Insights
By Ashley Reeve | 25th June 2024
Hello, and welcome to Absolute’s Market Update. July isn’t far away, which is generally a busy month with businesses trying to hire before the summer holidays start. This year I’m taking the family out of the UK as I can’t rely on the UK weather!
Before any of this happens, there is something even more special happening right now… the Euros! History tells us it’s likely to end in heartbreak, as does England’s laboured start to the tournament, but my heart tells me it’s coming home!
This month, we’re looking at the time it’s taking companies to hire and discussing the benefits of cost-saving versus third-party support. We also delve into the argument surrounding industry experience and question whether it’s absolutely necessary for senior hires, plus we take a look at things that you and your team should be doing right now if you’re looking to bring on finance hires in Q3 and Q4.
As the market continues to bounce back, we’re seeing more finance roles registered and advertised online. While there’s still some way to go to get volumes back to those of pre-COVID, it’s good to see movement across all levels, from graduate/trainee opportunities to board-level appointments.
However, despite more roles coming to market, there’s a sense of stagnation. Roles are being advertised for longer periods of time, and many senior candidates we’re speaking to are getting increasingly frustrated with elongated hiring processes.
Cost:
Following a recent survey of our clients, it’s clear that cost is the main driver behind direct hires. It seems more companies are looking to leverage their internal talent resource to bolster their teams, only turning to an agency as a last resort. While this has been ever-present across junior roles, with pressure to keep costs low, more internal recruiters and HR departments are being asked to search for mid to senior appointments.
In the short term, this approach will indeed support cost-cutting, but the longer the process, the bigger the effect and risk for the business. Naturally, niche skillsets take longer to recruit, and when it is an urgent hire, be that for the completion of project work or to ensure there’s an appropriate handover from the predecessor, any hold-ups can put a lot of pressure on the existing team and infrastructure. Companies also have to decide if their talent teams have the expertise and bandwidth to execute any given project. We recently hired a CFO for a property business, and we identified and spoke with 30 active and passive candidates before submitting our shortlist. Sometimes, the price of not carrying out a thorough recruitment process, can far outweigh that of an agency fee.
Time to hire:
The average accountancy and finance role takes a company six weeks to recruit directly, with notice periods ranging from one month for junior and two to three months for mid to senior levels. In a recent example of a project that we ran for an urgent hire, the client retained us to ensure a fast turnaround. The business had strict reporting deadlines and had someone leaving the role. They couldn’t afford to have the gap in personnel affect the business and put additional strain on the wider team. After receiving the brief, we had a shortlist prepared, two-stage interviews, and an offer accepted in eleven working days. In this case, the client decided that the cost far outweighed the risk of not having the right staff in place and the many knock-on- effects that come with this.
We were talking to a CFO about their job search recently, and they voiced their frustrations at being ruled out of roles due to a lack of experience in that sector. We hear this often and have this request from our own clients regularly, and in my opinion, this is often a short-sighted approach.
This candidate had worked across multiple sectors and had a broad background. Although they hadn’t gained experience in that specific industry, there is a wealth of transferable skills that can be leveraged across sectors, particularly at a senior level. Furthermore, picking up the nuances of a particular industry is something that can be learned relatively quickly. When it comes to hiring, the focus should really be on what the candidate can bring to the table, for example, leadership qualities, new ideas, transformation/restructuring experience and culture fit.
Albert Einstein said, “Insanity is doing the same thing over and over again and expecting different results.” Time and again, companies hire carbon copies of CFOs they’ve hired before and expect new or better results, which seems crazy. Although many are wary of doing so, hiring from outside the industry can bring a fresh approach, new ideas, and a new way of working.
Of course, there may be exceptions, like a requirement of FCA knowledge for a financial services role, but CFOs didn’t get to where they are without being adaptable. As recruiters, our job is to consult with clients and push the boundaries so they can explore options that they may not have considered otherwise. Sector experience being a prerequisite is something we often challenge and overcome.
Naturally, if you have two equal candidates at a final stage and one has previous sector experience, you’re likely to choose them. Still, we need to stop discounting talented individuals before they’ve even been interviewed because of this notion.
What are your thoughts? Do you feel it’s a non-negotiable, or could you look past sector experience if you found an outstanding candidate?
I mention this every year, but during the summer months, now is the perfect time to perfect your hiring process. Candidates and clients will be taking their summer breaks soon, so coordinating diaries can be a nightmare if you haven’t planned ahead.
Having organised interview formats and plans with backup interviewers can make the difference between getting the best candidate and not. Here are a few things to help make the hiring process as smooth as possible over the next few months:
If you’re looking to bring someone on in Q3, you are likely to have already mapped out or started the process; if you’re looking for Q4 hires, now’s the time to start looking for senior hires. We would advise that if you’re looking for people with niche skill sets or an urgent position, it might be worth engaging an agency with a strong network in your area.
If you’d like to discuss tightening up your process, remuneration, or strategic hiring, let me know.
Last Thursday saw the Absolute team head to Drake and Morgan in Kings Cross for our quarterly finance community meetup. With drinks and nibbles accompanying a lot of chat, it was a great evening.
If you’d be interested in hearing more about our upcoming events, drop me a message and I’ll ensure you’re added to the list for the next get together.
Thank you for taking the time to read our senior finance market update. As always, if you would like any advice on hiring, candidates, salary benchmarking or to discuss the market / your next role, book a 30-minute call – https://calendly.com/ashley-absolute-recruit/30min
N.B. For those of you who are not aware, we also run a Senior Finance Community where members share ideas, experiences, and solutions to finance-related issues, primarily through our WhatsApp group and quarterly meetups, it’s free by the way! If you would like more information or wish to join, drop me an email at ashley@absolute-recruit.com
