Make Better Hiring Decisions Amid Myths in Recruiting – Part 1

Make Better Hiring Decisions Amid Myths in Recruiting – Part 1

Executive hiring managers depend on the quality of their people to achieve goals and implement strategy. A better understanding of the skills and capabilities of executive recruiters can enable any hiring manager to make better hiring decisions by increasing the quality of their hiring decisions, and thereby enhance their own career!

Some executives are aware and take full advantage of the best possible means of identifying and selecting top quality candidates for critical staff openings. However, many do not. Frequently, this stems from myths regarding the merits of utilizing the services provided by topflight retained executive search firms. By a better understanding of these realities, hiring managers will dramatically improve their ability to secure the most qualified candidates in a timely manner.

In the first part of this series, we’ll explore the myths behind sourcing exceptional talent, the differences in the screening and assessments methods used by internal HR and talent acquisition groups, how that is done by experts in retained executive search, and the pros / cons of behavioral testing, and how they impact the ability to make better hiring decisions.

Make Better Hiring Decisions Start with Finding the Right Talent

 

Myth # 1: Companies Often Unearth the Same Talent that Executive Recruiters Do

 

With the rise in popularity among HR and internal talent acquisition in the use of online job boards, job aggregators, and networking platforms, many companies mistakenly believe that these sources contain the same talent that can be found through retained executive search firms.
This belief couldn’t be further from the truth. Good executive recruiters don’t post ads on job boards to find qualified applicants. Instead they focus on specific industries and even specialize by types of positions within those industries. The benefits of doing so are enormous. It allows them to invest tremendous time and energy forging relationships with high performing candidates within these niche markets, learning the types of positions in-demand people would see as advancing their careers.

Make Better Hiring DecisionsProfessionals who genuinely excel have neither the time nor desire to peruse online job ads or to respond to the dozens of email inquiries sent by internal recruiting staff. It is only when an executive search consultant personally approaches them that the best people take the step to becoming available to discuss an opportunity.

Retained executive search consultants invest countless hours establishing unique connections and building relationships with key performers. These connections allow access to talent pools built over many years…and which are available through no other sources.

 

This, along with the ability of these search consultants to carefully screen and evaluate the best candidates, is what allows them to bring the strongest talent to the table – those “A players” at any level who produce 8 to 10 times more than the next level of “B players”. Instead companies continue to rely on job boards, career sites, and networking platforms that will never find the outstanding quality of talent that retained executive recruiters can provide.

Myth #2: Internal Staff can Access and Vette Candidates as well as an Executive Search Firm

 

While this belief is prevalent within many companies, a thoughtful analysis will prove the opposite. Retained executive recruiters make a living by finding talent that companies cannot find on their own. While in-house resources may be effective for lower level and even some middle level roles, when it comes to functional leadership or key critical roles, retained search firms are not limited to C-levels. it makes sense for hiring managers to give themselves every opportunity to interview the very best candidates to make better hiring decisions.

Internal recruiters typically spend their time vetting applicants who apply or can be found through online portals. Think about it – in a less than 4% unemployment world we live in, the best candidates are simply not found that way. Retained search firms focus on finding superior candidates who are successful in their present situation and can show similar expertise, accomplishments, and skills relevant to the role you need to fill. This very different methodology results in a very different level of candidate.

A Solid Assessment Method Enables You to Make Better Hiring Decisions

 

Moreover, retained search firms look at many other factors, such as discovery and validation of candidates’ industry relationships – with internal customers, as well as suppliers and eternal customers. In addition, seasoned executive recruiters do not focus on “corporate culture”. Why is simple. Each team that a candidate will be hired within is unique.

Therefore using psychometrics to discover and measure this team members as stakeholders of the role allows the executive recruiter to measure values and motivations, real and situational communications skills as well as the traits within conflict resolution, problem solving, and decision making. This Team Profile allows executive recruiters to then conduct behavioral interviews and scientific testing of potential candidates to make sure they are only a role fit, but a team fit as well.

