Alicia McGrath is returning to the Center for Family Support (CFS), this time as CEO. One of roughly 400 applicants for the position, she might have had a slight leg-up on the competition, but the process was still months long.
She had been an assistant executive director the CFS but that didn’t stop the multiple conversations with the search firm before being presented as one of several candidates. “There was a lot of coaching involved. I felt supported,” said McGrath. “It was fairly exhaustive screening,” she said of meeting with the senior recruiting team ensuring she’d be a good fit for the role.
McGrath believes that change management is key and that involves trust and understanding culture “to bring about change successfully.”
With 400 applicants, it is an example of there not being a shortage of executives who want to move into a top job. The test is finding an executive who can articulate a vision for what’s next.
There is a changing dynamic in nearly every element of the executive search process with equity underpinning nearly every element – from salary and benefits to process to organizational culture. And yes, the pandemic has had much to do with the evolution.
“With many nonprofits continuing to operate in remote and hybrid formats, leaders are expected to manage and build culture in those environments. Equity also is an issue here,” explained Divina Gamble, managing partner and nonprofit practice leaders at executive search firm KornFerry. “Leaders who have employees who work on the front line are still grappling with the tension of ensuring equity when some employees can work from home and other roles necessitate being in person.”
The change in the C-Suite provides opportunities for systems change. “Given our evolving and complex world, one of the most sought-after leadership characteristics is agility,” said Gamble. “Applicants striving for the next step in their career should demonstrate clear examples of how they have been able to move smartly, creatively, quickly, and collaboratively in response to change and challenge.”
Diversity, equity and inclusion (DEI) has been a centerpiece of recruitment for a while. That has expanded during the past few years to racial justice and broader social justice. Boards have been adamant that recruiters identify talent with underrepresented backgrounds and lived experience. There is a DEI lens on executives, staff and mission.
There is significant turnover at the top of organizations with retirements, and some boards are determining that their current leadership got them to this point but might not have the vision and leadership attributes to drive their next chapter. Some leaders are also departing because they do not feel aligned with or supported by their boards, especially as these leaders work to address deeply rooted issues around diversity, equity, inclusion, and justice, Gable said.
Boards are recognizing that they are not paying enough when making a new hire and adjusting with salary and creative incentive compensation. That equity includes those salary and benefits. If replacing someone with 25 years in the role, the new person should be paid at the same level for what the job is today. Salaries are not a secret these days with many states mandating salary disclosure during recruitment and plenty of places a Form 990, which lists top salaries, can be found.
The interview processes have historically been one sided in which the organization is the key decision maker and thus in the position to ask 90% of interview questions. Increasingly candidates and search firms are helping to shift this dynamic as candidates are equally wanting to play interviewer and do due diligence on the board, senior leaders, and the finances to ensure the opportunity is right for them.
Recruiters are not just seeking candidates who can change an organization but also be part of a larger movement within that silo. “Look at direct service organizations, like a food bank, their job is to move food,” said Gamble. There has been a broader awakening of not only doing things temporarily but also getting at root causes, she said. “Impact is also looking back and trying to dismantle certain systems.”
HR & AI
KornFerry surveyed some 240 CEOs and senior executives, and more than 82% responded that AI will have an extreme to significant impact, with 73% closely monitoring the technology for potential negative effects on their organizations. More than 33% of senior leaders surveyed say they are already experimenting with ways to leverage AI.
“However, humans remain central to decision making, especially in recruiting and hiring talent. Rather than a replacement, we are seeing and will continue to see more collaborations between humans and technology in the initial screening and assessments of candidates.,” said Gamble. “While some argue that AI will provide for a more equitable screening of candidates, there is clear evidence of AI bias and AI discrimination that must be addressed.”
According to Gail Freeman, founder and president of search firm Freeman Philanthropic Services in New York City, you can’t hide in a digital world. “People spend a third of their lives online,” said Freeman. Recruiters are working with “visual footprints” and how potential candidates “present themselves online.”
The emphasis is on “prospective” candidates for executive positions because they are not just sitting in a database. Searches are targeted with firms using tools to find and vet potential executives prior to contact, Freeman said. “It isn’t just an advance Google search,” she said.
In the case of McGrath at CFS, she had previously worked with the recruiting firm and her familiarity with CFS was important, she said. One of the challenges in human services, McGrath said, is a high number of executives retiring. Even with the need, the average CEO search takes five to six months, said Gamble.
There are a few exceptions to the timing, Gamble said. Knowledge a retirement is coming can give the board a year to find the next executive. The need is immediate in some cases but boards are not making snap decisions anymore and instead looking for interim executives so the boards can take the time to make the correct decisions. Board are considering hiring retired executives both from the nonprofit space and business to make changes, one of those being finding the new CEO.
“There are lots of 40-somethings coming into the CEO roles,” said Gamble. They bring with them a new audience, with knowledge how to reach Millennial donors and understand the digital age. They still have to have some track record of management.
A new CEO must have a design going in and McGrath said she has a 90-day blueprint to get started. She plans to learn the roles of people in the organization and also examine business process re-engineering.
McGrath’s organization provides personalized support to individuals with intellectual and developmental disabilities and the families who support them. She also wants to know if the people served are satisfied with services.
She’ll also be seeking to improve supported employment programs and business service opportunities of finding work for clients in city agencies.
While the recruitment process seems to be a zero-sum game, it needs to stop being so transactional, said Freeman. “Candidates say they have never heard back from a recruiter, don’t even get a call. It’s a two-way street,” with candidates needing to be in touch with recruiters. Said Freeman, “Everyone needs to be a lot more kind to each other.”
