An executive plays a significant role in a company’s operations. They plan, direct, and coordinate operational activities for their company. Their role requires them to make critical decisions and devise policies and strategies to meet the company’s goals.
Since an executive is a valuable member of an organization, businesses need to prioritize who they hire for executive roles. However, some companies fail to recognize common red flags and fill the role with the wrong person. According to CBS News, replacing an executive-level employee can cost companies approximately 213 percent of the employee’s salary. You must hire the right executive for the role to avoid a high cost like that. Familiarize yourself with the common mistakes companies make when hiring executives below and learn how to avoid them.
Focusing on Filling the Role Quickly
When your primary focus is to fill the executive role, you may end up hiring the wrong person, resulting in high replacement costs of up to 213 percent of the employee’s salary, as mentioned above.
Hiring the right person is the key to avoiding replacement costs and retaining the employee. This involves shifting your focus from filling the role quickly to finding the perfect match. Start by identifying your company’s needs and goals. Once you’ve established your needs, it will be easier for you or your hiring manager to shortlist candidates whose applicants and experiences meet your requirements.
Being Unclear About Role Requirements
One of the most common mistakes companies make when hiring executives is being unclear about the role requirements. If the applicants don’t know what you expect from them, you will likely get a long list of applications from unsuitable candidates and may miss out on top talent.
When creating job postings, be direct and clearly outline your expectations from the candidate. Do they need to have a specific degree? How many years of experience must they have to be considered for the role? What will their daily tasks entail? Are there growth opportunities in this role? Being clear about role requirements will save you time and ensure you attract the right professionals.
Asking the Wrong Interview Questions
The questions you ask the applicants during the interview will help you determine if the individual is suitable for the role. If you waste that opportunity by asking generic questions that don’t give you insight into the applicant’s expertise, you may not get a clear picture of their abilities or eliminate perfectly good candidates for the role.
Although it is customary to ask a few general questions, utilize the interview time by asking questions that better help you understand if the candidate is well-suited for the role. Some questions you ask could be situational, enabling you to understand how the applicant would handle certain situations. For example, what do you think is our customer’s biggest problem and how would you tackle it? What would you do if scenario x occurred? What is the first strategy you will implement to boost company growth? These questions will help you identify which candidates will excel in your workplace.
Offering Unreasonable Compensation
The compensation you offer the executive applicant plays a significant role in the quality of hire. For example, a salary below the market standards and unattractive benefits will drive highly qualified professionals away. Industry experts with extensive experience will want a job that values their skills and offers reasonable compensation.
If you have difficulty determining the ideal compensation package for an executive employee, consult a specialized recruitment agency for assistance. A specialized agency will help you recruit executives for your company and assist you in the salary negotiation process. Discuss your expectations with the recruiter and ask for their expert opinion to determine a reasonable compensation package for your preferred candidate. Their industry experience will allow them to assist you while finding top talent for the role.