Finally, the ability to call proven performers with direct competitors to discuss career options is a significant factor in what sets external professional recruiters apart from internal recruiters or HR people. Having the ability to reach out to these peak performers offers hiring managers access to highly-sought-after candidates they would never see otherwise in order to make better hiring decisions

In part 2, we will discuss HR Orientation including onboarding process that do and do not work, as well as pros and cons of having human resources and/or hiring managers making employment offers.

Engaging a Retained Search Firm for Multiple Key Staffing Needs is Best Option

Engaging a Retained Search Firm for Multiple Key Staffing Needs is Best Option

The truth of the matter when engaging a retained search firm for multiple key staffing needs is they produce far better candidates, have much deeper relationships in the industry they are working in and have a search process that in the end delivers candidates who can meet or exceed the objectives of the role in which they are hired into.

Many company’s HR and Talent Acquisition groups think more short term than long term when it comes to staffing critical roles.  The long term strategy is most often used – a combination of career site branding, job boards and job aggregators, LinkedIn talent solutions, and using multiple contingency search firms to help build a large database of potential candidates.

What is missing is that for critical roles that must be filled with quality new hires, the long-term strategy rarely works.  Even though using RPOs and contingency search firms will result in the most resumes, it is pure folly to believe quality is the main driver produced by those outsourced means.  Therefore, engaging a retained search firm is the best of all options when outside recruitment help is needed.

Engaging a Retained Search Firm

Let’s look at the recognized statistics in the global workforce. The majority of all workers – approximately 55%, are “C players”. They are literally just bodies taking up space.

They show up on time, can perform assigned tasks assigned such as software or QA engineer, customer service, inside sales, operations, manufacturing and production roles.  But the reality is that they don’t develop intellectual property or design anything new;

 

They are not problem solvers, entrepreneurial or creative and contribute virtually nothing to increasing market share or improving P&L ratios.  In addition, many “C players” are just not good employees. Often a lack of upwardly mobile skills, education, and more equates to lack of motivation outside of a repetitive paycheck.

Next are the “B players” who make up to 35% of the workforce, have real education and skills, contribute to developing IP, producing revenues, or some other vital contribution.  However, the cream of the crop is approximately 14% of the workforce known as “A players”.  From janitor to CEO every type of role has their “A players”.  What is so great about hiring them?  Leadership IQ and SHRM have developed studies and surveys that demonstrate that “A” players” produce 8 to 10 TIMES MORE than even “B players”.

 

Reasons for Engaging a Retained Search Firm

 

With over 30 years of experience in the executive search business, we have rarely seen contingency search firms or RPOs deliver “A players” and have no consistency in delivering “B players” for clients to consider. How do we know this?

  • In a less than a 5% unemployment rate environment, most exceptional professionals are happy where they are now in terms of their role, their employer, and compensation. If they were to become passive candidates and look to make a change due to desiring new challenges or relocation, they would simply network and reach out to hiring managers in their industry directly. They rarely look at job postings and have no need to post their resume to a job board.    They will not fill out an online application on any company career web site. They are bombarded with emails, InMail’s, and calls every day from corporate recruiters and contingency search firms who generally speaking fail to understand these professionals will likely only speak or reply to an actual executive hiring manager or a retained executive search consultant with a solid reputation among industry Board of Directors and CXOs.
  • Contingency and RPO firms rely heavily on job postings and job aggregators.  But many of those applicants are the unemployable, unemployed, or “C players”.
  • In large contingency search firms the recruiters are graded on the number of send outs (resumes that need to be sent daily to meet a quota).  And RPOs have a LOT of clients.  Ask yourself, as a client, how much of a priority are you to a recruiter working on 12 to 25 searches at a time?   What type of quality and search process would you expect?

