A Masterclass On Hiring A CEO To Run Your Company ft. Andrew Wilkinson
My First Million
Recruiting a CEO: Transaction Costs and Reference Checks
Transaction costs for recruiting a CEO can range from $50,000 to $100,000, posing a challenge for businesses with limited profits, such as those earning $300,000 annually. For smaller companies unable to afford professional recruiters, a broader approach to sourcing candidates is necessary. Effective reference checking is crucial; it’s advised not to rely solely on references provided by the candidate, as they may not provide an honest assessment. Instead, utilizing informal networks, known as 'scuttlebutt', including current or former associates of the candidate, can yield more accurate insights. A particularly effective method involves emailing a range of past colleagues to solicit feedback while subtly implying that a lack of response indicates a negative experience, thereby encouraging honest replies while mitigating concerns about legal repercussions. This trick garners responses while avoiding direct criticism of the candidate.
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