In this conversation, Jane Stevenson, the Global Vice Chair of Board and CEO Services at Korn Ferry, shares insights into the pivotal role of executive recruiters. She discusses the unique methods used to assess candidates, including psychological tests and mock interviews. The conversation also delves into the ongoing shift towards incorporating technology and social media in recruitment. Additionally, Jane highlights the importance of diversity in hiring and the complexities of negotiating CEO compensation packages in a competitive landscape.
Executive recruiters utilize extensive networks and thorough evaluations to identify candidates who fit the specific cultural needs of corporations.
Diversity in executive recruitment is crucial, yet the majority of top executive roles remain predominantly held by white men despite ongoing advocacy efforts.
Deep dives
The Role of Executive Recruiters
Executive recruiters play a crucial role in helping corporations find suitable candidates for leadership positions. Unlike traditional recruiters who may source a wide array of job candidates, headhunters focus on identifying senior executives, particularly those who can step into roles such as CEO or CFO. They are hired by Fortune 1000 companies and utilize a combination of extensive networks, modern technology, and industry knowledge to locate potential candidates. This process involves searching for individuals who not only possess the right qualifications but also fit the specific cultural and operational needs of the hiring organization.
Challenges and Stakes in Executive Searches
Finding a suitable CEO is characterized by high stakes, as a poor choice can significantly impact a company’s performance and stock price. The process is not merely about filling a vacancy; it involves intensive evaluations that can include interviews, personality assessments, and simulation exercises that mimic real-life CEO scenarios. Recruiters must often navigate a limited pool of candidates, as those at the top levels are typically already employed and may be resistant to external offers. The decline in CEO tenure and increased job vacancies since the pandemic have heightened the urgency and responsibility associated with executive searches.
Incorporating Diversity and Talent Development
In recent years, diversity has become an important consideration in executive recruitment, with firms striving to present a balanced candidate pool that includes women and people of color. Despite progress, the majority of top executive roles continue to be held by white men, prompting recruiters to advocate for more inclusive hiring practices. Additionally, companies are increasingly focusing on developing internal talent, with a significant percentage of newly appointed CEOs already being employees of their organization. This approach not only enhances organizational familiarity but also encourages the cultivation of potential leaders from within, ensuring a robust succession pipeline for the future.
When a Fortune 500 company needs a new leader, it turns to a well-connected headhunter who assesses candidates with psychological tests and mock TV interviews. Zachary Crockett activates his network.
SOURCES:
Julian Ha, partner at the executive recruiting firm Heidrick & Struggles.
Jane Stevenson, global vice chair of board and CEO services at Korn Ferry.
RESOURCES:
"The Transformation of the CEO," by Stephen Langton, Rusty O'Kelley, Laura Sanderson, and Sean Roberts (Russell Reynolds Associates, 2024).