How Hiring External Leadership Talent Can Benefit Your Company?

When faced with the challenge of filling leadership positions in an organization, it is natural to look to the second-in-command. You would certainly think that the second in power will be able to successfully fill this position and share their insights and supervision to steer the organization in the right direction. But that isn’t necessarily true. Sometimes, it helps to hire external candidates for a leadership role.

When should you hire external leadership?

Before taking in a new CXO from outside, weigh in all the parameters like the unique balance of timing, finances, industry, and availability. Consider leveraging the expertise of an external succession planning consultant to help you make the right choice.

Understand the needs of your company thoroughly before you make a hire.

There are multiple reasons why it is crucial to consider individual company circumstances when making organizational changes. For one, changes may be better if a company needs to evolve or revitalize its ideas to stay competitive and relevant in the marketplace. It allows companies to pick up in the areas where they can improve or innovate while remaining flexible and responsive to shifting trends and customer demands. And to make an effective change, hiring a top-level candidate from outside the company makes sense.

Another key reason to consider each company’s unique circumstances is that internal hires can increase employee morale by demonstrating that the organization values its existing employees and believes in their potential for growth. An external leader comes with no bias and can call the situation as they see it, without any hesitance, and sometimes, that is exactly what an organization needs to grow out of its stagnancy and move forward. Overall, considering individual circumstances when making organizational changes is essential for ensuring that those changes are well-suited to the needs and goals of each company.

Why should you hire external leadership?

The decision to promote from within or hire externally should come down to the organization’s needs. Before you decide, consider this: Has your company’s growth started to feel stagnant? Are you planning to expand your business, but are failing to develop new ideas that can act as a catalyst for growth? Then maybe it’s time to consider hiring leadership talent externally.

Research from the University of Missouri found that hiring a CXO-level executive from outside can help a struggling business rejuvenate itself and perform better. Hiring outside leadership can bring in fresh perspectives and new ideas, to help you turn around and propel your company’s growth, as they aren’t bound by emotional ties with the company and will be able to take bold financial decisions and make tough cuts that can keep the company afloat. The decision to hire a new CXO-level employee is not one to take lightly, as your decision can decide the company’s fate.

What are the Benefits of hiring leadership externally?

Let’s go over some of the reasons why it’s a good idea to hire leadership externally-

1. A fresh set of eyes- New perspective and ideas

Higher-level executives hired from outside bring in a fresh perspective and a cutting-edge approach. Some research even found out that CXO-level hires made externally, tend to spend more money on R&D, indicating their commitment and innovation towards the company’s growth.

2. Experience

Hiring the right top-level executive can prove to be instrumental in taking your business to the next level. Higher-level leaders, undoubtedly, would have worked for bigger companies previously, so they would have greater insights into what works and what doesn’t. Their rich experience helps identify strategies and approaches that align with better productivity of your organization.

3. Shift in workplace culture

If you’re trying to go in a different direction culturally, in a positive way, a change of leadership is one of the best ways to achieve it. For example, a new leader can set new rules and break the cloud of negativity and mistrust that could have formed among the employees over time, since their decisions are entirely unbiased and are not the result of being influenced by any third person. Hiring an outside leader shows that you are 100% serious about making changes in your company.

4. Workplace Comfort boosts productivity

The comfort of working under someone who knows and understands your work style and culture is unmatchable. We agree. But sometimes, working with the same people can lead to a stagnant business. They may be dedicated workers but are too close to see the bigger picture. The attachment that comes from being too comfortable in your workplace can sometimes hinder the ability to see potential in newer areas. New leaders come unfettered and unbiased, giving them the ability to see the bigger picture and improve areas with higher scope.

5. Change can bring in better leadership

More than simply bringing new ideas and “new blood” to the institution, a new leader can establish new procedures and policies. An outside hire often is more effective at driving change. A strategic shift is better led by someone without departmental biases.

Companies often tend to make the mistake of promoting their top performers to leadership positions. While this may sound like a good idea and a natural progression for the candidate, not all individual contributors want to be in leadership positions and most of them do not possess the leadership skills necessary to lead a team. Remember, a top performer need not necessarily be a top leader. In due course, if the top performer fails to deliver as a leader, there might be dissatisfaction which can lead to them looking for positions elsewhere, costing you a great employee.

6. Partnering with a retained executive search firm ensures top-tier C-suite hires

Filling such a critical role in any organization is serious business and should not be taken lightly or handled by anyone less than an expert. Using a retained search firm for these important positions is the ideal option. A retained search firm specializes in providing viable candidates backed with quantifiable data. Background checks, reference checks, academic records, and income verifications, in addition to valuable market intelligence, are all provided by an unbiased third party. Additionally, a search firm can significantly shorten the time from candidate identification to hire and improve that employee’s stick rate.

Final comments

Leadership is essential for any organization to achieve its goals, and good employees make that much easier. Good leadership is vital for keeping those great employees, but it doesn’t come without effort. By investing in and training quality leaders, a company can ensure that it has individuals capable of making sound decisions that will help the company grow and succeed in the long run. That is especially important for organizations looking to make changes or innovate to stay competitive and relevant in the marketplace.

Leadership is essential and plays a pivotal role in ensuring a company’s long-term success. Hiring from within may be necessary for some roles, while looking outside your existing workforce may be required for other positions. There’s never a one-size-fits-all solution. You’ll need to evaluate your needs on a case-by-case basis.

If you’re looking to hire a C-suite leader externally, then we can help. Alp Consulting is among the leading executive search firms in India. Our executive search consultants are highly experienced professionals who serve established organizations and early-stage companies going through a rapid growth phase. We work closely with the Board of Directors, chairman, CHROs, CEOs, and other high-level decision-makers to understand their needs for the best leadership talent at the top management level to facilitate the smooth execution of business strategies.