Developing people skills is a critical competency for finance leadership roles, encompassing the abilities to coach team members, provide constructive feedback, develop talent, and build high-performing finance teams. These skills represent the intersection between technical finance expertise and leadership capabilities that drive individual growth and team performance while maintaining financial excellence.

In finance leadership positions, people development skills are particularly crucial as these roles require balancing analytical precision with effective talent management. Finance leaders must cultivate these competencies to translate complex financial concepts across the organization while developing their teams' capabilities. The most effective finance leaders demonstrate excellence in coaching, mentoring, delegation, performance management, and creating environments where finance professionals can thrive.

When assessing candidates for finance leadership roles, evaluating their approach to developing others provides valuable insights into their leadership style and potential impact on your organization. Structured behavioral interviews that focus on past experiences reveal how candidates have actually handled people development challenges, rather than how they theoretically would. The best finance leaders demonstrate a commitment to talent development that balances business objectives with individual growth opportunities.

Interview Questions

Tell me about a time when you identified and developed potential in a finance team member who was not meeting expectations. How did you approach their development?

Areas to Cover:

• How the candidate identified the performance gap
• The specific actions taken to develop the team member
• How they balanced performance concerns with developmental support
• The feedback approach they used
• The timeline and milestones they established
• The ultimate outcome for the individual and team
• Lessons learned about developing underperforming team members

Follow-Up Questions:

• What specific skills or behaviors did you identify as needing development?
• How did you structure your feedback conversations to be constructive rather than demoralizing?
• How did you monitor progress and adjust your approach if needed?
• Looking back, what would you do differently in developing this person?

Describe a situation where you successfully coached a technically strong finance professional who struggled with soft skills like communication or teamwork.

Areas to Cover:

• The specific soft skill challenges the individual faced
• How these challenges impacted the team or department
• The coaching approach and techniques employed
• How the candidate helped the team member recognize the need for improvement
• The development plan and resources provided
• How progress was measured
• The ultimate impact on the individual's effectiveness

Follow-Up Questions:

• What made you decide this person needed coaching rather than simply reassigning them to more technical work?
• How did you help them understand the importance of these soft skills in a finance context?
• What resistance did you encounter, and how did you address it?
• How did you balance highlighting their technical strengths while developing their areas for growth?

Share an example of how you've built a development culture within a finance team. What specific programs or practices did you implement?

Areas to Cover:

• The initial state of development in the team
• The vision for development the candidate created
• Specific programs, practices, or rituals implemented
• How these initiatives were aligned with business objectives
• How the candidate secured resources and support
• Metrics used to evaluate success
• Challenges faced in creating this culture
• Outcomes for the team and organization

Follow-Up Questions:

• How did you ensure development remained a priority during busy periods like month-end close or budget season?
• What resistance did you encounter from team members or other stakeholders?
• How did you personally model the importance of continuous development?
• What unexpected benefits emerged from building this development culture?

Tell me about a time when you had to provide difficult feedback to a finance team member. How did you approach the conversation?

Areas to Cover:

• The context and nature of the performance issue
• How the candidate prepared for the conversation
• The specific approach used to deliver the feedback
• How they ensured the feedback was specific and actionable
• The reaction they received and how they managed it
• Any follow-up development plan created
• The ultimate outcome of the situation
• What they learned about delivering difficult feedback

Follow-Up Questions:

• How did you balance honesty with sensitivity in the conversation?
• What specifically made this feedback conversation difficult?
• How did you ensure the team member left with clear action items rather than just criticism?
• How did this experience influence your approach to feedback conversations in the future?

Describe a situation where you identified and developed leadership potential in a finance team member who didn't see themselves as a leader.

Areas to Cover:

• How the candidate identified leadership potential that others missed
• Their approach to convincing the team member of their potential
• Specific development opportunities they created
• How they provided coaching and feedback
• Challenges encountered in the development process
• How they measured growth in leadership capability
• The ultimate outcome for the individual
• Impact on the broader team or department

Follow-Up Questions:

• What specific qualities or behaviors indicated leadership potential to you?
• How did you convince them to step outside their comfort zone?
• What specific stretching assignments or opportunities did you provide?
• How did you support them when they faced setbacks or challenges?

Tell me about a time when you successfully integrated and developed a new hire into your finance team.

