Top 5 errors internal hiring managers make with executive recruitment in banking & finance

You will not notice the slow leaks until the senior hire walks out the door.

Executive recruitment in banking and finance is quietly brutal. Small oversights in briefing, sourcing, process design, assessment and confidentiality add up. They cost time, money and reputation, and they wreck the strategic intent behind senior appointments. You may already be making one or two of these mistakes without realising the full consequences. How much more could you achieve if your next C-suite or MD hire was the exact leader you needed, first time? Are your internal processes protecting the role, or quietly undermining it?

This column draws on industry evidence and Warner Scott’s market experience to expose five common but overlooked errors. You will find why each mistake matters, true-to-life examples that will make the risk concrete, and practical fixes you can apply immediately to raise the odds of a successful senior appointment. For context, industry commentary and executive search analysis place the cost of a bad executive hire somewhere between five and fifteen times the role’s annual salary, and other studies put the figure at over 200 per cent of annual pay when recruitment, onboarding and opportunity costs are included. For a focused perspective on these costs and common pitfalls, see the Warner Scott analysis of costly recruitment mistakes and their guide to common errors in finance executive searches.

Table of contents

1. Mistake 1: Poorly defined role and outcomes
2. Mistake 2: Overreliance on internal networks and advertised channels
3. Mistake 3: Rushed or inconsistent hiring process
4. Mistake 4: Poor assessment of cultural and leadership fit
5. Mistake 5: Underestimating confidentiality and candidate experience

Mistake 1: poorly defined role and outcomes

Why it happens

You are under pressure. Business leaders want someone yesterday. HR wants a template job description to drop into the ATS. You reuse an older spec and send the advert live. The role spec lists responsibilities and qualifications, but not the outcomes that will define success. That happens because stakeholders skip the hard conversation about priorities, constraints and authority.

Why it is problematic

Without measurable outcomes, every shortlist comparison becomes subjective. Assessments focus on CV ticks rather than on whether a candidate will deliver the transformation or protect the balance sheet. You end up with long interview cycles, stakeholder disagreement, scope creep and, at worst, an appointment that fits the job title but fails the business. Given that poor senior hires can cost many multiples of annual salary, these downstream consequences are expensive and visible to boards.

Tips and workarounds

• Write an outcomes-focused brief. Define three strategic priorities for the first 12 months, and two-year impact metrics. State clearly the decision rights and the authority the role will hold, as well as the key stakeholders.
• Run a pre-search alignment workshop. Gather the business head, risk, compliance and a senior client-facing stakeholder for a 60-minute calibration. Capture agreed success criteria and sign off the brief with named owners.
• Use a role blueprint template. Include reporting lines, budget responsibility and nondiscretionary duties. A disciplined brief keeps every assessor on the same page and speeds consensus.
• Translate outcomes into interview scoring. Convert the three strategic priorities into interview scorecards so every assessor evaluates candidates against the same success outcomes.

Real-life example

A London investment bank reused a generic MD job description and shortlisted three candidates with similar pedigree. Only after hire did teams realise the role needed a proven track record in leading a digital-led distribution strategy. The bank relaunched the search six months later at double the cost of the original hire and lost momentum in a strategic market pivot.

Mistake 2: overreliance on internal networks and advertised channels

Why it happens

Internal recruiters naturally use the tools on hand. Your ATS, employee referrals and advertised roles offer speed and low direct cost. You trust your internal network. But executive-grade talent behaves differently. Senior people are often passive, and they rarely apply to public adverts. You might be filling a pipeline rather than building a market view.

Why it is problematic

Relying on those channels yields homogenous candidate pools and misses passive, high-calibre talent. It increases the risk of unconscious bias and reduces market coverage. It also risks exposing a sensitive search if an advert attracts public attention. For strategic and confidential roles, that is a real business risk and can damage client relationships.

Tips and workarounds

• Combine channels. Use internal sourcing for active candidates, and add market mapping, discreet headhunting and retained search to reach passive candidates.
• Create a market map. Identify target organisations, likely incumbents and feasible relocation or sector moves. A mapped list lets you prioritise outreach and measure coverage.
• Partner when discretion matters. Consider a retained search partner for immediate access to passive, senior talent and for discreet approaches. Warner Scott explains how continuous engagement with senior candidates opens doors that adverts cannot and why retained models sometimes accelerate the right hire.

