Recruiting your organization's next leader: 5 things to remember

In a global development organization, the right executive talent can attract millions of dollars to advance a nonprofit’s mission, engineer innovative ideas to break through intractable problems and unify stakeholders around a single goal. Yet failure rates for senior executives are high and rising. In fact, CEOs appointed in the last 25 years are three times more likely to be fired than CEOs appointed earlier, according to “The Search for Executive Talent” report published by the Society for Human Resource Management in 2010. Finding the right candidate for an executive position requires more work than filling lower-level positions, if for the sole reason that executives aren’t typically looking for jobs and organizations can’t simply post an executive-level job on a careers page. But the payoff of finding the right candidate is exponentially larger. “Human capital is the most important asset of any organization,” said Divina Gamble, senior client partner and nonprofit sector co-leader at executive recruitment and talent management firm Korn Ferry. “Given an executive’s role in shaping the direction of an organization, it’s critical to conduct a thorough search process and search strategy that aligns with the current and future focus of the organization.” In global development especially, this process requires extensive stakeholder engagement. Here are five things to keep in mind when conducting an executive-level search. 1. Executive-level searches are vastly different from other candidate searches. As one expert put it, in a regular candidate search, the candidate comes to the job. In an executive talent search, the job comes to the candidate. All of which means executive searches require far more time, energy and expertise. Whereas in normal candidate searches, HR departments seek to match a job to a candidate with the right skill set, executive searches require recruiters to search for candidates whose competencies — like leadership or interpersonal skills — cut across a variety of upper-level positions, said Deborah Good, clinical assistant professor of business administration at the Joseph M. Katz Graduate School of Business at the University of Pittsburgh. Within global development organizations, executive-level searches tend to be a longer process, engaging more people within the organization, said Aimee Meher-Homji, client partner and leader of global development at Korn Ferry. “You don’t just talk to the search committee, but to board members, staff, sometimes donors,” she said. “It’s 360 degrees in terms of stakeholder engagement.” Furthermore, the nonprofit world requires more communication, a closer partnership and a higher touch, she added. “In the corporate world, it’s more transactional; in the nonprofit world, it’s about building a reputation of trust, that relationship is very important.” And while many core skills and competencies cut across corporate and nonprofit worlds, there is more emphasis in development organizations on consensus building, collaboration, advancing mission, field experience and a candidate’s ability to both fit in the organization’s culture, as well as navigate outside cultures ably. In fact, according to the SHRM, a recent survey of more than 400 executives showed that working well across cultures — including comfort with other cultures, empathy, open-mindedness, adaptability and positive evaluation of other cultures — was the second most important leadership quality for the near future, in both the corporate and nonprofit worlds. 2. Consider your options: Executive search firm vs. internal hiring. While it’s often presented as one or the other, when it comes to executive searches, there’s room for both search firms and internal hiring. Most companies look outside of the firm to fill 20 to 40 percent of executive vacancies, as cited in SHRM’s 2010 report. In the nonprofit world, outsiders are sought for as many as 70 to 93 percent of vacancies. “A good firm brings robust research capabilities, networks, assessment tools, administrative support and consulting to ensure a strong leader is identified that aligns with your culture and strategic direction,” Gamble said. Executive search firms can be costly, though, especially for nonprofits with limited budgets, and the stable of candidates in their networks can sometimes grow stale if they are not constantly looking for fresh talent. Internal hiring brings its own costs and benefits. “Recruiting from within your own organization suggests you are promoting from within your own organization,” said University of Pittsburgh’s Good. “This is always a motivating tool to show current employees as an incentive. Those who are recruited from within are already acclimated to the firm, its processes, procedures, workforce, etc. and thus require less orientation and training.” Finally, recruiting from within is a faster process since the candidates are already known, although not all organizations are going to have the necessary talent in-house, or perhaps the fresh perspective they’re looking for. “The same cultural mindset will accompany the new hire,” Good said of internal hires. “Sometimes new approaches to problems need to be tried. One promoted from within may not be able to ‘buck’ the culture of which they have been a part.” 3. Approach candidates the right way. Organizations and recruiters can’t simply post an executive-level job, as is often the case with other candidate searches. So how to approach executive-level candidates who aren’t necessarily looking for a different job? Put yourself in their shoes, say executive search experts. For starters, consider why an executive may want to change jobs. “Executives are motivated to change jobs when they desire career advancement, different compensation, new challenges, more work-life balance, a different location or shorter commute — or a different culture,” said Gamble, offering insight into how her firm may approach candidates. “When approaching executives, it’s important to think in advance about why an opportunity may appeal to her or him,” she said. “Will it provide advancement or more compensation or an opportunity to build something new?” Another approach is strategic, leveraging a candidate’s roadblocks in an existing position to appeal to him or her. “Often the search firm will go after the number two or three person in a given job in an organization as the view is that this individual’s way is currently blocked to an upper level position and given the age and skill of the individual above, the person who is blocked may not ever get an opportunity to move higher within that firm,” Good said. In either case, most recruiters recommend the personal touch — actually picking up the phone and calling candidates. And if any given candidate isn’t interested, remember that they may be a great source for other top-notch recruits. 4. Avoid these mistakes. Perhaps the biggest mistake organizations make when conducting executive-level talent searches is utilizing a passive approach and relying too heavily on postings rather than launching an active search. “While there is great talent that may be actively looking, there is a huge universe of talented executives that are happy in their current roles and not looking for a change,” Gamble said. “If you do not pick up the phone to share an opportunity and proactively recruit, you may be missing great talent.” Organizations can also make mistakes when hiring a search firm, according to Kristy Dixon, assistant professor at the Meredith College School of Business in Raleigh, N.C. The biggest mistake, she said, is choosing the wrong firm. “All search firms are not good in all areas,” she says. “The search firm you choose should be adept in your particular area and understand that area of expertise.” Once an organization has hired a search firm, it’s important to communicate clearly and transparently. Another mistake, Dixon added, is “giving incomplete, misleading or unrealistic information to the firm on what you want in a candidate. If you cannot articulate your needs for the position, you cannot expect good results.” 5. Leverage social media — but don’t lose the personal touch. “Social media is increasingly helpful when you want to cast a wide net and create buzz around a role,” says Gamble, who cited LinkedIn as the most popular social media of choice for executive-level searches. That said, every expert contacted for this story cautioned that social media has its limits and cannot replace traditional processes. Gamble, for example, still finds that Korn Ferry’s “research and direct sourcing and networking surfaces the very best talent.” Meher-Homji of Korn Ferry pointed to professional networking sites as an identification tool for honing in on potential candidates, but it “doesn’t take the place of thorough vetting and screening,” she said, adding “having a conversation with a candidate, doing due diligence, is still very important.” The best executive searches make use of wisdom that’s been tested through the decades — picking up the phone, making a connection, building a relationship, pitching a job and remembering that an organization’s most valuable asset is its talent. Whether you’re a seasoned expert or budding development professional — check out more news, analysis and advice online to guide your career and professional development, and subscribe to Doing Good to receive top international development career and recruitment news every week.