It’s Not Just Employees. CEO Hires Are Taking Longer, Too.
Employees and their bosses may have something to commiserate over: the prolonged time it takes to get an job offer.
Why Boards Are Taking More Time to Hire CEOs
When the CEO candidate started the interview process, she estimated it would take six months. After all, she knew she’d need to interview with board members and the search committee, take personality or cognitive-ability assessments, and prepare several presentations.
But by the ninth month of discussions, when she still hadn’t received an offer—despite being told she was a top contender—she began to wonder: Was it her, the company, or just the fact that all searches are taking longer these days?
Consider it a bonding moment for employees and their bosses. With the average time from a job posting to an employee being hired increasing more than 65% in the past three years, CEO candidates are experiencing similar delays as they run the gauntlet to the top. While figures on C-suite hires are hard to come by, experts say they’ve seen the typical three- to nine-month hiring cycle for a CEO stretch out. “Boards are conducting deeper diligence and prioritizing ‘getting it right’ over speed to help reduce turnover risk,” says Radhika Papandreou, president of Korn Ferry North America. “They’re wary of making the wrong hire.”
To some degree, there’s cause for concern: CEO quits and fires have hit record levels. Executive hiring is taking longer, because more searches mean a tighter market. “Oftentimes, the same small group of candidates is pursued repeatedly, causing them to become more selective,” Papandreou says, adding that some CEOs have longer notice periods, which can add further delays to the process. Chris Von Der Ahe, senior client partner in the Consumer Markets practice at Korn Ferry, says more alignment work is happening so that boards can weigh strategy, culture, stakeholder confidence, and risk all at once. Many boards are also opting for external candidates, who take more time to vet and get to know.
At the same time, CEO candidates are asking more questions of the board to understand director dynamics; in some cases, they’re also speaking with outside analysts, says Tierney Remick, vice chairman and co-leader of Korn Ferry’s Board and CEO Services practice. “They’re doing a lot more homework,” she notes.
Given the fact that talent is scarcer, experts say it’s critical for boards to have a clear interim leadership plan and to treat succession planning as a continuous strategic risk. “It’s important to identify multiple internal successors at different levels of readiness,” Papandreou says. Adds Von Der Ahe: “The strongest boards develop internal contenders before a vacancy opens.”
Learn how Korn Ferry can help boards recruit top-notch CEOs.
