Leadership is critical to the success of any business. Finding the right person for management of board level staff can be incredibly tricky. Executives at the top of their game are often gainfully employed, placing the onus on the recruiter to adopt a proactive approach, rather than relying on traditional recruitment methods to source candidates.
Executive search agencies assist companies in filling highly skilled and open senior roles, working with the employer to find out exactly what they are looking for in terms of both skills and character before identifying and engaging with promising talent. The talent pool for C-level roles usually consists of passive candidates employed by another company. Once the recruiter has identified the right candidate, introductions can be made with the potential employer. Executive search agents may also play a part in the negotiation process, helping the employer to put together an attractive remuneration and benefits package to entice the candidate to leave their existing role.
A proactive and intentional approach
Achieving diversity among C-suite personnel requires a proactive and intentional approach to recruitment. As global leaders come to see the considerable benefits conferred by building a diverse and inclusive workforce, senior leaders are adopting diversity and inclusion initiatives at greater rates. Nevertheless, these initiatives do not always filter through when it comes to recruiting for C-suite and board roles.
For example, in a recent survey of companies in the United Kingdom, BoardEx discovered that some 68% of boards of all sizes had no or not enough members from diverse or underrepresented groups. Shortcomings in investing in diversity and inclusion result in many companies missing out on the proven benefits of D&I, such as increased productivity, enhanced staff retention, diversity of thought among teams, and cohesiveness among colleagues. The onus falls upon leadership to take responsibility for diversity and inclusion, ensuring that diversity is not only seen on the shop floor, but also in the boardroom.
Creating stronger and more resilient companies
Diverse companies are stronger and more resilient, benefiting from better performance. Diversity in C-level staff enables executives to better understand the views of all stakeholders, including employees, customers, supply chain partners, and community members, who all contribute to and are affected by decisions made by the company and its long-term success.
D&I is moving in the right direction, although people of color and women still have some way to go to reach parity on boards. According to research published by the Alliance for Board Diversity, minorities and females now hold 38.3% of board seats at Fortune 500 companies, equating to a healthy increase on the 34% reported in 2018. Nevertheless, taking a closer look, statistics are less encouraging, with minority women continuing to have the toughest time in terms of overcoming structural barriers to their success, although the social movements of 2020 did come as a wake-up call for many organizations.
Diverse teams may drive superior financial outcomes
Today, the benefits of diversity and inclusion in teams and boards are well reported and understood. Not only are diverse teams smarter, more productive, and more innovative, but there is a wealth of evidence to suggest that they drive superior financial outcomes. Today, forward-looking CEOs around the world are seeking to diversify their boards and teams, actively seeking out talented women and minority candidates to recruit.
Building a diverse leadership team starts long before the candidate walks through the door. Rather, it is embedded into the recruitment process.
Research suggests that up to three quarters of positions with US companies are filled via employee referrals. Since employees tend to recommend candidates of the same race and gender as they are, if the team is homogenous, extra effort will be required to expand the hiring pool.
Evaluate the talent pipeline
The first step to embracing D&I in recruitment efforts is to evaluate the talent pipeline to see where the company might be missing out on qualified candidates. For example, where a company is advertising an open role, or an executive search agency reaches out to a potential candidate, it is important to be mindful of language and its potential impact. Do job postings overuse masculine descriptors like “ambitious,” “competitive” or “aggressive,” which could unconsciously discourage female candidates from applying? Does the company offer the schedule flexibility needed by working mothers? Do the people on the hiring panel all come from the same demographic, or do interviewers represent the diversity the business would like to see on its team?
In the long-term, establishing diverse leadership and management teams helps to future-proof companies, ensuring that brands and their products appeal to a variety of different demographics, and enabling them to remain relevant and competitive.
Workforce diversity is manifested by the presence of employees from a variety of different backgrounds, right from the top to the bottom. This includes diversity in gender, race, ethnicity, age, religion, physical abilities, and sexual orientation in the boardroom. Successful workplaces recognize D&I as an effective means of widening their skillset and potentially their customer base, bringing together people from different cultures, backgrounds, and experiences, with unique insights, better equipping the company to attract and engage with a broader range of demographics.