Why Is C-Level Hiring So Difficult?

And how can an executive search firm help?

The difference between C-level hiring and senior-level hiring differs significantly. C-level executives, such as the CEO, CRO and CFO (among others), are typically considered the highest-ranking leaders within a company and are responsible for the overall company strategy and direction of the organisation.

The C-Suite needs to be experienced and skilled leaders with a proven track record of success. With such high requirements, it’s easy to see why companies lean on executive search firms for assistance. However, the main challenges remain:

Limited pool of candidates

The number of candidates who sit in the C-Suite is limited. The qualified and experienced individuals at this level are often already leading organisations and producing great results. This makes it extremely difficult to attract these individuals without executive search experience targeting passive candidates (people who are not actively looking).

Executive search firms like Oakstone will conduct extensive searches to qualify candidates and produce a shortlist of the best candidates for the position. This streamlines the process, as they present only suitable candidates and can advise on who is the best fit for the position based on their due diligence.  

High expectations

C-level executives are expected to have a proven track record of success and a wide range of skills, making finding someone who meets all requirements more challenging.

Executive search firms like Oakstone use specialist search strategies to find suitable candidates. They then speak to every candidate to shortlist the ones with the right requirements. Transparent search firms will always communicate whether your expectations of skills and experience align with the salaries and benefits you are offering so you know whether your search is realistic in the current market. 

Cost

C-level hiring is a costly process, whether you choose to do it internally or engage the assistance of an executive search firm. The salary expectations of someone in the C-suite can be daunting, and the cost of the open headcount can be extensive.

Oakstone recently published a report on the cost of an open headcount. The cost difference between working with an external executive search firm and conducting the search internally was significant. Executive search firms can speed up the hiring process, saving organisations hundreds of thousands of pounds/ dollars. 

A long-term commitment, Cultural Fit and Risk

C-level executives often have longer tenure than other employees, and the hiring process is more challenging to undo if the match is not successful. Companies need to find the right person for the role so they can lead and shape the organisation's culture, values, mission, and vision. The risk of hiring the wrong C-level person is high because they are responsible for the company's overall performance.

Executive search firms will take the time to learn what drives and motivates every candidate put forward to the organisation. By doing this, they can assess whether the candidate is truly passionate and excited about the opportunity. This is a good indicator of long-term commitment and cultural fit, minimising risk.