Why finance hires fail, and what it’s really costing you

Why finance hires fail, and what it’s really costing you

Here’s a conversation we have more often than we’d like. A business owner rings us six months after hiring a management accountant. The month-end is late, the numbers don’t quite reconcile, and the rest of the team is quietly picking up the slack. “We just picked the wrong person,” they say.

Usually, that’s not the whole story. Most finance hires that fail were shaky before the contract was signed.

WHAT A BAD FINANCE HIRE REALLY COSTS

Let’s be honest: most employers only count the salary. The real cost is much bigger.

Take a management accountant on £50,000. Once you add employer’s National Insurance and pension, six months in the wrong seat costs you well over £29,000 before you’ve replaced anyone. On top of that:

– Recruitment costs, twice. You pay to hire, then pay again to replace.
– Management time. Hours spent on extra supervision, difficult conversations and re-interviewing.
– Errors and delays. Late reporting, mistakes in the management accounts, and decisions made on shaky numbers.
– Team disruption. Your good people carry the extra workload, and that’s how you lose them.
– The empty chair. Weeks or months with no one in the role while you start again.

A figure often quoted is that a bad hire costs at least 30% of annual salary, and for senior finance roles it can be several times that.

WHY FINANCE HIRES GO WRONG

1. The job description was vague. “Management accountant” or “Financial Controller” can mean very different things in different businesses. If you’re not clear on whether you need a number-cruncher, a business partner or someone who’ll build your processes, you’ll struggle to find the right person.

2. The process was too slow. Good finance candidates rarely stay on the market long. If you take three weeks between interviews, your best candidate has probably accepted another offer.

3. The salary was off. Pay below the Yorkshire market and you’ll attract people who are settling, or who leave the moment a better offer arrives.

4. The flexibility was oversold. Plenty of employers say “we’re flexible” in the advert and then expect full-time office presence. Candidates, and especially working parents, notice within weeks. If you offer flexibility, make sure it’s real and agreed up front.

5. Technical skills were checked, but nothing else. A CV full of the right qualifications doesn’t tell you whether someone will communicate well with non-finance colleagues or cope with a small, fast-moving team.

6. Onboarding was an afterthought. Handing someone a laptop and a login isn’t an induction. A weak first 90 days is one of the most common reasons good hires walk away early.

7. The hire was rushed. Year-end is looming, someone has left, and you take the first decent candidate. Pressure makes people compromise, and compromises tend to cost more later.

HOW TO AVOID A BAD FINANCE HIRE

– Write down what success looks like in the first six months before you advertise.
– Agree your salary range and benefits against the real market, not last year’s.
– Decide on flexibility up front, and be honest about it.
– Keep your process quick, with clear next steps after every interview.
– Ask why someone wants to move. A candidate’s motivation tells you more than their CV.
– Plan the first 90 days before the start date.

GETTING IT RIGHT FIRST TIME

This is where a specialist recruiter earns their fee. We know the Yorkshire finance market inside out, from SMEs to larger firms, and we’ll tell you honestly when your salary, spec or process is going to cost you good candidates. We’d rather spend an hour getting the brief right than see you back on the phone in six months.

If you’re hiring a finance professional in Leeds, Harrogate, York or anywhere across West and North Yorkshire, get in touch on 0113 418 0877 or at hello@cgtalent.co.uk.

You can also find out how we work on our Looking to Hire page.