Hiring is getting harder as CFO wish list grows

It’s becoming harder and harder to hire a CFO. The limited talent pipeline, retirements, and competition from startups and private equity are squeezing the already tight candidate pool. At the same time, as the CFO role has gotten more complex, company expectations of candidates have risen, making it harder and more time-consuming to find new CFOs.

Some organizations are turning to temporary fixes as they wait for the perfect CFO match. Demand for interim CFOs has jumped in recent years, becoming the most requested temporary C-suite leadership position, according to a report from executive search firm Heidrick & Struggles.

Hiring an interim CFO “does allow a little bit more breathing room for an organization to run a full and thorough [search] process,” Alyse Bodine, a partner in Heidrick & Struggles’ global financial officers practice, told CFO Brew.

According to Ash Athawale, senior group managing director in Robert Half’s executive search practice, it’s taking his firm 20% longer to find new CFOs for its clients. His company completes most of its CFO hires in 60 to 90 days, but the time-to-hire for a CFO began lengthening in 2023, he told us.

So why is it getting harder to hire a CFO? And what can aspiring CFOs do to stand out?

Give us more. The CFO role has been evolving and growing for years. In a recent Heidrick & Struggles survey, two-thirds of CFOs said “new responsibilities have been added to their team’s plate since the beginning of the pandemic.” These include everything from cost cutting strategies to evolving disclosure requirements to exerting influence internally. And that’s before you even factor in the strategic advisory role CEOs now expect from their CFOs.

“That wish list is just growing every quarter,” Athawale said.

According to both Athawale and Bodine, their clients want CFOs to have specific education and certifications, experience in their industry, a broader remit in a general management role, and experience overseeing operations—and be comfortable leading strategy. Given that lengthy list, the availability of suitable candidates is “constrained,” as Bodine puts it.

“You’re aligning both of these two things [financial experience plus strategy], making it tougher to find the right candidate,” Athawale said.

And of course, now there’s AI. Companies want a CFO who has experience, if not with AI, at least with managing a company through a period of rapid transformation.

“Organizations are looking to attract finance execs who are early adopters,” Bodine said.

More empty seats. Among Fortune 1000 companies, CFO turnover had already reached 96% of last year’s total by the end of September, according to internal data from Heidrick & Struggles.

Retirements account for 22% of that turnover. Adding CFOs who transitioned to board roles pushed that number to 54% in 2024, according to Russell Reynolds’ CFO Turnover Index. And those who aren’t retiring are staying put, Athawale says. An uncertain and depressed job market has created “stickiness,” he said. So there are more vacancies, but the people qualified to fill them aren’t jumping ship.

So how do CFOs make the most of this job market? If companies have more boxes to check, Athawale suggests aspiring CFOs fulfill those wish lists by continuing theiryour education. For example, candidates looking to bolster their resumes can take seminars or webinars on AI and other skills. He tells candidates to highlight their achievements in the cover letter to make it easy for companies to check things off.

“For anybody who tells you that nobody reads the cover letters anymore, they’re wrong. People do,” he said.

Athawale says candidates can stand out by “expediting the process for your future employer.” He advises CFOs to be organized: Have six references ready. “Make sure your resume is up to date and it matches your LinkedIn.” Candidates with documents, resumes, and references ready to go will be in a stronger negotiating position, he added. Even better if they can move up notice time at their current employer.

“Because what does the company want? To get it done quick. Without cutting corners,” Athawale said.

Compensation mismatch is another reason hiring can stall out, according to Athawale. Clients and candidates can sometimes have quite different expectations of salary.

“[Companies] rush to market, and then they meet a few candidates, and they’re like ‘Oh, wait, their compensation is way higher than what we were thinking,’” he said.

If the last CFO was in the role for 20 to 30 years, a company may not be aware of what the going market rate is, and Athawale has to educate them, he said. And these days, most CFOs only stay in the role for around six years, according to Russell Reynolds’ CFO Turnover Index.

“Being prepared and being organized for your next step is what CFOs need to do,” Athawale said.