How Is the Evolving Path to the C-Suite Affecting Recruiting Efforts?

Many people begin their career with the thought of one day reaching the top of the corporate ladder: the C-suite. Ascending to the C-suite is difficult, but times are changing what businesses are looking for when recruiting C-suite executives.

The traditional paths are of course still available, but there are new routes for the ambitious. The changing world of C-suite recruiting is bringing in a new type of executive that best fits the corporations of today.

Traditional Ways to the C-Suite

For decades, C-suite executives tended to come through four traditional routes:

1. Internal Promotion

The most common route has been a long tenure with a single company. Moving up through the ranks is a long game, but it is how many C-suite executives attained their posts. Promoting from within ensures the new C-suite hire understands the company’s culture and embodies with it, demonstrating that the firm rewards loyalty. This can help retention overall.

2. External Recruitment

Moving from one company to another is another way to reach the C-suite. After building a strong record at one company, the individual makes themselves attractive to other companies looking for a proven track record. It brings in a new perspective to the firm. It is expected that the person will utilize their prior experience, knowledge, and skills on behalf of their new employer.

3. Standing Out

Some candidates “skip a grade” on the way to the C-suite. These agents of change stand out from their peers in a way that makes them attractive for these types of positions. However, companies risk a decrease in morale when promoting employees who are technically lower-ranked above colleagues with more seniority. This can lead to other employees seeking out more lucrative opportunities elsewhere.

4. Founding a Company

The final traditional way into the C-suite is the entrepreneur who starts their own business. These are risk takers willing to put everything on the line because they have a vision and a drive to succeed. Few people actually take this route. It requires a certain mindset to give up a steady, well-paying position to gamble on an uncertain future.

Firms Are Looking outside the Box for Their Next Executive Hire

The traditional paths are no longer the only ways to reach the C-suite. In the wake of the COVID-19 pandemic, many businesses have broadened which skills and experience they value in C-suite candidates. These include:

1. Start-up to C-suite

An example of this is the opposite of the last traditional method: going from start-up CEO to the C-suite of an established firm. People who have started their own businesses have skills and talents that are desirable in established companies. They have had to deal with many obstacles in setting up their own businesses and have demonstrated determination and resilience. The downside to bringing in an entrepreneur is that they may find it challenging to fit in with a more traditional company’s culture.

2. Consultant to C-suite

Being a consultant is another option to ascend to a C-suite opening. Consultants have already seen the business from the outside and have a good understanding of its strengths and weaknesses. Consultants typically have in-depth knowledge of industry trends and know how to apply that knowledge in a strategic manner. Their lack of executive experience could be detrimental, but the upside is high.

3. Remote Workforce Manager to C-suite

The COVID-19 pandemic forced companies to adjust rapidly on-the-fly. One of the biggest challenges facing firms was the switch to a remote workplace. While many people are heading back to the office, most companies are transitioning to a hybrid workplace, with employees working part of the time from home. This placed a new emphasis in the C-suite on having someone to oversee the remote component of the operation.

Middle managers who took on the responsibilities of managing a remote workplace are now excellent candidates for C-suite positions. Experience handling a remote workforce is now a very valuable commodity to possess. The massive disruption in routine business operations caused by the pandemic have taught firms that they need to be prepared to deal with such problems in the future. Having executives in the C-suite familiar with managing change is very appealing.

The Bottom Line

The path to the C-suite is changing, and so are the skill sets and experiences C-suite recruiters are looking for in candidates. The firms that are quickest to recognize the changes and act on them in their C-suite recruiting will have a major advantage over their competitors—especially if another major disruptive event like the COVID pandemic hits somewhere down the road.

Internal or External Recruiting for the C-Suite: Which Is Best?

When hiring for the C-suite, companies have two options: promote from within or go outside the organization. Is one better than the other? What are the relative merits of internal versus external hires?

The Pros and Cons of Internal Hires

In the past, firms tended to promote from within. Most members of the C-suite were long-time employees who worked their way up to the top after many years of loyal service. While this is no longer the case in most companies, there are certainly still advantages to internal recruitment.

The most obvious advantage of internal promotion is that it saves the company time. The pool of potential candidates is much smaller than with an external search, and the backgrounds and track records of the potential hires are already known to the company. Sometimes, speed is crucial in filling a C-suite position, so an internal hire can be the way to go if this is the case.

Recruiting internally can also save money. It doesn’t require hiring an outside search firm, and candidates don’t need to travel and be housed for interviews. Because internal candidates are already familiar with the company’s practices, they don’t need to be trained extensively. Internal hires are also already familiar and comfortable with the company’s culture, which can ensure a smooth transition to the new position. This means that the retention of the hire will be much more likely than an external hire. Retention saves money.  

