The major challenges of executive level hiring
In the modern world of executive recruitment, there are hiring challenges in almost every sector and industry. There is shared demand for the very best candidates and the talent pool is far too small for all of these employers to have the high level, top-tier leaders they all need. However, there are ways around the senior hiring problem, and we have outlined key methods employers can use to tackle this far from unique challenge.
Technical demand
While all of the best leaders will most likely be sought after by other firms, there has been particularly strong demand noted for technically-skilled senior specialists. This means those with a technically-led background, rather than a solely commercial and business-driven one, are being tracked down by organisations at the top of their respective industries. The reasons for this trend are varied, but it is most likely down to businesses recognising the need for an intrinsic understanding of how their product or service really operates in what is now a highly nuanced world. It is particularly strong in the digital and financial sectors where operations are often more complex than most.
However, these people – and indeed all of the best leaders - are not easy to find, and anecdotal evidence from senior hiring figures across the US and Europe suggests that it is only becoming harder to recruit them. Again, the drivers behind the trend are complex, but it is not that there has suddenly been a massive drop off in leadership-level skills. It is partly related to the fact that the speed at which some businesses can grow increases the number of opportunities available, but the talent supply is not rising as quickly. In addition, the alleged decrease in the number of top leaders is apparently related to business growth and the rate and speed at which firms grow.
Growth creating problems
‘Hockey stick’ level business growth and the extent to which organisations can accrue significant wealth, has increased massively in the past two decades. And while in the past, it may have been easier to attribute growth and success to having a good leader, now there are so many variables that contribute to whether a business succeeds or not, that it can be hard to recognise the real driver behind organisational success. To put it bluntly, there are a lot of top executive level experts with what looks like a good track record, but who may not be able to actually back it up in other organisations where circumstances are not so fortuitous.
The best leaders have also recognised that the market is tilted heavily in their favour. Most top executive level specialists know that they can choose where they want to work from and are largely not interested in an entirely office-based role. To recruit successfully in the modern world requires essentially reimagining the process and starting again. Employers must also recognise that the days of hiring executives for the long-term are most likely a thing of the past. Leaders – and indeed most talent – are becoming increasingly attracted to a portfolio-style career, instead of sticking with their employer for a while, meaning firms must adapt.
Mobile executive market
Not only are the best senior executives being highly sought after, they have also never had such high levels of mobility. Individuals are realistically able to cross countries and continents to take new roles and in the US technology sector, for example, employers will more than likely be able to offer much greater packages than their European counterparts. Getting creative with attraction packages and truly understanding what makes the individual tick, has never been more important. Salaries and bonuses are no longer enough, and we have noted equity becoming an increasing driver with executives recognising the importance of longer-term investments. All of these factors combined make for a massively challenging market for firms looking to recruit their next generation of leaders.
Aside from adjusting the offers they make to candidates, how else are employers reacting to this changing world? Firstly, we are seeing more lateral role changes, particularly from CTO and CIO and vice versa. The opportunity to upskill and broaden skill sets has never been more accessible and the most creative employers are tapping into the concept of taking on people from alternative roles.
Tapping into new pools
They are also looking into historically underdeveloped talent pools. One of the few benefits of the pandemic was its ability to level the playing field in terms of accessibility. The growth of Teams and Zoom have meant more people from alternative backgrounds can have the opportunity to interview for roles, and this has benefitted both employers and leaders with disabilities and neurodiversity.
The organisations that are able to get the best executives are also focusing on developing their pipelines in a much longer-term way than ever before. They recognise that the employer/candidate relationship has to start way before the individual actually needs to be recruited and are adapting their behaviour accordingly.
Ultimately, however, the brightest talent is generally passive and, as we have explored, in high demand. And this is particularly true of diverse executives. In order to hire the best people, you have to find them, engage with them and be a strong advocate for your opportunity. You must then ensure your qualification and selection processes are robust and designed to hire candidates whose experience, track record and personality is the ideal fit for your business. Research Europe has a rigorous research-driven methodology, practiced and refined over 20 years. We combine a variety of research techniques, tools and information sources to gather intelligence on talent. We network enthusiastically across industry and diversity communities. We engage with candidates personally and professionally. And via intelligent qualification, interviewing, referencing and - in some cases – psychometric assessment, we ensure the candidates who will thrive in and enhance your organisation are shortlisted and hired.