CFO executives are among the highest-earning people in large companies. But despite the salary and perks they get, this role has a high turnover rate, with CFOs lasting an average of 3.5 years.
While finding an interim CFO is possible, it’s not an ideal solution. Given their key role in your organization’s growth, you want a candidate you can count on for the long haul. However, finding top executive-level talent is not easy.
This is why outsourcing your recruitment to CFO executive search firms is a great idea. Having such a partner will help you identify and attract top talent. Moreover, they will expedite the process and take the hassle off your hands.
What Is Professional Executive Search Recruitment
Executive search recruitment is a specialized headhunting service that focuses on attracting highly skilled C-suite executives. As of 2022, the executive search market was valued at 17.6 billion dollars, which is rising.
A key reason this niche recruiting market exists is because there’s a shortage of C-level executives while the demand is high. This is why CFO executive search firms use specialized recruiters who work exclusively with companies that need to fill c-suit positions.
For executive search efforts to yield desired results, the process is collaborative, as the firm will work closely with your team. The process entails:
- Defining position requirements
- Determining ideal talent qualifications and attributes
- Attracting and persuading suitable candidates
- Assessing and evaluating candidates
- Selecting and negotiating with the preferred candidate
Top Benefits of Working with CFO Executive Search Firms
Working with an executive search firm is not just about finding talent. It’s about achieving your long-term business goals. Beyond the credentials, executive recruiters will help you find individuals whose vision and ambition match the company’s.
1. Access to Top Talent
Aside from the cut-throat competition for top talent, finding C-level executives is challenging because they’re passive job seekers. This means they’re open to better career opportunities but are not actively searching for a job. As a result, finding them is often difficult.
With a wide network of organizations and a large talent pool, an executive search agency can help you overcome this challenge. They have connections that go beyond the CPG sector and international borders. As such, you’ll have access to a larger and more diverse talent pool.
Furthermore, you’ll have a head start as recruiters will leverage existing relationships to make a warm introduction. So, from wondering who your next CFO will be, you’ll have candidates eager to join your brand.
2. Brings Objectivity to the Recruitment Process
The role of a CFO in an organization cannot be understated. They’re responsible for keeping the books right to keep costs and risks low, grow revenue, and ensure you meet regulatory requirements. Therefore, having a gap in this role can destabilize your company and impact growth.
However, there’s one thing worse than not having a CFO: hiring the wrong one. Data shows that the cost of a bad hire can be as much as 30% of their first year’s salary. Therefore, in your rush to fill the position, ensuring that you don’t make any mistakes can save you money and time.
This is one of the key reasons to work with a CFO recruiting firm. They use an objective data-driven approach focused on finding the right hire rather than filling a position. As such, the risk of making a bad hire will be significantly lower.
If this is not enough, top executive search firms offer a 6-12 month guarantee on the hire’s success. This means you won’t have to pay for another search if the new hire chooses to leave before the guarantee expires.
3. It’s Cost and Time Efficient
From advertising the vacancy to conducting recruitment campaigns and screening candidates, in-house hiring is long, complex, and expensive. Rather than commit too many resources to such efforts, you can outsource to a CFO recruiter and focus on core business functions.
They’ll take over the recruitment once they have a clear picture of what you need. Within a short period, you can expect them to reach out with a list of potential candidates. All you’ll have to do is pick the desired candidate and negotiate contract terms.
4. Sets the Stage for a Meaningful Long-Term Relationship
Whether it’s due to churn or growth, you will need to hire other executives in the future. Therefore, you should view your search for a CFO via an executive recruiter as a partnership rather than a transaction.
Encourage a collaborative approach with your HR team to build a lasting relationship. With this approach, you won’t have to start from scratch each time you need to recruit.
In fact, by working with them to anticipate your future hiring needs, you’ll have potential hires lined up before positions are available.
6. Access to Invaluable Industry Insights
The recruitment landscape for top executives is very competitive. Most candidates are already either employed or have multiple offers to choose from. Therefore, you’ll lose the best candidates to competitors if you do not understand the prevailing market conditions.
CFO executive search firms will help you avoid this as they have in-depth knowledge of market conditions. These range from the availability of talent to compensation packages. Such information will ensure you make informed decisions about the offer and during negotiations.
6. Confidentiality and Discretion
Hiring a C-suite executive is a sensitive and high-stakes undertaking for several reasons. Usually, it’s because the candidate is employed in another company. It’s vital that they have the opportunity to disclose to employers and loved ones their decision to explore another opportunity.
On the other hand, you may be recruiting because you want to replace one of your executives. If the information becomes public, it can put your company and candidates in an awkward situation.
Specialized recruiters understand the need for a discreet process. They have mechanisms to keep sensitive information private and protect your company’s reputation.
Types of Executive Search Firms
Depending on the nature and scope of operations, there are different executive search firms. They are as follows:
1. Retained Search Firms
As the name suggests, you’ll have to pay a retainer fee to secure the services of retained search firms. While they don’t offer assurances of successful placements, such firms are ideal for specific searches.
2. Contingency Search Firms
The idea that you may hire and pay a recruiter but still fail to find a suitable candidate may be hard to swallow. If that’s the case, a contingency search firm may suit you best.
Such firms work on the premise that their efforts will yield results for clients. Therefore, you will only pay if they give you a suitable hire.
3. Boutique Search Firms
Different sectors have varying C-suite executive needs. This is why boutique firms specialize in particular industries or functional areas. The idea behind this is to offer highly specialized solutions that suit the needs of a niche market.
4. Global Search Firms
In a digitally connected world, there’s no need to limit yourself to geographical boundaries when hiring. Global search firms help you expand your search for a CFO executive to the worldwide pool. They are characterized by extensive networks and usually help multinationals fill global scope positions.
Factors to Consider When Choosing an Executive Search Firm
The first step in finding the right candidate with the help of an executive search firm is choosing the right partner. From the type of firm to each company’s attributes, there are various factors to consider to find the right recruiter.
As a brand looking to dominate your sector, you’ll want to hire executives with industry-specific experience. This will require your executive search firm to have deep roots within that industry.
Moreover, they should have a firm grasp of key leadership positions, roles, and attributes that help them thrive. So, as you interview firms, inquire about their specialization to know how it aligns with your needs.
Reputation and Connections
Beyond industry knowledge, your recruitment partner should have a good reputation. During your assessment, consider things such as:
- Client reviews
- Successful placements
- Profile of previous clients
These key details will let you know whether they can meet your needs. However, you should also go a step further and look into their connections. To help you secure the best talent, they must have the top-performing organizations within their network.
A Comprehensive Executive Search Strategy
The nature of top executive recruiting significantly differs from other roles. As such, it requires a unique approach to achieve successful outcomes.
This is why your executive search firm should have a comprehensive executive search strategy. It should outline everything from their identification processes to assessment criteria.
Get a Partner You Can Count On
Finding the ideal C-suite executive requires utmost precision with recruitment. This is especially so for consumer packaged goods companies. You need a CFO that understands the intricacies of this industry.
This is why The Grady Group is the perfect choice in your search for CFO executive search firms. We specialize in CPG recruiting and have a vast network of candidates. So, start working with us today to leave your CPG executive recruitment worries behind you.