October 10, 2014
It takes 30-33 months for external recruits to transition into senior financial roles. That’s a lot of lost productivity and wasted salaries. And yet, 60% of CFOs are recruited externally.
Recruiting externally not only costs money in advertising, but also in the time it takes out of existing staff’s day to review applications and interview candidates. Added to this is the time it takes for a new hire to become familiar with the company, and complete the on-boarding – no matter how great of a match they are.
Promoting internally delivers someone already familiar with the organisation. This is someone who will take far less time to transition to a new role – and may even hit the ground running if they’ve been successfully mentored by their predecessor. Someone who has been given the exact mix of skills you want for the role.
Growing Your Own CFO isn’t easy. You’ve got to identify the right person with the right skills and experience. You’ve got to ensure the existing CFO has the time and inclination to mentor them –80% of CFOs agree that succession mentoring is their responsibility, but only 50% have the time. But it pays off. Promoting internally saves time, money and retains talent that may otherwise go elsewhere.
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