The tech industry is at the forefront of the recession. The industry is experiencing a wave of extensive layoffs with companies like Spotify, Meta, and Google cutting thousands of jobs. Slow growth and increasing interest rates have led to tech companies laying off over 70,000 employees in the last year.
Today’s economic uncertainty and challenges are why tech businesses are turning to CFO headhunters to find the financial professionals to steady the ship. Hiring a headhunter is a cost and time-effective option that enables companies to tailor the recruitment process to find the candidate with the exact skills and experience their company needs.
Recruitment agencies like FD Capital are expanding their services with dedicated CFO headhunters, empowering tech companies of every size to hire an interim, remote, or full-time CFO.
Why Tech Companies are Recruiting CFOs
Tech firms are continuing to recruit CFOs, even in the face of widespread layoffs. Economic uncertainty and the prospect of a recession are leading tech companies to reduce their spending, put long-term projects on hold, and re-think growth strategies. It’s exactly why tech companies are recruiting CFOs.
Today’s CFOs are earning the nickname of ‘Chief Future Officer’, interacting with every aspect of the company to put it on a steady course. CFOs specialise in areas as diverse as debt refinancing, supply chain resilience, and investor relations.
Tech companies are increasingly viewing their CFOs as the second-in-command and an advisor uniquely placed to future-proof and restructure the organisation. CFOs aren’t only hired during times of economic prosperity. Often, they’re an essential hire for companies as they reach tough waters.
CFOs have the contacts, tools, and experiences to enable tech companies to navigate economic challenges and changing consumer behaviour. It’s why the position of CFO is one of the most sought-after c-suite roles with tech companies continuing to engage headhunters.
‘Wartime’ CFOs can enable tech companies to financially survive these periods or identify areas of growth opportunities if they have stable cash flow.
Why Tech Firms are Turning to Headhunters
The tech hiring space is a tale of two sides. While companies are making headlines with widespread layoffs, a recent study by Mercer suggests half of all companies are planning to increase their recruitment budget for 2023.
Tech companies still need to fill the top seats at their executive table. The expanding role of CFO has led to increasing flexibility with start-ups and scaling companies beginning to recruit CFOs on a part-time and remote basis.
Companies are increasingly using headhunters to recruit CFOs who can build a team, boost employee retention, and lower recruitment costs. Recruiting with the help of headhunters offers companies several benefits compared to traditional recruitment avenues.
- Shorter Recruitment Times
Tech companies don’t have time on their side. The changes in the industry and economic uncertainty are why tech companies are turning to CFO headhunters. What differentiates headhunters from traditional recruiters is their proactive strategy, enabling them to work on short deadlines by streamlining the recruiting process. Headhunters with an extensive network of candidates can provide a potential shortlist with a short turnaround.
Headhunters also provide tech companies with confidentiality, especially if they’re recruiting after a difficult exit or want to avoid public attention.
- High-Quality Candidates
Headhunters within the technology and financial industry have unique access to high-quality candidates who aren’t exposed to traditional recruitment processes. These high-quality candidates aren’t actively applying for roles or engaging with job postings.
Headhunters have a close relationship with some of the top CFOs in the industry, giving them access to approach them about potential career opportunities. This expanded talent pool includes candidates with the skills and experience that tech businesses at every stage of development are seeking. Headhunters are also more likely to have access to candidates with a proven track record within the industry.
- Risk Management
Not every candidate is the right fit. Tech businesses are turning to CFO headhunters as a form of risk management. The processes headhunters utilise lower the risk of poor candidate selection as they know the specific requirement the company has. Headhunters search for potential candidates who have the skills and experience to fit into the company culture and long-term strategy.
Headhunting CFOs vs. Traditional CFO Recruitment
Tech companies are increasingly choosing to use headhunting services to hire CFOs, rather than choosing traditional CFO recruitment agencies. Both options offer tech firms different strategies to suit their recruitment goals. Headhunting is ideal for tech businesses on a tight deadline or who need a public-facing CFO.
The main difference between headhunters and traditional recruiters is that headhunters adopt a proactive hiring strategy, whereas traditional recruiters are reactive. Tech companies hire headhunters to reach out to financial executives, particularly those who are not actively seeking new positions. Headhunters provide tech firms with access to high-quality candidates and a higher chance of finding a CFO who can fit into their company culture.
Headhunters are ideal for recruiting senior positions, including c-suite roles. Tech companies can outline exactly what they want in a CFO. By comparison, traditional recruitment focuses on reactive strategies, including widely advertising the role across various platforms. While traditional recruitment relies on advertising, headhunters rely on networks.
What Headhunters Look for in Tech CFOs
Headhunters understand the tech industry and the demands facing CFOs. It’s why tech businesses are turning to CFO headhunters to build their c-suite team. Tech firms need financial executives who can provide the leadership to meet the changing challenges of the industry, including the current economic instability.
CFOs serve a dual function. They’re responsible for the company’s financials and crucial in protecting assets. The role of CFO has evolved beyond number crunching to ensuring the company has the finances and assets in place to realise its potential. Technology enables CFOs to capture KPIs and utilise real-time data to make better decisions.
Today’s CFOs require more soft skills and diverse experience than their predecessors. Each technology company will have its own roles in mind for its CFO. Some view their CFO as the CEO’s second-in-command, while others treat their CFO as a financial translator who engages with the board and potential investors.
Tech businesses are turning to CFO headhunters to hire financial executives who can navigate their company through the current economic instability.