Executive Search: Much More Than it Seems

An executive search consultant helps businesses find the best-suited candidates for senior-level positions. We take on the task of finding skilled professionals for high-level positions to help businesses grow. This may sound like a simple job – find someone looking for a new role, find an open position that suits the requirements, and voilà! 

However, it is so much more. 

Having been active in the executive search industry for many years as the Managing Partner of Höchsmann & Company, I have gained a keen insight into what it really is and what it entails to be successful at it. 

Oftentimes, the complexity of the work of executive search consultants is being underestimated. The skills of an executive advisor go far beyond screening social media, LinkedIn, Xing, etc. Some clients seem to think that suitable candidates can just be found by thorough search, but the possibilities here are limited, for example by the extent of self-presentation of possible candidates. 

This holds true for all roles, but especially for high-end assignments like filling a C-suite or board position. In this case, it comes down to how well-populated your network is, and your ability to source the right connections, communicate effectively and reconnect with old contacts who may be a right fit. There’s more. Many candidates may tick the boxes for a job, but it also comes down to the consultant’s insight and instinct as to who would fit in with the company culture, who would really flourish in that role, and who would be a good overall fit.

From my experience, there are certain qualities an executive search expert must possess – flawless communication skills, deep industry knowledge, a large network, an understanding of company culture, and the ability to understand people and their personalities.

Why every executive should be focusing on culture change now

“To make transformation a reality in their businesses post-pandemic, leaders must build a strong culture to support it.”

“As the global community emerges from the COVID-19 pandemic, business leaders must lay the foundation for their organizations to thrive in a very different world. The pandemic accelerated three interlinked types of transformation affecting every industry: the adoption of digital technologies, the development of new business models, and the implementation of new ways of working. Most companies are now engaged in one or more of these types of transformation. Businesses that aren’t — whether because they have ignored the signals or have failed to adapt quickly enough — risk becoming obsolete.”

I recently read an article published by MIT Sloan Management Review by Rose Hollister, Kathryn Tecosky, Michael Watkins, and Cindy Wolpert. The article talks about organizational culture and how culture is needed for transformation. One of the transformations referred to in the article that resonated with me was “Implementation of new ways of working”. This point in particular resonated with me as I have seen it exemplified in real life. 

“We define culture as a shared set of values (what we care about), beliefs (what we believe to be true), and norms of behavior (how we do things). Cultures exist to align effort, engender shared sensemaking, increase predictability, and encode organizational lessons about what does and doesn’t work.”

The work culture is represented in company policies, employee satisfaction, how the company keeps up with transformational trends, and more. Companies want to, and are sometimes forced into adapting to new ways and constantly innovating in how they do things and make decisions. 

This can be observed with almost every company I work with. For example, medical laboratories had to speed up the implementation of home-office workplaces – even for such jobs that were not suitable for home workspaces like evaluation of medical samples.

Most companies have started offering hybrid work models such as 3 days at the office, and 2 days remotely – for professionals who are unable to relocate for their job. Experience shows that this is very attractive for candidates and especially enhances the competitiveness of hiring companies located far off the business centers and cities.

We have seen various companies that have significantly reduced office space in favor of creating a culture of remote teamwork along with occasional meetings in person.

The article further mentions the need to “engage and get input” during transformation processes. I have seen this trend grow as well, as a growing number of companies ask for detailed reasons and feedback as to why any candidate hesitates to sign up.

You can read the original article here.

What Trust Means in Executive Search

“In every search for a new executive, there are layers of complexity baked into the process. From competing agendas to strong personalities, to internal dynamics – no search is simple.

In particular, specializing in executive search within the human capital industry means being the ultimate in relationship and trust building. In an industry with people at the epicenter, these executives are especially astute.”

I recently read an article published by The Staffing Stream, titled What Trust Means in Executive Search. Having been in the industry for decades, I have an acute understanding of how trust is at the epicenter of executive search. After years of experience, I am able to be in the ‘know’ during the early stages of the search process. Knowing which candidate would be a good fit, who would click, and so on all comes from an insight into human nature as well as deep knowledge of company politics. This is where trust comes in as well. I often convince clients to meet candidates who traditionally might not have been their first choice. Generally, clients would not be eager to agree to an offer like this – but given my experience, approach, and proven track record – they often take the meeting. This has often resulted in successful hires that would not have been possible without trust, honesty, and a common understanding of and agreement to goals. 

