The FD Capital Recruitment

GUIDE TO HIRING
an FD or CFO

020 3287 9501 | www.fdcapital.co.uk

 CONTENTS

Why hire an FD or CFO 3

Why Recruit an FD or CFO? 3
What Can an FD or CFO Do for Me? 4
What Skills Should I Look for in a CFO
or FD? 5
What is a Typical Salary of an FD
or CFO in London and the West
Midlands? 6

What responsibilities should an FD or

CFO have? 9
What to look out for during the
recruitment process 10
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WHY HIRE AN FD OR CFO?

If you’ve landed on this guide, the chances
are that you’re a business owner, CEO, or
MD that is looking for help with hiring a
CFO or Finance Director that works for your
business needs.

Hiring an FD or CFO means that you can

have a dedicated person on your team to
deal with the financial side of your business.
Not everyone who starts a business
comes from within the industry or has the
knowledge to do things like forecasting or
troubleshooting. With an FD, you get to take
advantage of their skills and experience to
get your business back on track or smash
your growth goals.

The role of FD or CFO is as much about

strategy and planning as it is about
monitoring the company’s cash flow. For
any company to implement a new strategy,
you need to have someone on your team
with the specialist skills and knowledge to
access your current systems and implement
alternatives.

Bringing an FD on board is a major decision

that you want to get right. Our guide
is designed to help you make the right
decision for you and your business.

WHY RECRUIT AN FD OR CFO?

The position of CFO or FD is one of the most versatile in any company. Their role is to
help you meet your financial goals and scale up your business, whether it’s through
fundraising or company expansion.

You might decide it’s time to recruit a CFO or FD if you want help with fundraising
through government programs or private investors. If you have a merger or acquisition
on the horizon, a CFO can ensure the transition is streamlined and runs smoothly. One
reason companies choose to recruit an FD is that they are planning to enter a new
niche or want to expand their market share in an existing one.
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Some of the key benefits provided by a CFO or FD include:

Insights into company performance to improve profits.

Introduces better controls and systems.

Improves cash forecasting and management.

Utilizes forecasting, modelling, and planning.

Increases the company’s credibility with external parties, including banks

and PE houses.

Brings experience and expertise in a niche field.

Allows your company to plan for the future and formalize business
strategy.

Recruit skilled employees to up-scale your business.

WHAT CAN AN FD OR CFO DO FOR ME?

You might be wondering what a CFO or FD could do for you as a business owner or MD.
Adding an FD to your team can be a gamechanger for your company and how you operate
day-to-day.

Having an FD on board can free up your time, as they’ll oversee all the financial aspects of
your business that might otherwise distract you from other important elements. When
an FD can analyse your performance, they can implement systems that will boost your
company’s performance and potentially save you money long-term.

Most SMEs choose to bring an FD on board as they don’t have a finance department. In this
scenario, having a CFO or FD can streamline the processes within your business. Whether
it’s making the accounting process easier or implementing systems, your FD can help you
save time or money daily.

The manner of their job means that CFO or FDs can have difficult conversations on your
behalf, whether it’s a contractor failing to pay on time or a difficult customer. One of their
primary responsibilities is to help you manage your cash flow.

When you have a CFO or FD, they should be one of the most senior employees within your
company. As they oversee your finances, you can involve them in the everyday decision-
making process to help you manage your funds while hitting your goals. If you have
ambitious goals for your company’s future, having an FD on board can help you implement
the strategies you need to achieve them.
 5

WHAT SKILLS SHOULD I

LOOK FOR IN A CFO OR FD?
Our goal at FD Capital is to match you with a CFO or FD who is the perfect fit for your
company and long-term goals. Whatever way you’ve come across a candidate, there are a
few abilities and skills that you want to be looking for.

Interpersonal skills: Your FD will deal with everyone from investors to clients and
employees. They need to have the diplomatic skills to present the company in the best
light.

Data analytical skill: The key role of an FD is to analyse the data around your business
to facilitate forecasting and performance analysis.

Innovative creativity: Your FD needs to be able to come up with innovative solutions

to resolve problems within your company and create growth opportunities.

Relationship with CEO: A CFO or FD often steps into the shoes of the CEO, working
directly alongside time. You want to make sure you have a good rapport and
connection with the candidate.

Professional network: Your CFO or FD should have a network of professionals across

the industry that they can call upon to help with everything from forecasting to
fundraising.
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WHAT IS A TYPICAL SALARY OF AN FD OR

CFO IN LONDON AND THE WEST MIDLANDS?
The typical salary for a CFO or FD in London is near £125,000 with a 20% bonus expectation.
In the West Midlands, the average salary is £90,000 with a 15% bonus expectation. Across
the UK, the average salary of the position of FD or CFO sits at £112,077.

