Of the many responsibilities held by a company's Board of Directors, perhaps none is more vital to the long-term success of a company than finding and hiring talented executives. These high-level managers have a strong effect on the decisions a company makes, the culture it espouses and, ultimately, its long-term prospects for success.
It's no surprise, then, that more boards are taking an active interest in the responsibilities that surround this vital task. Mercer, a business consultancy firm, released the results of its annual Executive Reward Survey recently: The firm found that year-over-year board involvement increased in several key areas, including succession planning, executive candidate evaluation and leadership development.
"Boards are really recognizing the role that they play in terms of really balancing between the risk of managing talent and using talent as a driver of business," David Cross, a partner at Mercer, told Employee Benefit News.
In some cases, this increased investment comes in the form of hiring a recruitment consultant. The benefit of working with one of the top retained search firms is readily apparent: For a small initial investment, a company can get a quality candidate who will continue to yield dividends in the long run. In addition, this sort of partnership helps a board strike the balance that Cross maintains is optimal when it comes to hiring executives, in that they are involved in the process and have the support needed to make great decisions.
One of the results of this increased interest in the acquisition of executive talent is a much more competitive market for the best and most qualified candidates. Businesses that rest on their laurels, simply hoping that a great executive falls into their lap, will wind up behind the curve.
