How compensations make or mar hiring outcome – Part 2

This article shares insights from a CEO hiring specialist, focusing on the subtle factors that impact hiring outcome

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Musings of a CEO Headhunter

How compensation decisions make or mar hiring outcomes – Part 2

As mentioned last week, compensation decisions can make or mar hiring outcomes.
Last week’s example was that of one, where a promoter took a long-view and made an offer closer to the candidate’s expectation. The thinking, as explained by the promoter himself, was that he wanted the candidate to come in happy and ready to deliver. Apart from the overall compensation number itself, there was no need to structure or rework significantly. But that’s not always the case.

We had another client case, which did call upon many elements – alignment on the overall compensation, reworking the compensation structure itself, and specific soft interventions, to clinch the deal. Remove any one of these elements, and the hire may not have happened.

As context, the client, an Indian promoter company, was looking to hire someone to steer a large P&L, leading sales from the front. After going through a few options, client shortlisted a candidate who was based outside India (the P&L was also outside India).

The key issues standing in the way were

the candidate’s compensation ask was higher than originally planned or budgeted

candidate lived in a country where the local laws were quite different and due to business reasons, it was decided to continue with the same country instead of relocating to India

with the hiring happening towards the tail end of Covid, in-person meetings were disrupted

Again, the client took a long-view of the ask to align on the overall number, but we structured the payouts differently by including newer compensation elements as well as linking it to specific events and outcomes, moving to a contractual engagement rather than an employment. Finally, since there were so many moving parts in the compensation itself and the in-person meetings had been disrupted by covid, the CEO flew out to meet the candidate to give and get comfort. As said earlier, remove one of these interventions and the deal would not have closed.

In both this week’s example as well as last week’s example, the common thread is how companies take a longer view of the compensation ask while deciding to go ahead or not, with the selected candidate.

If the Indian economy even continues on the same trajectory, the need for good talent at the CEO, CFO and other CXO level is going to get intense. This is despite that fact that 76%+ of the CEOs are elevated into the role and only 24% are hired externally (check comments). That’s not the case with CFOs though as my colleague Saroja, the CFO Practice lead at Resource Bridge observed, ~50% of the CFOs are hired from the market place. So, the pressure is immense.

In this context, it is important that clients enter the fray with a long-view as well as the mindset to work with the executive search firm to create new compensation structures that balance competing demands.

Article by Ram K 

CEO lead at Resource Bridge India

Link to the previous post: Click Here 

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Anu graduated from DU and subsequently completed her full-time MBA from IMI. Post her MBA, she worked in sales in the BFSI space, with ICICI Lombard, Principal Asset Management, DSP Blackrock and Edelweiss, across bancassurance, and institutional sales. Later, she worked in the start-up space, while pursuing and completing the Master's in Business Law from National Law School. At Resource Bridge, Anu is a Sr Associate in the CEO Practice and has worked closely with Ram on key mandates.


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Ram is currently the Leader for the CEO Practice and also the Managing Partner of the firm. Ram is an Engineer-turned (BE Mechanical, MS Industrial) MBA from IIM Ahmedabad, and brings with him 7 years in corporate, 14 years in top-tier consulting and 10 years in executive search. He was last the leader for Life-sciences at Monitor Group and prior to that, headed IMS Consulting and AT Kearney, starting his career with Ashok Leyland. Brings extensive experience in automotive and healthcare/life-sciences space.


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Dhanlaxmi is a CA and ICWA from Mumbai, and brings with her extensive experience as a practicing chartered accountant, serving clients across industries. Alongside, she also served as a visiting faculty in several institutions. At Resource Bridge, Dhana is an Consultant in the CFO Practice, where she has worked with Saroja on several of the key CFO mandates.


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Saroja is a merit-ranking ICWA and is the Lead for the CFO Practice. Coming from an industrial family, she initally worked in the family business focused on automotive forgings. Later, she set up Resource Bridge along with Ram and grew it from infancy. Just over the last few years, she has led 40+ CFO engagements for a variety of clients, and has one of the best networks within the CFO Community, not only in India but outside too. She brings extensive experience in Retail, FMCG and Manufacturing sector.


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Rachana is an MBA with prior work experience at Reliance Industries for 8 years. In her last role at Reliance, Rachana was the Product Manager for the  $55M Benzene and Xylene portfolio, with responsibility over sales, commercial and client management. Later she was at Sizer Metals, a base metal trading firm, working on hedging, supply chain and account management. At Resource Bridge, she is a Sr Associate in the CFO Practice and has worked with Saroja, the CFO Practice Lead, in delivering key mandates.


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Mona leads the BD & New Client Engagement function at Resource Bridge and is responsible for all client development activities for the firm. She comes from a marketing and brand promotions background, having worked in the marketing function at Matsushita. Mona has done her full-time MBA.


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