‘Effective communication’ is not just a buzz phrase, it is one of the most important leadership traits and has a clear and critical impact on every organisation’s bottom line.
It’s been said that employees don’t leave jobs, they leave managers. Whether true or not, it’s undeniable that leaders have a profound influence on employees. Leaders’ actions and attitudes have the power to drive employees to great success – or to drive them out of the door!
Engagement studies show that leaders and managers are accountable for 70% of employee motivation and happiness. Disengaged employees don’t understand how they fit into the culture, how managers view their performance, or where the company is headed. Three in four employees see effective communication as the number one leadership attribute. Yet, less than 30% feel like their leaders communicate efficiently.
70% of the business leaders, reporting not being happy with their employees’ work, feel they need to improve how they communicate with their employees in order to resolve performance issues and improve motivation. Of the group that was happy with their team’s performance, 70% of the managers attributed this to the effective communication.
Engagement was higher among employees who rated conversations with co-workers and managers as great or excellent. Employees who rated conversations with co-workers as bad had a particularly low level of employee engagement.
For many of us the biggest barrier to having high-quality conversations is that we’re afraid to share what we’re really thinking and feeling. We dance around the issues and don’t speak up when there is an opportunity to voice concerns. But a problem exists whether we talk about it or not.
Leaders need to provide opportunities to have meaningful and productive conversations which in turn encourage trust. Giving opportunity to safely share ideas, concerns or questions indicates that leaders truly care about their people. Additionally, when employees understand what is expected of them, feel their opinions matter, receive helpful feedback or recognition, and can talk about their career aspirations, they are more likely to be engaged.
Their words resonate more and have more meaning and, unfortunately, so does their silence. Best leaders excel in communication because they strongly value it - and that’s the critical step and the foundation of success.
Executive hiring has been quite intense in the Bulgarian market over the past few months.
Many companies, across different sectors, who wanted to attract best in class C-suite executives and senior leaders chose FPI Bulgaria as their partner seeking to ensure a significant pool of top-notch candidates.
Although technical expertise and proper managerial experience is what brings many candidates to the short-list, there are certain qualities, traits and characteristics that are strongly considered when it comes to the final choice for the position.
Approaching this with curiosity, we noticed that in these unusual, dynamic, and change-filled times employers are looking for some interesting combinations of timeless leadership qualities and provocative mindsets.
Communication skills, persuasion, decision making and change management are always on the list of preferred leadership characteristics that companies seek, and they are a non-negotiable attribute of successful candidates.
Currently, businesses are not just on the lookout for leaders who can properly and diligently manage transformations, but they are also searching for those who have the mindset to initiate changes, to facilitate new ideas, new ways of working and sometimes even new directions for the business.
Professionals who possess this quality are typically seen as outstanding candidates with great potential.
These skills have almost the same weight in the final selection as the technical skills required for the role. They have become highly desirable requirements for senior leaders.
Although this competence is not always clearly described and defined, many employers see it as the ability to easily learn and/or unlearn concepts, methods and approaches - the capacity to connect the dots and work with complex information.
This is a surprising and relatively new characteristic in high demand was the one described by clients as consisting of the ability to stay firmly behind a bold or unusual idea with the energy and courage to realize it and bring it to fruition - even without the initial support from others. Companies believe that leaders possessing this characteristic will be really a great asset who will not only help the business survive in this dynamic situation, but will also allow it to grow, expand and be more sustainable.
Although these conclusions are mainly based on our systematic observations and numerous interactions with the business related to Executive Search, we can say that there is a move away from the “ideal leadership candidate” template.
Traditional skillsets and managerial abilities are no longer sufficient to be a successful senior leadership candidate. Soft skills and personal characteristics have become more and more important in the selection process, and they deserve thorough investment and consideration from both C-suite candidates and businesses.
The success of the Board is 100% dependent on the success of the CEO the Board has hired.
Hiring is an extensive effort and is only worthwhile if the Board makes the right decision. Interviews, resumés and references give important information, however to avoid subjectivity and unconscious bias, cooperation with an Executive Search Partner is often the solution.
Using an experienced Executive Search Partner will bring additional benefits.
The Board‘s Chair should conduct individual discussions with each Board member regarding the organization‘s strengths and weaknesses, internal as well as market-driven challenges, and leadership needs for the future.
As a result a profile of the leadership attributes and behaviours necessary to successfully fulfil the CEO role can be developed and reviewed with the entire Board of Directors.
The Executive Search Partner will ensure the profile is both comprehensive and well tailored to the situation.
The most successful CEO appointments include consideration of both internal and external candidates.
It is important to remember that succession is rarely a neat process and the Board needs to have realistic expectations.
