Non-Profit Executive Recruiting Firm
What is a cost of failed hire?
Over 40% of Executive Searches Fail. What is the Cost and Implications?
For many organizations, when in recruitment/search for a senior leader, "Failure is not an option". According to ESIX (Executive Search Information Exchange), more than 40% of executive searches fail. What is the cost of not filling an important senior hire?
There are various implications depending on size of the organization and period of importance of business. If the failure happens within a large organization, the vacuum of the role will cause key decisions to be delayed causing million dollar plus projects/sales/initiative from moving forward, an interim or someone who is not well versed with the function can possibly make ill advised decisions with short term implications, tension builds with the team/function because a leader is not in place. Within small and mid size organizations, the vacuum of a senior leader will have potentially greater implications with key decisions pending/actions to be taken that would put the organization in a more vulnerable position in the long term. Its difficult to put an precise cost to the vacuum of senior hire which is one of the primary reasons that shields the urgency and importance of not hiring the senior leader in a timely manner.
So, why do executive search processes fail? A recruitment of a senior leader is much more complicated than most stakeholders want to acknowledge. The unfortunate ignorance of an effective search is permeated by the idea that executive recruiting is an effort based task vs an expertise based task. So you have one side that thinks they know recruiting (client) and the other side in general (recruiter) believe that more effort is needed. A bit blind of a leading the blind scenario.
Here is a general summary of a failed cost of a senior/executive recruitment:
- Time
- Loss of business due to delays or poor decisions made by interim
- Opportunity cost
- Negative function/team performance
- Loss of faith in recruiting/Cause desire to lower bar on next search
- Recruiting fees and staff time
- Weakened employer brand
9 Signs of a Great Leader
Leadership is known by many but only of few people can define it
1. Sharing Their Vision: That saying if you don't have a vision, you don't have a future. Leaders in every category and function has a vision. They build their team/business around what that vision needs. For the team, they can see whatever they are doing, they can see where their efforts are aligned with.
2. Develop People: Logic would tell us if a leader develops their people that the output will grow. Its unfortunately a rare quality of a person who not only has the desire or look to make the effort to develop people, but also have the skill to teach and coach their people.
3. Sound Decisions That The Business Can Follow: Being decisive is one key element. Making a sound decision that is rational, logical and most importantly understood by those following are big.
4. Giving Praise/Empathy/Appreciation: People wonder how they’re doing. Leaders let them know, and they’re especially vocal and public about it when they’re doing well and show appreciation. As well, leaders are able to see things through other people’s eyes, especially their employees’. Of course this doesn’t mean that they are pushovers, but it does mean that they’re concerned about their team on multiple levels.
5. Pull Everyone Together: You might have heard the phrase “gung ho.” Reportedly, it derives from a World War II saying that combined two Chinese words meaning “work” and “together.” A leader recognizes the talents of members of his or her team, and strives to lead in a way that lets everyone maximize their effectiveness together.
6. Increase Morale: Leaders can bring spirit to the group. Whether having a sense of humor or uplifting the group, a leader can connect and uplift them.
7. Communicate Effectively: Leaders can find the words and expressions to explain what they mean—and they back up what they say.
8. Ethical Behavior: It’s often true that more progress is made when we seek forgiveness than when we seek permission. However, there are rules, social norms, and basic decency. Great bosses strive to uphold them.
9. Strive for Excellence: With vision, there is excellence to drive the vision.
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