employer branding are more likely to attract mission-driven professionals who want to make a difference. Storytelling matters: showcase the real-world impact of your finance team’s work.

• Widen the net To build resilient teams, councils must look beyond traditional talent pools. That means recruiting from adjacent sectors like housing associations, the NHS, or the charity sector and actively seeking out candidates from underrepresented backgrounds. Diversity isn’t just a moral imperative; it’s a strategic advantage that brings fresh perspectives and innovation.

“Hiring is the most people function you have, and most of us aren’t as good at it as we think.”— Laszlo Bock, former SVP of People Operations at Google

 3. Retention: Building Resilient Teams from Within

Recruiting great people is only half the battle keeping them is where resilience is truly tested. In today’s high-pressure environment, finance teams are not just at risk of burnout; they’re at risk of breaking. Retention is no longer a passive outcome of good leadership it must be a deliberate, strategic priority.

What’s Driving Attrition?

Local government finance professionals are leaving and not always for better jobs. The reasons are complex, but a few themes stand out:

• Money and retirement Many experienced finance officers are reaching retirement age, and councils are struggling to replace their deep institutional knowledge. At the same time, younger professionals are being lured away by higher salaries in the private sector or central government.

• Burnout Chronic under-resourcing, rising workloads, and the emotional toll of managing financial risk in a crisis-prone environment are pushing people to the edge. Without adequate support, even the most committed staff can become disengaged or overwhelmed.

• Lack of progression In many councils, there’s no clear pathway for career development within the finance function. Talented individuals often feel they must leave to move up or move on to find new challenges.

What Works

To retain talent and build truly resilient teams, councils must go beyond reactive fixes and invest in long-term cultural and structural change. Here are three proven strategies:

• Leadership development Succession planning is critical especially for CFO and deputy roles. Councils that invest in mentoring, coaching, and leadership development create a pipeline of confident, capable leaders who are ready to step up when needed. This also signals to staff that their growth is valued.

• Workforce planning Too few councils have a finance-specific workforce strategy. A clear plan that maps current skills, future needs, and development pathways can help identify gaps early and build resilience into the team structure. It also supports more inclusive recruitment and retention practices.

• Culture of care Resilient teams are built on trust, flexibility, and psychological safety. Councils that prioritise wellbeing through hybrid working, manageable workloads, and open communication are more likely to retain staff and foster loyalty. A culture of care isn’t soft it’s strategic.

“Resilience is accepting your new reality, even if it’s less good than the one you had before.”— Elizabeth Edwards

In a sector where change is constant and pressure is high, the ability to retain and support your people is the ultimate competitive advantage. Finance directors who lead with empathy, clarity, and vision will not only keep their teams intact they’ll help them thrive.

4. Embedding Resilience: A Strategic Imperative

Resilience isn’t just a personal trait it’s an organisational capability. For local government finance teams, resilience must be designed into the system, not left to chance. That means moving beyond firefighting and towards a proactive, strategic approach that prepares teams for uncertainty, disruption, and change.

Adopt Resilience Frameworks

The Local Government Association (LGA), in partnership with EY, has developed a set of guiding principles to help councils build financial resilience. These frameworks encourage a shift from short-term crisis management to long-term sustainability, focusing on:

• Clarity of purpose and outcomes

• Robust governance and decision-making

• Agile financial planning and risk management

• Investment in people and culture

By embedding these principles into workforce and financial strategies, finance directors can create a more stable foundation for their teams one that can flex and adapt without fracturing under pressure.

Scenario Planning and Agile Modelling

Resilient teams don’t just respond to change they anticipate it. Scenario planning and agile financial modelling are essential tools for navigating volatility. By modelling multiple futures from funding cuts to demographic shifts finance teams can stress-test their assumptions and build contingency plans that reduce panic and increase confidence. This approach also empowers teams to move from reactive to strategic thinking, giving them the space to innovate and lead rather than simply cope.

Break Down Silos

Resilience is a team sport. Finance cannot operate in isolation especially when the challenges facing councils are so interconnected. Cross-functional collaboration with HR, service leads, digital teams, and transformation partners is essential to building a shared understanding of risk, opportunity, and capacity. When finance is embedded in strategic conversations not just budget-setting it becomes a catalyst for change, not just a gatekeeper of resources.

“Highly resilient organisations emphasise foresight, preparation and planning for adversity.”— UK Government Resilience Guidance

5. Final Thoughts: Leading Through the Storm

Finance directors are not just stewards of budgets they are stewards of people, culture, and confidence. In times of turbulence, their leadership becomes a stabilising force, not only for the numbers but for the teams behind them. The ability to build and sustain resilient teams is no longer a “nice to have” it’s a leadership superpower.

Resilience isn’t about pretending everything is fine. It’s about acknowledging the pressure, adapting to change, and creating the conditions where people can still do their best work even when the ground is shifting beneath them. It’s about leading with clarity, compassion, and courage. The most effective finance leaders in local government today are those who understand that resilience is built not assumed. It’s embedded through thoughtful recruitment, nurtured through inclusive leadership, and sustained through a culture that values wellbeing as much as performance.

“Resilience is knowing that you are the only one that has the power and the responsibility to pick yourself up.”— Mary Holloway

As we look ahead, the challenges will continue but so will the opportunities. By investing in people, embracing innovation, and leading with purpose, finance directors can ensure their teams don’t just survive the storm they emerge stronger because of it.