We recommend benchmarking to gain an objective perspective on the internal candidates and to assess the quality of CEO talent externally — particularly when the context, competitive landscape and company‘s strategy is changing.
An experienced Executive Search Partner will deliver job market insights in a short period of time.
An external Search should be led by the Chair of the Board together with the trusted Executive Search Partner to ensure that the very best candidates are considered.
The Partner that has trusting relationships with candidates, information sources and referees can help the Board to develop a long-list of prospects based on candidates' previous roles and industry experience.
Once a long-list is settled, all candidates, internal and external, should be ranked against the core competencies and attributes agreed in the CEO Profile. Those that best meet the profile should be included into the short-list.
The Nomination & Remuneration Committee and/or the Executive Search Partner will typically conduct interviews to reduce the list to a small group of 2 or 3.
The Board can get excited about a candidate‘s resume without fully understanding whether the executive’s views about strategic direction and leadership style are fully compatible with the Board’s own view, and within the framework of the organization’s desired culture.
Therefore the final candidates are typically given an opportunity to present to the Board, followed by Q&As. The presentation is useful to understand differences in the candidate's vision of the company‘s strategic direction, approach to leadership, personal motivations and aspirations.
All Board members should be involved in the interviews of the final candidates and use an interview guide that the Executive Search Partner can provide. The guide outlines critical competencies for the position and the key organizational culture attributes for rating the candidates in these areas. This eliminates subjectivity, helps to focus on concrete skills and performance, and allow agreement on a single candidate.
The Executive Search Partner is in position to arrange thorough reference checks. Ideally, the checks should be done in person with members of the Board present, so critical non-verbal communication is not lost.
We know that the most successful hiring processes are those in which the right people are brought to the table, the specification is designed with the future strategy in mind and the candidates are assessed holistically.
While there can be immense pressure to make a decision quickly, the Board must resist that urge and take the time necessary to make a fully informed decision.
Having the right people in place can make all the difference to a company, especially in the fast-paced and competitive environment of private equity and venture capital.
Indeed, human capital is the most valuable asset of any organization. Without a team of talented individuals working together, it is difficult for a start-up or growth company to succeed, even if it has a great product or service.
The leadership dilemma is increasingly present in private equity and venture capital firms. It is the new key criterion!
Companies that are able to access this talent have a clear advantage over their competitors.
This is where Executive Search firms come in: they help private equity firms and their portfolio companies recruit the talent they need at this critical stage - and at various levels: from investment managers to fund managers to board members throughout the life cycle of the company: creation, development, support, transmission.
These three types of specialists, private equity, venture capital and executive search, have always been linked at the intersection of value creation and human capital.
But sometimes the boundaries between them become blurred. Indeed, some private equity funds acquire or create their own executive search functions. On the other hand, executive search firms are also starting to get involved in the venture capital sector, launching their own funds.
In France for example, this niche market is mainly focused on Paris and Lyon. It operates more discreetly in the regions, mostly through partnership with the local economic network, often as advisors to managers.
The challenge for Executive Search is to attract talent from other decision making centres.
Toxic leadership exists in too many organisations – indeed we have seen it here in the UK at the very top of government. Unsurprisingly, the result has been a loss of trust by colleagues and the general public in their leaders, and with it trust in the organisations they lead.
A toxic leader is often hugely charismatic, effectively hiding their toxicity – indeed grandiose narcissists often emerge as powerful leaders and are considered as ‘rockstars’. Power quickly becomes consolidated in the hands of a few people who report directly to the toxic boss and anyone who questions them are quickly removed.
Edelman’s Trust Barometer (2021) indicates that “... none of the societal leaders we track — government leaders, CEOs, journalists and even religious leaders - are trusted to do what is right, with drops in trust scores for all.”
In some cases, toxic behaviour is actually a way of mitigating self-doubt, but they still create a culture of fear. In fact, toxic leaders don’t typically have a lot of self-confidence and they attempt to overcompensate by constantly elevating themselves at the expense of others; such organisations tend to have a high employee turnover.
A toxic corporate culture is the single best predictor of which companies suffered from high attrition in the first six months of the Great Resignation. The failure to appreciate high performers is another element of culture that predicts attrition. Compensation and burnout also influence attrition, but other aspects of culture appear to matter more.
There is insufficient accountability in many organisations for unethical and amoral behaviour of leaders. Indeed, we often reward financial results over the well-being of people, or the planet.
As well as focusing on good character and virtuous behaviour as the prime criteria for leader selection, we often recommend a more forensic approach in the appointment of executives with judicious psychometric profiling.
In a society where we are constantly told that everything is uncertain and volatile, where companies are transforming and acquiring more agile and digital management models, where unicorn companies dominate, where there is a lack of raw materials, of scenery, of leadership, where we compete with global talent (GIG economy), where projects without purpose no longer make us fall in love, and data is the DNA of any profession...