The size of the company and the region it operates in will feed into the decision-making
process of choosing the salary. The most lucrative industry for FDs is oil and gas, with an
average sector salary of £137,656. Not surprisingly, charities have the lowest average sector
salary at £98,149.

These numbers are an average, meaning that there are talented FDs who are earning more
than this due to their skills and proven track record. While basic pay and a car allowance
make up around 75% of an FD’s annual pay, you don’t want to forget about the other 25%
that is made up of an employee benefits package.

Most FDs and CFOs have a bonus clause attached to their contract, giving them a % of the
profits as an incentive for implementing programs and cash flow initiatives to meet these
goals. The average bonus for an FD is 20% of their basic salary, representing 15% of their
overall annual package.

Other benefits that you want to offer your FD or CFO include pension benefits and health
care. You want your FD to have the incentive to play a crucial role in bringing your business
towards its next set of goals.

Equity and LTIPs are other employment benefits that you should consider following a
period of high company growth, a merger or acquisition, or when the company makes an
IPO. A performance share plan (PSP) is when your FD and other participants are awarded
shares or rights to shares within the company as a long-term incentive.

Along with an annual bonus, a long-term bonus may be chosen to be awarded after the
competition of a major financial event, such as hitting a turnover goal.
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IS EVERY FD A
CHARTERED
ACCOUNTANT?
Most FDs are ACA/FCA qualified,
while some are CIMA qualified. Our
team will work to match the skill
set of our FDs to match your needs.
We will always put forward the best
CFO or FD for your company.

SHOULD I RECRUIT
MY FD ON A FULL-
TIME OR PART-
TIME BASIS?
Hiring a part-time FD means that
you can take advantage of the
same expert knowledge and the
individual’s experience within the
industry without the extra financial
cost of hiring someone full-time.
Choosing a part-time or full-time
FD will depend on the needs of
your business.
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HOW DO I FIND A HIGH-QUALITY CFO OR FD?

Over half of all FTSE 100 CEO positions are financial professionals, showing how significant
it is that you find a quality CFO or FD.

Finances have always been the backbone of any business, but it has taken on new
importance in recent years. Your CFO or FD works in partnership with the CEO to drive the
business forward. Gathering the data and information is only half the battle, as the FD is
the person who will analyse the information and provide the commentary to help it make
sense to the rest of the company. This data feeds into the strategic goals of the organization
and brings them to fruition.

More of the finance side of every business is becoming automated. You no longer need
a full financial department for your business. Thins like your payroll and expenses can be
automated with the help of an FD who oversees the process and ensure the data capture is
correct.

Any CFO or FD has big shoes to fill, meaning it can be difficult to find the person who is the
right fit. You want someone who will be able to analyse your financial data and interpret
it in a way that allows them to develop a strategic plan to meet your business growth
or expansion goals. An FD has to be able to continually interpret information and make
accurate forecasts to facilitate decision-making within the organization.

An FD should be able to understand the changes that are ongoing within the global
environment – including economic, political, and technological change. They should
understand shifts in consumer behavior and the growing trend of ‘activist’ investors who
wreak havoc on the stock market with a social-justice mission.

You’re going to rely on your FD to use their interpersonal skills to communicate their
findings and predictions to everyone from key stakeholders to employees in the
organization.
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WHAT
RESPONSIBILITIES
SHOULD AN FD OR
CFO HAVE?
An FD or CFO is usually the number two in
your organization, working in unison and
answering to the CEO. Their responsibility goes
beyond overseeing payroll or dealing with
investors.

IT systems are crucial to monitoring the data –

including stock, sales, and orders – for accurate
accounting and filing. You can only manage
risk and produce accurate forecasting if you
have an IT system that allows you to monitor
this data in real-time. Your FD or CFO will
oversee the installation and systems of your IT
software to match their style of reporting and
the tools they choose to use.

Although the CFO is not directly involved

in the hiring process, they have a role in the
company’s human resources. Your payroll big
is usually the largest expense for any business,
meaning it is closely monitored by the FD.
They’ll pay close attention to any expense
claims and often manually approve any claims
that come in.

It is the responsibility of the FD to ensure that

their company is trading within its financial
means and not spending more money than
it has in the bank. The FD or CFO will typically
oversee the procurement of everything from
office space to equipment and laptops.

Any financial activity comes with a legal risk

analysis and a cash flow risk. An FD has to
be aware of the legal issues around mergers,
acquisitions, and types of fundraising and
investing. Any contracts that are written by
the company for third parties, such as supply
contracts, will usually be looked over by the FD
to ensure everything is correct. It’s not usual
to see the CEO hand over management of the
legal department to a CFO or FD, as they often
naturally cross over with each other.

