Executive search firms vs internal mobility: Filling top finance positions
In the dynamic world of finance, the recruitment of executive talent is a critical business strategy that can shape the future trajectory of an organization. Companies have traditionally had two primary avenues for filling top finance positions: internal mobility and external recruitment through executive search firms. This report will explore the merits and challenges of both approaches in the context of the banking, finance, and accountancy sectors, particularly in the Middle East and the UK.
Internal Mobility
Internal mobility refers to the practice of promoting or transferring existing employees to new roles within the same organization. Deloitte’s survey highlights a significant challenge in this area, with 45% of respondents indicating that employees lack visibility into internal positions (Deloitte). Furthermore, nearly half of the organizations surveyed admitted to having few tools to identify and transition individuals to new internal roles. Despite these challenges, internal mobility can be highly beneficial, offering cost savings on hiring and onboarding, and leveraging the institutional knowledge of current employees. However, the lack of visibility and tools for internal mobility implies that companies may be missing out on leveraging their existing talent pool to its fullest potential.
Executive Search Firms
On the other hand, executive search firms specialize in sourcing talent externally. These firms are often engaged when organizations are looking to fill positions with highly specialized skills or when a fresh perspective from outside the company is desired. The advantages of partnering with executive search firms include access to a broader talent pool, deep industry knowledge, and the ability to conduct discreet searches that maintain confidentiality (Medallion Partners). These firms are particularly adept at identifying and attracting passive candidates who may not be actively seeking new opportunities but could be the perfect fit for a role.
However, this service comes at a cost, which can be substantial, and there is no guarantee that an external hire will integrate seamlessly into the company culture. Additionally, reliance on external recruitment can potentially demotivate internal staff, who may feel overlooked for advancement opportunities.
Balancing Internal and External Recruitment
The decision between internal and external recruitment often depends on the specific circumstances and needs of the organization. For instance, when a company is undergoing significant change or entering new markets, it may require skills that are not present within the existing workforce. In such scenarios, external executive recruitment is not just advantageous but may be necessary to bring in the requisite expertise (LinkedIn).
Conversely, for roles where company-specific knowledge and culture fit are paramount, internal mobility can be the more effective route. Promoting from within can also serve as a powerful motivational tool, signaling to employees that the organization values and invests in their professional development.
Opinion and Conclusion
Based on the information provided, it is my opinion that a strategic blend of internal mobility and external recruitment through executive search firms is the optimal approach for filling top finance positions. While internal mobility harnesses existing talent and preserves institutional knowledge, external recruitment brings in new skills and perspectives that can drive innovation and change.
For organizations in the Middle East and the UK, where financial markets are both mature and evolving, this dual strategy can provide the agility needed to navigate complex regulatory environments and competitive landscapes. Companies should invest in systems and processes that improve the visibility of internal opportunities and actively develop internal talent. At the same time, they must not shy away from the expertise and reach that executive search firms can offer, especially when searching for niche skills or undertaking confidential searches.
In conclusion, the most successful organizations will be those that can effectively balance the strengths of internal mobility with the strategic use of external executive search firms. By doing so, they can build robust leadership teams capable of leading in today’s complex financial sector.
About
Based in London and Dubai, Warners Scott is a premier global executive recruitment specialist focused on Banking & Investments, Accounting & Finance, and Digital & Fintech. With over 18 years of experience, they have cultivated robust relationships with top-tier banks, financial institutions, and accountancies. Their strength lies in these enduring connections with hiring managers and internal recruiters, a vast candidate network, and continuous engagement. This combination places them in a unique market position, trusted by both talent and hiring managers. Their expertise allows them to understand recruitment needs deeply and uncover senior C-suite, EVP, SVP, and MD-level hidden, ready-to-move talent that others can’t access.
Warners Scott offers bespoke recruitment solutions for both international and regional clients, collaborating as genuine business partners. Their services include retained, exclusive, and contingency searches, as well as permanent, contract, and interim staffing options.
In Banking and Investments, they work with international and regional banks and investment houses in London and the Middle East, including conventional and Islamic banks. They cover a wide range of 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, Warners Scott collaborates with The Big 4 and Top 50 accounting firms, along with globally recognized consultancies. They specialize 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 support large banks, digital startups, and innovative Fintechs. Their expertise spans FinTech innovations including AI, Blockchain, Cloud Computing, Big Data, InfoSec/Cybersecurity in Application, Infrastructure, Network, Cloud, IoT securities, Digital Leadership, Transformation, Software Development, IT Project/Program management, Data Science & Analytics, Data Privacy, and Data Architecture.
References
Deloitte. “Internal Mobility: Finding Hidden Gems in Your Workforce.” Deloitte, https://www2.deloitte.com/us/en/pages/finance/articles/internal-mobility-finding-hidden-gems-in-your-workforce.html.
Medallion Partners. “Executive Search Firms: Advantages and Disadvantages.” Medallion Partners, https://medallionpartnersinc.com/executive-search-firms-advantages-and-disadvantages/.
LinkedIn. “Executive Talent Hunt: Deciding Between Internal and External Recruitment.” LinkedIn, https://www.linkedin.com/pulse/executive-talent-hunt-deciding-between-internal.