Internal recruitment is not without its problems, however. Promoting from within can cause a loss of morale if other workers feel that they were passed over for the position or had a poor relationship with the newly promoted person. The dirty side of office politics can affect team dynamics as well. Rarely will an internal hire not leave at least some employees unhappy.

External Hires Are Also a Double-Edged Sword

Going outside the firm has its merits and debits as well. For one thing, the talent pool to recruit from is much larger. Opening up a search could bring candidates from all over the world—and most likely a large number of highly attractive candidates to choose from.

Outside hires also bring a different perspective to the company. They have undoubtedly found their own way of doing things and can bring that experience to the company. This can fuel positive change in the way the firm does business. A fresh set of eyes works to prevent complacency and give everyone a new platform to bounce ideas off.

External recruiting offers the possibility of different skill sets than in-house talent. The experiences and knowledge of outside candidates are limitless. If the firm is deficient in any particular area, an outside hire can address this issue.

External recruitment can help to address diversity issues, too. The larger pool of candidates will provide excellent, well-qualified candidates from many different backgrounds. Also, external hiring lets the firm look at nontraditional candidates for the C-suite. People with different educational backgrounds, older executives with a wealth of hands-on experience, and others lacking the typical CV of a C-suite hire can sometimes be just the right fit for the position.

External searches come with their own challenges and disadvantages. An external search is going to be longer and more costly than an internal one. Analysis paralysis can set in too, making it difficult for a final decision to be made among a large group of applicants. Delays in hiring can be compounded by the fact that the new hire is going to have to undergo some form of training to get to know the operational methods of the company. Assuming that a search firm is retained, this will incur additional costs and some loss of control over the process.

Also, hiring from outside the company can cause morale to drop. No one wants to see themselves passed over for a position in favor of someone outside the company. It can cause employees to question whether their loyalty to the firm is a one-sided affair, so they may look for other opportunities outside the company. Retention rates could drop, resulting in the need for more employee searches, causing a whole other set of problems. A new outside hire may mean changes to the firm’s operations, and some people are not going to like the new ways of doing things.

There is no real “best” way to fill an open C-suite position. Both internal and external searches have their benefits and drawbacks. Ultimately, firms must consider what route is right for them when the time comes to look for a new member of their C-suite.

The Best Podcasts for HR and DEI Leaders

Podcasts can be an excellent way to learn something new, stay up-to-date with trends in your industry, and fill the time as you commute or do daily chores.

There are a variety of podcasts about organizational leadership, HR, diversity, equity, and inclusion (DEI), and other topics that are critically relevant to CHROs and C-suite executives today. It’s often difficult to know which podcasts are worth listening to, but here, we present a curated list of some of the best options. Download individual episodes or subscribe wherever you get your podcasts.

Digital HR Leaders with David Green

Host David Green speaks to a variety of senior HR leaders in this podcast. Though they hail from many different industries, these guests have one thing in common: they are all succeeding at building digital, data-driven HR strategies within their organizations. Past episodes have focused on the links between business transformation, performance, and culture at AT&T; Rabobank’s efforts to create a more agile HR function; and how neuroscience can help companies drive change.

The Will To Change: Uncovering True Stories of Diversity & Inclusion

This podcast is a worthwhile listen not only for DEI leaders, but also executives and board directors interested in improving diversity and inclusion within their organizations. Guests include CEOs of prominent companies, authors, thought leaders, and entrepreneurs. With host Jennifer Brown, they discuss embedding disability in DEI, gender equity, hiring people who have been incarcerated, and unpacking DEI lessons from the tumultuous year of 2020, among many other topics.   

reWorked: The Diversity and Inclusion Podcast

Another excellent choice for DEI leaders, this once-monthly podcast brings together HR leaders, CEOs, and workplace activists to discuss what they’re doing to build a more inclusive culture within their organizations. reWorked is a product of the EW Group, a London-based consultancy that specializes in DEI. Conversations on the podcast have focused on topics like building an anti-racist culture, neurodiversity, LGBTQ+ inclusion, and measuring ROI on DEI initiatives. 

HR Works

This podcast’s simple subtitle—“The Podcast for Human Resources”—says it all. A generalist podcast for HR leaders, HR Works focuses on providing actionable insights and timely, relevant conversations. Its short “5-Minute Friday” episodes particularly stand out for packing a lot of useful information into brief conversations with guests.

The CEO Forum Podcast

A radio show available in podcast format, The CEO Forum features interviews with CEOs from a variety of industries—so far, the show has interviewed more than 750 CEOs from companies like Ben & Jerry’s, LinkedIn, General Mills, Deloitte, and SAP. Interviewees frequently touch on topics like leadership and changing trends in business, how companies can stay relevant in a changing executive search climate, and technology trends in recruitment.

Talent Optimization

Hosted by Traci Scherck, this podcast provides insight into how different organizations find talent, and the challenges that come along with this process. The content is geared toward CEOs and HR leaders, and often centers on bridging the gap between a C-suite strategy and the CHRO’s implementation of it.