There have also been instances where I have approached former candidates (who didn’t get hired) for a new assignment and successfully found them suitable positions. Such candidates are willing to work with me again without hesitation – again, due to trust. Respectful interactions have been the key to forming such trustful relationships. I look at the process almost like a triangle with three distinct points: advising the client – winning the right candidate – professional guidance in the search process. 

The article I previously referenced goes on to discuss the importance of building trust with integrity. 

“In a critical function, like executive search, where the wrong hire could take years to recover from, guidance, thoughtfulness, and consultation are what it takes to identify the right person capable of doing the job. As the saying goes, “It’s lonely at the top,” and the higher up you go in executive search, naturally the fewer options there are. At the C-suite level, there are rarely multiples to choose from. It takes precision and expertise to make recommendations that come from a highly detailed process, but it takes stakeholder trust to accept those recommendations. So whether it’s a family-owned business and the founding CEO is moving on, or a private-equity-backed company with funding on the line, wisdom and having conducted searches under similar circumstances means providing critical input and direction to lead the company into the next phase of business.”

You can read the original article here.

The Future of ESG: Executive Recruitment in Sustainability

ESG – Environmental Social Governance – is one of the fastest-growing fields in business, as both investors and corporations alike are looking to incorporate sustainability into their business models. This is increasing the demand for ESG-minded leaders and executives across all sectors and in turn causing executive recruitment firms to adapt their strategies to find the best talent for these roles.

I recently read an article titled The Future of ESG: Executive Recruitment in Sustainabilitypublished by Lelia Lim. The article highlights the growing needs and wants for corporate sustainability. Along with this comes the desire for ESG-minded leaders – such positions are in high demand and require the right skill sets and experiences. 

Having been in executive search for years, I see the growing want from organizations for ESG-minded leaders, who will work toward corporate success whilst keeping sustainability and ESG-related goals in mind. 

A good example would be a start-up aiming at replacing chemicals in agriculture with more sustainable methods. Such visionary companies are on the lookout for candidates who wholeheartedly support their goals – whilst all along keeping in mind economical factors, industry trends, and market success. 

More recently, a growing number of our clients – especially larger corporations – have started to vocalize their commitment to ESG in their organizations. From day-to-day operations (packaging, transport, etc.) to executive leadership – organizations want to ensure that from top to bottom their ESG missions are recognized and implemented.

As the article highlights: As the business world slowly but surely shifts its focus to ESG, the question of what roles executives will play and the skills required in this new landscape is top of mind for many. And while there are still a lot of unknowns when it comes to ESG, one thing is certain: the future capabilities of executives in sustainability will be crucial to the success of any organization, and executive recruitment will play an essential role within it.

The Evolution of the CHRO

Next-Gen Talent in a Post-COVID World: Preparing for Future Leaders Now

Read more: Next-Gen Talent in a Post-COVID World: Preparing for Future Leaders Now 

“People and organizations will come out of the COVID-19 crisis changed, if not
transformed. Next-gen talent — specifically younger Millennials and older Gen Zs who grew up digital and came of age during the global financial crisis and the COVID-19 pandemic respectively, have been shaped by this disruption in meaningful ways. C-suite executives investing in their talent pipeline and preparing to recruit and retain young, high-potential candidates would do well to consider the social and professional impact of the pandemic
on these future leaders.”

I recently read an article published by AESC, titled Next-Gen Talent in a Post COVID World: Preparing for Future Leaders Now. This article piqued my interest because working in executive search I have come to see that the youth’s willingness to drive change should never be underestimated. They are driven, possess a fresh and innovative perspective, and are not afraid to speak up.

Gen Z’s recalibration of values, priorities, and expectations as future leaders due to changes caused by the pandemic, economic and political uncertainty around the world, and a general unstable environment — is a force to be reckoned with. The commitment of this new generation to ESG, servant leadership, transparency, balance, and flexibility is inspiring, and often different from the approach the older generations may take.

The article highlights several interesting and fresh expectations held by new generations:

Mental Health
“Particularly for younger talent, well-being and mental health have come to the forefront — with urgency. This cohort experiences higher levels of anxiety and depression and will look to employers to provide robust services and de-stigmatize mental health issues.”

Flexibility
“The lockdowns proved that office workers can be trusted to do their jobs remotely, and younger talent prefer continued flexibility with their hours and location to create better balance in their lives.”

Communication
“Effective communication was essential during the pandemic, and remains a deciding factor in employee engagement levels, particularly communication that shows leaders are willing to be vulnerable, authentic and transparent. For people who have been immersed in the immediacy of digital communication and social media, frequent feedback is essential.”

