The role of the executive is changing exponentially, both within North America and in European countries. For European subsidiaries expanding into the USA in cities such as Chicago and Boston, this could lead to potential new challenges.
European organizations are no strangers to changing C-suite roles — or the anticipated difficulty to get them on board. Hiring for executive positions in France, for example, has proved difficult in recent years, with a whopping 75% of European recruiters saying it was near impossible to hire certain executive roles.
The United States is also experiencing a huge shift in C-suite jobs and functions. As changing expectations shape the path of existing roles, subsidiaries must continue to check the pulse of change and determine a course of action to mitigate hiring friction.
“We are seeing a number of changes in C-suite roles and functions that affect hiring processes,” says Myriam Le Cannellier, director and co-founder of DSML Executive Search. “This has created a substantial impact on C-suite recruitment, especially when considering different roles needed by European subsidiaries expanding to the US.”
Trends For C-Suite Roles And Functions In 3 Major Functions
How is the role of the C-suite executive changing to meet modern needs? More importantly, what external factors are shaping the executive role of the future, and what can businesses learn from them moving forward?
Let’s consider the newest C-suite trends and impacts affecting finance, business development, and general management roles.
Executive Recruitment Trends In Finance
C-suite professionals serving in financial roles face more internal pressure than ever before. This leads to above-average turnover in many industries, which only exacerbates skill shortages and changing salary expectations.
1. Low Retention Rates
Approximately 59% of CFOs in North America have a tenure of less than five years, leaving companies to determine their next course of action in hiring qualified talent.
When recruiting for European subsidiaries in the USA, you may need to develop an initial succession plan to mitigate the effects of above-average turnover.
2. Skill Shortage
Hiring for financial officers in the US is tougher than ever before. Today, more than 11% of positions in finance and controlling remain vacant, leaving subsidiaries scrambling to secure top talent before others.
“When it comes to finance leadership in the US, the specific needs of European companies add another layer of complexity,” Myriam says. “For example, our clients often look for strategic finance leaders who are very hands-on and come with a strong controlling background.”
3. Salary Expectations
CFOs at any level of experience expect a salary to match their expertise. They are far less likely to settle for lowball offers and may abandon the hiring process if it does not match their expectations, especially if they know there is a high demand for their skills.
If you’re a European subsidiary expanding to the US, you need to offer detailed job descriptions and attractive packages that include long-term incentives whenever possible.
Executive Recruitment Trends In Business Development
Business development executives face three unique obstacles: high stress, new titles, and changing educational expectations. Hiring for a C-suite position in the United States requires a careful understanding of new roles and job descriptions.
1. High Levels Of Stress
Two in five business development executives experience extreme amounts of stress during working hours. This causes burnout, exhaustion, and job weariness, among other things, causing voluntary turnover in many markets.
This voluntary turnover may be more dramatic than you realize. Today, 40% of executives say stress could lead them to quit their jobs in 2023. This includes those in business development.
2. New Roles On The Rise
C-suite roles typically adapt to their environments, which means new positions and job titles crop up every few years. Like the rise of the Chief Information Officer back in the early 2000s, business development roles have grown to include:
- Chief Growth Officer
- Chief Revenue Officer
- Chief Business Officer
European companies expanding into the USA should be well aware of these new job titles. They must also understand how these new roles could affect existing expectations for business development executives currently in their employment.
3. Fewer College Degrees
Fewer Americans are choosing to pursue college degrees. While high school graduation rates continue to rise, the number of students receiving bachelor’s, master’s, or terminal degrees continues to fall.
Employers need to begin shifting their expectations about specific degree requirements or levels of education. Some of America’s biggest employers have already dropped requirements for college, leading to increased competition in business development roles.
Executive Recruitment Trends In General Management
General management executives have experienced extreme changes in the past several years. As technology in the workplace becomes more and more important, the need for hybrid skills and remote work continues to grow at a rapid pace.
1. Growing Space For Technology
The rise of AI and predictive data models has shifted expectations about what general management professionals do. Many organizations now command data models of their own or expect incoming hires to have some level of experience with AI.
Incoming executives need to be fast on their feet and willing to learn new things about AI. Organizations in technology, IOT, and SaaS fields may have more demanding expectations for the executives they hire.
2. Changing Expectations
Economic uncertainty and changing internal roles have led to evolving expectations for executives in general management positions. Now called ‘hybrid’ jobs by recruitment professionals, management executives now require a plethora of soft skills and the ability to think quickly on the go.
“Many organizations are looking for talent with experience in hybrid roles,” Myriam says. “The best way to find candidates before they make a decision is to hire an executive recruitment firm with experience in tight markets.”
3. Increased Remote Work
Executives working in the United States are no longer content with in-office roles. A full 97% of Americans say they want to work in remote or hybrid capacities, which may contrast with the cultural norms of European subsidiaries hiring in the US.
Keep in mind failing to consider remote work options could make your brand less competitive to top talent. With approximately 80% of executive roles currently available remotely, C-suite executives may find personal reasons to leave your business and pursue a new position.
The Impact Of Executive Recruitment Trends For European Subsidiaries In The US
Expectations regarding C-suite roles and performance can change on a daily basis. While evolving trends and unexpected changes can leave firms scrambling to reposition their hiring strategies, partnering with an experienced executive search recruitment firm in Boston, can help you confidently navigate this brave new world.
DSML Executive Search remains the most well-regarded firm for European subsidiaries hiring in the US. We help businesses perform an executive search process in Chicago, Boston, and other major metros, serving dozens of organizations all over Europe with expansion into the US. If you’re interested in working with DSML Executive Search to source high-quality talent in finance, management, and business development, contact our team online or at +1 312 268 6166.