While we run as if we are ants living the present and not thinking too much about the cold winter, we are lucky enough that there are some cicadas who are doing their best to bring up real and lasting solutions that solve the long term while being very adaptable to the short term. These cicadas have a major purpose - more than us or even our companies’ - they are interested in adding, helping transforming and improving our society, and above all they want to provide the necessary tools to students and professionals to be self-employed and have employability (sustained over time) in a global market.
There are many professionals, vocationally or "by chance," working in educational projects, increasingly demanding more competition, more demand for a complex user experience to find hybrid or digital models - and thanks to these new figures that appear in the educational environment (along with the value that their teaching and research team have always had in these institutions), good practices from the professional world are being implemented and a real disruption is being generated when it comes to learning.
The education sector has finally got its act together. A sector (by some) poorly defined as the 3rd sector, slow, regulated and obsolete, a generator of ideas, applied research, thinkers and value. A sector that the smartest have identified as one of the engines of change, profitable in real transformation, with incredible human capital, technology and pedagogical models capable of making everyone learn and understand.
Given the evidence that there is a greater need to renew knowledge throughout professional life - Working Adult - with specialization programs, reskilling training, today there are countless possibilities and we are evolving to the concept of democratization of education, with quality options for all, in terms of content, format, duration and price.
To give this response to the market, organizations have also had to transform themselves and attracting talent in private institutions is one of the essential objectives. Without a good management team it is impossible to carry out this transformation, and above all it is impossible to carry it out on time.
Agile and very executive minds know how to recognize the rhythms of the labour market, the demand for talent, decision-making processes, expansion strategies and above all what they project inside and outside: what the labour market will demand and what a student needs to ensure successful learning.
In addition to this commitment to a more professional human capital, there is a need for technology as a management tool, as a learning channel and model, and as a guarantee of a personalized experience.
This situation is now driven by the entry of investment funds in private educational groups (schools and universities) that are "concentrating" the operation to have a greater offer and are driving a strong accelerator for change.
In this new scenario, the demand for a different-professional-types arise, to lead the operation in the investees, headquarters, or spin offs of these groups - managers with a 360º vision who are responsible for the income, and although they do not have experience in the sector, this allows an objective view.
In this area, the Business Development and Marketing Manager continues to be a sought-after and recognized profile. Private institutions thrive on their enrolment, so the effort to create a brand, attract the best students and be able to generate value innovation and obtain a positive response from the increasingly global market is essential.
B2B business development or Institutional Relations profiles are becoming more and more in demand. There is a need for constant learning as professionals, and companies are key in this mission by offering their employees quality training.
From the academic point of view, the figure of the Dean is essential. An academic and responsible manager with vertical knowledge, being able to value the area of knowledge by promoting research, partnership with companies and international educational institutions. They must ensure that their faculty is at the forefront of innovation because their future student employability is essential, not only to ensure the growth of the institution, but to harness the reputation and prestige of the faculty and therefore of the Institution.
In one way this is good – I mean seeing people face to face is wonderful after so long being trapped behind a computer screen. However, it hasn’t taken me long to be reminded just how important it is to pay particular attention to those who don’t say much.
Increasingly I find myself eager to know what they would say: they just watch, and often with every meeting they get smarter, by saying nothing at all. They listen.
I have seen many leaders hurl words around the room like arrows. Those hoping for their next promotion do the same.
Ego can make you talk too much, but the person who is the loudest and talks the most in the meeting is not necessarily the smartest.
Of course, how we talk and listen are deeply influenced by our own personalities, cultural experiences and gender. It is sad but true that many men still talk over women. Women often feel they tread a thin line by making a point without coming across as too loud or aggressive. A woman who tells others what to do is often called bossy whereas to some men, giving orders can be one way of getting and keeping the high-status role. As a result, many women opt to stay silent rather than risk saying something wrong or being through of negatively.
Perhaps using as few words as possible to make your point, then knowing when to be quiet, is actually the skill we should all practise.
Those who listen should be encouraged to talk.
Those who tend to talk too much should be encouraged to listen.
Lorri Lowe
Partner, UK
Workplace flexibility, better benefits and higher pay are not the only causes of the current so-called 'Great Resignation'. While employee turnover is nothing new, the regularity with which people are moving roles is increasing, because their motivations are changing.
It wasn’t that long ago that jobs were a simple transaction – do the work and get paid. Motivations have been of a ‘carrot & stick’ nature for many generations. However, it has been reported recently that almost two-thirds of people would prefer to work for a company with effective environmental policies, and many millennials would actually accept a pay cut to do so. Quitting because of a mismatch between personal values and an employer’s was relatively rare but now it is not that unusual.
