Over the past nine months, we’ve noticed that financial executive candidates are taking six to eight months to secure a new position. These days, the issue is not the lack of open positions to be filled, but the extensive, borderline destructive, recruitment diligence that companies and candidates are requiring.
The top three destructive diligence procedures that we see in recruiting finance executives at private equity-backed portfolio companies include:
- Elongated interview processes, where final candidates are required to meet with and be interviewed by tangential individuals over extended periods of time
- Psychological profile tests at companies whose culture has evolved over time, creating inconsistency between the cultural attributes that the interviewer deems appropriate, compared with the baseline attributes established in the psychological profile assessment
- Final candidates who get “cocky” require extraordinary diligence by the Company and overplay their hand in negotiating, causing them to be bounced from the process
The labor market is extremely dynamic and success in recruiting from both the candidate and the company perspective is rooted in informed, appropriate diligence and decision-making. Great candidates and opportunities are in high demand and should be prioritized ahead of destructive diligence procedures.