Hiring and retaining talent is harder than ever before. The Great Attrition is significantly affecting voluntary quit rates and job applications, creating a structural gap in the labor supply chain that affects organizations around the globe.
European companies looking for key executive leaders and c-suite positions in the US may be unfairly impacted by this shift. More than 40% of the world’s c-suite executives say they want to quit in 2023, leaving a massive labor gap for parent organizations — leaving US subsidiaries stranded.
At DSML, with executive search firms in Boston and Chicago, we source GMs, VPs, and c-suite executives for a variety of clients. We have extensive experience matching great hires to great subsidiary roles and want to ensure every executive hire stays in their position for years to come.
That’s why we employ time-tested strategies to help organizations thread the needle effectively.
Key Strategies for Retaining Key Executive Leaders and Reduce Burnout When Recruiting for European Companies in the USA
There is a critical importance to retain key executive leaders when recruiting for European companies in the US. Although the reasons behind voluntary quitting are varied and dependent on the individual, there are typically four major influences that impact European subsidiaries in the US.
- Perceptions of Low Pay: American c-suite executives have a different perception of acceptable pay than European organizations.
- Low Flexibility: More than half (58%) of Americans want to (or currently do) work remotely at least one day per week.
- Feelings of Burnout: Roughly 70% of executives in developed countries (including the US, UK, Canada, and Australia) are thinking about quitting their jobs to pursue a less stressful role.
- Lack of Support: If there is a significant lack of support and investment in US subsidiaries, new executives may feel overwhelmed and look for other means of employment.
Burnout is perhaps the most dangerous ingredient of the voluntary turnover recipe. Not only are feelings of burnout associated with low productivity, poor performance, and waning engagement, but early resignation from your organization could cost more than $50,000 in lost labor, training, and pay.
Tips to Help European Clients Retain New Executive Hires in the US
Burnout is a very real and very dangerous disruptor to recruiting for European subsidiaries in the USA who are looking to hire US executives. However, in their efforts to establish a presence in the United States, companies may forget to employ key strategies that retain key c-suite executives in leadership roles.
Here are some ways you can leverage specific strategies to retain key executive leaders and reduce the threat of burnout.
- Effectively communicate the expectations of your c-suite role. Many European companies are looking for ‘Swiss Army Knife’ candidates that can perform many roles at once. However, many professionals in the US specialize in just one area of expertise. The clearer you can communicate your role to potential applicants, the better you can ensure a great hire for the future.
- Provide excellent support. Your subsidiary will take some time to get established, requiring a startup approach from incoming executives. Look for ways to support your new hires’ journey with enough budget, advice, coaching, and training. European companies need to invest in the US before seeing an ROI.
- Do not over-promise and under-deliver. Instead, temper the expectations of your new executives with a realistic look at what they can or should expect. American candidates often prefer a straightforward, honest approach over conversations riddled with inauthentic pleasantries.
- Prior cross-cultural experience is important to ensure a smoother hiring process for both c-suite candidates and your parent company. Failure to recognize the intricacies of American cultural perspectives could leave your company stranded or stretch out the hiring process.
- Look for ways to bridge the gap between your headquarters and your new US subsidiary. Communication is key and the right balance needs to be established.
Each of these five strategies could be handled in-house using the right retention approach. However, if your organization is less familiar with American culture or struggling to locate a good executive fit, the professionals at DSML can help.
Recruiting for European Subsidiaries in the USA with Help from DSML
DSML has spent more than 15 years developing a surefire approach to c-suite executive search recruitment. Specializing in European subsidiaries migrating to the US, we follow up with clients and candidates alike as part of our standard practice to ensure smooth onboarding from day one and beyond.
If you are looking for a key executive leader for your subsidiary in the USA, contact us to share your recruiting needs.