Employees don’t just want higher salaries, although they will of course demand them, they also want investment in their and society’s future. They want a collaborative endeavour, a shared sense of identity, and common purpose towards a greater good. It’s important to them that they have a genuine, though not necessarily an in-person ‘connection’, with their co-workers and their employer.
A strong ‘green’ ethos within an organisation is a key factor for many candidates when choosing where to work. Recent studies by Deloitte and McKinsey have highlighted the climate as the single biggest issue younger workers care about and this is consistent with the underlying trends we see in the media. Sustainability really is important if your company is to win the best talent out there. The current experience of many employers might not yet reflect this because a large proportion of management are Generation X, of whom only 17% feel the same way. As soon as 2025, Millennials will account for 75% of the global workforce, so understanding their mindset is an immediate issue, demanding attention and action right now.
The ‘greenwash’ of discursive prolix position statements (all abstract aspirations and woolly goal-setting) are easily dismissed and are increasingly being mocked. Consider too that the millennial candidate is, thanks to the convergence of many other factors, now in a relatively strong position to be the interviewer – that is, to determine if your company is worthy of their time.
Essentially, the efficacy of your answers to sustainability questions will boil down to whether your company can be trusted to keep to its promises. Some corporate soul-searching might be tough and corrective measures painful, but hard-earned credibility will serve you well over the longer term; and ‘employer branding’ has never been more important.
To achieve any meaningful change, companies must accurately measure and honestly report their carbon footprint. This isn’t just essential for the planet, it is an opportunity to relaunch and remarket your business, not just to its customers, but to the talent it will need along the way.
Having a published strategy on sustainability is no longer a competitive advantage, it’s a fundamental requirement – a pre-qualifier. The good news is, it’s never too late to get one, but it should be refreshed regularly to keep pace with the science and public sentiment. Get this right, and the best talent will be drawn to you. It assuredly will.
The really hard part is not the strategizing, nor the recruiting of such talent (both are challenging, no question) but it is the leadership of the business that is vitally important to get right. The skillsets and mindsets required of managers, executives, directors – and especially the CEOs – at the top of every company are very different now in this incredibly competitive recruitment market. If a company has the right leadership in place to respect and recognise the values of its people, as well as reward them for their efforts, it will have a fighting chance.
Lorri Lowe
Partner, UK
First published by the Confederation of British Industry on 6 June 2022 here.
One of the most recruited roles this year in Romania were HR Business Partners. They have been actively sought, regardless the domain or level of seniority.
Just as asking the right question will most often lead us towards the answer, my experience shows that the failure or success of a recruitment process relies, in most cases, on determining the right candidate’s profile. One of the first steps towards this is to determine what function the position we are aiming to fill has in the context of a certain organization. Hence, we initiated a qualitative research project to better outline the profile and function an HR Business Partner should have within an organization. The study was performed using a sample of 37 participants - approx. 60% of which were HR Directors or Managers and 40% HR Business Partners in multinational companies.
When asked “Do organizations need HR Business Partners?” 100% of the study’s participants responded “Yes”. Roughly 70% added that in smaller organizations the function of HR Business Partners is performed by the HR Manager.
HR departments see the role of HR Business Partners as performing a strategic role, one that works to find HR solutions that helps organizations grow and achieve business goals.
Floriana Enescu, Partner
Romania
In addition to mapping the personal, managerial and professional characteristics of candidates throughout the Search process, we can often be asked:
Recent scientific studies suggest that leadership is 30% genetic and 70% learned. These findings propose that leaders are made, not born. The conclusion of such studies is that both hold true: a person can be born with natural leadership abilities, and someone can learn how to be a good leader at work.
Are theory and practice the same? In reality, they are not. So why is it important, how does it work, which roles require which type of leadership and what is the added value in assessing an existing management team?
Driving a RV bus on a F1 circuit is as inefficient as going on a 3 week-long camping road trip with your family in a v16 GT Roadster. Choosing the right vehicle is essential and can determine your result in the race. The analogy applies when choosing between natural or learned leadership.
As I discussed the replacement of the CEO with one of my clients, the owner stated, “You know us, our values, our business. We simply want the best from the market. We want a Natural Born Leader.”.
I know my client well enough to have a clear picture of his autocratic view of leadership and weariness of critical questions about the role.
I’ve seen so many owners and C level managers make disastrous decisions - and all of them because there was not a single person on their team that dared question their strategy.
In my view, we must build the kind of relationship with our clients where we can have the courage to oppugn and articulate our opinion.
We must never be afraid to challenge our clients honestly and openly.
Bence Berkó
Senior Consultant, Budapest
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