The CEO is one of the most, if not the most, important positions in a business. The CEO acts as a leader for all other employees, playing an important role in motivating, selecting, and analyzing other important positions. They also act as a financial consultant, public relations correspondence, and marketing planner. In many cases, the success of the entire business lies on the CEO. Some companies may even choose to replace their current CEO when a large scale problem damages the company?s success of reputation. With the role of the CEO being so important, how do you initially choose the best candidate for the position?
Expand your candidate search
Finding qualified CEO candidates locally may not only be difficult, but next to impossible. There may not be a single candidate in your direct vicinity that has the qualifications or knowledge required for such a position. It is important to expand your candidate search to include other states, even other countries, when you are attempting to fill higher level positions. An HR consultant or HR executive search consultants team can be especially helpful in expanding CEO searches into other countries.
Additionally, many studies show that choosing an executive level candidate from another area can help out the success of the business. McKinsey?s research shows that gender diverse companies are 15% more likely to outperform their peers and ethnically diverse companies are 35% more likely to do the same. Actually hiring a candidate from a diverse cultural can be extremely beneficial for the business.
Set clear job expectations
When looking for CEO candidates from other locations, it is likely that you will be taking the CEO of another company that is looking for a change. Some would say that this person is a flight risk, because they easily left the other position. However, setting clear job expectations can ensure that you are choosing the right CEO candidate. Employees and especially executive level employees will leave their positions if they are not satisfied or were not given clear job expectations from the start.
A recent survey by Robert Half showed that one third (36%) of 1,400 executives surveyed felt the top factor leading to a failed hire, aside from performance issues, is a poor skills match. The second most common reason (30%) was unclear performance objectives. HR consultants or human resource executive recruiters can reduce both of those possibilities by ensuring that job expectations are clear and skills are matched to the specific position.
Create incentives for current executive employees
Approximately 86% of companies with employee recognition programs cite an increase in worker happiness. With high retention rates and the high costs of employee turnover, especially at the executive level, it is important to make every effort to keep great employees. Your human resource HR consultant can assist with finding the best candidates for the CEO position, but they cannot make them stay in a position they are not satisfied with. Work on creating employee incentive programs, including good health benefits, retirement accounts with matching contributions, and bonus programs. CEOs who have the opportunity to bonus are more likely to increase the success of the business.
Utilize HR consultants for exit interviews
Replacing a CEO for a business is a huge process and big deal for any company. It is important to understand why employees are leaving your business, so that improvements can be made for future employee satisfaction. Executive search consultants are not only beneficial in finding the best candidates, but also in increasing employed time. They act as a third party that can provide valuable information surrounding a business?s hiring and employment structure.
Many would say that the CEO is the backbone of a company. They are the direct cause of success versus failure. What do you do when it is time to hire a new CEO? The decision is a huge one, with a lot relying on it. Using an HR consultant can be beneficial in providing you additional qualified candidates to choose from, in ensuring that job expectations are clear, and in reducing high executive retention rates.
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