Steering the Course: Why Retained Recruitment Outpaces Contingent in Securing Finance Leaders

When recruiting for senior finance roles like CFOs or Heads of Finance, mid-market firms often face a critical choice: retained or contingent recruitment? While both approaches have their place, retained recruitment provides a strategic, high-value solution that is particularly effective for hiring transformative financial leaders.

Here’s why retained recruitment not only delivers better results but also protects hiring managers and businesses from the serious consequences of getting it wrong.

1. The Risks of Getting Recruitment Wrong

Hiring the wrong senior finance leader doesn’t just disrupt your business operations—it can have significant personal and professional consequences:

• Financial Costs: Replacing a poor hire can cost up to three times their annual salary, factoring in recruitment expenses, lost productivity, and onboarding time.
• Personal Stress: Managing the fallout from a bad hire is draining, pulling your focus from strategic goals and creating additional workload.
• Reputation Risks: As a hiring manager, your credibility with stakeholders and the board could take a hit, especially if the hire impacts key projects or growth initiatives.
• Team Disruption: A poor cultural fit can demoralise your team, leading to reduced productivity and even loss of top performers.

Retained recruitment is designed to minimise these risks by ensuring every candidate is rigorously vetted for skills, experience, and cultural alignment.

2. Why Retained Recruitment Delivers Superior Results

Tailored, Consultative Approach Retained recruitment goes beyond filling vacancies—it’s a strategic partnership. The recruiter takes the time to understand your business, your goals, and the leadership qualities your organisation needs to succeed.

Access to High-Calibre Talent Retained recruiters tap into passive candidates—those high-performing professionals who aren’t actively looking but are open to the right opportunity. These candidates often aren’t accessible through contingent recruitment.

Stronger Focus on Cultural Fit A finance leader isn’t just a numbers expert; they set the tone for the entire finance function. Retained recruiters prioritise cultural fit, ensuring the candidate aligns with your organisation’s values and team dynamics.

Structured, Transparent Process With retained recruitment, you benefit from a clear, step-by-step process that includes:

• A detailed briefing to define your needs.
• Proactive sourcing and outreach to top talent.
• Comprehensive candidate evaluation, including psychometric testing if needed.

3. Retained Recruitment vs. Contingent Recruitment

Here’s how retained recruitment compares to contingent recruitment:

Feature Retained Recruitment Contingent Recruitment

Approach Tailored and consultative Volume-driven, often focusing on speed

Talent Pool Includes passive candidates Focused on active candidates

Commitment Dedicated, exclusive partnership Non-exclusive, competing priorities

Focus on Fit Prioritises cultural and strategic alignment May prioritise quick placements

Process Transparency Structured and collaborative Less structured, minimal client input

4. Real-Life Impact: The True Cost of a Bad Hire

One hiring manager I worked with shared how a poorly chosen CFO almost derailed their company’s growth strategy. The hire struggled to integrate with the team, mismanaged key initiatives, and ultimately resigned after just 10 months. The fallout?

• ￡250,000 in direct costs, including recruitment fees and severance.
• Missed opportunities due to stalled projects.
• Significant stress for the hiring manager, who admitted it was one of the most challenging periods of their career.

After this experience, the company transitioned to a retained recruitment model for critical roles. Their next CFO hire was not only technically skilled but also a cultural match, driving the company’s most successful financial year to date.

5. Protecting Your Reputation and Business Success

As a hiring manager, every recruitment decision reflects on you. A retained recruitment model doesn’t just protect your company from the financial and operational risks of a bad hire—it safeguards your professional reputation and ensures you can focus on delivering strategic results.

By investing in a strategic, high-touch process, you’re not just hiring for today—you’re building the leadership team that will drive your company’s future success.

Conclusion: Recruitment is More Than Filling a Role

Getting recruitment right isn’t just a business decision; it’s about shaping the future of your organisation. Retained recruitment provides the depth, precision, and commitment needed to secure senior finance leaders who will thrive in your business and deliver real impact.

If you’re ready to move beyond transactional hiring and invest in strategic leadership, let’s have a conversation.

Transform your recruitment strategy. Book a complimentary consultation to learn how retained recruitment can help you secure exceptional finance talent:

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Or connect with me directly here on LinkedIn. Let’s shape the future of your finance team together.