Does Sector Experience Really Matter in Senior Finance Roles?
It is one of the most common requests we hear from hiring managers:
"We would prefer someone with sector experience."
In some cases, that makes sense. If you are in SaaS, understanding how revenue is recognised under ASC 606 or IFRS15 is not a nice to have, it is essential. The rules around performance obligations, contract modifications and deferred revenue are complex, and the risk of getting it wrong is high.
But outside of those clear technical areas, is sector experience as important as we make it out to be?
For many, asking for sector relevance is simply a way to reduce the shortlist. At the senior end of the market, there are often multiple capable candidates. Sector fit becomes an easy filter, a way to limit risk or justify a choice between two qualified people.
The danger is that we start valuing comfort over capability. That we overlook outstanding finance leaders who could bring a fresh commercial lens, broader perspective and strong transferable skills, simply because they have not worked in the same type of business before.
What often matters more is exposure. Has the person operated in a recurring revenue environment? Have they worked closely with sales and product teams? Have they helped scale a business or supported investment?
In our Routes to the Top report, many CFOs told us their career growth came because they moved across sectors, not in spite of it. The variety sharpened their commercial judgement, improved their stakeholder skills and gave them broader influence.
So yes, sector experience has value. But it should not be the default filter. Ask instead, what really matters for this role? What outcomes are you expecting this person to deliver? And are you open to someone who can bring something new?
Leadership, communication and strategic thinking are what drive real impact in senior finance. Sector knowledge can be learned. But the ability to influence, adapt and lead through change is what sets people apart.