{"id":1689,"date":"2019-06-19T15:22:12","date_gmt":"2019-06-19T14:22:12","guid":{"rendered":"https:\/\/www.theofficialboard.com\/blog\/?p=1689"},"modified":"2021-10-12T12:10:54","modified_gmt":"2021-10-12T11:10:54","slug":"how-do-you-attract-the-best-executives","status":"publish","type":"post","link":"https:\/\/www.theofficialboard.com\/blog\/recruiting\/how-do-you-attract-the-best-executives\/","title":{"rendered":"How Do You Attract The Best Executives?"},"content":{"rendered":"\n

By Professor Boris Groysberg<\/a>, Harvard Business School and his research team<\/em><\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

Abstract: <\/strong>Executive loyalty and executive engagement drive company success. What are the factors that can in\/decrease executive loyalty and engagement? How can you act on this?<\/em><\/p>\n\n\n\n

Professor Boris Groysberg at Harvard Business School has partnered with The Official Board to survey over 7,000 top executives. He has discovered:<\/em><\/p>\n\n\n\n

 \u2022\nIndustries, countries, functions, and jobs attract executives very differently.\nThis innovative mapping is instrumental to benchmark your attractiveness when\nhiring or retaining an executive.<\/em><\/p>\n\n\n\n

 \u2022\nThere are ten factors that might influence how the management teams are able attract\nand engage the very best executive talents.<\/em><\/p>\n\n\n\n

 <\/em>Print or Save in PDF<\/a><\/p>\n\n\n\n

1. Measuring Executive Job Attractiveness<\/strong><\/p>\n\n\n\n

The Net Promoter Score Methodology (NPS) has been a widely used metric in Fortune 500 companies to understand the customer willingness to recommend the product and services for the last 20 years.<\/p>\n\n\n\n

It is all also increasingly used in HR to measure the employee loyalty to recommend their company as the Employee Net Promoter Score. It works the same way. In this survey, we have been using this methodology to evaluate executive engagement.<\/p>\n\n\n\n

How does it work? The executives were asked: \u201cHow likely is that you would recommend your position to a friend or a colleague? Rate a scale from 0 (unlikely) to 10 (very likely)\u201d.<\/p>\n\n\n\n

Every answer between 0 and 6 is called a \u201cdetractor\u201d, between 7 and 8 is a \u201cpassive\u201d and between 9 and 10 is a \u201cpromoter\u201d.<\/p>\n\n\n\n

The\nscore is the percentage of promoters minus the percentage of detractors expressed\nas a percentage. <\/p>\n\n\n\n

With a single number, companies measure how\n\u201cpassionate\u201d their executives are and compare with their peers. We have\nmeasured the executive loyalty for their position (pNPS), function (fNPS),\ncompany (eNPS), country (cNPS) and industry (iNPS). <\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

<\/p>\n\n\n\n

2. Attractiveness by industry, country and function<\/strong><\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

Why do some industries score higher than others? In some cases, the higher iNPS reflects the robustness of the industry overall. For other industries a healthy iNPS reveals a sense of purpose among those in the field.<\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

One U.S. executive who had worked abroad extensively called out Australia as a favorite, describing the work environment as \u201cvery lively with a lot of energy.\u201d And a European executive who had spent time in numerous countries praised the companies in Scandinavian countries for being both supportive of employees and organizationally flat.  <\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

fNPS likely reflects trends with some functions being viewed as \u201chot.\u201d As one compliance executive opined about his own space, \u201cIt has become a very hot area, given the recession, given the government position, given the\u2026greater reliance and dependence on the compliance function. It is becoming, instead of being a tangential matter, a core matter.\u201d<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

We also looked at this analysis in a more aggregated way combining the 50 original functions into only six: CEO, CFO, Customer Facing Functions, Emerging Functions, General Management \/ Management, and Support Functions. Contrary to what one might expect, CEOs did not exhibit the highest fNPS\u2014that distinction belonged to CFOs with an fNPS of 36%. The lowest fNPS belonged to Support Functions, with an fNPS of only 27% <\/p>\n\n\n\n

3. Attractiveness by Executive Profiles<\/strong><\/p>\n\n\n\n

What are the implications of these results for leaders hoping to maximize employee engagement and productivity? To what extent are these scores driven by factors beyond their control (e.g., industry growth prospects or personality fit)? The survey results point to some potential factors within management\u2019s control that may result in an improved NPS:<\/p>\n\n\n\n

Factor #1: Executive Skills (Ranked on a Scale of 1 to 5; least to most important)<\/strong><\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

Thus, a focus on community and collaboration and fostering a sense of collegiality may be a way to improve employee loyalty, engagement and productivity.<\/p>\n\n\n\n

Factor #2: Executive Traits (Ranked on a Scale of 1 to 5; least to most important)<\/strong><\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

Thus, stretch assignments that allow executives to explore new areas may be an effective tool for improving employee loyalty.<\/p>\n\n\n\n

