Hiring for Capability, Not Just Qualifications in Your Finance Department

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Research commissioned by Glassdoor reveals that 95% of employers have made a bad hire. As well as being a costly process, poor hiring decisions have also been shown to account for 80% of employee turnover.

 

Why are so many companies making bad hiring decisions?

As companies evolve, so do their needs for specific skills and expertise. Despite this, many continue to recruit candidates with a similar profile to previous employees – leaving them with skill gaps.

Unable to achieve their goals or keep up with rapidly evolving technologies, business growth plateaus, productivity falls and staff retention becomes increasingly difficult.

 

Hiring for capability 

Modern businesses understand that adopting a skills-based approach to their recruitment process is the only way to advance, and even survive, in this era of digital transformation.

Organisations thrive when their employees are capable as well as qualified.

Qualifications are necessary in the world of finance, but you can’t compete with first-class businesses if your teams don’t have the skills needed to conduct financial tasks to the required standard.

Can your CFO interpret data to minimise costs and mitigate tax burdens? Can they communicate and align with all parts of your business?

The only way to establish this is to adopt an innovative recruitment strategy – one which focuses on skills and capabilities, not just qualifications.

A skills-based approach to hiring and developing talent within your finance department is a viable solution if you want to avoid making a bad hire.

 

It saves time and money

A bad hire can be incredibly costly.

  • Profit – as well as paying a bad hire’s salary, you will need to go through the entire recruitment process again
  • Time – recruiting can take a long time and you may also need to fix any mistakes the bad hire made
  • Productivity – a bad hire can affect staff morale which in turn, can have a negative impact on your reputation and profits

 

Creates diverse teams

Inclusivity is becoming increasingly important to employees. Taking a step back from enforcing stringent education requirements and focusing on skill-based hiring, will open you up to a broader spectrum of candidates.

What’s more, this will help future-proof your business. As technology continues to advance, your workforce needs to be flexible and able to understand new technologies and ways of working.

Our ‘5D FD’ White Paper identifies the five key skills required for an effective finance professional.

To discover more about The Acuity Measure™ email us at info@theacuitymethod.com and request a call back from one of our expert team

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