Employing a financial analyst is an important decision for any organization. Financial analysts are essential to make informed decisions for a company. Their primary role is to turn financial statements into reports and give insight to the management team and key stakeholders about the present situation of a company. And investments to make financial returns in the future.
So, having the right person is non-negotiable because making a mistake in hiring can negatively impact the company’s strategy moving forward. In this article, we provide some questions you should ask if planning to hire a financial analyst.
Why Work With Us?
This question is the most predictable of them all. Even the candidate will expect this from the interviewer. The reason it’s popular is because of its goal. The goal of the question is to find out how much information the candidate knows about the company. It can also expose how they fit themselves in the organization’s scope. Reciting the core value or when the company started its operations are hallmarks of an okay answer.
A more suitable answer will see the candidate recite the core values and tie them back to why they want to work in the company. Some may use examples of how they fit in. And others may go the extra mile of recounting how they connect with the message of the key personnel in the company. A quick tip is to watch their body language. One can be an excellent orator, but the body doesn’t lie.
Why Did You Become A Financial Analyst?
Asking this question allows you to see the mind of the candidate. This question will show if the candidate loves what they’re doing. The answer should be aspirational, passionate, and a longing to find fulfillment in the role. You may get answers linked to what sparked the passion and the desire initially.
This question also helps the candidate get into the rhythm of the interview, and so it is among the very first questions asked by the interviewer. This is the time for candidates to be a little chatty, so let them.
What is Your Greatest Strength?
This question allows the candidates to share some of their strong points. There are also vital things you can look for while the candidate speaks. The first is to pay attention to how detailed the person is in their response? If they are vague about their answers, it may be they aren’t aware of any traits that make them stand out. The second is how the candidate describes their strength in the story. On giving details of their strong point, if they rubbish, point out faults or blame others, that may be a red flag.
What Is Your Greatest Weakness?
A similar principle applies to this question. Asking for the candidate’s greatest strengths and weaknesses is a way to understand the candidate. As the candidate answers the question, pay attention to details. An answer like, “I struggle to find a weakness” or “I’m not sure I have one” is an immediate red flag. It means one of two things.
Someone wrongly advised the candidate to answer the question. (Something that would be avoidable if they had a skills questions kit manual to follow). Or they have no sense of self-reflection. A suitable answer will see the candidate say a weak point, explain it with a story, and finish with how they are working on it at the moment.
Walk Me Through How You Would Make a Presentation to Management on an Investment?
It’s all good trying to gauge the soft skill of the candidate, but you also need to know they know their stuff. Asking specific questions like this will highlight how well the person knows their stuff. Some candidates may ask for specifics like what type of investment, which is a good sign. Others will give a typical book answer, and another set may wing it through.
How you know the person knows what they are saying is in their response. An excellent one will contain the statements they will use, the ratios to use, how they will get their team members involved, and how practical the answer is to you. It should be an answer that balances the candidate’s financial knowledge and being able to communicate well.
Describe a Time You Had to Meet a Deadline and How Did You Handle It?
This question will give you an insight into how the candidate handles pressure and deadlines. Since the job of a financial analyst is high-stakes, the job will require the candidate to be on their toes most times. When you want to hire a financial analyst, the person must handle working in a pressure-induced environment.
There is no wrong or correct answer to this one. Pay attention to the candidate’s example and follow up with questions based on their story for clarity or, if not convinced of their response.
What Finance Software Are You Conversant With?
This question is another hard skill question. In a fast-paced technological age, there is software that will aid finance analysts in their work. Most of the analysts should be conversant and familiar with excel but asking the candidates about the latest software in use or which one they are conversant with is a way of testing their knowledge of the technological changes happening in the industry.
Where Do You See Yourself Five Years From Now?
You can analyze candidates’ focus and long-term plans with this question. There isn’t a right or wrong answer to this, and it depends on the candidate’s response. One thing to pay attention to is the plan to gain professional certifications, which is a sign of commitment to improve and keep learning.
Some candidates may not be detailed on their goals, especially if the job might be their first ‘real job.’ So don’t expect too much as regards details. Also, watch out for candidates with unrealistic goals. Take, for example, a bachelor degree holder saying they will be CFO in 5 years. As much as the goal is admirable, it is most likely unrealistic. In trying to impress the interviewer, some candidates state unrealistic goals. So let it slide if you hear them.
Final Thoughts
In conclusion, the financial analyst position is not one to play with since they help management make strategic decisions for the company. A financial analyst is a high-pressure job that will demand a lot from the candidate. Emotions will run high. People will step on each other toes and still expect the financial analyst to display a competent level of skill and composure. Asking the right question can help you decide who is qualified and who is not. We hope this article helped.
