Companies should be aware of the implications of executive turnover in their industry. With the help of an executive recruitment service, your company can closely examine what it means for you.
The actual rate can depend on where your operations are based and specific factors surrounding your regional industry. The Austin Business Journal recently cited a study conducted by Challenger, Gray & Christmas Inc., which reported that eight of the 112 CEOs who left their positions in February were from Texas-based companies.
That might not sound like a lot given the size of the state, but it's worth pondering what these kinds of statistics indicate all the same.
The hiring process might be immediate, with an incoming candidate taking over right away, or it may require a transition period including an interim CEO or some other form of succession planning from your Board of Directors.
Another factor that your business needs to consider is where trends in turnover are headed for your industry, and how long executives are generally expected to stay in place. A report recently mentioned in a release from the American College of Health Executives examined the turnover rate within hospitals for all of 2013.
The adjusted rate was reported as 20 percent for last year, a higher annual rate than any since 1981. The CEO of the group, Deborah Bowen, was quoted in the release on the importance of securing strong business progression strategies.
"The increase in the rate reinforces the need for healthcare leaders to work with their boards to ensure appropriate succession plans are in place," Bowen said.
Turnover is a natural part of business transitions. Executive search specialists can help you evaluate your business's needs and contextualize your search based on industry trends.
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