Areas to Cover:

• The onboarding and integration approach used
• How the candidate assessed development needs
• Specific actions taken to accelerate learning and integration
• How they created a supportive environment for questions and growth
• Challenges faced during the integration process
• How they measured successful integration
• The outcome for the new team member and existing team
• Lessons learned about effective onboarding and development

Follow-Up Questions:

• How did you balance giving them time to learn versus contributing productively?
• What role did other team members play in the integration process?
• What specific actions did you take to help them understand the team culture?
• What would you do differently next time based on this experience?

Share an example of how you've delegated significant responsibility to develop a finance team member's capabilities.

Areas to Cover:

• How the candidate selected both the right task and person
• The preparation they provided before delegation
• The balance between autonomy and support
• How they managed risk during the delegation
• The coaching provided during the process
• How they handled mistakes or challenges
• The impact on the individual's development
• What they learned about effective delegation for development

Follow-Up Questions:

• How did you determine they were ready for this responsibility?
• How did you structure check-ins to provide support without micromanaging?
• What was the most challenging aspect of stepping back and allowing them to lead?
• How did this delegation impact your relationship with the team member?

Describe a situation where you had to manage and develop a finance team member who was resistant to feedback.

Areas to Cover:

• The nature of the resistance encountered
• The candidate's approach to understanding the root cause
• Specific techniques used to make feedback more acceptable
• How they adjusted their communication style
• Challenges faced throughout the process
• How they measured progress in feedback receptivity
• The ultimate outcome for the individual and team
• What they learned about managing resistance to development

Follow-Up Questions:

• What do you believe was the underlying cause of their resistance?
• How did you adapt your approach when initial attempts weren't effective?
• How did you balance persistence with respecting their boundaries?
• What indicators showed you that your approach was beginning to work?

Tell me about a time when you developed cross-functional capabilities in your finance team members to improve collaboration with other departments.

Areas to Cover:

• The cross-functional skills gap identified
• How the candidate assessed development needs
• Specific development approaches implemented
• How they created opportunities for cross-functional exposure
• Challenges faced in building these capabilities
• How they measured improved cross-functional effectiveness
• The impact on business outcomes and relationships
• What they learned about developing cross-functional capabilities

Follow-Up Questions:

• How did you help finance team members understand the perspective of other departments?
• What resistance did you encounter from team members comfortable in their finance silo?
• What specific cross-functional projects or experiences did you create for development?
• How did you measure the improvement in cross-functional effectiveness?

Share an example of how you've managed a finance team through a significant change while ensuring their professional development wasn't neglected.

Areas to Cover:

• The nature of the change and its impact on the team
• How development needs were assessed during the transition
• How the candidate balanced change management with development
• Specific development activities maintained or implemented
• How they used the change itself as a development opportunity
• Challenges faced in maintaining development focus
• The ultimate outcome for team capabilities
• What they learned about development during change

Follow-Up Questions:

• How did you prevent development from being deprioritized during the change?
• What specific aspects of the change did you leverage as development opportunities?
• How did you adjust your coaching approach to meet changing needs?
• What would you do differently in your next change management situation?

Describe a situation where you had to address conflict between members of your finance team. How did you handle it as a development opportunity?

Areas to Cover:

• The nature and cause of the conflict
• How the candidate assessed the situation
• Their approach to addressing the conflict
• How they balanced resolving the immediate issue with long-term development
• Specific coaching provided to the involved parties
• How they followed up after the initial resolution
• The ultimate outcome for team dynamics and individual growth
• What they learned about developing conflict resolution skills

Follow-Up Questions:

• What skills or perspectives did you help the team members develop through this situation?
• How did you ensure both parties felt heard while still moving toward resolution?
• What was the most challenging aspect of turning this conflict into a development opportunity?
• How did this situation change your approach to team dynamics going forward?

Tell me about a time when you needed to develop your finance team's ability to effectively present financial information to non-financial stakeholders.

Areas to Cover:

• How the candidate identified this development need
• Their approach to assessing current capabilities and gaps
• Specific training or coaching methods employed
• How they created practical opportunities to apply these skills
• Feedback mechanisms established
• Challenges encountered in the development process
• The ultimate impact on stakeholder relationships
• What they learned about developing communication capabilities

Follow-Up Questions:

• What specific techniques did you teach your team about translating financial concepts?
• How did you help them understand the perspective of non-financial audiences?
• What resistance did you encounter, and how did you address it?
• How did you measure improvement in communication effectiveness?

