Talent shortages are being felt by every business and across every level, from entry level staff right up to the C-Suite. When it comes to engaging executive talent, the evolution the pandemic drove across the world of work has not only increased demand for top level execs, but it has also changed the demands from this talent pool. The best leaders are in high demand and short supply, causing firms to look beyond their sector to find the people they need. Exacerbating this issue is the fact that today’s executives want far more flexibility, can command working styles, and arguably have greater expectations from a brand.
But what does this mean for those looking to attract the best leaders?
Sourcing executive talent from other sectors
In a Covid-hit landscape, businesses are looking for new leaders to drive corporate growth in what will only continue to be an uncertain economy. Firm’s today need to be agile and reactive – and they need people at the top who have the experience and skills to achieve this. The challenge, however, is everyone is after the same thing. Whether you’re in healthcare, financial services, retail, hospitality or any other sector, the leadership attributes you need will arguably be the same.
Executive level specialists are hard to find, and if you do find who you think are the right people, luring them away from their current position can often be even more challenging, particularly when sourcing talent from other sectors, as firms are increasingly doing.
Whatever the reason behind the high competition for executive talent at the moment, the fallout from this scenario is simple: your competition has just increased significantly. Firms now have to recruit from other sectors to find future leaders. While an effective executive search process has always encompassed talent from all corners, it’s now more common than ever before to see firms poach their ideal candidates from outside of their area of expertise.
Skills evolution
In this highly competitive talent market, businesses are increasingly looking for leaders with a blend of skills, rather than just someone who is a specialist in their field. Yes, a detailed understanding of the respective sector is required, but a mix of leadership, commercial, marketing and of course, digital expertise rather than just a background in whichever sector in which they operate, is more valuable in a volatile economy. However, this only contributes to the shortage of talent. If everyone is looking for the same type of people and soft skills, how can your brand stand out?
Before answering that question, let’s look at another challenge; if, as we said, the metaphorical recruitment gloves are off, then how can employers be expected to truly understand the wide range of markets which they’re now recruiting from? It’s one thing having talent acquisition and HR teams that know your sector inside-out, it’s another to expect them to know every market that you could possibly hire from, and then to have an understanding of the likes of salary expectations and remuneration benchmarking, bonus structures, and the multiple other factors that affect a hiring decision. So how do hiring teams stand out from the crowd – and show they know what they’re doing – when sourcing executive talent from other sectors?
Utilising data
The answer to both of these questions, as with almost every other facet of the modern world, is data. In order to make more informed decisions around executive hiring, ‘what good looks like’ and how you can beat the competition for the best leaders, you need to be able to first quantify expectations and demands. As a case in point, you may already have a pre-conceived idea of salary for an executive position, but how does that compare to other sectors? Are your efforts being wasted due to a disparity in remuneration expectations between your business and leaders in other sectors? And flipping this on its head, is your business at risk of losing leaders because other industries will pay them more?
There’s also the potential to fall into the trap of assuming that you know what leaders want from their next opportunity – and all too often these beliefs centre on pay and bonuses. In reality, though, executives want much more from a new opportunity. The ability to work from anywhere or have flexible hours, for example, are more appealing than they’ve ever been. Having a clear picture of what executive talent is looking for today and regular reviews of this information can really bolster leadership search activity and drive success.
For businesses that are expanding and bolstering their executive teams as a result, the question they need to ask themselves is: do you have the data to hand to know if a new geography has the leadership talent pools you need, or will they need to be brought in across borders? Similarly, are there executives willing to relocate to the destination in question?
Ultimately, the only way to compete is to adopt this approach, and it has other benefits. By leveraging the available data, you gain expertise on the wider market in a much faster way than ever before, and that expertise can, in turn, attract more passive candidates. After all, if a firm is approaching an individual with a perfectly targeted offer, that shows they understand the drivers in the market, what makes that person tick and suggests that they’re likely to be a good employer.
Looking at internal data
Of course, recruiting from other sectors and using data to find the right person is only part of solving the hiring puzzle. All firms with a true hold over their long-term people strategies will be only too aware of the importance of succession planning. No organisation wants to be left with Kendall Roy being the only option, and with the external market proving so challenging, having a proper grasp over the next generation of leadership in your company is of equal importance.
Recruiting from within isn’t only cost effective – not just in terms of the financial impact of onboarding new talent – but it can also lessen the impact of unexpected leadership departures. To do this effectively, companies need to have an accurate picture of the potential leaders they have in the business, map their talent accordingly and ensure there’s a clear succession plan in place.
Executive search
It’s probably never been more challenging to effectively source people with the right leadership attributes, but by investing in data and using it intelligently, organisations stand a fighting chance. In conjunction with an effective succession planning programme, that builds in the unexpected – this is 2022 after all - companies will find that they are better off than most in the race to source the best executive level skills.