Opportunity
“Next-gen talent’s desire for mentorship, training and a clear path to career advancement is not new, but may be intensified by the economic uncertainty they continue to face. They are increasingly likely to develop multiple streams of revenue.”

Learning
“Keeping up with the pace of change will require regular upskilling and reskilling, and digital natives are eager to learn. A recent LinkedIn survey shows that 83% of Gen-Zers want to learn skills to perform better in their current role.”

Aligned Values
The pandemic and social unrest of 2020 exposed inequities and vulnerabilities that the next-gen talent cannot unsee. An organization’s purpose, commitment to ESG principles including environmental sustainability, and track record on diversity, equity, and inclusion are likely to weigh heavily as next-gen talent evaluates current and future employers.

“Rising generations are increasingly committed to driving change. They expect both the private and public sectors to leverage their influence for good, and they will leverage their own influence — as consumers, voters, employees, entrepreneurs, and influencers — to create the world they want to live in.”

Read the original article here.

How executive search is adapting to serve the post-Covid organizations

“As the world of business has changed, so have the necessary attributes of leaders who can drive change, pivot and adapt, and lead their organizations assuredly into an uncertain future, particularly armed with all the learning that came out of the last, difficult years.”

I recently read an article published by AESC, titled How Executive Search Is Adapting To Serve Post-Covid Organizations.

Having worked in executive search for a long time and having lived and worked through several crises, this article resonated with me as I witnessed the shift within companies as they took various measures to stabilize and drive their business forward after the COVID-19 pandemic affected all of us, globally. Organizations around the world had to modify their operations, the way they conduct their processes and prioritize the safety of people above everything. This posed a great challenge for executive search firms that stepped in to help these companies while also dealing with the changes within their own profession. There was a change in what our clients expected, a shift to working remotely as well as many adjustments due to market uncertainty caused by the pandemic. Even with these challenges, the executive search industry came out stronger with more agility and the readiness to handle the changing professional environment. 

Despite the executive search industry being affected by the pandemic with decreasing market demand and various companies having to lay off employees, it developed practices such as online collaborations for executive search for clients, video assessments, virtual onboarding and other reformed methods to help clients. A short period after the first wave of the pandemic, the executive search industry was back on track with improved solutions. The positive impact of this change is that most companies are now performing better than they did before COVID-19 with up to 60% of growth, in various markets. 

Executive consultants focus on building relationships by meeting clients and getting them a slate of candidates that would be a good fit for them. It is a profession that requires a lot of in-person interactions which were heavily affected by the pandemic, but the effortless change to virtual methods made it easy for consultants to cater well to clients, candidates, and colleagues, from virtually any kind of remote workspace. There was even success in having candidates placed into leadership positions without going through the traditional process of meeting with the board and their teams before being selected, something that most companies would never have allowed possible pre-pandemic; they would have preferred to leave those positions vacant. 

Here are some significant changes that have taken place in the executive search industry due to the pandemic:

• Interviews and calls are more streamlined now since the elimination of travel which allows clients and candidates to interact virtually and on flexible schedules, saving both time and money.
• Holding meetings virtually has allowed more people to meet a candidate during the hiring process. This has encouraged many stakeholders and senior executives to be more engaged in the hiring process.
• Executive search consultants can work faster through digital tools and have managed to reduce the search process significantly. The new speed of working has led to shorter hiring processes, despite traditional methods making a comeback due to better conditions globally. 
• There are also limitations to video meetings as clients cannot get a real sense a candidate’s executive presence for example, even though clients are comfortable with the idea of meeting candidates virtually. Executive search consultants have therefore increased background checks and references to balance these limitations.
• Companies are often worried that candidates may not be as dedicated to the hiring process as they used to be as they can now go through the interview process without having to leave home instead of psychically committing to visiting (travel, time) the new company for multiple interview rounds. Search consultants identify the candidate’s interest level to make sure that they are committed to the hiring process. 

Summarizing, the COVID-19 pandemic has changed the ways that executive search consultants operate; both positively and negatively. But the results have mostly been positive as consultants have made conscious efforts to simplify hiring processes for both clients and candidates despite having challenges of not being able to meet personally and have made efficient use of digital tools by adapting to the current scenario and making sure that the credibility and thoroughness of the process is not compromised. Executive search remains a profession that is intensely personal, with a lot of face-to-face interaction, and consultants often have, or will have again in the foreseeable future, an enviable bank of frequent flyer miles.”

