Contract vs permanent hires: which is better for high-stakes executive roles in finance?

*”To contract or not to contract, that is the question.”* When it comes to filling high-stakes executive roles in finance, the decision between contract and permanent hires is pivotal. The choice has far-reaching implications for the strategic direction, stability, and agility of an organization. But which is the superior option?

Stability vs Flexibility

Permanent positions are synonymous with stability. They offer the prospect of long-term engagement and the development of deep institutional knowledge. Executives in permanent roles can drive long-term strategies and foster a stable culture within the finance department . On the other hand, contract hires offer flexibility. They enable organisations to respond to market dynamics and evolving business needs with agility. Contract executives can be brought in to manage specific projects or navigate transitional periods with specialised expertise.

Contract vs permanent hires: which is better for high-stakes executive roles in finance?

Cost Considerations

Contract employees often command higher rates than their permanent counterparts due to the short-term nature of their roles and the lack of traditional benefits such as retirement plans and paid time off. However, the overall cost to the company may be lower when considering the absence of long-term financial commitments and benefits associated with permanent employees .

The Merits of Confidentiality in Recruitment

High-level finance roles demand a high degree of confidentiality and discretion, particularly during the recruitment process. This is where the services of a specialist recruitment agency can be invaluable, whether sourcing contract or permanent executives. Such agencies are adept at navigating the sensitivities involved in hiring for these critical positions .

Strategic Alignment and Organisational Needs

The decision between contract and permanent hires should be aligned with the organisation’s strategic objectives. For roles that are central to the company’s core functions and long-term success, a permanent hire is often more appropriate. This ensures continuity and the cultivation of leadership that is invested in the company’s future. Conversely, contract hires may be more suitable for roles associated with specific initiatives or change management, where their finite tenure aligns with the project’s lifecycle.

The Verdict

After considering the stability and long-term strategic benefits of permanent hires against the flexibility and project-specific expertise offered by contract hires, it appears that for high-stakes executive roles in finance, permanent hires hold the edge. The nature of executive responsibilities, which often include setting long-term financial strategies, overseeing complex regulatory compliance, and leading teams through periods of growth or restructuring, suggests that the continuity and deep organizational commitment of a permanent executive are invaluable.

Contract vs permanent hires: which is better for high-stakes executive roles in finance?

However, this is not to dismiss the strategic use of contract hires. In certain scenarios, such as interim leadership during a period of transition or for the execution of a time-bound strategic initiative, contract executives can provide the necessary expertise without the long-term commitment. The key is to assess the specific needs of the role and the organisation’s strategic goals before making a decision.

In conclusion, while both contract and permanent hires have their place in the recruitment strategy of a finance department, permanent hires are generally more suitable for high-stakes executive roles. The depth of engagement and potential for long-term impact make permanent executives the preferred option for roles that shape the financial backbone of an organisation.

Are you positioned to make the right hiring decision for your organisation’s financial leadership? Consider the long-term implications and strategic alignment of your next executive role before committing to a hiring model.

About

Warners 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.

Warners 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, Warners 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.

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