This article shares insights from a CEO hiring specialist, focusing on the subtle factors that impact hiring outcome
Musings of a CEO Headhunter
As some of you may know, I transitioned from a management consultant to an executive search specialist (or headhunter) some 10 years ago. I lead the CEO Search Practice at Resource Bridge India, a specialist executive search firm which only takes up CEO and CFO hiring.
As a CEO headhunter, I work with clients and candidates to make the match happen, which has enabled us to have a ringside view of happenings – some expected, some not so expected; some that make you sit up and take notice, some humdrum. I hope to share some of these here, with the hope that it helps clients and candidates alike, in their search for better outcomes.
How compensation decisions make or mar hiring outcomes
One of the most critical steps that make or break the hiring outcome, is the compensation. And unsurprisingly, both the clients and candidates struggle with this (and we, along with them!).
One of the earliest experiences was when we were working with a renowned industry leader in the South, helping to hire a CEO for a business, which was going through a critical phase. To give some context but without divulging sensitive information, the business contributed significantly to the Group’s financial health, and the recently hired CEO had to be let-go, due to cultural mismatch. It is in this context that we were roped in, to find a new CEO.
After a long search, the process led to two finalists, with one being a clear favourite over the other. As the compensation discussions opened, the ask from the leading contender was felt to be high – higher by about 30-40% compared to what the client thought they might close out.
Despite this, the client went ahead and discussed (not negotiated, but discussed) the compensation with the candidate, to finalize it closer to the candidate’s expectations. Throughout this, the promoter insisted that it is better to have the candidate come in happy, rather than strike a tighter deal. The focus was on ensuring that the candidate comes with the right mindset, as opposed to saving 5-10% more.
Two years down the line, the hire has turned out to be one of the best decisions that the group has made. The candidate is anchoring the business much better than anticipated, freeing the leadership to focus on other businesses.
As a headhunter, I am used to seeing clients (or the candidates) trying to wring the best deal. But here is an instance where the client consciously took a decision to make the offer close to the candidate’s expectation, to ensure that the first experience that the candidate has, is good. Given the compensation, the delta was not small, by any means – yet, the client took this great, long-term view.
By Ramadhurai K
Lead CEO practice at Resource Bridge India
