Quantum gets asked many times by clients – “What time of year is best to kick off a new search?” The answer is of course whenever you need to – after a departure, retirement, or when the new FTE is finally approved. Clients can’t always pick an ideal time, but a search process can be customized to fit most any season provided there is awareness of some of the dynamics at play.
For simplicity, I will break this into quarters throughout the year and outline what to anticipate:
First Quarter
My bias probably comes through that this is one of the best times of year to kick off a new search – and this is the case for many clients as well. The majority of companies fiscal year begins January 1st and that is when a lot of new FTEs, especially new executive roles, are approved. The pluses are the optimism a new year brings and being able to tell top candidates a new or freshened company strategy or storyline.
Also, for most executive candidates on a calendar year bonus cycle, payments are received in the February/March time frame and so accepting a new role after receiving their bonus can occur fairly seamlessly. The downside for first quarter searches is travel (at least in non-Covid years). A study a few years back from one of the prominent travel sites said that first quarter travel is heaviest for many executives as they roll out new plans and initiatives across the organization. This can slow availability of both candidates and search committee members.
Second Quarter
Second quarter remains another good time to initiate a search. Most new annual initiatives are underway and there is optimism for the remaining year. Bonuses for many candidates have been paid out and fewer are tied down and less cautious about leaving money on the table. The process can slow down for financial executives around tax season – and there can also be many people “disconnected” during spring break which can span over a month since no one seems to leave the same week.
Third Quarter
At the mid-year point, companies frequently reevaluate annual progress against plan and there is a lot of focus on projected earnings. This can either slow plans to add additional headcount, or accentuate deficient areas where new leadership talent is critically needed. Although traditionally thought of as the “Summer doldrums”, the third quarter has traditionally seen the second highest number of new search kickoffs (second only to Q1). The challenge can be August vacation season when many candidates and clients are on holiday any given week throughout the month. One silver lining with Covid quarantining – candidates this past summer were much more available for interviews and search committee meetings were much easier to schedule.
Fourth Quarter
There is a “back to school mentality” after Labor Day and seemingly a lot of focus on getting several important initiatives completed before year-end. Companies with new search needs this time of year tend to be very focused and want to move forward quickly during the “stretch-drive.” I have heard more than once from clients that make statements along the lines of “we have the approval and want to get it filled by year-end and before it potentially gets taken away.” A use it or lose it mentality.
As a search firm our size, Quantum can move fast and can greatly condense tasks to execute and follow an aggressive process. However, it is critical that the timeline is outlined and committed to from our client as well. As the year goes on, client search teams get involved in budgets and forecasting, strategy sessions and time off around the holidays. Both candidates and clients need to be available. Many times, we ask our client to schedule first, second and final interview dates with their teams and put them on the calendar before the search even kicks off. We also convey and confirm this schedule to candidates as the search progresses. One final factor to consider – many candidates will not receive their annual bonuses, stock vesting, etc. until later in Q1. Clients need to decide ahead of time whether they can wait for their new executive to start that late – or consider offering signing bonuses, earn-outs, minimum bonus guarantees, et al. so that the new executive can start prior to year-end.
Conclusion
Executive searches are planned out way in advance to take advantage of approval cycles, calendar year, board meetings, new initiatives and program roll-outs. Other times, they can occur unexpectedly and without much notice. Either way, search firms and their clients should outline an achievable timeline and a process that is amenable to both parties and meets mutual expectations for timing and results. For help with your search, click here to contact Quantum Executive Search today.