How to nail your executive-level hiring first time

C-Suite hires are often the most business-critical hires you'll make. 

But Executive hiring can be challenging. It's higher stakes, due to the level of influence these hires have over strategy and company operations. Talent pools are often more limited, particularly when you throw domain experience requirements into the mix. And the cost of making a bad hire is more acute than with other hires.

So this means getting them right is key. And 'getting them right' looks a little different depending on what stage of growth your organisation is in. We've supported companies of all kinds to get their C-level hiring right, so here's what we typically see:

Hiring C-level execs as a start-up

When you're at an early stage of growth, C-level hires are all about ensuring survival and getting that perfect product-market fit in place. 

You're likely to be hiring more generalists than specialists at this stage. The phrase 'wear many hats' might feel a bit old hat, but it's the reality of a lot of start-up execs. What you're looking for are versatile, transferable skills in people who are willing to get hands-on and shape the future of the business. Sometimes this might mean hiring someone a little more junior - perhaps at Director or VP level - who can grow into a leadership role over time and really build alongside the company. Spending time really thinking about this can help make sure you make the right hire first time.

This is something we helped IMP Software with when they were hiring for an Operations leader, helping them to see what was out there and what might work best for them. In the words of their Co-Founder, we helped them 'shape [their] thoughts on what this hire was'. You can read the case study here.

Timing is also critical if you're a start-up and looking to hire at C-level. It's important to get strategic here, hiring too early can cause misalignment and have very real financial costs. It's usually not the right time to hire someone from a 'big company' as they might not suit the early-stage, and can often be too expensive.

So how can you appeal to these candidates?

This is all about having a seat at the table. Exec-level candidates who want to work at a start-up care about being part of the foundations of a business, and the visibility and access to founders it gives them. You'll also attract the kind of people who thrive in slight uncertainty. 

Package wise, people will likely expect a slightly lower basic salary but will want the trade-off of decent equity shares. In fact, 26% of C-Suite connections we asked on LinkedIn said equity and stock options was most important to them when looking for their next role. We're also increasingly seeing people looking for flexibility when it comes to hours/workplace.

Hiring C-level execs in growth phase

When you're at the point of intense growth, that's when hiring at C-level becomes all about preparing for expansion and putting more firepower behind the go-to-market plan. 

Strategic C-suite hires are critical at this stage. As you look to scale, having the right people leading from the front is key, as is making hires that have experience of that scaling process. Here's where you might hire, for example, a sales leader who's already scaled a SaaS business and achieved similar ARR targets. These hires will bring with them the knowledge of the rigor and repeatability required to develop strategies that can really achieve the growth required. 

It's important not to get too detached, though. At this stage of growth, execs still need to be close to day-to-day operations of the business so that they can build processes and strategies that can properly scale. This also helps them build the culture that's needed to keep the DNA of a business true to the original mission.

How can you attract these kinds of candidates?

At this stage you're still attracting people for the same reason as a true start-up, but you'll also appeal to the slightly more risk-averse. At this level, we often hear candidates talking about being aware that compensation packages may still be slightly below average but that they're looking for meaningful equity packages and a benefits package that's bolstered by things like healthcare, 401k and professional development budgets.

Hiring C-level execs as an established company

Once in a post-funding, established stage, what most companies are looking to get around their top table are people who can create efficiency and predictability. 

This is where you're really looking at bringing in those heavy-hitting, experienced hires. Think a CFO who's got experience in a public market organisation, or a CMO who's built a global lead-gen engine to support the sales team. This is the point where generalists become specialists, and hiring domain experts becomes critical. The C-suite will have grown at this stage too, and you may find yourself with an exec team filled with more niche skills or focus areas. Hiring this way also allows you to have a team of people who can fully own the reporting and compliance elements within their area of focus - think of it as having bench strength. 

How can you attract these kinds of candidates?

C-suite level candidates looking to join an established company will expect, at the very least, a competitive basic salary and commission structure. For the very best candidates you'll need to offer something premium. Speaking of, there's also an expectation around premium benefits packages. Think things like coaching opportunities, enhanced retirement plans, subsidised wellness initiatives, high-level cars, and more.

There are some things that don't change, though. 

Regardless of what stage of growth you're at, when it comes to attracting the best of the best into your C-suite, your mission is critical. For many people, when they take this kind of role they want to do it at a company where they feel truly aligned. In fact, when we asked our C-Suite connections on LinkedIn what was most important to them when considering their next role 61% of them said company mission was the most important factor. This was followed by equity/stock (26%) and other factors like flexibility, remote working, and the product suite.

One thing that came up as crucial too was culture. For people operating at executive level, they often want to work in a dynamic where the top table feels like one unit, rather than a group of individuals. How the leaders of a business work together, and how a new hire can fit into that rhythm, is hugely important and sits at the heart of making successful C-level hires. 

Hiring into your C-suite this year?

We've helped organisations at various levels of growth and funding build the executive teams that help them achieve their goals. Want us to do the same for you? Get in touch on info@fmctalent.com