5 Hiring Mistakes to Ditch in 2024

Trying to stay ahead of your competition? As you’ll know, a huge part of it is about your people. A strong team with the right strategic guidance can result in business transformation and agility and strategic financial management are more crucial than ever for SMEs today.

However, many businesses fall into the trap of outdated hiring practices, especially when it comes to securing top-tier financial leadership. This year, it's time to reevaluate and ditch these five common hiring mistakes. 

Hiring soon? Be sure to avoid these common mistakes.

Overemphasis on Full-Time Positions

In the hustle and bustle of today's business world, sticking to the old-school belief that CFOs need to be around full-time can really hold back a nimble SME. It's a bit like wearing a heavy suit to a sprint race—sure, you look the part, but it's going to slow you down. This idea that top-notch advice and leadership need to clock in and out each day, and stay around all day, is outdated. It misses the point that a lot of SMEs need sharp financial guidance without the constant physical presence.

Let's face it, insisting on a full-time CFO not only bulks up the payroll but also narrows down your choices to those who might want the big bucks for their all-day-every-day commitment.  The fixation on full-time roles not only inflates your payroll but can also lead to underutilization of highly skilled professionals. A part-time or fractional CFO, on the other hand, can provide strategic financial guidance, flexibly, and lower in price. It’s a triple-win.

The Endless Search for the "Perfect" Candidate

Chasing the perfect CFO candidate is often a lengthy process. Businesses often fall into the trap of holding out for this ideal match, combing through resumes and conducting rounds of interviews, all in search of the exact person with the right industry experience, expertise and personality. This pursuit, while well-intentioned, can stretch on for months, leaving a critical leadership role unfilled. The reality is, in the fast-paced business environment, time is a luxury many SMEs can't afford. The longer it takes to fill the position, the more opportunities and momentum your business might miss out on.

The perfect candidate, in the traditional sense, might not exist, and waiting for them could cost more than just time—it could mean missed growth opportunities or strategic missteps. Instead, consider the value of an expert who may not tick every single box but brings a wealth of experience, personality and a fresh perspective that can drive your business forward right now. 

Waiting to Afford a High Salary

Many SMEs postpone hiring a financial director (FD) until they can justify a full time one, which often comes with a high salary. Ultimately, this is overlooking the immediate benefits a seasoned CFO can bring. 

This waiting game can be especially challenging for businesses on the cusp of significant growth or those navigating complex financial landscapes. In these scenarios, the guidance of a CFO isn't just helpful; it's crucial. However, the leap to a full-time, high-salary financial director can seem daunting. That's where the concept of a fractional CFO comes into play. You get the guidance, the experience, and the strategic oversight you need, scaled to fit your business's size and budget. It's a way to bridge the gap, ensuring your business doesn't stall waiting for the financial stars to align.

Overlooking the Benefits of External Expertise

Hesitation to seek financial leadership from outside the organisation is another hurdle that many SMEs face. The reluctance often stems from a belief in nurturing leadership internally or concerns about an outsider not fully understanding the unique culture and dynamics of the business. 

However, this inward-looking approach can limit the diversity of thought and the breadth of experience that an external CFO can bring to the table. An experienced fractional CFO, particularly one who has navigated various industries and business models, can introduce new perspectives and strategies that might not be apparent from within the confines of the company's existing leadership circle.

Moreover, a fractional CFO can often act as a catalyst for change, challenging the status quo and encouraging innovation in financial strategies and operations. They bring a level of objectivity and fresh insights that can be invaluable in identifying untapped opportunities or areas for improvement. For SMEs looking to scale, pivot, or simply optimise their financial operations, the external expertise of a fractional CFO can be a game-changer, offering the right blend of experience and flexibility to adapt to the company's evolving needs.

Neglecting the Flexibility and Scalability Needs

Adapting to the ebb and flow of market demands and growth phases is critical for SMEs, yet many find themselves constrained by the rigid structure of traditional full-time roles, especially in financial leadership. 

This lack of flexibility can become a significant stumbling block, as businesses might find themselves overstaffed during slower periods or under-resourced when opportunities for growth arise. The need for scalability in financial oversight is paramount, enabling businesses to dial up the expertise and guidance they require during pivotal moments without committing to the fixed costs associated with a full-time CFO.

Embracing a fractional CFO model offers a solution to this dilemma. It allows businesses to tailor the level of financial leadership to their current needs, providing the agility to navigate through periods of transformation or consolidation with greater ease. This approach not only ensures that SMEs have access to top-tier financial strategies and insights when they need them most but also aligns with the lean operational models many SMEs prefer. By avoiding the overheads of a full-time position while still benefiting from expert advice, businesses can remain nimble and responsive to the ever-changing business landscape.

The Solution: Embrace Fractional CFO Services

Our service here at The Finance People bridges the gap between SMEs and experienced CFOs, offering a cost-effective, flexible solution to your financial leadership needs. By partnering with us, you can avoid these common hiring pitfalls and gain access to top-tier financial expertise on your terms. Whether it's navigating complex financial landscapes, fundraising, or strategic planning, or something else entirely - a fractional CFO can drive your business forward without the commitment and cost of a full-time hire.

In 2024, it's time to rethink how we approach hiring for key financial roles. By acknowledging and addressing these mistakes, your business can become more agile, financially sound, and poised for growth. Let us connect you with the right fractional CFO, tailored to your business's unique needs and goals, and turn a new leaf in financial management.