In business, the executives guiding your organization drive growth or contraction, so who you hire is a crucial decision.
Take the case of Steve Ballmer versus Satya Nadella as CEO of Microsoft. If you invested $1,000 in Microsoft’s stock at the beginning of Ballmer’s tenure, you would have ended up with a value of about $700 by the time he left — well below the rate of NASDAQ or S&P 500 stocks. A $1,000 investment at the time Nadella took over would be worth more than $13,000 today — about three times the growth in NASDAQ or the S&P 500 during that same period.
The right C-suite can make a world of difference.
However, executive search takes a strategic approach to recruiting and hiring. You also need to avoid some of these common recruiting mistakes.
Before you start your CEO search or executive search, you need to ensure there is consensus on the key drivers of your business and what you are looking for. There needs to be alignment at the management and board level.
While you want to begin executive headhunting as soon as possible, if there is no alignment, you can waste valuable time when evaluating candidates.
You can also have the right executive in place at the wrong time. For example, someone who has exceptional skills for guiding rapid growth companies might be the wrong person in a mature industry. You must ensure that anyone you hire aligns with the strategic plan of your organization and how the role will shape future plans.
It is important to have velocity in executive headhunting, but you have to take the necessary time to find the right person. Making a quick decision to plug a hole can be shortsighted. Your C-suite recruiting efforts should be focused on long-term results.
Another common mistake in CEO search is not prioritizing organizational values. Misalignment of values in executive recruiting can be deadly for an organization. Yet, we see some executive recruiting firms that do not focus on fit. The best candidates in executive search will have similar values.
There is a considerable shortage of experienced executive talent, especially amid today’s digital transformation. The Association of Executive Search and Leadership Consultants says it is a “candidate’s market” where top talent often has multiple opportunities and can afford to be very selective.
The pool itself is limited and finding qualified talent is challenging. An executive recruiting firm will play an important role in broadening your pool of ideal candidates.
Perhaps, you are looking for a VP of IT who has deep experience in data science. You are competing with other companies with similar needs in nearly every industry. The pool is already limited. Now, if you want someone who also has industry expertise, such as fast-moving consumer goods, you are narrowing the pool even future.
You must partner with an executive recruiting firm with access to a global candidate pool to find the right fit.
We all want to show our company in the best possible light. However, a lack of transparency is a big red flag for executives.
You cannot afford to hide weakness until the later stages of the selection process. This can waste time and money by having candidates opt out when they realize what they are really getting into at your organization. It is better to be upfront about the opportunity and the challenges. This helps weed out candidates who are not up to the task and surface candidates who can thrive in your environment.
As you consider candidates throughout the executive headhunting process, remember that they are also evaluating you. Unfortunately, many companies only evaluate candidates when doing executive recruiting and miss an opportunity to sell your company’s attributes.
You should always assume executive search candidates have multiple options and promote your company. We are in an extremely competitive environment for talent. Even if you ultimately decide to go a different direction, you want any candidate you consider to walk away with a positive experience.
Here is an example. C-suite recruiting often requires relocation. A lot of organizations will not only fly the executive in for an interview, but also bring their entire family to show them to town and help them see what life would look like in a new environment. The final decision in whether to accept a job is often left to the significant other, so making a great impression with them can be pivotal.
There Is a fine line between taking the time to evaluate executive search candidates and being decisive. However, when your executive recruiting efforts find the right candidate, act. The longer you wait, the more likely a great candidate will no longer be available or get frustrated with the delay and pass on an offer.
Once you have made a successful hire, you may be tempted to think your work is done, but do not be fooled. You need to work with the executive to ensure there is a solid transition. This requires follow-up at the board level and with company peers to ensure cohesion with stakeholders.
Searching for executives is certainly among the top decisions you will make that will impact the future of your company. You need to partner with an executive recruiting firm with deep experience, access to a global and diverse candidate pool, and expertise in executive headhunting to find the ideal candidate.
PIXCELL is an industry leader in executive search. We specialize in senior executive recruiting with a proven strategy focusing on results that lead to long-term success. Contact PIXCELL today to discuss your executive search needs.
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