7 Essential Tips for Hiring a CFO The Right Way
Hiring a CFO is a huge decision that will impact the lifeblood of your company: its financials. You want to get this decision right and do so efficiently.
Here are 7 tips you need to know about filling the CFO role the right way. This guide will help you pick the best candidate for your company and avoid the dreaded mistake of a mis-hire.
What is a CFO?
First, let’s define what a CFO is and what they do.
CFOs oversee the financial health and decisions of your company. They manage all your financial staff, from accountants to controllers to bookkeepers.
CFOs manage everything related to cash flow, financial planning, pricing strategies, etc. Their goal is to maximize revenue, return on investment, and strengthen and grow your company’s financials.
Tip 1: In-House or Executive Search Firm?
The first step in hiring a CFO is determining whether to do it in-house or outsource. This decision is personal based on your company’s needs, but here are some reasons you may use an executive search firm.
Executive search firms specialize in finding the best top-level talent out there. They generally have decades of industry experience placing CFOs and have access to candidates the general company wouldn’t be able to find. A search firm is the way to go if you’re looking for access to a broader and more qualified talent pool.
If you’re concerned about the time hiring a CFO will take, it’s best to outsource to an executive search firm. These search firms are also adept at filling openings quickly. Their talent network allows them to source and vet candidates fast and present only the best options to you as the company.
Ultimately, outsourcing is your best bet if you lack the time, resources, evaluative skills, or network to hire a CFO. Not sure which firm to choose? Jennings Executive has you covered. Learn more today!
Tip 2: Define CFO at Your Company
Hiring a CFO means clearly defining what that role is at your company. Take an in-depth look at your company’s financials and its needs. What is a CFO at your company?
The role of the CFO is evolving. 58% of finance leaders note that they need to build an understanding of sophisticated data analytics, smart tech, and digital technology. Another 71% say that CFOs are increasingly responsible for supporting their company’s purpose and the ethics behind their decisions. Consider your industry and its evolution. How can you hire a candidate who’s ready for the future?
More traditionally, since a full-time CFO oversees all company financial management, they are likely to interact with legal, HR, IT, and many other departments. Incorporate this into your role definition, and look for someone with cross-collaborative experience.
Once you’ve clearly defined the role, its responsibilities, and culture fit, figure out which career path you’d like to pull from. Do you want a candidate who’s been a CPA, investment banker, or company accounter?
Tip 3: Tap into Your Networks
Before looking at hiring boards, you’ll want to tap into your network. Are any of your contacts currently a CFO? Do any of them have the relevant experience that would make them a good fit for hiring a CFO at your company? Using your network allows you to make a more personal hire; you can also more easily vet candidates if people you know and trust recommend them.
Use LinkedIn as a jumping-off point. You’ll also want to talk to friends, family, previous coworkers, people at meetups, and more.
Ask your employees to dig into their connections, too. You can even offer a hiring bonus to any employee who finds the candidate you ultimately hire for the role.
Tip 4: Look Internally
Another place to look when hiring a CFO is within your company. Internal hires are already familiar with your company; they’re also someone whose performance you can evaluate directly.
See if there’s anyone at your company with the qualifications for CFO who might be ready for a promotion.
Tip 5: Find Candidates With Industry Experience
Hiring a CFO means finding candidates with direct industry experience. Someone who thrived as CFO in one industry may not be successful in your vertical. Consider specific regulatory requirements or other technical components to your industry and make sure candidates are familiar with these.
You’ll also want to look for candidates with experience at companies in similar stages to your own. If you’re an established company, your CFO needs will differ from a venture-backed, high-growth startup.
Overall, finding someone with industry experience ensures they’re qualified and know the ins and outs of your vertical. This helps avoid costly mistakes.
Related: 6 Steps For Recruiting Executives The Right Way To Create Maximum Impact
Tip 6: Determine the Decision-Makers for Hiring a CFO
On your journey to hiring a CFO is figuring out the decision-makers. Too many opinions may create gridlock, but too few can result in oversights. Who’s going to be involved in this crucial decision?
The CEO will be heavily involved, but consider including these people, as well:
- Board members
- Other leadership members
- Owners or investors
- Heads of departments
Tip 7: Above All Else, Find a Good Fit
Hiring a CFO is incredibly costly, especially when you hire the wrong candidate. Considering a bad hire can cost as much as 30% of the person’s first-year earnings – which are particularly high if you’re hiring an executive – you want to prioritize finding a good fit.
The job of an executive search firm is to find the best fit possible. Consider a search firm if you don’t want to risk all the damage associated with hiring the wrong CFO.
At Jennings Executive, we have over two decades of combined industry experience matching companies with the CFOs they need. Learn more today! We’d love to help you on your journey.
Related: Diversity In Finance: Why It Matters & How To Improve It
Recommended For You
All About Employee Development And Why It’s Critical For Your Company’s Success
Read More >>
Video Conference Etiquette: Use These 8 Tips to Avoid Getting Fired for Improper Conduct
It may be hard to believe, but improper video conference etiquette can get you fired. According to Korn Ferry, 24% of executives admit to their firm firing staffers for virtual meeting errors. Yikes!
