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Why is Hiring a C-Suite Leader So Hard?

Have you started a search for a C-suite leader only to find yourself several months in and frustrated with your lack of results?  Are you wondering why it’s so hard to fill your role?  There is good reason…many good reasons.

The tough reality is that hiring a C-suite leader is a difficult task.  It requires finding someone who has the right mix of technical, administrative and social skills, as well as the ability to adapt to a new organization, culture and team. Moreover, it involves competing with other companies that are also looking for top talent in a limited pool of candidates.

In this article, we’ll start by examining four challenges of finding the right C-suite leader and then we’ll explore some solutions.  By the end of the article, you should be encouraged that your frustrations are well grounded as well as equipped with some action steps for moving forward.

Here are four top challenges to finding a C-suite leader:

Challenge 1: C-Suite Leaders Require a Unique Skill Set

According to a recent analysis by Harvard Business Review, the skills that matter most for C-suite executives have changed over time. The traditional indicators of senior leadership potential, such as technical expertise, administrative skills and financial savvy are no longer sufficient. Today, companies also need leaders with strong social skills, such as empathy, collaboration, communication and influence. These skills enable leaders to motivate a diverse and technologically savvy team while also dealing effectively with various stakeholders. These skills are often referred to as “soft skills” but they are not easy to measure or develop.

Many executives lack formal training or feedback on how to develop and demonstrate these soft skills. Moreover, these skills are harder to measure and assess than technical or administrative skills. As a result, many companies struggle to identify and evaluate candidates who possess these essential capabilities.

Challenge 2: Expectations for C-Suite Leaders Are Higher Than Ever

Once hired, C-suite leaders face higher expectations than ever before from their boards, shareholders, employees, customers and society at large. They are expected to deliver excellent financial results while also addressing crucial societal issues, such as sustainability, mental and physical health, diversity, equity and inclusion.

Many expectations create a paradoxical and demanding set of requirements for C-suite leaders. It requires the C-suite leader to keep a constant balance on two opposing character traits.  They are expected to be visionary and innovative while also being pragmatic and resilient. They are expected to be authentic and transparent while also being diplomatic and persuasive.

Additionally, you need someone who can balance competing interests and priorities, make trade-offs and compromises, and navigate uncertainty and ambiguity. They must be flexible and adaptable while also being consistent and reliable. They must be humble and self-aware while also being confident and assertive.

Challenge 3: The Competition for C-Suite Talent is Fierce and Diverse

As mentioned in Challenge 1, the ability to find leaders with the right skill set is already very challenging.  Add to that the fact that the competition for this talent is no longer limited by geography or industry.  You are competing with companies across the globe and in a wide variety of industries.

Executives today are more mobile and open to relocating for a job. Moving to a different state or even a different country has become a normal part of a C-Suite job change.  This means your competition for talent transcends the borders of your region.  Additionally, the rise of remote work has made it possible for executives to work from almost anywhere, further expanding the reach of competing companies.

Furthermore, the once taboo act of hiring outside your specific industry is now a common practice. While some industries may still prefer candidates with deep domain expertise, there has been a notable shift in favor of hiring leaders with diverse backgrounds and experiences. While this way of thinking offers greater talent pools for you, it simultaneously increases the number of organizations you are competing with for top talent.

Challenge 4: The Risks Are Higher Than In Past Years

Hiring a C-suite leader is not only difficult but also comes with risk. A wrong hire can have serious consequences for the company’s performance, reputation and morale. To avoid hiring mistakes, companies need to conduct rigorous due diligence on potential candidates. This includes verifying their credentials, track record, references and background. It also includes assessing their fit with the company’s culture, values, strategy and goals.

As an executive search firm, we hear many industry stories about leaders who are a bad fit.  That is why it is so critical to evaluate more than a candidate’s competencies.  For nearly 50 years, our team has followed a very thorough recruiting process that evaluates a candidate’s character, culture, chemistry and competencies.  It is essential those areas align with the organization if you want to make a successful hire.

How to Alleviate the Challenges

Undoubtedly, there are even more challenges than we have listed here.  While that may be discouraging, there are several things that organizations can do to improve their chances of hiring a successful C-suite leader. These include:

  • Work with an executive recruiter. Executive recruiters have a network of qualified candidates and, specific to Centennial, we have a proprietary recruiting process that can help you to identify the right person for your organization.
  • Cast a wide net. Don’t limit your search to traditional job boards. Consider networking with industry professionals and reaching out to potential candidates directly.
  • Be clear about your requirements. Make sure that your job description is clear and concise, and that it accurately reflects the skills and experience that you are looking for.
  • Focus on cultural fit. Ask questions about the candidate’s values and leadership style during the interview process.
  • Be prepared to pay a premium. C-suite leaders are worth the investment. Be prepared to offer a competitive salary and benefits package.

Hiring a C-suite leader is difficult because it requires finding someone who has the right mix of skills, experience and personality for the role. It also requires balancing multiple expectations, making contact with the right people and oftentimes, wooing the leader away from another organization.

To overcome these challenges, companies should define clear criteria for what they are looking for; use proven methods to identify and evaluate candidates, and provide adequate support and feedback to the hired leader. Hiring a C-suite leader is difficult but not impossible. With careful planning, preparation and execution, companies can find and select the best person for these top jobs.

If you’d like our expert help, let us know!