Factor #3: Executive Development Types<\/strong><\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

Similar to the findings above – companies that emphasize teamwork and collegiality, including active mentorship, seem to benefit from higher employee engagement and loyalty. Interestingly, training did not seem to be a positive drive of company or position loyalty \u2014those individuals that attributed 50% or more of their skills to training programs had an eNPS of 12%.<\/p>\n\n\n\n

Factor #4: Executive Years of Experience<\/strong><\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

Those with experience of 11 years or more had pNPS in the 27%-31% range. We attributed this differential to a number of factors. First, it often takes time to find the right \u201cmatch\u201d in terms of a job that is a good fit for one\u2019s skills and interests; employees earlier in their careers are more likely to be still searching. Additionally, job rotations are often a factor in executive careers, particularly early on. Individuals may rotate through a variety of positions that don\u2019t necessarily interest them as part of the training process.<\/p>\n\n\n\n

Factor #5 \u2013 Executive Education<\/strong><\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

This differential may be driven by the fact that executives with higher education levels may feel they have greater options relative to their less educated peers\u2014they are in their current position because they choose to be so and feel they can leave if and when that are not happy. Those more educated executives may also feel more valued by their employers and peers\u2014feeling that their additional years of education defines them as \u201cpedigreed\u201d, adding to their job satisfaction.<\/p>\n\n\n\n

Factor #6 Executive Education\/Professional Experience Fit<\/strong><\/p>\n\n\n\n

\"\"

<\/figcaption><\/figure><\/div>\n\n\n\n

When asked, \u201cHow typical is your education\nand professional experience compared to others in the same role at other\ncompanies in your industry?,\u201d executives who responded that their experience\nwas \u201ctypical\u201d or \u201csomewhat typical\u201d had the highest pNPS (33%), while\nexecutives who said their experience was \u201catypical\u201d or \u201csomewhat atypical\u201d had\na pNPS  of 22%. <\/p>\n\n\n\n

Factor #7 Executive Background Fit<\/strong><\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

Fit matters when it comes to job satisfaction\u2014feeling prepared and feeling as if you are at the right level with others with similar backgrounds contributes to this sense of a good fit.<\/p>\n\n\n\n

Factor #8: Executive Job Depiction Accuracy<\/strong><\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

A complete and accurate job description allows candidates to self-assess, providing them with the information necessary to decide if a position is right for them.<\/p>\n\n\n\n

Factor #9: Executive Continuous Learning <\/strong><\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

Continuous learning is an important way of keeping work interesting. Executives who feel like they are engaged in continuous learning are also likely to feel that they are maintaining skill relevance in today\u2019s rapidly changing business environment. This will inevitably drive higher job satisfaction.<\/p>\n\n\n\n

Factor #10: First Job Holder <\/strong><\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

This rapid pace of change in today\u2019s business world is also evident in the responses to another question. Executives were asked whether or not they were the first person to hold their current position (and if so, whether their responsibilities formerly belonged to a different position). Just less than half of those who responded said \u201cyes.\u201d It is a high number even in the constantly changing world we live in. (Interestingly, these responses did not seem to have an impact on pNPS\u2014with the yes and no responses having similar scores.)<\/p>\n\n\n\n

Next Steps<\/strong><\/p>\n\n\n\n

Executive loyalty and attractiveness remain a very complex phenomenon.<\/p>\n\n\n\n

If you want to find out more on how you can use and accustom this data\nfor your own purposes, please contact me at b.groysberg@hbs.edu<\/a>. You can also click here<\/a> to upload my complete research paper: How likely is it that executives would recommend\ntheir jobs, functions, industries, and countries to a friend or colleague?<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

By Professor Boris Groysberg, Harvard Business School and his research team Abstract: Executive loyalty and executive engagement drive company success. What are the factors that can in\/decrease executive loyalty and engagement? How can you act on this? Professor Boris Groysberg at Harvard Business School has partnered with The Official Board to survey over 7,000 top… More<\/a><\/p>\nRead more...<\/a>","protected":false},"author":1,"featured_media":1693,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[41],"tags":[107,119,77,23,83,73,108],"class_list":["post-1689","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-recruiting","tag-attractiveness","tag-boris-groysberg","tag-engagement","tag-executives","tag-harvard","tag-hiring","tag-loyalty"],"yoast_head":"\nHow Do You Attract The Best Executives? - The Official Board's Insights<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.theofficialboard.com\/blog\/recruiting\/how-do-you-attract-the-best-executives\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Do You Attract The Best Executives? - The Official Board's Insights\" \/>\n<meta property=\"og:description\" content=\"By Professor Boris Groysberg, Harvard Business School and his research team Abstract: Executive loyalty and executive engagement drive company success. What are the factors that can in\/decrease executive loyalty and engagement? How can you act on this? Professor Boris Groysberg at Harvard Business School has partnered with The Official Board to survey over 7,000 top... 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