Talented, committed employees, motivated by the upside they see for themselves in their employer’s success, are the best source of a company’s competitive advantage. But CEOs of emerging growth and middle market companies must face the reality that their workforce is changing rapidly. Workers and employers don’t expect jobs to last as long as they did in earlier generations. Companies can opt for alternatives to permanent employment, such as outsourcing work to an external service provider, deploying short-term contractors or using the services of a professional employer organization (PEO). Talented millennials and other younger workers bring an independent attitude and (often) a freelancer mentality. The internet has transformed recruiting and made it possible for even small firms to tap workers located on the other side of the globe.
Newport Board Group, a national professional services firm of CEOs and senior executives, asked our partners to recommend how CEOs should grapple with the new world for recruiting, evaluating and retaining talent.
Larry has had a 30 year career as a leader of for-profit and non-profit organizations. Most recently he was the Founder, Chairman and Executive Director of the Arizona Business Coalition on Health.
“CEOs should ruthlessly diversify the team, including any board or advisory board. You must have diversity of thought to help you avoid blind spots.”
Keith is a Newport partner in New England who has been president of operating divisions in four different Fortune 500 companies, in sales/marketing roles as well as other strategic leadership responsibilities.
“There are powerful tools such as LinkedIn that should be a major component of any recruiting strategy. Evaluation should be focused on deeply understanding a candidate's attributes, core skills and capacity for growth. Prevailing recruitment practices that emphasize experience and/or education (which is easy to assess) instead of attributes and skills (much harder to assess) result in organizations routinely passing up exceptional, game-changing talent. Simply matching resumes to job descriptions reveals very little about how significant the individual's contributions to the business are likely to be. Hiring decisions are important. Rigid, experience-focused hiring criteria may make for an easy to manage process but deliver highly unsatisfactory results.”
Alain, a partner in Newport’s New York practice, is a seasoned CEO with global experience transforming publicly traded and venture-backed companies in the basic materials sector (chemicals, building products, construction materials, minerals, ceramics, metals, etc.).
“In their personnel practices, CEOs should ensure that line managers are empowered to support the strategic plan and achieve yearly key performance targets.”
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Joe is a Newport partner in Dallas who, among other accomplishments, conceived the idea of a provider of IP network delivered through software-as-a-service, driving market penetration before achieving a successful sale of the company.
“Use technology tools to identify candidates. Use behavioral interview techniques to determine proper fit for candidates. For employee development, set standards for accountability and provide direct, regular feedback about performance against standards. Provide opportunities and time to develop skills for current and future assignments.”
Jack is a Newport partner in New York who is a strategic CFO with experience in public and private companies. He has experience with private equity as CFO of portfolio companies and as an operating partner helping to drive exits.
“The corporate culture should take into account the growing emphasis on diversity and the different work attitudes of the younger generation. But one thing that doesn't change is the need to hire the best people who will challenge the company’s assumptions and practices in a constructive way.”
Peter is a Newport partner in Texas who is a versatile operating executive with a long record of accomplishments running businesses including manufacturing, industrial and technology based companies.
“Developing a team approach means looking at the fit between new and existing employees and involving subordinates in the selection process.”
Ferey is a Newport partner in Northern California whose experience, along with management consulting and investment banking, has served as president of a company that develops advanced optical sensing solutions for the aerospace, energy and medical devices markets.
“There are many affordable ways for the CEO to implement effective recruiting and evaluation practices while ensuring compliance with all Federal, State and other local laws and regulations. The use of outsourced HR resources, for example, can provide an affordable way to meet the company's recruiting, nurturing and evaluation needs while offloading some of the compliance and administrative burden.”
Ron is a Newport partner in West Florida who has a diverse background as a CEO and senior executive in the consumer packaged goods industry, especially food, with public and private companies.
“Business today requires far more skills involving technology. A CEO must keep pace with the changing times to be effective, especially in recruiting.”
Harold, a Newport partner in New York, has a record of building lucrative enterprises, taking start-ups to the next level of growth, leading sales teams to significant competitive sales wins, and turning around troubled companies in telecom/technology and related sectors.
“A CEO should be recruiting direct reports who bring complementary and new skills to the management team. And he/she should reinforce this practice throughout the organization. A good consultant/advisor can help develop and implement this practice.”
Bill is a Newport partner in Denver who has deep expertise in building and running industrial manufacturing and construction companies.
“There are tremendous differences between employees in the baby boomer and millennial generations as to work ethic and motivation. Recognize that today an effective workforce requires diversity in age and experience. Creating, motivating, and hiring that diverse work force is a greater challenge than when the work pool was dominated by the baby boomers.”
Woody, a Newport partner in Denver, is an experienced executive who has served as CEO of several information technology companies and also as a CIO who has innovated new models.
“When employers think of staffing they need to consider all forms of employment including permanent, crowdsourcing and other forms of contract work. Evaluation needs to be oriented toward specific metrics and results—with less emphasis on performance issues that are subjective and debatable. Companies need to deploy software that facilitates hiring and performance management in an efficient, effective manner.”
The next article in this series will present the views of additional Newport partners on talent retention and development.
“Avoid the inevitable transition that causes 9 out of 10 companies to fail.”
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