I’m not knocking contingency recruiters.  I used to be one before I changed to retained almost 20 years ago.   Why did I make that move?  One, I realized to really have clients as a priority and deliver a superior service, I personally could only work on 3 to 4 searches at a time.  To do more than that means both the client and my reputation suffer.  Two, with using a search process that was very sound I knew the methodology would unearth those “A players” so I could assess and deliver proof that the shortlisted candidates I presented could meet or exceed the expectations and objectives of the role and client required of the new hire.

As for cost and benefit analysis, the benefits of using retained search is overwhelming while the costs are not much different than contingency search fees.

  1. When looking to engaging a retained search firm, you are assured that the vetting and development process are superior as you usually receive only 3-4 shortlisted candidates for each role.
  2. Retained Search provides detailed interview and assessments including current / prior KPIs, depth of industry relationships, and similar accomplishments relevant to the new role.
  3. Team fit analysis and Target Candidate Profile – by conducting brief online surveys of the stakeholders for each role (team the role will work within and key internal customers), a team profile allows the recruiter to use behavioral analysis and assessment to determine how the potential candidate will fit in and affect team dynamics. One-way behavioral testing of candidates never works as it fails to have anything to measure against.
  4. Much longer retention of new hires from retained search firms. For instance, 94% of our placements are still working for that client after 4.5 years.
  5. Superior Replacement guarantee – most contingency firms incorporate a 30 to 90 days refund or replacement. Retained search firms are often 6 to 12 months.  We believe in our process so much that we offer 24 to 36 months replacement guarantee depending on the assignment.
  6. Success based search fees – this is relatively new for retained search firms but a practice we have used for the last 5 years. With most large retained search firms, you pay 100% of the fee regardless if the outcome was successful.  Other search firms like NextGen Global Executive Search are performance based.  After the initial deposit, the remainder of the fees are paid based on deliverables, including the hire.
  7. Flat based fees – this is also a relatively new concept. This arose out of the obvious conflict of interest associated with compensation-based search fees.  If the recruiter negotiated a higher compensation that was agreed to by both client and candidate, the search fee increased.  While some retained search firms use the same fee for every search on a flat fee basis, at NextGen we realized we are being paid for our work.  Therefore the basis of the flat fee is appropriate to each role depending on factors such as limitations on relocation, the actual candidate pool size, the number of hours expected in research, search strategy, recruiting, and delivery.

For instance we have clients in the Bay area, NYC and Boston who funny as it sounds believe few exist outside their geography that are worthy of consideration as they often think of themselves as the center of the technology universe.  Additionally, for some roles the candidate pool overall is small such as AI architects and power electronics design engineers.

 

Engaging a Retained Search Firm for filling multiple roles

 

As retained search firms are like good lawyers and executive management consultants, we ask for a deposit,.  This means the client is a priority as they have “skin in the game”, knowing the search firm has a track record in longer retention and producing exceptional new hires.  So, the overall flat search fees mean that engaging a retained search firm is clearly the best choice.

Ditching Recruiting Firms Contingency, RPOs, and Old-Fashioned Retained Search

Ditching Recruiting Firms Contingency, RPOs, and Old-Fashioned Retained Search

Why are more and more forward-thinking employers ditching recruiting firms that produce, well, crap.   Contingency, RPOs, and traditional retained search firms in favor of the 21st century success based recruitment?

In a 3.5% unemployment rate, most Hiring Managers know the undisciplined, inexperienced, and average “C players” are predominant on job boards.  In addition, with job aggregators, job openings get overexposure to the point the company suffers in public relations and branding.  same goes for RPOS and contingency search firms – the more they repost the same job posting, the worst candidates are revealed.

Ditching Recruiting  Firms that Fail to Produce

You have certain objectives you want a new hire to meet.  The target are passive candidates, those not reading job postings and not actively looking,   What interests passive candidates?  A new challenge, a different product or service portfolio, location, company size, and more.   A typical job posting showcasing responsibilities and requirements is no enthusiasm roadmap.  It is in reality a robotic drone of words strung together that entices only the unemployed or average active job seeker.

