There’s nothing complex about a hiring process. You list a job offer on a platform and wait for the applicants. Then, you read the offers, conduct a few rounds of interviews, and pick the best candidate. However, what happens when you need a specialist or a high executive like a CFO? How does the process change in these circumstances? To answer this question, as well as to help you out, here’s a brief guide to the process.
Why do you need a CFO?
A CFO is a person in charge of the way your company treats and uses its resources. They’re there to identify and mitigate financial risks and help with any kind of financial analysis that you may require.
The job of a CFO is not just one tied to the wide plethora of management tasks they’ll be in charge of. The main reason why it’s so well-paid and respected is the fact that this is one of the most senior executives in your company who stands behind these decisions with their reputation. Taking responsibility is incredibly hard, and it’s well-paid for this very reason.
Now, asking how much they are paid is a bit non-specific. It’s like asking how much an artist paid or an athlete. The salary is comparable to the size of the business. A CFO of Apple or Microsoft is bound to get paid more than a CFO of a local, mid-sized business.
Still, when crafting a CFO salary, you must research. Look for businesses of comparable sizes.
What are the core responsibilities of a CFO?
You can’t create a great job description without understanding the tasks that go into it. Therefore, you need to start and determine what are the core responsibilities of a CFO. We deliberately use the term determine because this is not as fixed as you may think it would be.
The thing is that roles always differ based on the enterprise; however, you still need to remain within certain confines. So, here are some roles and responsibilities that usually go to the CFO so that you can customize your offer and description.
The first core responsibility of a CFO is to come up with a financial strategy for the enterprise. This engulfs both the long- and short-term goals of an enterprise and helps set the future growth and development course.
A CFO is in charge of capital management. They’re not just in charge of raising capital but also optimizing the use of all your financial resources. Things like debt management are their responsibility, and depending on how good of a job they do, your firm’s fortune may drastically change.
One of the key responsibilities of a CFO is financial reporting, as well as compliance and regulatory reporting. In other words, they’re one of the key components responsible for ensuring that the book does things.
Where do you find the best candidates?
The biggest challenge is finding the right candidates. Now, in this particular scenario, you have three potential venues:
- Recruitment agency: First, you need to look up what CFO recruiting firms have to offer. You see, this is a specific field where you’re hiring specialists with a peculiar set of skills and work requirements. The process is relatively straightforward, but identifying someone with a peculiar set of characteristics cannot be an easy task. Therefore, help from someone specializing in the matter might make a difference.
- Public job postings: You could also make a public job posting, just like you would with any other job opening in your enterprise. Just make sure that your job description is specific enough (something we’ve already covered), as well as that you offer just enough information to draw attention but without sharing too much.
- Referrals and word-of-mouth: Professionals on this level in your industry are rare, meaning some of your partners may know most of them by name. You can even ask your employees about financial specialists in companies that they’ve previously worked at. They might even have a contact you can use to get in touch.
Remember that it’s not about the method but the person and that nothing is preventing you from exploiting all three of these options. After all, the wider the net you cast, the bigger the catch. The key thing is that this person needs to be just right, so you shouldn’t be reluctant to go through a myriad of candidates and even renew the hiring cycle if no one meets your standards.
How do you conduct yourself during the negotiation?
You need to keep in mind the fact that you’re talking to a professional. You’re interviewing with someone who, even though interested in the station you’re offering, has other offers.
People with the skillset to become a CFO are always a rare commodity, which is why this negotiation is a two-way persuasion process. You’re not just trying to evaluate if they’re the right fit for you; you also need to convince them that you’re the right fit for them.
Start by clearly stating your offer. Prepare a comprehensive offer letter that outlines the entire compensation package. This should contain their base salary and bonuses, as well as other perks and incentives. You need to know your budget in advance in case where there’s a salary negotiation. Know how high you can go before negotiating.
While a CFO always has where to go, the truth is that their best-case scenario is great long-term employment. Give them a reason to trust in your enterprise. Why is your business so great? What ensures that you have the future?
To show that you’re a serious company, also discuss performance expectations. You’re not desperate; you expect them to lift their end of the couch (metaphorically speaking). After all, you need someone to do the work, not just bear the title and enjoy a hefty paycheck.
Ultimately, the qualifications of the CFO need to be in line with the rest of your company. You’re looking for someone you can afford and keep, as well as someone who can do the job you need them to. In other words, you need to figure out what you need and then devise a strategy to approach this individual and make them interested.