A tap on the shoulder and a super-salary?
I’ve been reading lots this week. It’s a sure sign I’ve completed the draft of my second book and sent it off for editing. Always good to keep up to date with the topics that have fascinated me for decades, which meant lots of soul-searching around executive salaries and executive search in the public sector.
Remuneration packages have always attracted comment (except maybe from colleagues whose reputations are on the line). Should senior or executive officers masterminding public services earn more than, e.g., the PM, isn’t a debate I want to contribute to this afternoon, although surely ‘supply and demand’ are relevant here? In any market, although affordability comes into it, the best people often come with the highest price tags! I agree that £300k per annum sounds expensive, although I’m assuming the authority seeks a value for money return on its investment.
Being on the outside it can appear that significant local authorities don’t need to pay unrealistic salaries because there’ll always be executives who devote their careers to public service. I acknowledge that the argument is partially true although the price of a loaf of bread is the price of a loaf of bread wherever in the UK you’re based. And yes, I recognise that property prices differ significantly although many executive leaders may not be able to up-sticks for a role that isn’t a ‘job for life’.
It can also seem like it’s easy to find a new director or CEO because they’ll always be someone who’s made a quiet exit from one authority who wants to join a new one! Yes, that’s right a ‘quiet exit’ for being outspoken or disagreeing with a critical stakeholder – I’m sure we all know the shorthand. Yet we welcome them with a fanfare and open arms. Whether you prefer to think of senior recruitment as a game of chess or a game of musical chairs, good people move on and sometimes good people stay put. That’s why you need someone to broker the deal.
When organisations recognise that they need the expertise for the job in hand, right here and right now, there’s often a premium to be paid – it’s called market forces. And deep down we all know this, yet sneer at the extortionate demands of our ‘ideal candidate’ especially given their relatively junior previous positions. So, what happened to realism?
This realism applies equally to executive search and executive remuneration. Another headline that grabbed my attention this week was the suggestion that public sector organisations should be using the in-house recruitment model favoured by so many private sector businesses. A great money saving tactic to secure executive talent and save on extortionate fees. Sometimes I wonder how seemingly sensible commentators can support such naïve approaches to locating and securing executive talent.
Can you imagine the headlines, “London Borough’s CFO saves shedloads of cash by appointing their spouse as Monitoring Officer?” or perhaps you prefer “Public School educated CEO appoints trusted classmate and rowing team colleague as Director of Leisure Services.”
Alternatively, there’s the tough challenge of needing some heavy lifters to get services back on track after frequent failures. Imagine their response to a telephone call from one of your (junior) in-house recruiters? Ah, I understand, you were thinking of calling them yourself with a job offer! No? You just wanted to let them know you were interested in seeing their application – I bet that went down well. You need independent help.
Headhunters are relatively transparent about their fee scales and over-negotiation may suggest that you’re happy with a substandard service. Agree a realistic fee and demand the best service. Take them into your confidence, be specific about your requirements yet listen to what they have to say. Work in partnership and really ‘test’ the market. Agree a realistic salary for the job that needs doing and once you’ve selected the right person for the job, stay true to your budget – no need to scrimp or squander!
My best advice to any organisation that needs to recruit at executive level is to recognise the worth of the suppliers in your market. Launch an entirely digital campaign if that best suits your audience and you want to be known for attracting young talent, but please don’t risk being ageist, or any other ‘ist’ for that matter. Sometimes what seems like progress leads to unintended bias and discrimination. By all means add some names to the list for the headhunter to meet based on your market knowledge, although try to resist the ‘cocktail party’ meets ‘social influencer’ approach to recruitment – it’ll take us all back to the ‘dark ages’.
I’d love to help you with any of these challenges so if you fancy a conversation Let’s Chat
