If you’re considering whether or not you should use an executive search firm, there are a number of reasons why it makes sense from an efficiency and revenue standpoint. Executive recruiters are extensions of your leadership team. They are focused on your needs, are experts in finding and recruiting top talent, and provide best practice insight and guidance as you round out your executive staff.
Today’s post provides you with a different look at the value provided by executive search firms. Recently, the AESC surveyed more than 200 clients around the world and asked what are the biggest challenges they face today. The answers may surprise you, or they may sound very familiar. Here is a graph from the study:
The challenges are broken out by today and in the future. As we look more closely, there is a lot of overlap between the reasons. The top concern today is a lack of diversity. Today’s business environment has changed more quickly than executive level hiring patterns. Finding the right candidate means looking at different genders, races, education tracks, and professional backgrounds. This aligns with the second choice for challenges in five years, globalization. Today’s leaders look a lot different than yesterday’s leaders.
The second ranked challenge is a lack of key leadership successors. This closely aligns with the top challenge in five years, aging demographics. The baby boomers were the largest generation of workers in modern times. As they retire in growing numbers, there is a lack of leaders groomed to succeed them. Generation X is much smaller, and the boomer’s children, Millennials, are younger and have different expectations of their professional lives.
The third challenge, competition for talent, is a roll up of the next three challenges, a mismatch of current talent and future strategies, need for digital expertise, and a shortage of technical expertise. The way business is conducted is different today. Unless leaders are proactively seeking out new skills, they are creating a gap between what they know and understand, and the way business is conducted. Digital acumen is a requirement for successful leadership. From HR to Marketing and Sales to Engineering, every department is immersed in technology and data.
In looking at these challenges, do you still think you can identify, recruit, and land the best possible candidates? As the workforce changes, so do recruiting professionals. They understand the shifts taking place because they are talking to top people every single day. Their networks and understanding of the labor market provides you with a competitive edge when looking for your next VP or C-suite opening.
Per the AESC, “Executive talent acquisition is a sensitive and confidential process focused on the top leadership roles in an organization. Clients clearly value being advised by experts who can be trusted based on their industry and functional expertise, and their ability to engage with and entice the best candidates locally and globally as needed.”