The rise of external executive recruitment firms for top tax talent

Picture this: a company decides to look outside its own recruitment team for a senior tax executive—a small decision, perhaps, but one that could trigger a series of significant changes. In recent years, organisations are increasingly leaning on external executive recruitment firms for specialised roles, particularly in fields like tax leadership. But what’s driving this trend, and what ripple effects might it create in the world of recruitment?

This article will explore:

1. Why internal teams are partnering with external firms to fill senior tax roles
2. The immediate, medium-term, and long-term effects of this decision
3. Real-world examples of how external recruitment partnerships can reshape hiring practices

Effect 1: Immediate benefits from expanded networks

When an organisation opts for an executive recruitment firm to help fill a specialised tax role, they’re not just hiring a consultant; they’re accessing a wealth of connections. Internal recruiters, while invaluable for their deep understanding of the company’s culture, often lack the extensive networks that external firms cultivate. An external recruiter’s network is not only larger but also more varied, reaching passive candidates—those who aren’t actively looking for new roles but are open to the right opportunity. This expanded network gives organisations a quicker route to candidates with the specific expertise needed.

Consider the example of a medium-sized financial firm searching for a tax strategy director. Rather than combing through applications that may not meet the required depth, they turn to an external firm specialising in tax recruitment. Within weeks, the firm provides pre-screened candidates from similar companies and even across industries, each with the specialised skills the role demands. Without this external recruiter, accessing this “hidden” talent pool would be far more challenging.

Effect 2: Streamlined processes and specialist insights

Engaging an external recruitment firm offers more than just wider access to candidates; it brings efficiency and expertise to the hiring process. Specialist recruitment firms often have access to cutting-edge recruitment tools and methodologies that internal teams may not, from advanced software to AI-driven matching tools that quickly and accurately align candidates with specific requirements.

In the short term, this can mean quicker placements and a more targeted approach to candidate selection. But over time, companies that frequently engage external firms may begin to refine their internal recruitment practices as they observe and adopt these efficient processes. The relationship with an external recruiter, in this sense, becomes collaborative, providing an opportunity for internal teams to learn from best practices. Warner Scott, for example, doesn’t just introduce candidates—they bring a consultative approach that informs and elevates the entire recruitment process within the company.

Effect 3: Long-term shift towards specialised recruitment partnerships

What begins as a single engagement with an external recruiter for a tax executive can evolve into a long-term strategic partnership. Companies that experience the benefits of external expertise, like Warner Scott’s consultative recruitment model, may start to favour these partnerships over traditional in-house hiring, especially for specialist roles.

This trend reflects the changing needs of today’s talent market. As regulations, tax laws, and industry standards continually evolve, organisations require leaders who bring not only technical expertise but adaptability. External recruitment firms are often at the forefront of these shifts, armed with insights and real-time data from across industries. Organisations that form ongoing relationships with these firms place themselves at an advantage, not only in attracting top talent but in aligning their hiring strategies with future industry trends.

Imagine, for instance, a technology company whose HR department has traditionally managed all hiring. After turning to an external firm to recruit a CFO with a strong background in tax compliance, they experience firsthand the benefits of working with a recruitment partner well-versed in tax, finance, and regulatory challenges. Over the years, the company increasingly relies on this partner for other critical roles, shifting its hiring strategy from internal efforts alone to a blended model that prepares them for future demands.

How one partnership changed recruitment practices

Consider the journey of a multinational organisation that, in 2015, engaged Warner Scott to recruit a new head of tax. This initial hire proved transformative—not only because of the impact of the new head of tax but due to Warner Scott’s approach. Warner Scott’s recruitment process, based on deep industry insights, personalised candidate engagement, and a carefully structured evaluation framework, led to faster placements and smoother integration for new hires.

9 years on, this company’s leadership doesn’t hesitate to turn to Warner Scott for tax, finance, and other senior roles. The partnership has driven tangible changes in the company’s recruitment strategy: they’ve adapted Warner Scott’s evaluation methods, updated their onboarding processes based on feedback from Warner Scott, and regularly seek their input on market trends. What started as a single hire has transformed the company’s approach to executive recruitment.

Expert insight from Warner Scott’s CEO

Warner Scott’s co-CEO, a respected voice in executive recruitment, notes that the shift towards external recruitment partners is largely due to the complexity of specialised roles. “In tax recruitment, it’s not just about matching someone to the job description,” he explains. “It’s about identifying someone who aligns with the organisation’s evolving needs and can respond to changes in the regulatory landscape. An external recruitment partner offers insights that go beyond the standard CV, and that’s where the true value lies.”

Key takeaways from the butterfly effect

A company’s choice to partner with an external recruiter for a senior tax position might seem like a small decision, but the impact can be profound. In the short term, it opens up access to broader networks and enhances recruitment efficiency. In the medium term, it encourages internal teams to adopt more strategic approaches to hiring. And in the long term, it can lead to a cultural shift that prioritises collaboration with specialist partners, enriching the organisation’s capacity to attract and retain top talent.

As organisations weigh the benefits of internal versus external recruitment, the question isn’t simply who can fill a role faster. The real question is: How will you ensure that your recruitment strategy is as adaptable, forward-thinking, and specialised as the leaders you hope to bring on board?

About Edward Colt

Edward is a seasoned recruitment professional with 30+ years of experience, currently working for Warner Scott Recruitment, a specialist consultancy renowned for its comprehensive coverage across disciplines such as Corporate Finance & Transaction Services, Restructuring, Forensic Accounting & Technology, and Management Consultancy.

Before joining Warner Scott, Edward held the position of Associate Director of Taxation at Randstad, as well as 23 years at Hays.

About

Warner Scott is a premier global executive recruitment specialist based in London and Dubai, focusing on Banking & Investments, Accounting & Finance, and Digital & Fintech. With over 18 years of experience, they have built strong relationships with top-tier banks, financial institutions, and accountancies. Their unique value lies in these long-standing relationships with hiring managers and internal recruiters, a vast network of candidates, and continuous engagement. This combination places them uniquely in the market, trusted by both talent and hiring managers. Their evolved perspective allows them to precisely understand recruitment needs and pinpoint senior C-suite, EVP, SVP, and MD-level hidden, ready-to-move talent that other recruiters cannot access.

Warner Scott delivers tailor-made recruitment solutions for international and regional clients, functioning as true business partners. Their comprehensive services cover retained, exclusive, and contingency searches, as well as permanent, contract, and interim staffing.

In Banking and Investments, they partner with international and regional banks and investment houses in London and the Middle East, including conventional and Islamic banks. They cover areas such as Private Equity, Asset Management, Investment Banking, Treasury & Global Markets, Wholesale Banking, Digital & Technology, Risk Management & Compliance, and C-Suite Appointments.

In Accounting and Finance, Warner Scott works alongside The Big 4 and Top 50 accounting firms, along with globally recognised consultancies. They specialise in Audit, Risk & Compliance, Tax (Private Client, Expatriate, and Corporate Tax), Corporate Finance, Transaction Advisory, Restructuring, Turnaround, Insolvency, Forensic Accounting, Disputes & Investigations, Forensic Technology, eDiscovery, Cyber Security, and Management Consultancy.

In Digital & Fintech, they assist large banks, digital startups, and innovative Fintechs in areas such as FinTech (AI, Blockchain, Cloud Computing, Big Data), InfoSec/Cybersecurity (Application, Infrastructure, Network, Cloud, IoT securities), Digital Leadership, Digital Transformation, Software Development, IT Project/Program management, Data Science & Analytics, Data Privacy, and Data Architecture.