Real-life example

A regional bank advertised a senior treasury role and received several applications, none of which had worked in the specific markets required. A retained search partner produced three passive candidates with prior regional market mandates. One was the clear strategic hire, with the necessary network and product knowledge that the advertised applicants lacked.

Mistake 3: rushed or inconsistent hiring process

Why it happens

Operational pressure, shifting stakeholder availability and the temptation to fill a gap quickly push you to rush. You skip assessment stages, hold inconsistent interviews and make ad-hoc decisions. Time-to-fill becomes the driver, not hire quality. You think speed equals relief, but you trade quality for certainty.

Why it is problematic

Rushed processes create poor candidate experiences, uneven assessment and a higher probability of a pressure hire. Top candidates will withdraw if the process lacks clarity or appears disorganised. You lose bargaining leverage and you may appoint an available candidate rather than the right candidate. In regulated environments, this can create audit findings when due diligence and reference checks are insufficient.

Tips and workarounds

• Agree the process and timeline upfront. Define screening calls, stakeholder interviews, assessment scenarios and reference checks. Share the schedule with candidates to set expectations and show professionalism.
• Use a scoring matrix aligned to the role blueprint. Assess technical skills, leadership behaviours and cultural fit with standardised criteria to ensure fair comparison.
• Appoint a single process owner. This person coordinates stakeholders, drives deadlines and keeps the candidate journey fluid. They act as the single version of the truth for candidate availability and timing.
• Build contingency milestones. Plan for stakeholders who may be unavailable and define what happens if a critical decision-maker is absent, so you do not hasten the final decision without the right input.

Real-life example

A fintech firm rushed an appointment while the CFO was on leave. The new hire failed to integrate because key stakeholders had not been involved in the final interview. The subsequent replacement strained budgets and morale and doubled the total cost of hiring that position.

Mistake 4: poor assessment of cultural and leadership fit

Why it happens

Hiring teams focus on technical competence, regulatory experience and credentials. They assume leadership and culture fit will follow. That assumption ignores how leadership style, decision-making and stakeholder management determine long-term success, particularly at senior levels where influence matters more than technical output.

Why it is problematic

A technically excellent hire who cannot lead in your culture damages performance and retention. Team dynamics suffer and integration is slow and costly. You rarely spot this at interview unless you structure the assessment to probe behaviour under pressure and stakeholder management skills.

Tips and workarounds

• Design behavioural interviews and scenario-based assessments. Use real business challenges and ask candidates how they would act, then probe for evidence of previous outcomes.
• Involve multiple stakeholders. Include peers, potential direct reports and a client-facing leader to broaden perspectives on fit.
• Use psychometric or leadership profiling selectively. These tools add objectivity and can corroborate interview impressions, but only when interpreted by an experienced assessor.
• Run a stakeholder rehearsal. Present the finalist to a mock committee that mirrors how they will operate, and test how the candidate navigates competing priorities and regulatory constraints.

Real-life example

An asset manager hired an MD for portfolio construction based on technical acumen. The hire struggled with stakeholder consensus and left within 18 months. A scenario-based assessment and a wider panel interview would have surfaced the leadership mismatch before the offer was made.

Mistake 5: underestimating confidentiality and candidate experience

Why it happens

You assume senior candidates expect slow processes or that confidentiality is purely an HR responsibility. Use broad internal communications, or you let multiple people contact a candidate. You do not treat the approach as a relationship-building exercise. In reality, senior candidates view approaches as reputational signals about how they will be treated inside the organisation.

Why it is problematic

Confidentiality leaks create reputational damage, spook passive candidates and jeopardise the search. Slow or clumsy communication alienates top performers who value discretion and respect. You may lose candidates to counter-offers or to competitors who manage the process better. Legal and regulatory consequences can also follow if confidentiality is mishandled. Arbitration digests and professional reports highlight how sensitive approaches can escalate into disputes, and how reputational harm in professional services hiring can be enduring.

Tips and workarounds

• Implement strict confidentiality protocols. Use anonymised role briefs for first outreach, NDAs where appropriate and a single point of contact for candidate communications.
• Treat candidate experience as you treat client experience. Provide clear timelines, timely feedback and respect for confidentiality at every step.
• Use a retained partner for sensitive searches. Experienced search partners preserve relationships and handle discreet approaches professionally, protecting both your brand and the candidate’s interests.
• Prepare for counter-offers. Build retention or transition plans that address the most common reasons senior candidates defer moves, such as role clarity, incentives and line of sight to impact.