Ditching Recruiting Firms that Fail to DeliverEven the traditional retained search model, which does produce much better candidates, is going by the wayside.  More and more companies are ditching recruiting firms that are traditional retained search models.

While employers understand the deposit to initiate a search, they expect results.   Most have a 90 day to 6 month replacement guarantee.  But they collect all the fees within 90 days regardless of outcomes.

‘The new paradigm, which NextGen Global Executive Search has used for a decade, is a search should be success based in regards to the recruitment fees.  Also known as a performance based search, after the deposit the 2nd invoice is due upon acceptance of the shortlist and in-person interviews are scheduled.

Ditching Recruiting Firms with Compensation Based Fees

In addition, success based search fees should be a flat fee and not based on compensation.  The reason is simple, in that compensation based fees can cause an increase in the overall recruitment fees during offer negotiations which is an inherent conflict of interest.  Finally the 3rd and final invoice occurs on the hire and is backed by a  24 to 36 months replacement guarantee.

The end result is both the employer and recruiter have skin in the game and the employer is confident that the majority of the fee is based on the recruiting firm meeting the objectives and a solid new hire.  To read further on why companies are ditching recruiting firms and comparisons between contingency, RPO, traditional retained search, and success based retained search, download the PDF.

 

 

How to Evaluate an Executive Search Firm

How to Evaluate an Executive Search Firm

The big challenges in the recruiting is  that great talent is in short supply and most talent acquisition strategies are broken. Executive hiring managers are interested in ONLY one thing – whether internal or external the ability to not only Identify, but to recruit exceptional talent.  When you evaluate an executive search firm, look for two things. One do you have the capacity to perform research to identify target competitors and passive candidates, and two, do they have experience in cold calling, a deep network, and reputation of getting referrals?

Most Companies Fail to Properly Evaluate an Executive Search Firm

Most common is to go with the big name search firm.  The issue there is you pay a full fee regardless of outcome, other than the principals teh recruiting force is a revolving door, and a bad track record in retention.  Secondly, if you are a startup to mid-cap you really need the expertise of a team that specializes in your industry; known as niche recruiting. Most big name search firms work across all industries without specialization.  while that diversity may work for a CFO or Board role, it falters with lack of a deep network within your industry.

Evaluate an executive search firmWhat you should look for is a retained search firm that not only has the industry expertise but has a sound evidence-based recruitment process management system utilizing Ai predictive validity.    It all begins with a discovery step where the search strategy is built upon defining the objectives of the role and learning what the role with do with the required skills, not just the having of them.

Next is using scientifically based psychometrics to determine team dynamics and thus the search form can then develop a target candidate profile and custom search strategy.  A great recruiter will define prior desired accomplishments in a similar environment and make sure candidates are screened who have similar.  Rather than accepting verbatim the experience and skills required, a good recruiter will drill down to ascertain in what environment and product / service those skills are used in , again further  screening candidates to validate they actually can meet the objectives of the role.

The Job of Hiring Managers to Evaluate an Executive Search Firm

For almost 30 years, we often run into Hiring Managers that say just send them resumes and they will determine which candidates to interview.  Which of course begs the question, why would you be paying a search fee?   You can simply hire an RPO to troll job boards or have HR post job openings to dozens of web sites.  Great hiring managers know three things:

  1. They don’t have the time to go through an in-basket full of unqualified resumes
  2. They know that the one-size-fits-all resume is perhaps the poorest document ever created.  It is generalistic, vague, and rarely indicates if the candidate has used required skills WITHIN a similar environment, as well as accomplishments tend to be exaggerated and without verifiable substance.
  3. Great hiring managers know that professional successful  executive search consultants are good at what they do and do not pretend to be a Hiring Manager who may be a CXO or VP of engineering or sales or whatever.  So why do so many Hiring Managers assume they are great recruiters?  Trust me, in all my years, it is less than 1% who are good at both roles AND those who can do both are very successful startup entrepreneurs in early stage building their executive team.