You can read the original article here.

The Top Five Qualities Every Leader Must Have to Adapt to A Post-Pandemic Business Environment

“C-level executives around the world are concerned their organizations aren’t ready to drive change in key business areas including diversity, equity, and inclusion (DEI), digital transformation, and sustainability; according to AESC’s latest survey of 1,000 C-suite executives.

I recently read an article published by Forbes magazine, The Top Five Qualities Every Leader Must Have to Adapt to A Post-Pandemic Business Environment, authored by Karen Greenbaum, President, and CEO of the global Association of Executive Search and Leadership Consultants (AESC).

As an executive search professional, being in the business of carefully finding and meticulously placing the right high-level talent at the right organizations, the article resonated with me on many levels. The author highlights the importance of C-Suite executives and board members being agile and adaptable to thrive in a post-pandemic world. These are characteristics that we always look for when we are selecting C-Suite executives and board directors that will make a great fit with our clients’ organizations. We consider job histories that do not necessarily have to be characterized by long-time company affiliation so much, but rather show that the candidate has successfully operated in various and intercultural environments and teams as well as in varying company cultures. We also look at the agility of the companies that the candidates come from as well as at the client organization to find the perfect fit: the candidate needs to bring the right “dosage” of essential post-pandemic leadership qualities, because not all organizations have the same needs or face the same situation after the pandemic. It is more important than ever to match the candidate´s personal suitability with the company´s situation.

“If the Covid-19 pandemic has taught us anything, it is business leaders around the world must learn to quickly adjust their behavior, pivot company strategies, learn new skills, shift from physical to virtual and take on new responsibilities at a moment’s notice. Adaptability and agility are just two of the top five leadership competencies the C-suite is now expected to possess to drive organizational and societal change. As we push toward a new normal, business leaders across the globe will need to showcase their ability to be adaptable, agile, innovative, collaborative, and customer-centric if they want to be successful in this new environment.”

The author further goes on to explain the five qualities leaders must possess to continue leading successfully, inspiring those around them, and growing continuously in a post-pandemic world:

1. Adaptable

“In light of the pandemic and subsequent shift to remote work, adaptability is the No. 1 quality leaders around the globe need to thrive in a post-pandemic environment. This quality refers to an executive’s ability to adjust their ideas, behavior and strategies to a variety of conditions.”

2. Agile

“Agility and adaptability go hand in hand. Not only do leaders have to be flexible, but they also must move swiftly. Agility refers to an executive’s ability to make effective decisions in a timely manner in response to a rapidly changing environment.”

3. Innovative
“Adaptability, agility and innovation influence one another. Adaptability and agility typically yield innovation, and innovation yields adaptability and agility.”

4. Collaborative
“The pandemic forced organizations to quickly change how their teams communicate and collaborate, as many companies shifted to a hybrid or virtual workforce. However, communication and collaboration are two aspects of organizational culture that executives should look to improve, meaning organizations have yet to perfect their ability to effectively work together in a virtual or hybrid environment.”

5. Customer-Centric
“The competency of being customer-centric is often seen as another form of adaptability with a specific focus on customers. Leaders who possess customer-centric qualities can easily adapt to clients’ needs.”

You can read the original article here.

Retained Executive Search vs Contingency: What’s the Difference?

“Executive search is a type of recruitment aimed at getting leading executive and senior management talent to a company. This is a vital process in any organization as people are the lifeblood of any business. Missing out on the best talent can prove to create an immense disadvantage.” 

I recently read an article published by AESC, titled Retained Executive Search vs Contingency: What’s the Difference? 

As an executive search professional myself – being in the business of carefully finding and meticulously placing the right high-level talent at the right organizations, it resonated with me. 

The article carefully highlights the difference between retained executive search and contingency recruitment. To ensure you choose the right type of consultancy firm for your organization’s pursuit, it’s critical you understand the differences between the two. 

As someone who has been in this industry for a long time, I highly prefer and recommend the approach of retained executive search. At the end of the day, it’s all about finding the right fit, both on the side of the candidate and the client. This means you have to really know, and understand both parties. That requires research, time, conversations, and analysis. You’re helping your clients make very important, and expensive decisions, making thoroughness a prerequisite to success. 

There are several other advantages to retained executive search firms. For one, they have the means to interact with top-tier candidates – hence enticing the best talent for your organization. They also work with organizations exclusively, ensuring all their attention is on you and they can work toward your needs specifically. The aspect of personal commitment and exclusivity should not be underestimated, resulting even in a guarantee to conduct a renewed search in the rare case that a recommended candidate has failed the expectations.

