BUSINESS ADVICE: Hiring the Right CFO
In many companies, the chief financial officer (CFO) is the second most important position, after the chief executive officer (CEO).
The main responsibility of the CFO is to manage the finances of a company, but he or she may also be involved in strategic planning and other tasks. Since a CFO plays such an important role, you need to make sure you select the right person to fill the position.
Here are five tips that can help you hire the right CFO for your company >>>
1. Consider Promoting One of Your Current Employees
A CFO needs to have a good understanding of a company's objectives, values and culture in order to perform his or her duties competently.
Some of the employees in your finance or accounting department may have been working in your company for a long time, and they should be familiar with your company's values and culture.
If any of them have the necessary qualifications and traits to become a successful CFO, you should seriously consider them for the position, instead of hiring from outside your company.
2. Know Exactly What to Look For in a CFO
Before you start interviewing candidates, you should create a list of all the qualifications and traits you want in your CFO.
The typical qualifications a CFO must meet are at least eight years' experience in a senior finance or accounting role, CPA certification and a Master's degree in finance, accounting or business.
The ideal candidate should have a good track record, great attention to detail, strong accounting skills, investment acumen, leadership qualities, in-depth knowledge of your industry, good understanding of your company's operations and useful connections and resources.
3. Hire Someone Who Has a Different Skill Set
If you want your business to succeed, you need to build an executive management team that can competently manage every aspect of your business.
If every member of your team has good marketing skills and poor computer knowledge, you will be in trouble if a serious computer problem arises.
Hiring a CFO who has a different skill set than you and your executives will enable your executive management team to handle a wider variety of problems.
4. Choose Someone with Good Personal Communication Skills
It is important for a CFO to have good personal communication skills, because he or she has to communicate constantly with other employees.
A CFO who is unable to give clear instructions and maintain a harmonious relationship with employees can jeopardize the productivity and solidarity of your company.
5. Test the Candidates' Actual Work Abilities
Some candidates may look very good on paper, but you will not know if they are suitable for the job until you see their actual work abilities.
While you are interviewing the candidates, ask them to perform a certain task that they will be doing regularly if they get the job. By testing their actual work abilities, you will be able to assess their suitability more accurately.
The role of a CFO can vary significantly from one company to another.
As such, it is essential that you evaluate the needs of your company thoroughly when you are hiring a CFO.
About the Author
John McMalcolm is a freelance writer who writes on a wide range of subjects, from employment tips to business management.
- CFOs on the move – the finance chiefs changing companiesLeadership & Strategy
- Meet the CFO: Toby Xu named Alibaba’s new finance executiveCorporate Finance
- Report: 5 key priorities for CFO planning post-pandemicLeadership & Strategy
- Majority of executives planning growth strategy across APACCorporate Finance