In the last five years, the majority of industries in the global economy have faced severe challenges. It all started with the COVID-19 pandemic, which initiated a global crisis and accelerated the adoption of remote work, digital transformation and explosion of great resignation. Just as companies began to adjust to the new normal, geopolitical tensions, including wars and conflicts, coupled with rising inflation, brought additional layers of complexity.
These events have forced companies to rethink how they operate, leading to more frequent changes in leadership. Businesses were (and still are) compelled to seek out executives who could handle the new realities, abrupt changes in market size, and guide them through uncertain times.
Talent acquisition and recruitment for executive positions have had to adapt to find the right mix of domain expertise, cultural fit, nimble leadership, and tactical mojo.
Internal hiring teams, consultants, headhunting agencies, and any staffing firm out there have had to adjust their recruiting strategies. Pivoting towards new technologies and digging deeper into industry intelligence to find skilled, adaptable, and resilient executive talent became a must in the hiring process.
The role of headhunters has evolved from merely filling vacancies to becoming strategic partners in shaping the leadership teams that will drive future growth and stability.
What has changed in executive research?
The new game of executive research is one of scale, depth, and precision. Executive recruitment must search far and wide to find the right executive candidates qualified to navigate your business through the rapids of uncertainty and survival in a destabilized global economy.
Executive recruiting can’t fill in leadership roles just relying on reading CVs. These five key trends help HR leaders all over the world to navigate their executive strategies more efficiently:
Leveraging technology
Recruiters have started to rely heavily on Artificial Intelligence (AI) and data analytics to streamline the search process. 75% of companies use AI-driven tools for talent acquisition, as it reduces recruitment time by 40%, enhancing hiring efficiency and allowing managers to make faster, data-driven decisions.
AI tools assist in sourcing, screening, and matching candidates by analyzing data and quickly identifying the cream of the crop – people who might not even be actively looking for new opportunities.
On the other hand, tools based on Natural Language Processing (NLP) analyze resumes and online profiles to match executive candidates’ skills to job requirements accurately.
The integration of technology into executive search processes has improved the speed and efficiency of recruitment. Still, the human element—relationship building and deep industry knowledge—remains essential for successful placements.
Despite the advantages of technological advancements, recruiters must balance the use of these tools with a personalized approach to identify and secure top executive talent.
Lou Adler, a leading expert and CEO of Performance-based Hiring Learning Systems, emphasizes the role of technology in modern recruitment:
“Technology directs you quickly to the right people. Thirty years ago, it took weeks to do the sourcing; I now do it in a couple of hours. It’s great to save that time and money, but I would consider all these tools enablers, not solutions. At a certain point, you have to get people on the phone or in person. Otherwise, you are wasting your time.”
Although tools like AI and data analytics can quickly direct you to potential candidates, the true challenge lies in connecting with these candidates on a personal level.
Without human touch, even the most advanced technology will fail to achieve successful placements. Technology cannot replace the importance of building trust, developing relationships, understanding the company’s needs, and ensuring a good cultural fit.
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Deep market and industry insights
With industries changing rapidly, recruiters are becoming more specialized in understanding the specific sectors they serve. This specialization allows them to anticipate industry trends and align their search strategies with their client’s evolving needs.
For example, during the COVID-19 pandemic, the Mayo Clinic’s digital transformation became extremely important.
Under the leadership of Dr. Gianrico Farrugia, the clinic quickly expanded its digital services, especially telehealth, to meet the growing need for remote healthcare. Mayo Clinic brought in Rita Khan as Chief Digital Officer to lead this charge. Her job was to set up the Center for Digital Health and create a digital strategy to keep the clinic focused on patient care.
Hiring Khan was a strategic move that was also in sync with their company culture. The clinic got a professional in an executive role who could handle both healthcare challenges and fast-paced digital technology, which was crucial during such significant industry changes.
Kevin Wheeler, a leading expert in talent acquisition, emphasizes the importance of deep market and industry insights in effective recruitment strategies. He believes that talent acquisition leaders must understand the labor market dynamics and the specific skills needed for future success.
Wheeler notes that only five to six professionals globally can strategically manage recruitment by connecting internal organizational needs with external market realities. This deep understanding allows recruiters to anticipate changes and align their strategies with evolving industry demands, making them invaluable to the organizations they serve.
Recruiters who lack these deep insights tend to operate more transactionally, which limits their ability to make strategic placements that align with long-term business goals. In contrast, those with strong market knowledge can provide more tailored and effective recruitment solutions, ultimately benefiting both the recruiter and the client.
Building strong relationships
Modern executive search has switched focus from a transactional approach—where the primary goal was to fill positions quickly—to a more relationship-based model. This new approach emphasizes long-term success by making sure candidates are both qualified and a good fit with the company’s culture and values.
Recruiters now spend more time getting to know the long-term goals and motivations of the candidates, which helps place them in roles where they can make a difference and grow within the company.
