Like any other c-suite hiring process, hiring a CFO can be a daunting process at any organization. Whether the role is a newly opened position at a burgeoning startup, or a replacement for a long-standing CFO that is looking to retire, bringing in a CFO is a complex endeavor.

For companies that are accustomed to using recruiting services, the idea of using an executive placement agency to hire a key leadership role is a logical extension. However, businesses that typically handle hiring in-house may not see the benefit to using an executive search firm to hire a CFO. Some business owners may not even know that there are niche executive search agencies that specialize in finance roles.

However, using an executive search firm that focuses specifically on hiring key finance positions offers numerous benefits, which typically include:

• Functional Expertise

Utilizing a search firm with functional expertise (versus strictly industry search expertise or general executive search expertise) provides unmatched depth and breadth of experience. A CFO search firm has in-depth knowledge of both the CFO/CEO relationship and the CFO/Board of Directors relationship from the numerous conversations they have had working with clients and candidates. Furthermore, a specialized CFO search agency will have a deep understanding of the many responsibilities a CFO could have beyond their primary finance and accounting roles. As a result, a functional executive CFO recruiting firm has both the breadth of industry experience and depth of knowledge needed to provide the best results when compared to an industry recruiter or a generalist executive recruiter.

• Total Discretion

There are many scenarios when companies would not want to publicly post their open CFO role. Looking for a replacement CFO while an executive is currently in the role is the most obvious example of this, but other common scenarios involve maintaining existing relationships with partners and industry competitors. Using an executive search firm allows discretion for any number of reasons while still allowing you to retain control over the hiring process.

• Access to The Highest-Quality Candidates

Reaching out to referrals and network connections are some of the best ways to find reputable, top-notch talent. While some companies, especially newer ones, may lack in this area, executive search firms maintain a vast network of contacts that they can call on to find the right fit for your role.

• Greater Satisfaction

A CFO role is absolutely crucial to the success of your business and the wrong hire can do more harm than good. Replying on experts to find the best candidate for you can reduce the worry around whether your hire will be a good fit for the role and increase the likelihood of retaining the individual longer.

• Time Efficiency

Hiring is a time-consuming process, and it will typically take more time when you have less experience doing it. No matter how proficient your in-house HR staff is, they will almost certainly have less experience hiring executives than an actual executive search firm. When using an agency that specializes in a particular kind of executive role, this experience level gap is even further magnified.

Once you are ready to begin your CFO search, critically examine how the executive search firm you are using will find a candidate for you and what the fees will look like to do so.

Process

The process an executive placement company will follow looks something like this:

1. Develop a thorough understanding of the client’s business
2. Search for candidates via professional networks
3. Identify possible candidates
4. Evaluate candidates using critical hiring criteria
5. Present recommendations to the client
6. Help hire the selected candidate

The length of each step will obviously vary by search firm, client industry, and job market location, but the basic tenants of the hiring process are: find, evaluate, and hire.

Find

Understanding a client’s business serves as the foundation for the search process. A search firm will engage in dialogue to understand your existing financial operations as well as gain a deeper understanding of your short and long-term goals, challenges, and opportunities. This “financial SWOT analysis” serves to inform the hiring process alongside your desires for the role. The objective is to communicate openly and honestly to determine your preferred qualities in a CFO to use as search criteria. These criteria are then used by the executive search firm as a roadmap to navigate their wide professional network and look for the best candidates for the role.

Evaluate

Once possible candidates are identified, the rounds of phone and in-person interviewing will begin to understand salary requirements and availability. Additionally, the search firm will ask key questions, engaging in dialogue to determine if there is a cultural fit with your business. They will then typically include a written question and answer component as well as a skills assessment to evaluate communication skills and acumen. Lastly, a search firm will check references and conduct “back door” checks by consulting with shared professional contacts, where possible.

Hire

A short list of candidates is presented to you that conveys the highlights of the information that has been gathered. Interviews are then scheduled, as desired, to give you a chance to evaluate each candidate for yourself. Once a decision has been made, an offer is created and presented to the candidate. The executive search firm will likely then help you navigate salary negotiations and other hiring aspects.

Fees

The cost for the executive search process will vary from one company to another, and that is certainly something to look at when determining which search firm to use. However, it is only one piece of the puzzle. Don’t forget ask about what those fees include and how they are paid.

• Can you get an initial consultation for free or is there a charge?
• Is full payment expected upfront or is payment made in installments?
• What happens if a placement is not found in an acceptable timeframe?
• Is there any recourse if the placement does not stay for a reasonable period?

Any fees you are assessed should be clearly enumerated in the contract you are asked to sign.

Remember, it is always best to look for an executive search firm that offers a pricing structure where fees are paid incrementally to allow more flexibility in case you decide that the process is not working for you. This kind of fee structure also ensures that a search firm will keep working hard for your business throughout the placement process.

Find out which companies have benefitted from our financial executive placement services across the Pacific Northwest and nationally.