One in five UK firms are not adequately staffed to take advantage of the recovery, claims the latest ‘Robert Half CFO Confidence Index’.

The bi-annual index shows that 36% of chief financial officer (CFOs) are more or slightly more confident about the prospects for the economy over the next six months, and 35% felt the same level of confidence about their own company’s prospects.

The index also shows that while most (59%) CFOs do not intend to hire more permanent finance and accounting staff over the next six months, 16% plan to increase headcount.  Increased workloads were the main reason for increasing headcount (55%), but upgrading financial systems (28%) and regulatory requirements (14%) were also drivers.  

Job losses are also slowing, with 24% stating that they may need to make further cuts in employee numbers compared to 48% six months ago, according to the index.

Phil Sheridan, managing director of Robert Half UK, says: “Our index shows that finance directors are looking ahead with a more positive outlook to the economic recovery. However, it is a fragile optimism and CFOs will want to see further signs of recovery before they add to their permanent headcount.”