No matter the unemployment rate, the degree of difficulty involved in finding top-tier talent remains the same. That was true before the Great Recession, and it’s true today.
Actually, it could be argued that for companies attempting to find the candidates they need on their own, the difficulty is even greater. That’s because with as many job seekers as there are in the marketplace, those companies can quickly be overrun with resumes and applications. As a result, it takes longer to find the candidates they want to interview and potentially hire, and by the time they do find them, those candidates are typically no longer available. Needless to say, that’s a misuse of time, energy, and resources.
Making a bad hire in your C-suite can have disastrous consequences. There’s an art to finding qualified, top-performing executives and the search for the right candidate can make the process far longer and far tougher.
Some numbers to understand Quality of Hire
The Harvard Business Review has stated that over 80% of employee turnover can be attributed to poor hiring choices. Similar research conducted by the US Department of Labor states that the price of a bad hire is 30% of the employee’s first-year earnings at a minimum. As the position becomes more impactful to the business, this number increases exponentially. Our own research estimates the true long term cost of a bad hire to be $211,000 based on a $95,000 salary. Most companies would agree that given these numbers they may want to think twice about their own hiring practices. Taking steps to avoid making costly hiring mistakes may begin with internal processes but it also may result in consideration of hiring a professional search firm.
When the cost of not filling an executive role has negative ramifications on the success of your business and the well-being of an entire department, do you really want to take the risk of resorting to quick, low cost alternatives like posting a job ad, scouring LinkedIn or hiring a contingency recruiter?
So what do Executive Search firms bring to the table?
1) Access to a high-quality network of executive professionals
If you’ve blown through your list of referrals and network connections and still aren’t able to find an executive candidate that ticks all the boxes, it may be time to call in an executive search firm.
2) Some positions are too important not to invest in
The implications of a bad hire so far up the managerial chain are huge. Top retained search firms are well practiced in understanding the rare skills mix needed for a C-suite position and can easily identify the right fit, be this via an internal hire or an external candidate.
3) The Role is beyond Internal Expertise
Often times leadership roles are the toughest to recruit for due to the fact that there may not be an internal team member who can fully appreciate and understand the role. If they cannot fully grasp the challenges of the role, it will make the process extremely difficult to define the parameters, recruit talent, and make a sound decision. Because the role is outside the internal recruiter or business leader’s own knowledge base, it will be very difficult to fully assess a candidate’s answers in an interview and determine the right fit for the company.
4) Internal &External Confidentiality
There are occasions in which ultimate discretion is needed, such as hiring a replacement when an executive is still in the role. By outsourcing the task, you’re relieved of workplace secrecy but still have all the control, trust and transparency of having the job taken care of by someone impartial.
5) Succession planning to future-proof your C-suite
Being prepared for every eventuality is crucial for business stability. Unexpected resignations can cause unwanted disruption within teams and hinder how successful you are at reaching goals.
Hiring an executive search firm to come in and assess your workforce is a reliable way to get a fuller picture of the in-house talent you already have and also lets you know which options are available to you externally.
We help support careers in one of two ways: 1. By helping find the right opportunity when the time is right, and 2. By helping recruit top talent for the critical needs of organizations.