8 mistakes to avoid when hiring for senior finance positions
Are you confident you’re looking for the right qualities in your next finance leader? How do you balance technical skills, culture, and long-term vision? Have you ever wondered if you’re unintentionally sabotaging your own hiring process before a candidate even walks through the door?
Today, let’s break down the eight mistakes every organisation must avoid when hiring for senior finance positions. Along the way, you’ll find out why overvaluing industry experience can backfire, why rushing to fill a role might cost you dearly, and how focusing only on the now can derail your company’s future. But more importantly, you’ll walk away with concrete, actionable steps to transform your approach and attract the leaders your company truly deserves.
Here’s what we’ll cover:
- Overvaluing industry-specific experience
- Relying only on finance staffing agencies
- Prioritizing technical skills while ignoring soft skills
- Overlooking cultural fit
- Rushing the hiring process
- Failing to use hiring as a strategic opportunity
- Ignoring long-term company goals
- Underestimating the weight of the executive role
Read on, and turn your next senior finance hire into your company’s greatest asset.
1. Overvaluing industry-specific experience
Challenge
You might think the best CFO is someone who already knows your sector inside out. It feels safer, and in some industries, familiarity can save time during the onboarding process. But here’s the catch: fixating on industry experience can mean you miss out on candidates with stellar leadership, adaptability, and a fresh perspective.
Why the problem exists
Traditional wisdom says that sector knowledge is a shortcut to success. The truth is, too much emphasis on this can lead to a narrower candidate pool and groupthink. According to CCY’s analysis, companies that prioritise only sector familiarity often miss candidates who could spark innovation.
Take, for example, the case of a manufacturing company that hired an experienced CFO from the software industry. Instead of clashing with the old ways, this new leader introduced agile budgeting and digital finance tools that reduced costs by 12% in the first year.
The fix
Broaden your criteria. Focus on proven track records in financial leadership, adaptability, and strategic thinking. Create interview scenarios that allow candidates to demonstrate how they’ve thrived in unfamiliar environments. This way, you uncover leaders who bring more than the standard playbook and help your business evolve.
2. Relying solely on finance staffing agencies
Challenge
It’s tempting to pass the entire recruiting process to a staffing agency. They promise access to top-tier talent, but if you don’t communicate your unique needs, you’ll end up with candidates who simply check boxes without truly fitting your company.
Why the problem exists
Agencies work with multiple clients, and unless you give them a clear roadmap, they’ll default to generic criteria. As HSP Inc points out, this misalignment often shows itself in poor long-term hires and mismatched expectations.
The fix
Use agencies as partners, not outsourcers. Hold kick-off meetings. Share your vision, challenges, and specific goals. Give feedback on candidate profiles, and insist on regular check-ins. The more agencies understand your business, the better the candidates they’ll deliver. For example, partnering with Warner Scott, an executive recruitment consultancy specialising in senior finance roles, ensures that you’re not just filling a seat, but finding a leader who aligns with your organisation’s values and future goals. By working closely with a trusted recruitment partner, you ensure that the hiring process is strategic and impactful, going beyond just industry experience or technical skills.
3. Prioritising technical skills over soft skills
Challenge
Finance leaders must be technical wizards, right? But what happens when your CFO can build a complex model but cannot rally a team or steer through conflict?
Why the problem exists
Technical skills are easy to measure. Soft skills like empathy, influence, and communication are harder to quantify, so they get sidelined. Yet, when Talent Finance surveyed executive recruiters, over 70% admitted hiring failures were often rooted in poor interpersonal fit, not technical incompetence.
The fix
Incorporate behavioural interviews and 360-degree references. Ask candidates for real examples of team leadership, crisis management, or negotiation skills. Bring in key department heads to assess chemistry and communication. Your next finance leader should inspire and connect, not just calculate.
4. Ignoring cultural fit
Challenge
You’ve got a technically gifted candidate, a resume packed with achievements, but will they thrive in your organization’s culture? If the answer is no, you risk high turnover and morale problems.
Why the problem exists
Cultural fit is often viewed as an intangible “nice-to-have.” However, Mesh Payments reports that 46% of new executive hires fail within eighteen months, and poor culture match is a top reason. One real-world example: a high-profile CFO joined a fast-paced startup from a conservative corporate giant, only to leave six months later. The mismatch cost the company both time and reputation.
The fix
Define your core values. During interviews, ask questions about work style, decision-making, and adaptability. Consider cultural assessments or working sessions with your existing team. Make sure you’re not just hiring a resume, but a leader who will galvanise your organisation’s spirit.
5. Rushing the hiring process
Challenge
The pressure to fill the seat is real, especially if your finance department is stretched thin or facing regulatory deadlines. But speed can be the enemy of quality.
