If statistics and surveys are to be believed, recruitment in finance is on the rise. Office for National Statistics figures from 2014 showed the UK entering pre-2007 levels of growth. The knock-on effect, according to the Robert Half 2015 Salary Survey, is that accounting and finance recruitment is also returning to these levels. Only a year earlier, Robert Half found 95% of board level executives feared the imminent exit of their CFO.

How do you find the perfect head of finance for your business in an overheated recruitment environment?

It’s important to flesh out the job within a team that’s already in place. The MD, CEO, chairman, audit chairman and HR director are obvious choices to do this. In a small firm, sales or operations directors might be more appropriate.

This is the time to redefine the FD role if the business needs it. Mark Freebairn, head of financial management practice at Odgers Berndtson, believes that everyone who has an vested interest in the success of the finance role needs input into defining the job: “They’ll know how that individual is going to make the difference that the role and function is supposed to make.”

It’s tempting to place an advert and wait for the candidates to apply. But Chris Harrington, a regional manager for Reed Finance & Banking, feels that consultants and recruitment agencies bring advantages only available through the networks they already have – contacts, clients and candidates already open to the idea of moving on. “We’ve got scope to find people,” says Harrington. “It’s difficult for an SME to go out on their own. If you don’t have a recognisable brand, you can’t just advertise a role and expect to fill it.”

Aside from the time involved, tackling recruitment directly can put candidates off applying. “Candidates might ask about the culture of a firm and benefits,” says Harrington. “You wouldn’t necessarily want to go into your first interview with an MD and ask about a benefits package.”

Freebairn describes going it alone as a gamble: “You can try and, if you succeed, it’ll be the smartest decision you ever made. If you fail, then you’ve wasted time and money. My gut says you’re better off outsourcing.”

Tracey Alper, director of Marks Sattin Executive Search, highlights another point: “Managing a candidate out of their current role is one less burden for the client.”

If you’re going to use a consultant, what should they look like? Reed’s Harrington says: “You need someone who takes the time to come and see you, understands the role and the drivers behind it. It’s important we know our candidates, but it’s vital we know the job.”

Freebairn also welcomes a little dissent: “You want someone who will challenge you. For that to work, you’ve got to respect them, and you’ve got to like them.”

Finance recruitment specialists are firm about the skills and experience you should expect for a key finance role. Alper says: “A decade ago, candidates were judged by their ability to produce robust and comprehensive financial reporting mechanisms. Today, greater commerciality is required.”

In a smaller business, she adds: “The ability to manage non-finance functions is a common requirement, for example overseeing IT, legal and HR.”

Freebairn and Harrington both cite adaptability and an everyman quality for a hire, especially in an SME, where business partnering and flexibility is key. Freebairn says: “If the controller’s ill, then you’re doing the P&L and the monthly accounts. If you’ve got an ego about that, then you don’t want to be in that environment.”

Karen Young, director at Hays Accountancy and Finance, would expect to see professional qualifications, along with training in leadership and management on CVs, but not always university attendance. Referring to Hays’ 'DNA of an FD' report, Young says: “More than a third of our survey respondents had not studied for a degree before training as an accountant.”

But what of the potential for hiring from within? EY’s 'Finance Forte: the future of finance leadership' report – based on a survey of 530 group CFOs – concluded that external recruitment for the top job was more common mostly because the route for internal succession was lacking. Despite the finding, 82% of respondents also agreed that CFOs had a duty to coach the next generation from within.

And schemes exist to address this issue. ICAEW’s F-Ten programme is a business leadership and mentoring scheme offering peer-to-peer networking over 10 months. Mentees are matched with suitable mentors based on skills, experience and goals. Some 175 delegates from 98 organisations have completed the programme since it began in 2009. The next intake is in spring 2016.

Helped by this kind of programme, Young believes candidates should be able to demonstrate the qualities needed in senior finance roles. “FDs often show an appetite for continuous professional development and use this to set themselves apart from their peers,” she says.

“But it is also an individual’s capacity for hard work that can take them to the top of a finance team. Three-quarters of FDs who responded to our survey noted this as the personal characteristic that has most helped them succeed in their career.”

But what of the potential for hiring from within? EY’s 'Finance Forte: the future of finance leadership' report – based on a survey of 530 group CFOs – concluded that external recruitment for the top job was more common mostly because the route for internal succession was lacking. Despite the finding, 82% of respondents also agreed that CFOs had a duty to coach the next generation from within.

And schemes exist to address this issue. ICAEW’s F-Ten programme is a business leadership and mentoring scheme offering peer-to-peer networking over 10 months. Mentees are matched with suitable mentors based on skills, experience and goals. Some 175 delegates from 98 organisations have completed the programme since it began in 2009. The next intake is in spring 2016.

Helped by this kind of programme, Young believes candidates should be able to demonstrate the qualities needed in senior finance roles. “FDs often show an appetite for continuous professional development and use this to set themselves apart from their peers,” she says.

“But it is also an individual’s capacity for hard work that can take them to the top of a finance team. Three-quarters of FDs who responded to our survey noted this as the personal characteristic that has most helped them succeed in their career.”

• Hiring a financial director
  Finance & Management Magazine, Issue 234, July/August 2015

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