Finally ALWAYS evaluate an executive search firm by three factors

  • Candidate placement retention rate is far and above client retention rate.  That is because some companies will prefer the cheapest or who best serves HR rather than the client on the whole.  For instance, NextGen has an average 93% in 4.5 years are still working for that client whereas we have lost new searches with the same client to other firms with an average 2 years or less of placement retention.
  • The average replacement guarantee for contingency is 30 to 90 days, which of course should alarm you as the confidence in the quality of candidates presented for you to hire just can;t be that good.   Basically any average “C player” can be presented and hired and a company not realize in under 90 days wow that hire is just a body filling a space.   The average retained is 90 days to 6 months while a very few will go one year.  At NextGen we offer a full 24 to 46 months replacement guarantee.
  • Executive levels with MBOs – most retained search firm you will pay the entire fee without regards to an actual hire or success within 60 to 120 days.   For many they believe you are paying them for their reputation and experience, NOT for their success.

For more information on how to effectively evaluate an executive search firm, download the PDF to compare what NextGen Global Executive Search does to others.

 

Increasing New Hire Productivity Self Development & Mentoring

Increasing New Hire Productivity Self Development & Mentoring

Increasing new hire productivity requires making sure the new employee can hit the ground and produce.  Behavioral assessment (sometimes referred to as “Psychometric Testing”) has become increasingly recognized as a valuable source of information when making hiring decision.

There is a wealth of data to demonstrate that using behavioral assessment in conjunction with sound, responsible recruitment methods reduces employee turnover, and it’s quickly becoming standard practice for many employers and recruiters.  But by and large behavioral assessments are not used properly.In addition, is it really worth the additional time and expense? In the current economic climate is behavioral assessment REALLY an essential for your next recruitment campaign?

The answer is:  YES with a CAVEAT. towards Increasing New Hire Productivity

Increasing New Hire ProductivityHere are three points why increasing new hire productivity works when behavioral assessments are used properly.  What is a general consensus among most companies is this usually involves a questionnaire that asks the candidate about their opinions, preferences and priorities.

Based on the results, and by comparing the answers against years and years of historical data and expert analysis, the individual’s attitudes and behaviors can be extrapolated.

Behavioral reports can include information such as preferred working environment, how they respond to tight deadlines, preferred management style, approach to selling, and much more.

If you’re skeptical, ask one of your employees – preferably one you’ve known for many years – to take an assessment. You’ll likely be surprised at just how inaccurate the results are.

1. Defining the Role Fit and Team Fit = Increasing New Hire Productivity

Figuring out exactly the kind of candidate you’re looking for and creating a job description to match can be a time-­‐consuming headache. But a simple survey of the stakeholders of the role (direct report, internal customers, the top employees already in that team the new hire will work within) can then be put into a Composite survey that will produce a detailed description of the ideal characteristics you’re looking for, many of which can be inserted straight into your job description.  There is virtually no scientific proof that performing a behavioral assessment of candidates alone will result in a “good hire”

To be successful in evaluating candidates and making the right hire so that increasing new hire productivity is the goal, once you know they fit the role in terms of tangible skills, education, and experience, but t,he fact that 46% of all new hires fail within the first 18 months, according to Leadership IQ, it is vitally important to measure the intangibles in the role fit and to assess the candidate’s impact on team dynamics.  And here is where so many Hiring Managers make a HUGE mistake.  The one-size-fits-all “corporate culture” is used to assess candidates across the board.  But the truth is that ALL teams are unique and EACH has their OWN CULTURE which may align in some ways with the corporate culture statement.  An accurate behavioral assessment of a potential candidate is when it is measured against  the team composite profile.  In particular, you need to measure

  • Values and Motivations and how the potential candidate’s views and needs impact  team dynamics
  • Relational Communications Traits – how the candidate is able to listen as well as sell his/her ideas to the team
  • Conflict Resolution Skills – many of post Baby Boomers were not taught this skills, so training is essential if hiring
  • Decision Making Traits –  can he/she make a valued fast decision or do they delay and waiver inconsistently?