This strategy is particularly important in today’s market, where many top executives are passive candidates who are not actively seeking new opportunities but are open to the right one.
Rachel Kobetz, PayPal’s Chief Design Officer and an author of the immersive program “Design Leadership at Scale: Career Strategy,” emphasizes the importance of prioritizing people and fostering strong teams as core elements of effective leadership. She notes:
“I look for leaders who enjoy building teams, mentoring, and helping others stretch and grow. People who use “we” more than “I”, and know that great teams are what make things happen. Leaders who make time for 1:1s and team events and understand the importance of communication, coaching, and professional development. They set clear expectations and understand the development in place. If someone doesn’t prioritize people at the top of their list, they don’t make the cut.”
By building trust and understanding the career aspirations of candidates in executive search, recruiters can present opportunities that resonate with their values and long-term goals, providing that crucial nudge towards getting them to consider a move. This approach also benefits organizations by ensuring that the candidates they hire are committed and culturally aligned, leading to better retention and overall success.
Focus on diversity and inclusion
Numerous studies have shown that diversity in leadership leads to stronger business outcomes. Diverse leadership teams better understand and serve a varied customer base, which in turn drives innovation and improves company performance.
One of the trends in executive search includes ensuring that leadership teams are composed of individuals who bring diverse perspectives. Recruiters must identify candidates from underrepresented groups who can drive innovation and reflect the diversity of the markets their companies serve.
This approach involves actively eliminating biases from the recruitment process to build more inclusive leadership teams.
Nicolina Andall, a Non-Executive Director and Trustee at the Ministry of Justice reinforces this by stating, “Leaders must take responsibility for diversity and inclusion and make sure that everyone can see diversity in the boardroom. Diverse organizations are stronger, more resilient, and have better performance.”
This perspective is supported by McKinsey research, which found that companies with greater ethnic and cultural diversity are 36% more likely to outperform their peers in terms of profitability.
True diversity recruiting involves removing obstacles that prevent qualified candidates from getting hired and ensuring equitable access to opportunities for all candidates.
Jenn Tardy, Recruiting Thought Leader, Diversity Recruitment Practitioner, and Career Success Coach with over 15 years of multi-industry experience in the field of human resources and recruiting, adds:
“It’s time to move past the practice of labeling recruitment with adjectives that suggest division. Imagine a world where we don’t need the term “diversity recruiting” because it just sounds like a type of recruiting, not the norm itself. We need to make this real.”
The emphasis on diversity in leadership is more than one of executive search industry trends; it’s a strategic imperative for companies that want to thrive in a competitive and globalized market. To achieve this, recruiters must ensure that the search process is inclusive and free from biases and actively seek candidates who can bring the necessary diversity of thought and experience to leadership teams.
Global reach and cross-border searches
As organizations expand their operations internationally, they require leaders who are culturally adept and capable of navigating complex international scenes.
A global approach requires recruiters to possess a deep understanding of various international markets, cultural nuances, and regulatory environments. Successfully handling these challenges allows companies to secure top-tier talent who can drive growth and innovation across diverse regions.
Warner Scott Recruitment highlights that “mastering cross-border executive search is not just about filling a position; it’s about finding a leader who can navigate the complexities of international markets and drive an organization toward its strategic goals.”
This process includes understanding the target market’s cultural, legal, and economic differences, and ensuring that the right candidates are selected to lead in a global context.
The International Executive Search Federation (IESF) handles cross-border executive searches by combining a strong global network with deep local expertise. With partners in over 25 countries, IESF ensures that local experts who truly understand their markets are involved in every search.
They use a seamless global search process, backed by proprietary tools and a comprehensive database, to thoroughly assess candidates. This allows them to select leaders who not only fit the job requirements, but also align with the client’s cultural and strategic needs.
The emphasis on cross-border executive search is a direct response to the globalization of business operations. To succeed in this arena, executive search firms must combine global reach with deep local expertise, allowing them to identify and place leaders who can navigate the complexities of international markets. By understanding cultural nuances and regulatory environments, these firms can ensure that their clients have the leadership necessary to thrive in diverse regions.
As globalization continues, the ability to manage cross-border searches effectively will become an increasingly valuable asset for organizations looking to maintain a competitive edge on the global stage.
What to expect in the next couple of years
Several executive search industry trends are expected to reshape how organizations approach leadership recruitment over the next year.
These changes, influenced by technology, demographics, and evolving business priorities, will significantly impact executive search market trends and executive job search trends.
Increased focus on skills over experience
A major shift in executive search trends is the growing emphasis on hiring for skills rather than just experience. As businesses face rapid technological changes, there is a higher demand for adaptable leaders with future-relevant skills like data analytics, AI, and sustainability.
This approach broadens the talent pool and allows for more diverse and innovative leadership.
Gina Riley, Career Transition Coach & CareerVelocity™️ System Creator, claims: “In the executive job market, having a broad range of skills and experience should be considered table stakes. As I’ve led executive searches and boardroom discussions, final decision-making seldom focuses on specific industry and functional skills. The real game-changers are a candidate’s behaviors and leadership presence, which engender trust and confidence in their capabilities.”