Share an example of how you've developed a succession plan and prepared potential successors in your finance team.

Areas to Cover:

• The approach to identifying potential successors
• How development needs were assessed
• The specific development plan created
• How responsibilities were gradually transferred
• Challenges faced in the succession planning process
• How readiness was evaluated
• The ultimate outcome of the succession plan
• What they learned about effective succession planning

Follow-Up Questions:

• How did you balance developing multiple potential successors while avoiding unhealthy competition?
• What specific experiences did you create to prepare them for larger responsibilities?
• How transparent were you with the team about succession planning?
• What was the most challenging aspect of preparing your successors?

Describe a situation where you had to help a finance team member overcome a significant professional challenge or setback.

Areas to Cover:

• The nature of the setback or challenge
• How the candidate approached the situation
• Their coaching approach and support provided
• How they balanced empathy with accountability
• Specific development opportunities created
• How they helped rebuild confidence if needed
• The ultimate outcome for the individual
• What they learned about developing resilience

Follow-Up Questions:

• How did you determine when to provide support versus when to challenge them?
• What specific actions did you take to help rebuild their confidence?
• How did you help them extract meaningful lessons from the setback?
• How did this experience influence your approach to developing team members facing challenges?

Tell me about a situation where you had to develop and implement a training program to address a skill gap in your finance team.

Areas to Cover:

• How the skill gap was identified and assessed
• The approach to designing the training program
• How the candidate ensured the training was relevant and practical
• Implementation challenges encountered
• How they ensured skills transfer to the workplace
• Methods used to evaluate training effectiveness
• The impact on team performance
• What they learned about effective skill development

Follow-Up Questions:

• How did you ensure the training addressed real-world finance challenges?
• What methods did you use to maintain engagement and interest in the training?
• How did you support skill application after the formal training ended?
• What would you do differently in your next training initiative?

Describe your approach to conducting performance reviews that actually lead to meaningful development for finance team members.

Areas to Cover:

• The candidate's philosophy on effective performance reviews
• Their preparation process for reviews
• How they structure the conversation
• Techniques for delivering both positive and constructive feedback
• How they co-create development plans
• Follow-up approaches after the review
• Examples of development outcomes from their reviews
• How they've evolved their approach over time

Follow-Up Questions:

• How do you ensure the conversation is two-way rather than one-directional?
• What techniques do you use to make constructive feedback more acceptable?
• How do you balance discussion of past performance with future development?
• How do you track development progress between formal review cycles?

Frequently Asked Questions

Why focus on behavioral questions rather than hypothetical scenarios when assessing people development skills?

Behavioral questions reveal how candidates have actually handled people development challenges in the past, which is the best predictor of how they'll perform in the future. Hypothetical questions often elicit idealized answers that may not reflect a candidate's true capabilities or approach. By asking for specific examples, you get insight into their real-world experiences, decision-making processes, and the results they've achieved in developing finance talent.

How many of these questions should I include in a single interview?

Rather than trying to cover all these questions, select 3-4 that best align with the specific requirements of your finance leadership role. This allows you to dive deeper into each response with follow-up questions, which is where the most valuable insights often emerge. Quality of questioning is more important than quantity when assessing people development skills.

How should I evaluate candidates' responses to these questions?

Listen for concrete examples with specific details rather than vague generalizations. Strong candidates will describe their approach to people development, the actions they took, challenges they faced, and measurable outcomes. Pay attention to how they balanced business needs with individual development, how they handled resistance, and what they learned from the experience. Consider using a structured interview scorecard to objectively evaluate responses against your criteria.

Do these questions need to be modified for different levels of finance leadership?

While these questions can work across various finance leadership levels, adjust your expectations based on the seniority of the role. For a Finance Team Lead, you might look for examples of direct coaching and development. For a CFO candidate, you would expect strategic talent development initiatives across multiple teams and creating a development culture. The questions themselves can remain consistent, allowing for fair comparison across candidates.

How can I tell if a candidate is exaggerating their people development experience?

Use follow-up questions to probe for specific details that someone who hasn't actually had the experience wouldn't be able to provide. Ask about challenges faced, unexpected outcomes, what they would do differently, and specific tools or frameworks they used. Strong candidates will provide nuanced, reflective answers that demonstrate authentic experience with developing finance talent.

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