It’s not just number crunching that an FD does

every day. Customer service plays a key role in
their daily job and is one task that they usually
pick up from the CEO. It might be spotting a
potential sale opportunity with a third-party
company or handling a difficult client who is
refusing to pay on time.
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STREAMLINING YOUR RECRUITMENT PROCESS

At FD Capital, we can oversee the recruitment process and find you the FD that is the
perfect match for your company. We’ve worked with dozens of companies who have
previously had little to no luck during the hiring process due to a few common mistakes.
If you’re choosing to oversee the hiring of your FD yourself, we have a few tips on how to
create a more effective recruitment process.

Keep the hiring process as short as possible as candidates will drop out if the process is
too drawn out.

Candidates will often drop out of the hiring process if the position comes with an offer
that is too low.

Poor communication between the company and candidates is another reason for a
flawed recruitment process. You want to make sure you’re keeping candidates in the
loop throughout the process.

Your interviewers will make or break the recruitment process as they’re the first
introduction your candidate gets to the company. If the interviewer fails to inspire them,
your candidate might decide the position is not worth their time.

Lack of information on employment benefits, working hours, and a job description can
cause a candidate to become disinterested and look elsewhere for another opportunity.

WHAT TO LOOK OUT FOR DURING

THE RECRUITMENT PROCESS
23% of candidates drop out during the recruitment process because they find themselves
waiting too long to hear back from the company. You want to counteract this by
streamlining the CV reviewing process and avoiding leaving gaps between the interview
process. Some companies are guilty of complicating their recruitment process and adding
too many steps, which unnecessarily prolongs the process.

Create a faster recruitment process by putting one individual in charge of shortlisting

candidates and reference the interview days in their diary. You want to keep one person
at the forefront of the recruitment process to see it through from start to finish. The
recruitment process for an FD should be no longer than six weeks, with 2-3 interview
stages.

The opposite can sometimes be true, and candidates may find that the process is too
quick. 7% of candidates drop out because the recruitment process is too fast. We’ve all
heard of candidates who were offered a job at their first interview. While you might think
this is efficient, it prevents the candidate from having the opportunity to assess how they
feel about the organization in its entirety.

If you choose to offer a candidate the position early on, ask them what information they
need to be able to make this decision.

Money makes the world go round. Providing a low offer with the position can cause
candidates to become disinterested and drop out of the process. Most FD job descriptions
don’t show the fixed rate, but instead, promise the lucky candidate a competitive rate.
“Competitive” means different things to every person.

You want to avoid changing the payment package during the recruitment process and
allows the industry to set the perfect price point. If you choose to use a salary banding, you
need to be prepared to look at all of it as different candidates will apply for every position.
 11

HOW TO PREVENT
CANDIDATE DROP-OUTS
WHILE HIRING AN FD OR
CEO.
Almost every candidate who drops out of the
recruitment process cites poor communication as the
reason they lost interest. If a candidate doesn’t hear
from you within a week of their interview, they’ll often
assume that you will not hire them, and they’ll move on
to the next job listing.

You want to counteract any delay in your hiring process

by provide quick interview feedback to candidates and
provide them with regular updates throughout this
time. These systems are not just for the benefit of the
potential employee. They’re just as beneficial for you.

When you interview a candidate for the position of FD,

you are usually the first impression that they get of
your company. You want to put your best foot forward
and present your company in the best light. Make sure
you’re on time or at least arrive to meet the candidate
at the agreed time. During the interview, take an active
interest in what the interviewee is saying to help build a
natural rapport with them.

Throughout the recruitment process, you want to

remain positive about your company and always
create a good impression of the organization. Up-sell
the opportunities that come with working for your
company and be positive about your work. The last
thing a candidate wants is to see their interviewer
speaking badly about their work or organization.

The interviewer will usually be the only contact that

the applicant will have with your organization. If they
don’t hear back from you, most people will assume
that your business has moved on and found someone
else. Your candidate should always feel like they have
the information then they need to make an informed
decision about the position. You also want to make sure
you’re clear with the processes and objectives of your
company to every candidate.

You want to start early with planning your recruitment

process for an FD. You should have a detailed job
description that is clear and provides information,
including the responsibilities and objectives of the
position. You want to also provide information about
the remuneration package and employee benefits at
this stage.

If you have more information about the daily running

of your business, you can gradually release this as
the candidate makes their way through the different
recruitment stages.
Hiring an FD or CFO can be a game-changer for your business. You want to
make sure you have mapped out the timeline for the recruitment process
and that this is clear for both you and the candidates. It’s a good idea
to incorporate hard deadlines for when you want to review CVs or have
chosen your candidate by. When you have an FD or CFO, they can give you
the tools you need to expand or grow your business to meet your short and
long-term goals.

At FD Capital, we’ll help you oversee the recruitment process by finding

the perfect candidate for you. We’re able to assist you with finding a part-
time, full-time, or interim FD or CFO. You can find out more about our
recruitment services by contacting us at 020 3287 9501.

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020 3287 9501 | www.fdcapital.co.uk