The failure rate for newly- hired executives in the first year or two can be as high as 40%. That means that nearly half of the time you are hiring the wrong people. That costs your organization time and money. Bringing on a new executive is frequently a labor-intensive enterprise, tying up high-level resources. How can you hire executives who fit better and will remain with the organization for the long term?
Review Your Compensation Plan
Do you have the right mix of salary, bonus and stock options to attract and retain top executives? The salary should be large enough to pique interest, but skew total compensation toward bonus and stock, and you can ensure that the executives you hire are invested in the success of your organization.
Check and Double Check
When it comes to executive hires, there is no such thing as too much due diligence. Check the references the candidate provides, of course, but also reach out to people within your company who may know him. Call contacts you may know at prior employers and throughout the industry to assess the reputation he has acquired. Does he have the vision, creativity and drive you expect? Or are there any red flags that must be investigated?
Improve the Interview
By the time a professional has reached executive level, he has dozens of interviews or more behind him. You’ll need to assemble a highly adept interviewing team to interview these candidates thoroughly. Each member should be a veteran interviewer and possess a deep understanding of the expectations of the role and the qualities of a candidate who is likely to succeed in it.
Ask For Proof
Go beyond the interview to truly assess how the candidate will fit into the company and meet expectations. Ask candidates to create a presentation to assess their insights and ability to communicate. Present them with typical issues or problems they will need to solve in the position and ask them to develop solutions.
It can take as long as three years for an executive to be truly effective in their role. If you fail to bring them properly up to speed, you will lose them long before they are able to make an impact. Executives are frequently thrown into the deep end and expected to be immediately successful, but this can be short-sighted. Giving new executives a firm grasp of your organization’s philosophies and goals can ensure long-term success. Provide continual executive coaching to provide the executive with resources to grow within the position.
Keep the Challenges Coming
Chances are, you hire top executives for their ability to innovate, lead and shake things up. Once they have solved the issues they were hired to resolve, what motivation do they have to stay? Offering new initiatives to lead on a regular basis can improve longevity.
Partner With a Specialized Recruiting Firm
At BrainWorks, we understand what sets top performing executives apart from the rest of the pack. With more than 20 years of expertise, we know what steps to take to attract and recruit professionals who fit into your organization and are ready to make an immediate, positive impact.
Contact BrainWorks today to learn more!