What is a CFO?
The main purpose of a CFO is to impose financial discipline on a business and bring fresh managerial expertise to the table. A successful candidate will boast experience in dealing with investors and lenders, know how to take companies public and have knowledge of financial regulations and accounting practices.
How is the CFO hiring landscape changing across U.S companies?
U.S business across a range of sectors are increasingly turning to external candidates to fill their CFO vacancies. In 2019, 43.4 per cent of CFO positions at Fortune 500 and S&P 500 companies have been occupied by candidates hired from outside their companies.
In recent months, Ford Motor Co. and Intel Corp. hired outsiders as finance chiefs, breaking away from an age old tradition of typically promoting from within their ranks.
Why are companies breaking the mould and hiring external CFOs?
Outside candidates deliver a fresh perspective and do not tend to resort to tired or overused strategies when it comes to solving problems. A good CFO will take steps to substantially alter how a company’s finance function is run.
An external CFO can bring in specific skills when a business is facing a critical moment. This could be a rebrand, merger or acquisition.
External recruitment allows companies to maximise the pool of top talent which is available for targeting. Taking a broad approach to hiring results in a more diverse leadership team and resulting business strategy.
Why should your business consider hiring external candidates?
It goes without saying that the rules for external hiring do not run exclusively to CFOs of massive corporations. We have a selection of reasons why it makes sense for your own business to hire outside candidates.
Increased chance of finding the perfect hire
When exploring external hires, a company will have increased access to a host of suitable candidates who possess the skills and knowledge required for the role.
Fresher skills and input
With external recruitment, there are better opportunities to identify fresh candidates who are brimming with enthusiasm and are able to deliver new skills to improve the business.
Finding qualified candidates
When a company looks to hire an external candidate, they will be able to find a variety of qualified candidates for the role in question. This method helps to pick out the very best talent among a pool of skilled candidates.
A healthy sense of competition
The external hiring of candidates allows employers to inject some healthy competition into proceedings to find precisely the right person for the job. It affords the hiring manager the chance to compare and favour skill-sets, be it having an aptitude for handling a certain role or displaying risk taking abilities.
In addition, once the external candidate starts, they will be keen to match up to existing employees, who will in turn desperately want to prove their own worth and relevance to the business.
Generation of creative ideas
An external candidate is more likely to input fresh ideas upon starting because they are new to your organization, eager to make a good impression and may have tactics up their sleeves which have never occurred to either you and the wider team. They can also offer unique and new insights which are followed in other industries or sectors and could be applied directly to yours.
An internal candidate will undoubtedly understand the innermost workings of your business but this may blinker them when it comes to devising fresh new strategies.
Less internal politics
In the external recruitment process, the candidate will not encounter the internal politics faced by existing candidates. This helps to ease any internal issues or unreasonable requests that might be posed by current employees.
Once the external candidate is selected, it is the responsibility of the company to make them aware of all internal politics so that they are capable of handling any type of situation which may subsequently arise.
By using an external recruitment process, you can expect growth not just for the candidate, but the company too. When a company selects a candidate with high potential, then there is a higher possibility of the overall growth of the company. The employees within the organization also broaden their capacity and try to match with the new talent.
Hiring a candidate who has achieved a lot for another firm or sector and has now placed their faith in your offering will leverage you as a forward-thinking business, which will in turn do wonders for your reputation.
Hiring an external candidate from another company shows that you have high aspirations for your business and are willing to take educated chances to take your team to the top.
Increased profit margins
A candidate with a proven track record across multiple sectors will have experience of parallel ideas and strategies that could ultimately help to boost your bottom line.
At Claremont Consulting Inc., we have all the tools in place to help you recruit externally and we will assist you with the entire process from start to finish. This includes:
Closing the posting
Analyzing and pre-qualifying candidates to provide a shortlist
Arranging preliminary test for all candidates
Scheduling the interview with candidates
Managing the interview process
Candidate selection and proper reference checking process
Providing employment to candidates
Stay tuned to the Claremont Consulting Inc. blog for all of the hiring insights and knowledge your company needs to know.