Executive roles are among the most important positions that companies need to fill. Still, many employers find it hard to avoid common hiring mistakes that often lead to critical business errors.
While the hiring process for executives, leaders, and managers can be more exhausting, taking the right steps is necessary to succeed. At the end of the day, they’re at the helm of the business – and making a mistake is a no-no.
In this article, we’ll dive deep into executive hiring strategies to help businesses, key decision makers, and HR teams onboard the right leader into their organizations.
Why Do Executives Fail in their Roles?
According to Development Dimensions International’s study of almost 20,000 global leaders, only 53% of external and 65% of internal hires succeed in executive functions.¹ Regardless of your strategic approach, these numbers should not be taken lightly, as they can significantly impact your business growth.
So, why do executives fail? The main factor is transition.
1. High Stress Levels
Executives experience significant stress. The impact of their role, the huge responsibility, and the expectations can easily wear a person down. This can affect their decision-making and mental state, ultimately undermining their overall performance.
2. Lack of Formal Assessments
In the same study, only 61% of the respondents were formally assessed for the new role, while the rest had difficulty transitioning into their roles. Personal and professional assessment is key to understanding how a leader will fit into a role. It allows them to focus on things they need to develop and strengthen what they’re already good at, making them effective leaders.
3. Limited Access to Professional Development
Assessment and development go hand-in-hand. When asked, only 30% of the leaders who were adequately evaluated were offered high-quality development, while only 14% of leaders who had difficulty transitioning were given comprehensive training. This is why it’s crucial for companies to focus on evaluating leaders to effectively prepare them for the role.
4. Insufficient Feedback and Coaching
Out of all leaders surveyed, only 25% had a mentor who could guide them in their new role. Aside from metrics, leaders must be equipped with knowledge and guidance to help them perform their jobs. Mentors play a huge role in developing a path and steering mentees to become successful leaders. We can’t expect people to do a good job simply because they are executives.
Read more: 11 Steps to Avoid Pitfalls and Build Strong Employee Engagement from Day One
The Hidden Costs of Executive Turnover
When an employee leaves a company through voluntary separation or by being let go, companies suffer the cost of about three times the employee’s yearly salary. However, with executives, the stakes are even higher.
When a regular employee leaves, the impact typically remains limited to their immediate team and supervisors. While this turnover is costly, executive departures create far more significant problems. Before executives leave, they often go through a period of disengagement—a direct result of the transition challenges mentioned earlier.
As executives struggle with their roles over time, they gradually lose accountability, engagement, and sense of purpose. This disengagement doesn’t just reduce their productivity; it ripples throughout the entire organization, negatively affecting everyone they interact with and lead.
For instance, leaders are tasked to drive businesses and their workforce. Instead of an inspiring, motivated, and charismatic leader, you’re left with a detached executive who risks affecting entire teams negatively. Furthermore, their perception of work might not always align with the well-being of the employees or the vision of the organization, leading to poor choices and missed opportunities.
Providing the Right Support for Tomorrow’s Leaders
Many executive leaders experience stress. In fact, 1 in 19 leaders find their work so stressful that they want to quit. Stress is a powerful burnout factor that can potentially damage a business. Unfortunately, the support leaders receive through leadership training, assessment, and constructive criticism has been significantly reduced in recent years.
As employers, it’s time to refocus your strategies on empowering executives to ensure they succeed in their roles. After all, your business’s progress greatly depends on their vision and commitment. Here’s what you can provide for your leaders:
1. Clear understanding of their role and the organization’s objectives.
Executives, regardless of their level, should have a clear understanding of their role and how it will affect their organization. This includes both short-term objectives and long-term impacts, so that leaders can have a full view of how they can influence the entire organization. Higher or tenured executives also play a vital role in guiding their fellow C-suite executives, providing support and knowledge for their peers.
Read more: From Strategy to Action: Translating Company Vision into Your Leadership Goals
2. Transparency about their effectiveness as leaders.
While most think that executives are already at the top of the food chain, executives themselves seek recognition and evaluation. Due to the extremely stressful and critical nature of the role, many executives experience burnout and disassociation. Hence, they need to know where they are doing well, and which areas need improvement.
Boosting their confidence toward their achievements will help strengthen their leadership and self-esteem, making them more effective in their roles. On the other hand, providing assessment, training, and feedback can help them hone their skills and strive to become better leaders. For leaders in particular, the significance of their roles is how they make meaningful contributions to their organization. Without proper guidance, they risk losing purpose and meaning.
Read more: Exploring Performance and Growth Mindsets and How to Cultivate Them
3. Holistic leadership review.
In the first few months, you don’t need to provide any feedback. However, once they showcase their skills, perform meaningful work, and contribute significantly, it’s crucial to provide a comprehensive assessment of their leadership. This may include:
- Performance evaluations
- Constructive feedback
- Employee perception
- Attitude and personality assessment
- Decision-making effectiveness
- Crisis management
- Ethical leadership and integrity
- Vision and strategic thinking
The goal is to see how others perceive them and how well they are performing in their role. This not only keeps them on the right track but also helps challenge any discrepancies in their performance. It helps them grow and learn from a collective perception, allowing them to become more influential and transformative leaders.
4. Access to skill development and professional growth.
Don’t wait too long to provide leadership, communication, public speaking, or skills training. Ideally, have these developmental processes in place to help every leader succeed in their roles.
It’s understandable to wait until a new executive settles down, a crucial project ends, or most critical roles are filled. However, waiting too long might not work in your best interest. If large group conferences take too much time and money to prepare or require a certain attendance limit, there are cost-effective solutions that you can consider:
- Online training through training platforms like Coursera and Udemy.
- Educational programs from Harvard Business School Online and MIT Sloan Executive Education.
- Executive coaching through one-on-one sessions, mentorship, and leadership meetings.
- Industry-specific webinars and virtual summits that provide insights on leadership and trends.
How Cultural Fit Impacts Executive Retention
Executive search boils down to finding the right match between executive candidates and the organization. However, simple interview processes, aligning candidates with job descriptions, or assessing technical and soft skills may not be enough. It’s crucial to find the right fit by filling all the boxes and making sure that an executive candidate aligns with the responsibilities, business direction, company culture, and skill requirements.
Candidates must be fully equipped with adequate industry knowledge, resilience, a growth mindset, and adaptability. They must possess the necessary traits that your company needs to become a strong leader. This will enable them to make better decisions and inspire people, resulting in higher employee engagement that extends throughout the organization.
However, this is easier said than done, which is why even the most successful businesses sometimes fail in this area. Remember that when leaders fail, company processes and progress can be derailed, employees can lose morale, and tensions can rise among senior leadership.
Read more: The Science of Smart Hiring: 7 Techniques for Identifying Top Talent
PARTNER WITH ACS PROFESSIONAL STAFFING FOR YOUR EXECUTIVE SEARCH NEEDS.
As a dedicated staffing and executive recruitment firm, we commit our time to finding the right individual for leadership and professional jobs alike. ACS Professional Staffing has a long-standing history in the staffing industry of more than 20 years. Our expertise has led us to many successes and allows us to be part of the story of various private and public organizations in the US.
Executive search is challenging—and we’re up to the task. Let us achieve success together. Contact us today to book a meeting with a dedicated Staffing Manager.
Reference
- “Leadership Transitions Report 2021.” Development Dimensions International, 2021, https://www.ddiworld.com/research/leadership-transitions-report
