Key milestones & timelines for hiring a CFO

Key Components and Timings for a CFO Search Process

According to industry research, nearly half of all senior appointment search efforts fail on the first attempt, leading to significant time and financial costs for businesses.

This failure often results from candidates withdrawing due to prolonged recruitment timelines, delays caused by interviewers’ unavailability, and a lack of timely feedback at various stages. Here, we outline the essential components and recommended timings for a successful FD & CFO recruitment process.

For senior appointments, a meticulous recruitment process is essential to ensure you select a candidate who will be pivotal to your organization’s success. However, you also need to be highly organized and act efficiently to maintain the interest of top CFO candidates.

The best candidates will have several options and will only want to join organizations that prioritize their CFO hiring strategy. This is perceived through a well-structured and efficient recruitment process.

Dropout Rates

Based on our findings from numerous CFO assignments, search processes exhibit varying dropout rates depending on their duration:

• Processes lasting 4-8 weeks from start to finish experience a 15% dropout rate.
• Processes taking 8-12 weeks from start to finish witness a 33% dropout rate.
• Processes extending 12-16 weeks from start to finish result in a 47% dropout rate.

Note: Based on our experience, the most highly desirable candidates tend to account for the majority of dropouts, underscoring the importance of eliminating inefficiencies in your process.

Key Components for Success

Preliminary Planning: Before reaching out to candidates, complete administrative tasks to streamline the process. Create a recruitment timetable to coordinate everyone’s involvement and block out schedules in advance.

Shortlisting & Selection: Allocate approximately 3 weeks for shortlisting, with the first half dedicated to outreach and the second half to vacancy briefings and pre-screening interviews. A shorter shortlisting period may lead to missing potential candidates, while a longer one might cause candidate disinterest or competition from faster-moving companies. At CFO Recruit, we’ve already researched and mapped out a large part of the CFO market and have contact details for a high number of candidates, minimizing time spent on data compilation and expediting outreach.

Interviews & Offer: Maintain an efficient recruitment timetable by spacing each stage a week apart. This ensures momentum and allows time for preparation and feedback between stages. For presentations, schedule them in the later interview stages when candidates are more engaged. Provide feedback to candidates within 24-48 hours of the interview, even if a final decision is still pending.

Contracts & Onboarding: After receiving a verbal agreement, promptly send offer letters and contracts for formal acceptance. Consider using electronic signing software to expedite this process and prevent delays associated with postal services.

Efficiency and organization are paramount in CFO search processes. By following these key components and timings, organizations can optimize their recruitment process, attract top candidates, and secure their commitment swiftly and effectively.