The role of AI and technology
AI’s role in executive search trends is becoming more prominent, from sourcing candidates to predicting their success in specific roles.
However, there is a consensus that while AI can simplify many aspects of the recruitment process, the human touch remains critical, especially in high-stakes executive placements.
Recruiters are using AI to manage routine tasks while focusing their expertise on evaluating the soft skills and cultural fit of the candidates deeper in the selection process.
Simon Desjardins, Co-Founder & Partner at Shortlist, confirms that “AI is rapidly transforming the executive search industry! We believe that search firms and employers that effectively integrate AI will thrive by enhancing human judgment and creativity, while those that rely solely on public information will struggle to survive.”
Emphasis on diversity, equity, inclusion, and belonging (DEIB)
DEIB remains a central theme in executive search market trends but with an evolving focus on belonging—ensuring everyone feels valued and included. This shift leads to more holistic DEIB strategies in trends in executive search firms, aiming to build leadership teams that are diverse, cohesive, and inclusive.
School for CEOs podcast features an episode with Samantha Allen of Sam Allen Associates, a boutique executive search firm. Sam explains:
- How to secure your first NED role
- What Chairs are looking for in 2024
- The qualities of a good Chairperson
- How to develop a skills matrix for the Board
- Why diversity and inclusion are essential for innovation and growth
Adaptation to hybrid and remote work models
The ongoing debate around remote and hybrid work will continue to influence recruitment trends in 2024 and beyond. Companies are now putting more weight on assessing whether they can sustain long-term remote work arrangements for their leadership teams.
These decisions carry a lot of nuance and are sensitive to context, as some organizations embrace remote work as a competitive advantage while others are exploring hybrid models to balance flexibility with in-person collaboration.
Levi Barbosa, Talent Operations at Nubank, advocates these work models: “I’m sure that remote work and hybrid models will continue for a couple of years. It’s been a game-changer. Companies have snagged top-notch talent on the cheap by tapping into the global market.”
Succession planning amid baby boomer retirements
Gen X and Millennials must step forward to fill the leadership void left by the retirement of Baby Boomers. This trend is critical for hiring in 2024, as younger leaders bring fresh perspectives and are technologically savvy, but may lack the extensive experience of their predecessors.
Effective succession planning and knowledge transfer have always been and remain essential for ensuring organizational continuity and equipping new leaders with the skills needed for success.
Jennifer Millich, senior executive search recruiter, explains the difference between generations:
“Today’s workforce is a mix of baby boomers, Gen X, millennials, and Gen Z. Certainly, not everyone adheres to their generational stereotype to the letter. Still, it’s undeniable that each generation brings their unique values to the workplace.
For instance, baby boomers may lean toward job security, while millennials favor freedom and self-expression. One way or another, these diverse expectations demand a high degree of adaptability and emotional intelligence from organizational leaders.
As a Recruiting Manager at Benskin & Hott Talent Partners, and with a decade of experience in the unique field of Executive search, I’ve gained a deep understanding of the diverse profiles of professionals across generations. No one appreciates the importance of “talking the talk and walking the walk” more than a recruiter.
Being familiar with these differences is important, not just to hire the right people, but also to create a working environment that fosters mutual respect and understanding.”
Sustainability as a leadership competency
Sustainability is increasingly important in global executive search trends, with companies seeking leaders who can integrate environmental and social responsibility into their strategies. This shift reflects broader societal expectations and regulatory pressures, making sustainability a key differentiator in executive leadership.
Constanza Ossa, Managing Director at Krebs Consulting – Executive Search and Talent Strategy, explains the importance of corporate responsibility and finding leaders who can embed sustainability into the organization’s culture and operations:
“In a rapidly changing environment, sustainability is becoming a differentiator for businesses. Executives who integrate sustainability into their strategy show a progressive mindset and adaptability to market changes. Consequently, executive recruitment is increasingly focusing on candidates’ capacities to steer organizations toward responsible environmental and social practices.”
The recruiting trends in 2024 suggest that the executive search industry is evolving to meet the challenges of a rapidly changing business environment. A strong focus on skills, technology, DEIB, and sustainability is shaping the future of leadership recruitment.
Get leaner with your executive search
The market size for executive search may be narrowing, but it’s also becoming more chaotic. No amount of employer branding or budget approval from CFO will help you out in your recruitment strategies if you don’t get leaner with processes.
Step back, take a big breath, and select the tools and colleagues that optimize your executive search processes (adding up is not an option; it’s already too much).
Thrivea is set to introduce a pioneering “HR in Zero Gravity” platform designed to enhance your HRIS capabilities. As Thrivea prepares for its private beta release, now is the perfect time for forward-thinking HR professionals to get involved.
Join the Thrivea beta waitlist and be among the first to experience how Thrivea can transform your executive hiring and HR processes.
