Adapting to Today’s Executive Recruiting Challenges

25 September 2008 by Keith M. Gaspard, Tracy Murdoch O'Such, Judith M. von Seldeneck

Adapting to Today’s Executive Recruiting Challenges

By Judith M. von Seldeneck, Tracy Murdoch O’Such & Keith Gaspard

Companies must be ready to adjust to the changing trends in hiring which have been brought about by factors including world events and a talent shortage. Organizations that prepare for changes in talent recruitment by understanding the issues and developing creative strategies will be the clear winners.

The role of the executive search firm and in-house corporate recruiters is more important than ever as human capital partners in this “war for talent” atmosphere. In fact, developing a close working relationship with a search firm partner is an important element in a company’s strategy to gain access to the best available candidates. Search firms are best utilized in a true partnership and consultative role where they have access and input to their client’s strategic plans. This allows them to make suggestions on organizational structures, take a proactive approach to positions expected to become available, and offer a viewpoint on competitive marketplace events and information.  

Compensation, as always, is a key point in securing top talent. Companies who want to attract top candidates need to be willing to structure attractive packages that have the right blend of base salary, performance based bonuses and long term incentives. The search firm’s role as an advisor in this area is crucial since they have access to extensive competitive market data in terms of what others are doing.  

The use of stock options has vastly altered due to new expensing requirements and employers and Board Compensation Committees are taking harder looks at the specific terms of employment contracts, change of control agreements, non-competes and company perks. It is a fine line between what it will take to attract top talent, and what the shareholders will tolerate in terms of reasonable packages.

Succession planning is another important strategy. Companies who prepare proactively for a change in leadership or corporate restructuring will avoid costly issues down the road created by a void in a key position. Forward thinking search firms can help in providing market intelligence and timing advice.

With the changing business environment, increased competitive pressures and a dwindling supply of executive level management talent, successful organizations will need to think ahead and be creative in order to hire and retain leaders who are ready to take them into the future. It is more important than ever to not only build strong recruitment and retention capability in-house, but also to establish a positive working relationship with an experienced and respected executive search firm like DSRB, which can help you think through your business strategies and human resource needs.

Understanding the many issues at play, and making the necessary investment to insure that your company is able to find and attract talented leaders is pivotal to future success.