2. Conducting Fewer Interviews

A resume or LinkedIn profile can somewhat tell you whether a person has the ideal qualifications and job history but usually it’s impossible to tell if a person has the right attitude and accomplishments until you interview them. Behavioral assessment done the right way, on the other hand, can provide you with that information in a fair and objective fashion. So if, for example, you have 7 candidates that look great on paper, a team fit and role fit scientifically based assessment can help you reduce that shortlist to a more manageable number, and leave you with a much faster interview process.

3. Customized Mentoring / Coaching = Increased New Hire Productivity

Quick assimilation – faster or rather increasing new hire productivity and longer retention.  It’s the goal for EVERY Hiring Manager.  An often overlooked feature of team fit and role fit profiles and behavioral assessments is its ability to tell you the training and management styles to use to get increased new hire productivity.  Getting your new recruit up to speed quickly and making them feel comfortable in the role is not only a time saver but it also reduces the expenses incurred through downtime.

We’ve already mentioned the fact that behavioral assessment reduces employee turnover, but have you ever stopped to consider just how expensive and time consuming it can be to  replace a bad hire?   Aside from the fact that you have to spend time and money, repeating the recruitment process all over again, you also have to repeat the expense of on-boarding and assimilation for the eventual replacement.

And it’s almost impossible to put a price on the potential for lost business and the reduced employee morale that occurs while the position remains vacant. Although prices vary quite a bit, the average cost of behavioral assessment is often far less than employers imagine. And any one of the above four points would more than justify the additional, modest investment.

But put these three elements together and you have a potential saving of time and money that represents tens of thousands of dollars.  Especially in consideration of reducing employee turnover.   So, the question is not whether you can afford to use behavioral assessment. The real question is…  Can you afford NOT to use behavioral assessment?

NextGen Global Executive Search – Increasing New Hire Productivity

Get an inside look at how NextGen uses this behavioral assessment with award winning Leadership Vault Recruiting process.  NextGen Executive search provides retained and engagement recruitment services for clients who build and service aerospace power systems, UAVs, drones, and stealth tech; artificial intelligence, machine learning, and augmented reality; cyber security and cyber defense; industrial automation, robotics, industrial power system, renewable energy, and fossil generation; medical devices and electronic health records; mobile networks, digital media, embedded wireless, IoT, and cellular  infrastructure.  Compare our search process and fees compared to other search firms by clicking the image below or contact us today.

 

Cost of Failed Executive Hires – Eliminate Poor Recruiting Techniques

Cost of Failed Executive Hires – Eliminate Poor Recruiting Techniques

The cost of failed executive hires is tremendous. This is NOT limited to just CXOs and SVPs – same goes with VP and Director levels. It is surprising how many mid-cap and large conglomerates retained big-named search firms without realizing that with the exception of a few principals that manage the business and no longer recruit, most of the recruiters for these big firms are a revolving door. They flow in and out according to economic times. Boards should look towards smaller well-established retained executive search firms who have experts that have been working there for a dozen years or more and have a solid history of recruiting in your niche industry.

The cost of failed executive hires is not only damaging – it can prove to be fatal. First are the costs related to the executive compensation, benefits, and severance package, as well as indirect cost such as travel, poor strategy and poor business plan execution, lost market share, lack of direction for the rest of the staff, and lack of trust in the Board of Directors. I see it all the time where I not only need to find a replacement CEO, CTO, CFO, or SVP, but also one that has turnaround experience and is willing to come into a situation that is not ideal for immediate success.

Several times over my career in Executive Search I find myself working with a candidate who believes they are an ideal fit for a retained search assignment I am conducting. My retained search work is “performance based” NOT contingency based, which means that when a client has paid a deposit for my time and effort, I am expected to get the job done.For an executive search consultant, getting the job done means nothing short of bringing forward high-impact “business changing” candidates to our clients. These are the “A Players“.  Not only must they have the required experience, expertise, and a proven track record of success, but he/she must prove to me that they can meet the challenges of the position, meet or exceed my client’s expectations, and make a “direct positive impact” on my client’s business.