Why the problem exists
When timelines are tight, corners get cut. You might skip reference checks or settle for the “best available” instead of the “best fit.” As SPMB warns, rushed decisions often lead to candidates who look good on paper but underperform in reality.
The fix
Set realistic timelines for critical hires. Build in stages for multiple interviews, assessments, and feedback. Even if the process takes 25% longer, the cost of a bad hire-estimated by Gallup at up to two times the role’s salary-far outweighs the initial inconvenience.
6. Not using the hiring process as a strategic opportunity
Challenge
Are you just filling a vacancy, or are you leveraging this hire to move your business forward? Many organizations default to the former, missing a chance to solve deeper problems.
Why the problem exists
Hiring is often seen as a transactional process, especially when a leader leaves unexpectedly. Yet, every executive search is a chance to re-examine company needs, challenge the status quo, and rethink team structure. According to SPMB, businesses that ask bigger questions during recruitment end up with leaders who push growth well beyond their core responsibilities.
The fix
Before starting the search, work with your executive team to pinpoint current pain points and future goals. Build these into the job description and interview process. Seek candidates who bring not only technical ability, but a vision aligned with where you want the company to be in two, five, or even ten years.
7. Overlooking long-term company goals
Challenge
You need someone now. But if you only focus on present needs, you risk hiring someone who will be out of sync as your business grows.
Why the problem exists
Immediate pain points-like a busted budget cycle or looming audit-pull focus away from long-term vision. HSP Inc found that companies often end up rehiring within two years because they failed to hire leaders who could adapt to future shifts in business strategy.
The fix
Look at your three-to-five-year plan. Does your candidate have a track record of scaling with a business or steering through transformation? Use scenario-based interviews to gauge their ability to handle change. A great finance leader grows with you, not apart from you.
8. Failing to recognise the importance of the executive role
Challenge
Some see the CFO or top finance job as just another management position. This underestimation can lead to a watered-down process that fails to attract or vet the best candidates.
Why the problem exists
Companies sometimes treat finance leadership as a back-office function, ignoring its strategic impact. Organisations who invested in a rigorous process for these roles saw up to 20% better financial outcomes and improved investor trust.
The fix
Treat your finance executives as pivotal hires. Invest in assessment tools, leadership evaluations, and even executive onboarding processes. When you recognize the full scope and impact of these roles, you attract, hire, and retain people who drive business results.
Key takeaways
- Broaden your search beyond industry-specific experience to find adaptable leaders with fresh ideas
- Prioritise both technical and soft skills when assessing candidates for senior finance roles
- Incorporate cultural fit assessments and behavioural interviews to safeguard long-term retention
- Take your time-avoid rushing the hiring process, even under pressure
- Align every executive hire with your company’s future goals and overall strategy
Avoiding these eight mistakes is not about making a perfect hire every time. It’s about stacking the odds in your favour, ensuring that every person you bring into your senior finance team has the skills, mindset, and vision to elevate your business. The next time you sit down to map out your hiring process, ask yourself: Are you considering the bigger picture? Are you willing to pause and rethink your criteria? And, most importantly, what kind of leader does your company need to thrive in the years ahead?
FAQ: Avoiding Common Mistakes in Hiring for Senior Finance Positions
Q: Should I prioritise industry-specific experience when hiring for senior finance roles?
A: While industry experience can be beneficial, overvaluing it may cause you to overlook candidates with strong financial acumen and adaptability. Focus on core competencies, leadership, and the ability to bring innovative perspectives to your organisation.
Q: How important are soft skills compared to technical skills in senior finance recruitment?
A: Soft skills are just as important as technical expertise. Senior finance professionals must excel in communication, leadership, and emotional intelligence to effectively lead teams and fit into your organisational culture.
Q: Is relying solely on finance staffing agencies a good strategy?
A: Relying only on agencies can lead to mismatches if your needs and long-term goals are not clearly communicated. Use agencies as partners, but ensure active involvement and clear communication to align candidates with your company’s vision.
Q: Why is assessing cultural fit crucial in the hiring process?
A: A strong cultural fit enhances employee satisfaction and retention. Even highly skilled candidates may underperform or leave if they do not align with your company’s values and work environment. Always evaluate cultural fit during recruitment.
Q: What are the risks of rushing the hiring process for senior finance positions?
A: Rushing can result in poor hiring decisions and increased turnover. Take the time to conduct thorough interviews and assessments, ensuring candidates meet both the technical requirements and align with your company’s culture and strategic goals.
Q: How can I ensure my hiring process supports long-term company objectives?
A: Align recruitment with your organisation’s future goals by clearly defining the strategic impact you expect from the new hire. Consider how candidates can address current and upcoming business challenges, ensuring their vision matches your company’s direction.