Here is a short and concise explanation of both approaches. 

Contingency Recruiting 

Contingency recruiting is completed by agencies that receive service payments after a candidate has been identified and hired. Due to the method of payment, most contingent recruiters take on as many searches as possible, ensuring they have multiple opportunities to get paid. This may mean the recruiter will be unable to give their full attention to your organization’s search or may walk away if they receive a more lucrative assignment.

Of course, this type of business also means that contingent recruiters cannot and will not invest a lot of time and effort into research and a mindful approach of potential candidates, but rather focus on readily available candidates and existing data pools, looking more or less for matches on paper.

Another side effect in the utilization of contingency recruiting is that by scattering the assignment across various consultancies, potential candidates might be contacted by competing recruiters thus deflating the value of the open position as well as the employer. 

However, due to the high number of incoming unsolicited applications in contingency recruitment firms, there is a chance for a quick win – but only from the limited pool of readily available candidates.

Retained Executive Search

“Unlike contingent recruiting, which recruits talent for roles ranging from entry to senior, retained executive search focuses strictly on placing candidates in executive and senior-level positions. When hiring a retained executive search firm, your organization is leveraging the firm’s extensive knowledge of and experience in the industry, service, or function. Retained executive search consultants specialize in high-impact, high-level placements – positions where the right leader provides a company with a competitive advantage.”

In summary: getting consultancy from a retained executive search firm is not the purchase of a matching employee, but the purchase of the best possible contributor to your company from the entire pool of candidates – justifying the expense and the effort to exclusively work with a professional retained search firm. Engaging an executive search consultancy means engaging professionals who work for specifically for you, acting as an extension and ambassador for your company when approaching and assessing candidates who may not be actively looking for a new position, but still are the perfect match for your company.  

You can read the original article here.

Business Lessons Learned – ‘What was good yesterday, doesn’t suffice for tomorrow’

Although some aspects of life are slowly returning to normal, the COVID-19 pandemic has permanently impacted the way businesses operate and has created a new ‘normal’ for the future of the workplace dynamic. Due to the virtual workplace, employees have gotten used to having a more flexible work-life balance. Companies have gotten more creative and proactive with their digital strategies. Leaders have become more empathetic and authentic. The consequences of the pandemic were unprecedented, but companies must learn to adjust to these conditions quickly if they want to remain competitive in their industry. 

Throughout the past few months, I have participated in various discussions with clients, candidates, and my team on adapting to this new ‘normal’. Maintaining a positive and engaging corporate culture while in a virtual workplace is critical to success. The more conversations we have about this, the more we can learn from it and grow. 

COVID-19 has changed the direction and flow of business in every industry to a more or lesser extent. How can employees effectively connect with each other through a computer screen? How does this affect corporate culture? What makes a company attractive in this highly advanced digital world?

I believe we should focus on three elements within companies that have been disrupted by the pandemic:

1. Company culture
2. How to be more proactive as companies
3. Employability

Speaking of company culture, a lot has changed over the past 18 months. Many people work for companies and have never met their colleagues, or even their bosses, in person. They started their new job during the pandemic and worked from home from day one. What effect does that have on corporate culture? And how do we get back together, after having been separate for 18 months? Company and corporate cultures need to be relooked at. People need to be brought back into the culture and the culture will probably need to be adjusted to the new normal. Companies that never allowed working from home opportunities, might decide to keep those now, because of employee demand, or even travel efficiencies. And we can think of many more cultural items that need reconsidering.

Secondly, companies need to be more proactive. Business leaders who believe we will return to “business as usual” are at a huge disadvantage. COVID-19 already has permanent consequences on the future of every type of company in every industry. While many leaders talk about the future, very few actually do something impactful about it. This is due to a combination of factors, including a lack of imagination or not knowing where to start the journey in the middle of a multitude of future issues that leaders are confronted with.

And lastly, we should look at employability; to what extent is the company attractive to the modern manager? Digital developments went faster because of the pandemic — a result of which is that the work-life balance schedule has become more flexible. Is a leader willing to move homes for a new job, or will the demand be to live where they choose and work partly from home? Who will be making the demands, the employer, or does the negotiation and decision power lie more and more with the employee?

All in all, companies need to focus more on employee wellbeing now than ever before. Empathy, compassion, and listening skills need to become an integral part of leadership if they are to remain attractive to talent.