A Look at the Trends Impacting Executive Search
August 15, 2024 – With over two decades of experience in the executive search industry, countless trends have impacted the way Grey Search + Strategy approaches their work. “Today, clients are navigating a complex web of emerging technologies, new regulations, changing workplace dynamics, and shifting company and candidate expectations,” the firm said.
In this article, Grey Search + Strategy dives into some of the most impactful trends currently influencing executive recruiting and share insights from her experience to help both companies and candidates understand and adapt to these changes. “Whether you’re a seasoned executive or a hiring manager looking to attract top talent, understanding these trends is crucial for staying competitive in today’s rapidly changing job market,” the firm says.
Trend #1: Heightened Value of Company Culture in Executive Recruiting.
One of the most significant shifts I’ve observed since the beginning of my career is the growing emphasis on company culture, according to Grey Search + Strategy. “In today’s competitive job market, top executive candidates are not only seeking high salaries and prestigious titles; they are increasingly prioritizing the cultural fit of an organization,” the firm said. “This is because a company’s culture can significantly impact an executive’s job satisfaction and performance. Executives want to align themselves with companies whose values resonate with their own, where they can see themselves making meaningful contributions and where their leadership style can thrive.”
Grey Search + Strategy explains that many executives now scrutinize the culture of a potential employer as much as the job responsibilities or compensation packages. “During screenings and interviews, they look for signs of a supportive environment, opportunities for professional growth (their own, and the people they will be leading), and a workplace that fosters innovation and collaboration,” the report said. “Ultimately, the alignment between a company’s culture and an executive’s personal and professional values is a key factor in their decision to join – and stay – with an organization.”
Aligning candidates with the right job requires thoroughly researching and understanding a company’s culture to make sure an individual’s values, work ethics, and professional goals resonate with the company’s environment, Grey Search + Strategy explains. The firm notes that by ensuring a cultural fit, recruiters help foster employee satisfaction, retention, productivity and, ultimately, a company’s long-term success.
Trend #2: Ban on Noncompete Agreements.
The newest trend shaping executive recruiting is the impact of the ban on noncompete agreements. In April, the FTC made a significant decision to ban noncompete clauses to promote employee mobility and foster a more dynamic labor market. Because around 18 percent of U.S. workers were previously covered by noncompetes, this new law will impact approximately 30 million people.
A Look at How the New Rule Banning Noncompete Clauses Could Affect Recruiting Firms
On April 23, the Federal Trade Commission (FTC) issued a new rule that bans non-compete clauses for workers across all industries, with limited exceptions. The rule will prohibit most employee non-compete agreements with retroactive effect, except existing non-compete provisions. The rule also requires employers to notify workers, including former employees, that the non-compete clauses are no longer in effect.
John Arbolino of Boothroyd & Co., David McCormack of DMC Partners, Bob Nahas of Nahas Executive Search, Marian Carrington of Carrington & Carrington, Larry Hartmann of ZRG, Russ Riendeau of New Frontier Search Company, Teague Splaine of Emory Search, Darren Raycroft of Bedford Group Transearch, Gary Erickson of Executive Search Partners, Nada Usina of NU Advisory Partners, and Kyle Samuels of Creative Talent Endeavors join Hunt Scanlon Media to share their thoughts on this hot topic!
At Grey and among the firm’s network, this ban is viewed as a positive move. In fact, they polled their LinkedIn followers and, among 135 voters, over 85 percent agreed or strongly agreed with the FTC’s decision to ban noncompete clauses.
Over her career, Alissa Henriksen, co-president and co-owner of Grey Search + Strategy, has seen how non-competes create a sense of fear among executive candidates, making them wary of being locked into a company without the freedom to pursue better opportunities. “This fear often overshadowed the job’s potential benefits and deferred talented individuals from joining organizations that enforced strict noncompete clauses,” she said. “Additionally, companies were spending significant amounts on legal fees to draft, review, and enforce these agreements. At the same time, I’ve seen many successful businesses thrive without relying on noncompetes, even in highly regulated environments, by focusing on – you guessed it – creating a positive company culture.”
Related: Is it Finally Adieu for the Noncompete Clause?
“The ban on noncompetes will encourage companies to further increase their focus on company culture, and to invest in their executives’ well-being, professional development, and job satisfaction,” Ms. Henriksen said. “When a company nurtures a culture of growth, transparency, and mutual respect, executives are more likely to stay for the long term, reducing turnover naturally. And there are still many protections available for businesses, such as confidentiality agreements and internal security measures.”
Trend #3: Return to Office Requirements for Executive Positions.
Grey Search + Strategy favorite trends to discuss with our executive search clients is return to office (RTO) requirements, which have drastically influenced executive recruiting in recent months. “Despite the end of the pandemic, candidates’ lifestyles and preferences have changed indefinitely, and workplace flexibility remains a top priority for many,” the firm says. “At the executive level, flexibility is no longer considered a perk – it’s an expectation.”
Alissa Henriksen is co-president and co-owner of Grey Search + Strategy. She has devoted her entire career to recruiting. After working for a large recruiting firm out of college, Ms. Henriksen started her first business in 2008 supporting Fortune 500 and Fortune 100 companies with their recruiting strategies. She has built more than 15 years of experience working with clients ranging from small start-ups to billion dollar public corporations. In that time, she has recruited contributor to executive-level roles, rebuilt recruiting and interviewing processes to attract and retain talent, crafted strategies for challenging rural areas, developed proprietary ‘play books’ that guide managers through successful hiring and much more.
Fortunately, around 95 percent of the companies Grey work with offer some form of workplace flexibility. These arrangements might not be fully remote but often involve hybrid schedules, allowing employees to balance professional responsibilities with personal needs.
“The companies that do insist on 100 percent in-office attendance face unique challenges in attracting executive talent,” the Grey Search + Strategy report said. “Some positions see around a 40 percent decline in candidates, which means those recruiters can expect a longer time-to-fill for roles compared to those offering flexible arrangements. Businesses enforcing in-office requirements will also need to compensate with higher salaries, increased PTO, or enhanced benefits such as daycare support and pet insurance to remain competitive. Ultimately, while many executives appreciate the value of in-person collaboration, the emphasis on mandatory office attendance can be a deterrent. Balancing in-office requirements with flexibility and robust benefits packages is essential.”
Navigate Recruiting Trends with an Executive Search Partner
The landscape of executive recruiting is evolving rapidly, driven by these trends and others that Hunt Scanlon Media will discuss with Grey Search + Strategy in coming months. “For businesses seeking top-tier leadership, partnering with a skilled retained search firm is crucial,” the firm says.
Grey Search + Strategy provides executive, mid-level and project-based recruiting retainers and strategic consulting for growth-oriented companies nationwide. Grey hires for roles in: Executive/C-suite; engineering; finance; human resources; manufacturing; operations; sales & marketing; and technology.
Related: Guiding the Search Process with a Timeline
Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor – Hunt Scanlon Media
