Why Competitive Businesses Grow Their Own Financial Talent

It takes 30 to 33 weeks for an external recruit to transition into a senior financial position. Not to mention the cost of the recruitment process itself.

Why grow your own chief financial officer (CFO)? For three reasons:

1. Because it’s more cost efficient than hiring externally. It takes 30 to 33 weeks for an external recruit to transition into a senior financial position. Not to mention the cost of the recruitment process itself.

On the flip side, hiring a CFO internally means transitioning from someone who is familiar with the company, its history, goals, and values; has a rapport with staff; knows who to approach to get something done; and has the relationship to make it happen; to someone who is also familiar with the company, its history goals and values…

2. Because it retains talent. Jobs for life are a thing of the past. Job hopping is the new norm. Some 32 percent of job switchers do so for the sake of career development after hitting a ceiling at their place of work. That means all the time, money, and experience that have gone into an employee end up paying off for someone else. That’s particularly galling when they had leadership potential.

How many talented individuals have been lost because they couldn’t get the promotion they deserved? How much investment in training and professional development has your company lost as a result?

3. Because it gives a competitive advantage. Some 60 percent of CFOs are recruited externally, and only 53 percent of CFOs feel their organization creates opportunities for junior financial talent. Yet businesses that report more than 5 percent annual revenue growth tend to appoint CFOs from within. Growing your own CFO immediately gives you an edge over those that don’t—and that’s the majority.

Of course, it depends on having the right person in your company. A good CFO comes from finance but also has commercial and management experience. They are well versed in upward management, executing business strategy, and communication skills. They are capable financial analysts, yes, but even better strategists.

It’s not that businesses are unaware of the potential in their own organizations and the benefits of promoting from within. It takes forward planning. It takes identifying someone with the right mix of experience and the talent to move into leadership. It takes investing the time in mentoring them so they’re ready for the role when it becomes available.

If so few companies are stemming the flow of job-hopping talent and taking advantage of the skills, experience, and aptitude already in the building, then to do so delivers real rewards: ones that are tangible and measurable.

Here’s how to grow your own CFO:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For more information, visit http://www.euromoneylearningsolutions.com.

Sarah Willis is an online writer and editor covering a range of subjects, including business, finance, and investment.