On-Demand Finance Experts: The Growing Demand of Interim CFOs
Over the past year, the demand for interim leaders, especially interim CFOs, has experienced a remarkable surge, rising by an impressive 116% year-over-year, according to a report by Business Talent Group, a Heidrick & Struggles company. This remarkable growth has been fueled by the continued economic uncertainty and the evolving complexities of the CFO role, which has prompted companies to seek on-demand finance chiefs to tackle their financial challenges head-on.
The statistics paint a compelling picture of the appeal of interim CFOs. Among all interim C-suite requests, approximately 50% were for interim CFO positions, with a significant 76% year-over-year increase in demand for financial leadership skills such as financial controls, accounting, and audit.
Trisha Gentry, Director of Human Resources at Quantum FBI, notes an interesting trend among private equity-backed companies, which have shown a strong preference for interim CFOs. “These financial leaders possess the agility to swiftly take charge and propel the finance function forward, making them invaluable assets during periods of transition,” said Trisha Gentry. “In situations where companies are unprepared to recruit a permanent CFO, interim CFOs seamlessly step in, offering their expertise and support on a transitional basis.”
The benefits of hiring an interim CFO extend to both the companies and the finance leaders themselves. For companies, interim CFOs enable them to access specialized financial expertise without the long-term commitment associated with permanent hires. Additionally, the financial compensation and benefits offered for interim CFO roles have seen significant improvements, making these positions highly attractive to finance leaders seeking new opportunities.
Finance executives who embrace interim roles find it to be a rewarding change, allowing them to apply their expertise in new areas and make an immediate impact on growing companies. The targeted nature of interim CFO roles ensures that finance leaders can focus on specific challenges and deliver tailored solutions, avoiding the burden of constantly managing multiple aspects of financial leadership.
Moreover, the shifting workforce trends, including talent shortages across the accounting and finance space, have compelled companies to consider interim solutions as a means to bridge the gap between departing talent and the development of future finance leaders.
The rise of interim CFOs is a clear reflection of the evolving financial talent market and the changing needs of companies seeking financial leadership. As the demand for specialized financial expertise continues to grow, interim CFOs provide a strategic advantage, offering agility, versatility, and immediate impact in navigating through critical financial situations. Private equity-backed companies, in particular, have embraced this trend, recognizing the value of interim CFOs during periods of rapid change and transition. As the business landscape continues to evolve, the role of interim CFOs is set to play a more significant role in providing real-time alignment of skill and capacity to address specific financial challenges and opportunities.
Learn more about Quantum FBI’s interim CFO capabilities: www.quantumfbi.com/interim-cfo