When Covid 19 hit, many executives opted for early retirement while some were let go by their employers due to perceived redundancy in roles or the need for financial cutbacks.
Now, 18 months later, companies are back in hiring mode and trying to recruit quality leaders to fill the void. Finding and recruiting the right executive hire is more challenging than ever.
Illusive, but crucial. Visionary, long-term leaders will help steer a company through these uncertain times and conquer the new normal – whatever that turns out to be.
The consequences of the wrong executive hire.
A bad hire at executive level has a ripple effect and is felt across the entire organisation. The wrong leadership, especially at “chief of” level can have significant and lasting repercussions which may continue long after they have moved on.
A bad executive hire can lead to:
Lost productivity.
A poor executive may make decisions that lead their team toward goals that are not aligned with those of the company. Bad leadership and poor attitude also contribute to low morale and productivity. A team looks for direct and clear leadership in line with the greater vision. If this isn’t provided, heads drop. The bigger picture is forgotten and unrest will stir upset.
Lost investment.
Investing in an executive hire is expensive. Recruitment, onboarding, and training all cost money. When considering executive positions, these investments become greater with bigger consequences. Just completing the hiring process once for executive roles could end up costing the organisation 6 – 9 months of the position’s salary. Most businesses couldn’t afford to do this more than once.
Tarnished reputation.
A bad hire can quickly tarnish the reputation of the company especially in the digital age. Negative reports could easily land on job review websites, such as Glassdoor. Public declarations of dissatisfaction can readily affect the ability to recruit the talent you DO want, regardless of level.
High turnover at executive level also sows the seeds of unrest and discontent into the workforce. Employees may begin to question the stability of the company and begin to look for alternative employment.
Decreased valuation.
Effective leaders determine company success and shareholders react negatively to executive turnover. If this turnover is unexpected, then business leaders can expect this reaction to be more adverse.
PWC has suggested that CEO turnover reduces median total shareholder return to -3.5%. If this is a forced turnover, the fallout is worse, costing $1.8 billion more than if an executive change is a planned succession.
Should a business be service-based, or project-based, bad executive hires and the subsequent changes in leadership may also have negative consequences for customer satisfaction and retention.
What can be done to recruit the right leadership?
Here are 5 ways to ensure you recruit the right leaders.
Know your company.
It may sound obvious, but before you begin the hiring process you should double down on your company’s values, culture, processes and weaknesses.
Hiring a good fit executive relies on the clear communication of your setting. It requires setting accurate expectations during the interview and hiring process.
Know your goals and challenges.
Simply knowing your business is not enough. You also need to know where it is headed. Identify your company’s goals and consider the challenges you will face in the next 5 years. These challenges should be narrow and wide. They should include those faced by the company itself, but also those faced by the industry and sector.
Using these as a guide, you can then determine the right executive hire; the one with the experience and expertise who can help steer your company to the place it needs to be.
Be clear about your working policy.
According to research, at least 55% of the workforce would like to work remotely at least 3 days each week. Therefore, your work policy is now a key consideration for candidates – especially those at executive level. Set these expectations early and if there is wiggle room, negotiate early. Early boundaries can help secure long-term success.
Maintain momentum.
Nothing is more damaging to the hiring process than dragged heels. Once you are in hiring mode, you must ensure conversations, interviews, and decisions are made quickly. A slow process is frustrating and may mean you miss out on a good hire.
Once you have found the right executive, be decisive, lay out the process, and stick to it.
Ask networks and partners.
Be aware that the best hires are normally employed already. Nor are they always seeking new opportunities.
The right person may already be right under your nose; an internal candidate with potential, loyalty, ambition, and vision.
You should also consider using your network and ask for a referral from a trusted peer.
Successful executive hires can also be found with the help of a reputable, experienced, and specialist talent partner. A talent partner who ticks these boxes will have existing relationships with executive-level candidates. Long-term professional connections will help uncover the perfect fit, even if they aren’t active in the market.
We are entering a new era of work. The pandemic has altered both the hiring landscape and the direction in which companies are heading. It has forced the hand of organisations to make redundancies and has propelled seasoned workers into retirement early.
These changes need stabilising leadership to ensure success. In times of turbulence, people look to the top for reassurance. wrong Executive hiring can make or break a business, but with the right practices and partners in place, you can set yours up for success.
At Ignite we build digital careers. Our recruitment partners have professional networks that read like a who’s who of tech talent. Your next executive hire is just a phone call away. Let us make it for you.