Inside Executive Search

Hosted by Steve Yakesh and Scott Peterson, this podcast allows you to hear from executive search professionals across the country as they discuss how organizations find top talent these days. A few topics previously discussed include the impact of economic growth on talent acquisition, interim leadership and executive transitions, and new ways to improve the candidate selection process.

HBR IdeaCast

Though not specifically focused on HR or DEI, Harvard Business Review’s popular podcast is still essential listening for executives of all types—and HR and DEI topics are often the focus of discussion. For example, recent episodes have focused on why companies should have career returnship programs, and how the pandemic changed talent management for the better. Hosted by two senior editors of the periodical, the podcast provides a forum for thought-provoking conversation and fresh ideas from leading executives and thinkers.

HR Happy Hour

This podcast has the distinction of being the longest-running and most downloaded podcast geared toward the HR industry—300 episodes (and counting) have been recorded. Think of this podcast as an easy way to stay up-to-date with industry trends like conversational AI in recruiting, payroll innovations, labor market updates, and what’s new in employee benefits. There’s also lighthearted fare: a recent episode featured a fun conversation about what the movie Jaws has to say about HR and leadership.

Honest HR

Created by the Society for Human Resource Management (SHRM) and billed as “the podcast that gets real with HR professionals,” Honest HR focuses on exploring workplace truths—even topics that can be uncomfortable. Expect lively conversation and ideas that may challenge widely accepted notions. A few recent topics include how HR can better serve veterans, rethinking leadership development, and the importance of empathy.

How Technology Can Help You Find Your Next CEO

Technology is quickly changing the way individuals perform various activities. In different fields, technology is being utilized and becoming dominant in the recruitment sector. It comes in handy when finding the right person for the job. Recruitment and hiring is a critical process that requires due diligence, especially that of a CEO. Let us examine some of the ways technology can help in finding the right CEO for your company and how it works to your advantage.

Artificial Intelligence

Many executive search firms and HR professionals are tapping into the power of artificial intelligence (AI). Artificial intelligence can select the topmost candidates without the interference of implicit human bias. Often, human beings tend to be biased towards specific individuals. Artificial intelligence is fair, and it cannot be compromised by any individual. It is a vital aspect that any recruiting entity should utilize, especially when hiring for the executive role.

Additionally, using this kind of AI helps inform potential applicants if they meet the requirements and experience for a particular job. The system can automatically alert the applicants if they are a fit for the job according to the specific characteristics required, thus making the whole executive search process more manageable.

The Use of Chatbots

Chatbots are considered to be part of and parcel of AI. They are critical in the field of recruitment. Chatbots play many roles, such as scheduling and arranging the interview sessions on behalf of the recruiter. The chatbots are vital because they can be programmed to understand the emotions of a prospect. For the leadership role, it is crucial to attract top talent. It is estimated that chatbots save a lot of time for recruiters.

High-Tech Applicant Tracking Systems

The applicant tracking system is another crucial aspect of automation while looking to fill the executive role at your organization. It is best to utilize the applicant tracking system by making informed choices along the recruitment process. Moreover, the system works by making use of a bot to filter the essential words in a resume. Once an applicant uploads their resume, the system searches for the critical words and filters them out before they can reach a human. It is wise to use the system sparingly and with due diligence. Recruiters should use a system that has proved to be effective over time.

Automation Helps Fuel Strategic Recruiting

Using automation during the selection process is a great way for your business to remain profitable and strategic at the same time. With this in mind, it is critical to automate the whole process. It is less tedious when systems are automated—finding suitable contenders to getting the right fit for the topmost position in your company. With automation, you can measure each aspect and plan tasks effectively. Using automation will ensure that you are not wasting time and money, as we know recruitment can prove a tedious process, specifically for the topmost position.

Executive recruiting software can automate a recruiter’s most time-consuming duties. It can update data automatically related to areas such as candidate records, interview details, reference checks, compensation, and offers. The system can automatically drag and drop details from candidates’ resumes without the need for manual entry.

Technology Helps Conduct Video and Online Interviews

After the selection process is complete, it boils down to the interviewing stage. The interviewing stage is a critical step in the executive search. With the online interviews, the entity can pre-record questions and send them out to the shortlisted applicants. It proves to be a more straightforward process and omits the step of calling individuals via phone.

Various tools have been developed with regard to automation to aid in this task. The shortlisted recruits for the CEO position can take up the interview questions and send them back to the hiring entity to be reviewed for the final selection of the topmost position.

Final Thoughts

There are many automation solutions that human resource practitioners can employ to get the best hire in the executive search. With all of this at their disposal, it is vital not to ignore the humans in the whole process. Every organization has its own way of conducting the rigorous process of acquiring human capital. The human approach should not be downplayed when embracing technology, as it plays a critical role in selecting candidates for leadership roles.