Real-life example

A bank advertised a senior hiring need internally and the media picked up the change. The current role holder was alerted and resigned abruptly, creating a regulatory filing and client concern. The search became public and several passive candidates declined to engage.

To understand the legal and reputational dimensions in more detail, consult the arbitration digest discussing disputes arising from senior hiring practices and related professional reports that document reputational risk in professional services hiring.

Key takeaways

• Agree outcomes before you start: write three priorities and two-year impact metrics to focus assessment and reduce subjectivity.
• Diversify sourcing beyond adverts: market map and use discreet headhunting to reach passive candidates and broaden talent coverage.
• Structure the process and appoint a process owner: use a scoring matrix to enable objective comparison and improve candidate experience.
• Assess leadership and cultural fit explicitly: include scenario-based interviews and multiple stakeholder feedback to reveal real-world behaviours.
• Protect confidentiality and candidate experience: anonymise early outreach, maintain a single point of contact and consider a retained partner for sensitive searches.

FAQ

Q: How much can a bad executive hire cost my organisation?
A: A bad executive hire can be far more expensive than you think. Industry commentary suggests the cost can be between five and fifteen times the role’s annual salary in lost revenue, disruption and rehiring costs. Other studies from HR bodies have quantified costs at over 200 per cent of annual salary when you add recruitment, onboarding and opportunity costs.

Q: When should I use a retained search partner rather than internal hiring?A: Use a retained partner when the role is strategic, confidential or requires access to passive, senior talent. Retained partners provide market mapping, discrete outreach and a consistent candidate experience. They also offer objectivity during assessment and reduce time-to-hire by leveraging long-term relationships. If the role impacts client relationships or regulatory exposure, the retained model preserves discretion and reduces risk.

Q: How can I assess leadership fit without making interviews subjective?
A: Standardise assessment with a scoring matrix aligned to the role’s outcome brief. Use structured behavioural questions and scenario-based exercises that replicate real challenges. Involve a diverse panel, including peers and potential direct reports, and consider psychometric profiling for additional objectivity. Collate feedback consistently and weight scores against agreed success criteria.

Q: What practical steps protect confidentiality during a senior search?
A: Limit internal dissemination of the role brief, use anonymised job descriptions for initial outreach, and require NDAs when appropriate. Appoint a single, senior point of contact for candidate communications to avoid multiple inconsistent messages. If the search is especially sensitive, engage a retained search partner who can approach passive candidates confidentially and manage relationship nuances. For legal context on disputes related to senior hiring, refer to arbitration digests and industry reports that examine these issues in detail:

About Warner Scott

Warner Scott is a premier global executive recruitment specialist based in London and Dubai, focusing on Banking & Investments, Accounting & Finance, and Digital & Fintech. With over 18 years of experience, they have built strong relationships with top-tier banks, financial institutions, and accountancies. Their unique value lies in these long-standing relationships with hiring managers and internal recruiters, a vast network of candidates, and continuous engagement. This combination places them uniquely in the market, trusted by both talent and hiring managers. Their evolved perspective allows them to precisely understand recruitment needs and pinpoint senior C-suite, EVP, SVP, and MD-level hidden, ready-to-move talent that other recruiters cannot access.

Warner Scott delivers tailor-made recruitment solutions for international and regional clients, functioning as true business partners. Their comprehensive services cover retained, exclusive, and contingency searches, as well as permanent, contract, and interim staffing.

In Banking and Investments, they partner with international and regional banks and investment houses in London and the Middle East, including conventional and Islamic banks. They cover areas such as Private Equity, Asset Management, Investment Banking, Treasury & Global Markets, Wholesale Banking, Digital & Technology, Risk Management & Compliance, and C-Suite Appointments.

In Accounting and Finance, Warner Scott works alongside The Big 4 and Top 50 accounting firms, along with globally recognised consultancies. They specialise in Audit, Risk & Compliance, Tax (Private Client, Expatriate, and Corporate Tax), Corporate Finance, Transaction Advisory, Restructuring, Turnaround, Insolvency, Forensic Accounting, Disputes & Investigations, Forensic Technology, eDiscovery, Cyber Security, and Management Consultancy.

In Digital & Fintech, they assist large banks, digital startups, and innovative Fintechs in areas such as FinTech (AI, Blockchain, Cloud Computing, Big Data), InfoSec/Cybersecurity (Application, Infrastructure, Network, Cloud, IoT securities), Digital Leadership, Digital Transformation, Software Development, IT Project/Program management, Data Science & Analytics, Data Privacy, and Data Architecture.