The world of executive hiring is undergoing significant shifts. As we transition from the turmoil of 2023 to the promise of 2024, the landscape is being shaped by a combination of factors. These include the rise of AI in recruiting, changes in workplace dynamics, and evolving hiring trends.
The Year of Corporate Reckoning Continues for Executive Hiring
In 2023, businesses faced a wake-up call as they navigated through economic headwinds. The rapid expansion that many organizations went through in the “boom time” during and immediately after the COVID pandemic resulted in many companies being overstaffed. This led to multiple rounds of layoffs across various sectors in 2023. And rigid “return to work” policies met with resistance from a workforce that had grown accustomed to the flexibilities of remote work.
The first part of 2024 will likely see more right sizing in terms of overall employee population, but executive hiring has always been very different from building out the bulk of a company’s workforce. Hall of Fame football coach Bill Parcells has been credited with saying that he treats all of his players fairly, but he doesn’t treat them all the same.
Companies adopting a “one size fits all” approach to hiring will find themselves at a competitive disadvantage to organizations that recognize that executive hiring needs/roles require a surgical approach to acquire the best talent.
Changes in Workplace Dynamics
The traditional workplace model has been disrupted since the COVID pandemic, with many employees now working in hybrid configurations that include both co-located and remote work. This shift has led to complex challenges for leaders, who must navigate varied criteria and multiple stakeholders in a volatile, uncertain, and complex environment. Some companies are embracing a “work from anywhere” policy while others are adamant about their employee populations returning to work.
Sadly, a handful of CEO’s seem to be treating the return to office mandate as a sort of personal vendetta against their workforce. The importance of Diversity and Inclusion in a company’s employee population have, thankfully, gained prominence in discussions about workforce management. But sagacious leaders should recognize that “trust” is a large part inclusion.
The impact of the COVID19 pandemic cannot be understated. People are longing for a deeper meaning to their lives. And working 70 hours a week for a company that will not hesitate to lay them off at the first sign of financial trouble is not a viable option. Some workers are now willing to forego some of their income if it means increased personal flexibility.
We’ve found that especially in the San Francisco Bay Area, top talent are reluctant to simply go back to the status quo. And with Artificial Intelligence companies driving growth around the SF area, not to mention garnering the majority of funding, the need for flexibility in workforce management is more acute than ever before.
The Rise of AI in Executive Hiring
Artificial Intelligence (AI) is playing an increasingly important role in the recruitment process. AI has made the process of executive talent mapping faster and more efficient. However, AI cannot exist as a standalone solution to executive hiring. It’s the combination of human intelligence with artificial intelligence that will allow companies to construct the very best executive talent map.
Over the years, there have been a variety of different technologies that claim to make executive search and talent acquisition a fully automated, non-human dependent exercise. AI shows great promise as a tool for talent acquisition teams to do their job more effectively. But it is by no means a replacement for vetting and assessing talent on the level of an experienced search consultant.
Finding quality candidates remains the #1 challenge for corporate talent leaders. Artificial intelligence offers an array of tools to help research talent, but without Human Intelligence to analyze the results, your talent map may steer you in the wrong direction.
Sourced candidates are 4–5x more likely to be hired than inbound candidates. While AI can certainly help in finding those candidates, perspective talent still need to understand the employer’s value proposition. It requires human intelligence to understand the talent’s goals, vet their experience, and ascertain culture add/fit. As far as C-level and hard to find talent, that will remain the bailiwick of experienced executive search consultants.
Evolving Hiring Trends
Looking ahead to 2024, experts predict a year of heightened hiring activity, albeit with a note of caution due to the upcoming election year. Early 2024 may see some continued hesitation in the job market, with a slower pace in filling leadership roles and a wait-and-see approach from both employers and candidates. But 2nd and 3rd quarter hiring for 2024 is bound to see an uptick in activity as companies and talent begin to find a balance regarding return to office initiatives and flexibility.
In conclusion, the outlook for executive hiring in 2024 is one of change and adaptation. As companies navigate these shifts, they will need to recalibrate their strategies and approaches to talent acquisition. By staying abreast of these trends and adapting accordingly, companies can ensure they are well-positioned to attract and retain the top executive talent in their industry.