Obtaining references for your CFO

Obtaining References for Your CFO

Hiring a new Chief Financial Officer is a critical endeavor for any organization. These individuals play a pivotal role in shaping financial strategies, managing resources, and driving growth. One of the most effective ways to ensure a successful hiring decision is by obtaining references from candidates’ past professional experiences. Here, we explore the significance of obtaining references when hiring a new FD or CFO and examine various methods for collecting references, along with their advantages and disadvantages.

The Significance and Benefits of References

References provide valuable insights into a candidate’s performance, work ethic, and interpersonal skills. They can confirm the claims made by candidates on their resumes and during interviews. For finance leadership roles, where decisions have significant financial implications, reference checks are crucial for making informed decisions. We analyze the merits of each reference collection method, understanding that each has its place depending on the primary motive for obtaining the reference.

1. Validating Qualifications: References allow employers to verify the qualifications, accomplishments, and skill sets listed on resumes. This ensures that candidates possess the necessary expertise to fulfil the responsibilities of an FD or CFO effectively.
2. Assessing Cultural Fit: References offer insights into how candidates have interacted with colleagues, superiors, and subordinates in previous roles, crucial for evaluating cultural fit and the ability to collaborate across departments.
3. Gauging Performance and Leadership: References shed light on a candidate’s leadership style, problem-solving skills, and their track record of making well-informed financial decisions.

Methods of Collecting References

1. Email-Written References

This method involves reaching out to referees provided by the candidate via email.

Advantages:

• Flexibility: Referees can respond at their convenience, eliminating scheduling conflicts.
• Structured Responses: Employers can provide specific questions, ensuring focused feedback.
• Permanent Record: Written references serve as a tangible record for future review or legal purposes.

Disadvantages:

• Potential Bias: Candidates might provide references that only portray them favorably, minimizing objectivity.
• Lack of Real-Time Interaction: Written responses lack real-time interaction and follow-up.
• Limited Insights: The format may limit the depth of information provided, missing out on nuanced feedback.

2. Verbal Phone References

This method involves reaching out to referees provided by the candidate via phone.

Advantages:

• Personal Interaction: Phone calls allow for in-depth discussions and the opportunity to ask follow-up questions.
• Real-Time Responses: Immediate responses enable probing into specific aspects and clarifications.
• Human Element: Verbal communication offers intangible insights like tone and enthusiasm.

Disadvantages:

• Scheduling Challenges: Coordinating schedules between employers, referees, and time zones can be cumbersome.
• Time-Consuming: Phone calls can be lengthy, especially when multiple references are involved.
• Limited Record: Verbal references lack a permanent, written record for future reference.

3. Online Reference Check Services

Platforms offer automated reference check services, where employers send a link to referees, who then provide feedback through an online survey.

Advantages:

• Standardized Process: Ensures consistency in the information collected.
• Anonymity for Referees: Can provide more honest feedback.
• Streamlined Data Collection: Efficient and quick.

Disadvantages:

• Lack of Personal Interaction: Misses the depth of a one-on-one conversation.
• Potential Limited Insight: Standardized questions may not cover all relevant aspects.
• Less Opportunity for Follow-Up: Difficult to probe deeper into specific responses.

In summary, making a well-informed hiring decision for your financial leadership roles is paramount. Obtaining references offers a comprehensive understanding of a candidate’s abilities, qualifications, and compatibility with the organization’s culture. While various methods exist for collecting references, each has its advantages and disadvantages. Striking a balance between personalized insights and efficiency in the reference-checking process is crucial for making the right choice and securing a capable leader who can drive the financial success of the organization.

In our experience, unless you are collecting a reference just as a formality, we encourage clients to have in-depth verbal discussions with referees. This method allows you to articulate your opportunity and gauge the referee’s opinion on the candidate’s suitability for your specific needs.

Download our list of potential CFO reference questions

Download our blank FD & CFO reference template