Most companies know that hiring the wrong executive costs them a substantial amount of money, but it’s probably more than they realize. The calculations run from six times to fifteen times an executive’s salary which can be devastating for a small to mid-sized company.
To avoid the financial impact, companies know they must make the right selections from the start. It’s wise to keep your eyes open for top executive talent long before positions are open. It’s even more critical in a small to mid-sized company, where there may not be the resources that a big corporation would have.
One of the keys to getting the right person is having the discipline to stick with the process. Having a benchmark of the main attributes needed for a key position is the best place to start. Then you must have a committee consisting of people from different department’s interview and examine all the facts they will at least all be on the same page about what type of person is need for the role.
Once a company finds the right hire, it needs to help them assimilate. An on-boarding process can facilitate training the new executive on the culture and politics of the company. First impressions are very important and the new executive will be under intense scrutiny for the first 90 days.
When businesses land and train the right executive, keeping them becomes the next challenge. Compensation and restricted stock play important roles in retaining executives. Companies also must provide clear performance measurements and assessments. An organization can invest in the executives’ development and make sure the person they are reporting to is teaching, inspiring, motivating and challenging them.
Organizations must be very clear about promises that were made and then deliver on those promises.
Vicki Z. Lauter is a member of the HBA Atlanta Chapter and Managing Partner of Strategic Human Insights you can reach her at firstname.lastname@example.org or 404-978-2616.