Here at The Finance People, we understand how to go about hiring the perfect-fit Finance Director for your business. But we also understand that it’s not so simple for many business leaders or in-house recruiters tasked with the job.
When you have plenty of other projects going on, it’s difficult to give hiring enough time it needs to find that perfect person. This can result in hiring someone that does not click with the team, that does not have the right skills or even paying too much or too little.
We’ve put together 7 of our best tips for hiring your ideal finance director.
1. Don’t wait until you have a proper finance department
You should recruit a financial director as soon as possible. Don’t wait until you get to a size where not having a proper finance department holds you back. If you don’t have an FD, the CEO ends up knee-deep in finances instead of spending time driving the business forward. Act now to reap the rewards later.
This being said, it’s important to not rush the process – and potentially risk hiring the wrong candidate for the job. Leveraging the help of an external specialist Finance recruiter could help ensure you find the perfect fit, and quickly.
2. Hire in stages dependent on your business journey
Each stage of business growth requires different levels of skill from your finance function.
Small businesses with up to 15 employees will find that a competent bookkeeper will suffice; but for larger businesses, they’ll often need an accountant, plus some more strategic support from a finance director. Your needs will grow from purely keeping the books to a broader commercial role covering management information, forecasting, IT, tax, financing and back-office support.
It’s crucial to anticipate the next stage well before you reach it; failure to do so will mean more pain later. There are so many times we’ve seen business suffer with things like cash-flow just because they’ve not had senior resource in place to conduct proper governance and sense-checking on critical business decisions.
3. Personality counts
A really good Finance Director should be the number two to the CEO or managing director – so personal chemistry is vital. Being a sound bean counter, however well qualified, is not enough.
You need someone with a strong personality who isn’t afraid to challenge the head honchos – someone who will spot the small black dot on the horizon signalling bad weather on days when everybody else is enjoying the sunshine of business growth.
4. Look for passion
Make sure your Finance Director is someone with a genuine passion for fast growth.
The classic trap is to assume someone with an outstanding large blue-chip record is what you need. Paying for advice from a 30-year veteran with lots of experience isn’t going to work out if there’s no longer the appetite to roll up their sleeves and get stuff done.
5. Check their battle scars
A Financial Director who’s been there and done that (and has the battle scars to prove it) is always an advantage. Look for someone who has dealt with cash-flow problems, legal disputes and low-margin businesses. You never know when you might just need that relevant experience.
6. Know the going rate… and pay above it
Salaries can vary widely according to region, industry and company size, so do your research and find out what competitors are paying to make sure your offer is competitive. Don’t be tempted to scrimp on salary. Good-quality candidates don’t come cheap. Get in touch if you’d like up to date salary surveys in your area.
7. Consider part-time finance directors
If you don’t need a top Finance Director right away, hire a super-hot FD on a part time basis. Through their expertise in negotiating with banks, invoice discounting rates and other contractual expenditure, they’ll easily neutralise their costs.
Employing them on a part time basis could easily be one of the best investments you’ll ever make.
If you’d like to find out how The Finance People can help you hire your perfect-fit Financial Director, get in touch for an informal chat.
Anita Tweats MBA is the CEO and founder of The Finance People, who offers flexible, expert financial support to businesses of all sizes. With solid experience working in accountancy practices, in industry, and as a lecturer, Anita offers expert knowledge and straight-talking advice on all things finance.