The New Challenges of Executive Recruiting

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

The New Challenges of Executive Recruiting

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

A combination of factors, including world events and a talent shortage, is dramatically impacting the ability of companies to recruit executive talent. Events during the past five years have resulted in a sea change which has brought a new set of dynamics to senior level executive recruiting. In short, it has become more challenging to recruit senior executives.

The aftermath of 9/11, the recession, going to war in Iraq, and the aging of the baby boomer generation have caused individuals to rethink values and priorities in a climate of uncertainty, while the pressures of Sarbanes-Oxley have caused corporate citizens to do the same. It has become increasingly difficult to get people to change positions in which they are comfortable and doing well, particularly if relocation is required. When these factors are put into the context of the demographics, it is clear that the problem of finding the talent to fill key positions, predicted years ago, is coming true.

The baby boom generation, defined as those born between 1946 and 1964, includes over 80 million individuals, (according to U.S. Census figures) who are turning sixty and beginning to leave the workforce.  According to the on-line magazine Chief Learning Officer, “Even if baby boomers are more likely to keep working past age 66, eventually their participation rates will start to negatively impact labor force growth.”  However, this raises another issue.  Combating the numbers of aging boomers is the fact that there are fewer numbers behind them which will leave a gap which companies need to develop long-term strategies for or risk dire consequences of talent shortages.

Gender is also a concern – recent decades have seen high numbers of women entering the workforce but those numbers are now starting to level off. As Dr. James L’Allier and Kenneth Kolosh point out in their article, Preparing for Baby Boomer Retirement, “At the macro level, this supply of talent is now tapped out. At the micro level, organizations may need to do more to maximize their gender pool. Again, organizations will need to work smarter to attract and retain qualified workers, regardless of gender.” 

Another issue in the changing demographic landscape is the increase in ethnic diversity, with a large percentage coming through immigration.  According to the U.S. Census, Hispanics are the fastest growing ethnic group and by 2050 will make up one quarter of the population. In the article Tapping the Hispanic Labor Pool, Robert Rodriguez says, “HR professionals are having difficulty tapping into this pool of talent. The problem is that traditional recruitment strategies do not effectively reach Hispanic candidates.”

Successful employers will recognize the implications of shifting demographics and psychographics, and respond to them in the context of their own organizations.