The chief finance officer (CFO) function at private companies has seen a big upheaval over the past six months. Monzo announced a new group CFO and UK CFO last November and Gymshark’s CFO left last December.
The same can be said for public companies. In the first half of 2024, CFO turnover in public companies hit a three-year high, with 63 CFO departures across 20 publicly listed companies on the 12 major stock indexes, according to the Russell Winners Global CFO Turnover Index.
What’s really happening in the CFO market in 2025 — and what are the best practices for hiring? We asked Andrew Hodgson, CFO at employee benefits and health company Peppy, Karen Swain, CFO at Kindred Capital, a VC fund in London, Angus Hardy, CFO at B2B travel-tech platform Holibob and Marta Obrador, business transformation senior director at expenses fintech Pleo, in our latest Sifted Talks.
1/ Recognise the landscape has changed
Hardy explained that startups and private companies have shifted direction. Four years ago, the philosophy was “growth at all costs,” but now there are only a few levers companies can pull to achieve sustainable growth. With this shift in mindset, it’s unsurprising that strategic approaches to growth have also changed.
Swain noted that with the rising cost of capital and a liquidity crunch in the VC world, there is simply less money available. As a result, firms are naturally seeking a change in leadership, adding that the tougher the landscape, the greater the need for good talent.
Obrador said it’s been really hard to secure good talent in recent years.
“You reach out to people who would be perfect for the role, but they have so many opportunities that it’s tough.” — Marta Obrador, Pleo
2/ Look for a CFO with out-of-the-box skills
Swain explained that, given the tougher landscape, the demands on CFOs have increased. There’s been a stronger push for them to take on a more strategic role, with the expectation that they are thought partners who guide and lead strategy.
Hodgson added that with money no longer easy to come by, businesses need to be more strategic about how they deploy capital. Given their broad visibility and insight, CFOs are increasingly relied upon to make tough financial decisions.
For Swain, there’s an additional challenge: how comfortable is the CFO with researching, implementing and maintaining the right technology? Companies need someone who can integrate and adapt new systems quickly.
“It’s crucial to have a single source of truth that drives everything and feeds into all other systems. Otherwise, you end up managing multiple platforms and data sources, which can quickly get out of control.” — Karen Swain, Kindred Capital
3/ Use AI to take on basic functions
Swain explained that automating routine tasks frees up time for value-added work. As AI takes on more basic functions, CFOs can focus on providing strategic insights and direction, using ingenuity and “blue-sky thinking” to drive the company forward.
Hodgson added that there is a risk of over-automation, stating that he did not see a scenario where the CFO was not ultimately accountable for the accuracy and validity of financial figures. His current challenge is ensuring there is enough time, capacity and understanding to verify automated numbers for accuracy.
Obrador has seen many finance professionals become overwhelmed by the number of automation tools and even revert to pen and paper — a big no-no.
“Then there’s the other extreme, where people fully embrace technology, enjoy it and wouldn’t want to work in an environment without it.” — Obrador
4/ Don’t be afraid to use tests in recruitment
For junior roles, Hardy uses a simple Excel test that doesn’t require prior experience but checks attention to detail. When his team had ignored the results, they had often regretted it. For senior hires, they followed a standard interview process without tests, relying on experience and cultural fit.
Hodgson insists on two key steps. First, every candidate completes a case study — typically an Excel-based challenge where they analyse and present data. Second, everyone interviews with staff members outside of finance to see who can interact across the organisation rather than simply speak the language of finance.
Obrador encourages candidates to use AI but asks them to explain their methodology. She said this is her favourite part as it reveals not only their technical skills but also their approach to technology — providing insight into how they might succeed in the role.
“In the past, I’ve even gone on LinkedIn myself, identified the people I want a recruiter to approach, and then asked them to do it — because you know what you want and need.” — Swain
5/ Evaluate candidates for soft skills
Swain said that while expertise in AI and a company’s tech stack are relevant, it’s important not to forget how they might fit into a wider team. The essence of any organisation is its people. She emphasised the need to develop employees, build their skills, plan for succession and understand their growth aspirations.
Obrador encourages businesses to think ahead about where they will be in three years and hire talent accordingly because it’s very disheartening to see startups build a 50-person team with a specific skill set, only to let them go a year later and start over.
Hodgson argued that automation wasn’t the be-all and end-all, advising job seekers to focus on demonstrating and sharpening their soft skills, particularly their ability to influence across the wider business. From a hiring perspective, he stressed the importance of actively seeking, testing and prioritising those soft skills.
“We no longer hire bookkeepers for handwritten ledgers and manual entries. While jobs will still exist in ten years, they’ll probably look different. My advice? Keep an eye on emerging tools and technologies.” — Angus Hardy, Holibob
Read the orginal article: https://sifted.eu/articles/build-modern-finance-team-sifted-talks/