Read More >>
All About Emotional Intelligence for Leaders: Theories, Core Skills, and How to Improve
Emotional intelligence (EI) is a buzzword that’s gained traction over the last few years, but the theories surrounding it are at least two decades old.
Read More >>
The Importance of Feedback: 7 Undeniable Reasons Why Your Workplace Needs to Incorporate it
The importance of feedback in the workplace can’t be understated. Failing to foster a culture that encourages honest feedback can damage your company’s success.
Read More >>
Build a Winning CEO Succession Plan with These 6 Tips
Creating the perfect CEO succession plan is tricky, yet it’s one of the most essential steps a board can take. No decision has a more significant impact on your company’s future than selecting a new CEO.
Read More >>
America’s Labor Shortage: What’s Going On, and 4 Things Your Company Can Do About It
Since the start of the pandemic, America has been experiencing a labor shortage like never before. With more people quitting their jobs and companies desperately searching for candidates to fill open positions, organizations need to work harder to stand out.
Read More >>7 Essential Tips for Hiring a CFO The Right Way
Hiring a CFO is a huge decision that will impact the lifeblood of your company: its financials. You want to get this decision right and do so efficiently.
Read More >>
What is an Executive Search Firm? Here’s Everything You Need to Know
Filling executive and senior positions can be daunting. Your company may lack the time, resources, or expertise to find the best candidates. As such, you may be considering an executive search firm.
Read More >>
8 Best Practices for Reviewing Resumes: An Employer’s Guide (+ Resume Review Checklist)
Read More >>
Hiring a CTO The Right Way, According to an Executive Search Firm
Hiring a CTO for your business is a huge undertaking. There’s no exact science for when and how to hire a CTO since every business is different; however, there is knowledge you’ll need and best practices you can follow to help ensure success.
Read More >>
9 Expert Tips For Successfully Hiring Employees, According to an Executive Recruiter
Read More >>
Building a Future-Ready Finance Team: Skills, Adaptability, and the Role of Executive Search
In today's rapidly evolving business landscape, finance teams play an instrumental role in guiding companies towards sustainable growth. The classic image of the finance professional crunching numbers in isolation has evolved. The modern finance professional is an analytical thinker, a strategic planner, and above all, adaptable to technological advancements. Building such a team is no small feat, and it requires a refined approach to talent acquisition and management.
Read More >>
How The Great American Credit Card Debt Crisis Influences Executive Talent Searches
Read More >>
Navigating the Future of Talent Assessment: A Comprehensive Guide for Recruiters
Welcome to our comprehensive guide on talent assessment in recruiting! In today’s competitive job market, finding and retaining top talent is crucial for the success of any organization. That’s why it’s essential for HR professionals, recruiters, and business leaders to have a deep understanding of talent assessment methods and their impact on productivity and attrition. In this guide, we will explore different talent assessment techniques, discuss the importance of talent assessment in recruiting, and provide insights on choosing the right talent assessment tools for your company. Additionally, we will delve into the implementation of a successful talent assessment and succession program. So, whether you’re a seasoned recruiter or just starting your career in HR, this guide will equip you with the knowledge and strategies to navigate the future of talent assessment effectively. Let’s get started on this exciting journey!
Read More >>
The Future of Work: Predictions for the 2024 Job Market
The future of work is a topic that continues to captivate our attention, as technological advancements and societal changes shape the landscape of employment. As we look ahead to the year 2024, it becomes increasingly important to consider the potential developments that may influence the job market. In this article, we will explore three key areas that are likely to have a significant impact on the future of work: emerging job roles, shifting skill demands, and the increasing prevalence of remote work.
Read More >>
Revolutionizing Recruitment: AI and Machine Learning
In the fast-paced world of recruitment, staying ahead of the competition is crucial. With the rapid advancements in technology, companies are now turning to artificial intelligence (AI) and machine learning to revolutionize their recruitment processes. This innovative approach is transforming the way organizations find and attract top talent, making the entire hiring journey more efficient and effective. In this article, we will explore the role of AI in talent acquisition, the enhancement of candidate experience through technology, and the ethical considerations and bias mitigation that come with this new wave of recruitment.
Read More >>
Navigating Talent Shortages in M&A: Strategies for Success
In the fast-paced world of mergers and acquisitions (M&A), one of the biggest challenges companies face is navigating talent shortages. Finding and retaining top talent in this highly competitive landscape can make or break the success of an M&A deal. In this article, we will explore the root causes of talent shortages in M&A, as well as key strategies to overcome them. We will also delve into the importance of talent retention and discuss the future of talent management in the M&A industry.