Most fail to understand the impact on the cost of failed executive hires is. The truth is that by and large, about 55% of all employees at any given company are in fact “C” Players. They can do the job they were hired to do; they show up for work on time, do the job they were assigned, and are loyal to their managers.  However, they lack the entrepreneurship risk taking mentality, the “take charge” attitude, and the take no prisoners’ mindset required to make an impact on the marketplace.  In addition, they are easily replaced by outsourcing at a lower cost as well as artificial intelligence, software automation, and robotics.  And the latter three can run 24/7 without sick days, benefits, training, and their performance is most often anything but mediocrity.

Avoiding the Cost of Failed Executive Hires

While for many positions it is acceptable until technology advancements eliminate many “C” players, companies will continue to hire them for many roles.  At functional leadership and key engineering, sales, and operations the cost of failed executive hires can be fatal.  Many VPs and Directors will look to “B” players, which based on my 20 years experience in executive recruiting, are roughly up to 30% of all employees at any given company.  They outperform “C” players any day of the week and possess the intuitiveness and hunger to succeed that makes them valuable to their employer. They have a track record of success, albeit in their department but rarely make a definitive impact on the company’s overall performance in the marketplace or the business strategy.So what really is an “A” player? The misconception is that “A players” only exist at the executive level.  That is purely a myth.  Most “A players” were born that way or evolved into it in childhood, teenage, or young adult years.  These unique individuals comprise the Top 14% of the global workforce.  They are easily recognized early on.  In their youth, they were leaders and entrepreneurs – whether having the most lawns to cut, starting a community newspaper, excelling in Junior Achievement or inventing a product or service company that was acquired by a bigger fish.

These “A players” are not always leaders as their ideas, thought processing, and inventiveness make them excellent engineers. Same goes with RSMs and MAMs who can blow out the quotas as an individual, but if you try to move them into leadership levels they fail.  The strategic thinker and the ability to “sell their ideas” type of “A players with superb interpersonal communications and conflict resolution skills are in fact the type of functional leader or senior corporate executive that is a “game changers” not only within a client’s vertical market, but have had similar success in other vertical markets within that industry or in a different industry altogether. They have a responsibility to the owners (founders, investors, and stockholders).

​​​​Cost of Failed Executive Hires is due to a poor Talent Acquisition Process

A Forbes article by a Silicon Valley CEO reveals that the cost of failed executive hires is estimated to be more than $500,000 or 2.5 times salary. And that does NOT include organizational, opportunity, productivity, and transitional costs for the new executive. As an Officer or Board member, you must ask yourself, why would you risk letting mediocre executives hires to occur?The same can be said of a VP of Engineering who needs principal level systems software engineer for that matter. You may save yourself a few dollars in the short run recruiting someone with your existing recruiting process, but the long term effects in the cost of failed executive hires may cost YOU and YOUR STOCKHOLDERS much more than 2.5 times salary or a recruitment search fee.

How to Alleviate the Cost of Failed Executive Hires

NextGen Global Executive Search not only reduces the cost of failed executive hires, we virtually eliminate them.  The award-winning Leadership Vault search method, developed over 30 years, is a the recruitment platform utilized by our executive search consultants that properly measures the potential candidates we identify by psychometrics to determine a strong match to role fit and team fit, document KPIs and the depth of candidates’ industry relationships, and provide a custom onboarding program that includes new hire self-development planning and a mentoring / coaching program that is easy to realize with little investment of time.  Backed by an industry leading 12 to 36 months replacement guarantee, the common feedback is the hire we placed met or exceeded their objectives.  Looking to fill a key  functional leadership or senior executive role in your company?  Reach out and see the difference engaging an Executive Retained Search will make to the quality of candidates you will interview. We don’t get paid in full until you are 100% satisfied.

 

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