The CFO and The “Gig” Economy

R53.1m. That is the cost of an average data breach to a business in South Africa according to the recently released IBM “Cost of a Data Breach Report 2024”. These costs, driven by disruption, customer remediation and compliance burdens, often trickle down to customers.

Now throw in FICA, POPI, GDPR, ESG, SARS, B-BBEE – pick an acronym – and we can only start to appreciate just how great the cost of compliance for a business is. As a Chief Financial Officer (CFO), there is an expectation that you will be the guardian of compliance, but as these requirements grow, you have to spread yourself thin across multiple disciplines to stay on top of these developments.

Despite these rising costs, the typical corporate organogram – and budget – only makes space for a single CFO.

Sara Daw, Group CEO at The CFO Centre International Group, has conducted insightful research on what she calls “Strategy and Leadership as Service.” This concept examines how the access economy intersects with the C-suite, much like the gig economy has reshaped roles for drivers, content creators, and other professionals.

The same thinking can be applied to CFOs. Imagine a world where experienced financial professionals — experts in deal-making, forex, treasury, or developing board packs — offer their services to businesses on a fractional basis. For organisations that don’t require a full-time CFO or may need more than one CFO to assist with special projects such as corporate finance activities or periods of significant change, this model offers substantial value on a pay-as-you-need basis.

One of the biggest challenges CFOs faces is that they’re often consumed by operational tasks, leaving little room to focus on the strategic guidance boards and executive committees desperately need.

This reality prompts an obvious question: “Why would I borrow a resource when I can build or buy one?”

The answer is simple: Can you afford to do either from a time and cost perspective?

One of our clients, the CEO of a R500-million-a-year business, faced this exact dilemma. Initially, he chose to hire a young, full-time CFO, believing his own experience as a CEO and MBA graduate would fill any gaps. But the strategy backfired. The operational complexities of the business required far more expertise than the new CFO could provide.

The CEO eventually engaged one of our experienced fractional CFOs, who brought stability and strategic insight. Reflecting on the experience, he asked, “What can someone do in two days a week that a full-time resource can’t?” His multi-year engagement with us has since provided the answer.

Fractional leadership is not just about cost-saving; it’s about unlocking expertise and delivering strategic results without overcommitting resources. For businesses grappling with rising compliance costs, operational burdens, and the need for strategic direction, fractional CFOs represent a flexible, high-value solution.

It’s time for businesses to rethink their approach to leadership. Are you already tapping into the gig economy?

Share your experiences in the comments below and connect with our team to explore how this model can transform your business.