Read More >>
The Evolution of Recruitment: Embracing Digital Transformation in Executive Search
In recent years, the field of recruitment has undergone a dramatic transformation. Gone are the days of relying solely on traditional methods to find the perfect candidate for executive roles. With the rise of digital transformation, recruitment practices have evolved to embrace innovative technologies and data-driven approaches. This article will explore the shift in recruitment practices, the role of technology in modern recruitment, the benefits and challenges of digital transformation, and the future of executive search in a digitized landscape.
Read More >>
The Impact of Remote Work on Executive Recruitment: Trends and Insights
The world of work has experienced a seismic shift in recent years, and one of the most significant changes has been the rise of remote work. As technology continues to advance and connect us in new ways, remote work has become more common and accepted. In this article, we will explore the impact of remote work on executive recruitment, examining the trends and insights that have emerged in this new era of work.
Read More >>
Diversity and Inclusion: Shaping the Future of Executive Search
In today's rapidly evolving business landscape, diversity and inclusion have become more than just buzzwords. They have emerged as critical factors in shaping the future of executive search. As organizations strive to stay competitive and relevant, they are increasingly recognizing the importance of embracing diversity and fostering an inclusive environment. In this article, we will explore the significance of diversity and inclusion in executive search, examine the current state of affairs, discuss strategies for enhancing diversity and inclusion, highlight the impact on executive search, and look towards the future of a more diverse and inclusive approach.
Read More >>
The Rise of AI in Recruitment: Opportunities and Challenges
Technology has revolutionized various industries, and the world of recruitment is no exception. As artificial intelligence (AI) continues to advance, it is transforming the way companies find and hire talent. However, with every opportunity comes a set of challenges. In this article, we will explore the rise of AI in recruitment and delve into the numerous opportunities it presents, as well as the challenges that must be addressed.
Read More >>
Sustainability in Recruitment: Aligning Talent with Corporate Social Responsibility Goals
In today's competitive business landscape, sustainability has become a key focus for organizations across various industries. From reducing carbon emissions to promoting ethical practices, companies are increasingly adopting Corporate Social Responsibility (CSR) initiatives to demonstrate their commitment to the planet and society. However, sustainability goes beyond just environmental efforts; it also encompasses talent acquisition and management. In this article, we will explore the concept of sustainability in recruitment and discuss how organizations can align their talent strategies with their CSR goals.
Read More >>
Salary Transparency in Recruitment: Trends, Benefits, and Challenges
In today’s competitive job market, attracting and retaining top talent is a priority for organizations. As a result, many companies are embracing the concept of salary transparency in recruitment. Understanding salary transparency, current trends, benefits, and challenges associated with this practice is crucial for both employers and job seekers. In this article, we will delve into the intricacies of salary transparency, analyze its benefits, and explore the challenges it presents.
Read More >>
Strategic Talent Acquisition: Aligning Recruitment with Business Goals
In today’s competitive business landscape, organizations are realizing the critical importance of strategic talent acquisition. Hiring the right people who can drive business success is no longer just a matter of finding candidates with the right skills and experience. It’s about aligning recruitment strategies with overall business goals to ensure long-term growth and sustainability. By adopting a strategic approach to talent acquisition, companies can attract, hire, and retain top talent that will propel their organizations to new heights.
Read More >>.png)
Balancing Technical Expertise and Leadership Skills
Striking the perfect balance between technical prowess and effective leadership skills is essential for success in today's dynamic work environment.
Read More >>
Beyond the Resume: Innovative Methods for Assessing Executive Potential
Discover groundbreaking methods for evaluating executive potential that go beyond the traditional resume.
Read More >>
Artificial Intelligence in Executive Recruitment
Discover how artificial intelligence is revolutionizing the executive recruitment process.
Read More >>
Candidate Experience: Recruitment Explained
Discover the key elements of candidate experience in the recruitment process.
Read More >>
Contingent Workforce: Recruitment Explained
Uncover the ins and outs of recruiting contingent workforce with our comprehensive guide.
Read More >>
Applicant Tracking System (ATS): Recruitment Explained
Uncover the ins and outs of Applicant Tracking Systems (ATS) and revolutionize your recruitment process! Discover how this powerful tool streamlines hiring, enhances candidate experience, and boosts your company's talent acquisition efforts.
Read More >>
Recruiting for Revenue: Aligning Talent Strategies with Pricing Innovations
In today’s evolving business landscape, companies are constantly seeking innovative ways to drive revenue and stay ahead of the competition. One often overlooked aspect of revenue generation is the role of talent and how it intersects with pricing strategies. Successful companies understand that recruiting the right talent is crucial to achieving sustained growth and profitability. In this article, we will explore the importance of aligning talent strategies with pricing innovations, the role of recruitment in revenue enhancement, and discuss the future trends in revenue-driven recruitment.
Read More >>
Jennings Executive Search Welcomes Dan Wilkinson as Vice President of Strategic Initiatives & Client Success
Jennings Executive Search, a leading executive recruiting firm specializing in commercial strategy and pricing strategy recruitment, is pleased to announce the appointment of Dan Wilkinson as the Vice President of Strategic Initiatives & Client Success.
Read More >>
