In a world constantly in flux, the landscape of leadership and management is undergoing profound transformations. Today’s leaders face a complex set of challenges, demanding agile adaptation and forward-thinking vision. As experts in recruiting top management profiles, we witness these crucial challenges and the growing concerns that accompany them.
In 2023, the economic environment was marked by instability and palpable anxiety among our country’s executive population. Despite a generally cautious attitude towards an still uncertain economic situation, there remains optimism among candidates regarding emerging opportunities in the job market. And rightly so.
According to a study by Apec, half of executives believe they can easily find a similar position in the event of changing companies or job loss, a figure identical to that of 2022. Furthermore, the executive job market remained favorable to job changes: in 2023, 10% of executives actually changed employers, a rate comparable to the previous year (11%). In the last quarter of 2023, 54%, 18%, and 5% of ETIs, large companies, SMEs, and TPEs respectively, were considering recruiting an executive in the next three months. This slowdown in hiring intentions is partly explained by the changing geopolitical developments from month to month and the impact on inflation forecasts and international trade. “Beyond the cyclical context related to executive hiring, there is a structural change to consider,” summarizes Gilles Gateau, General Manager of Apec.
Known demands of Managers
For executives, the quest for talent requires meeting the changing expectations of executive candidates and incumbent managers. This tension crystallizes around the growing demand for flexibility, such as telecommuting or unabashed salary increase requests, reflecting new professional aspirations. The emergence of a new norm must be taken into account by management… not always aligned with these new demands. These structural and societal expectations of middle and senior managers, under the responsibility of executives, have become a major issue in the world of modern management. The challenges of remote management further complicate the dynamics between these populations.
The recent questioning of telecommuting by some executives reveals a generational and cultural gap in communication and management practices. Indeed, top management sometimes struggles to adapt to these new realities, especially those rooted in a traditional approach to in-person management. For “old-school” leaders accustomed to physical presence as the main means of exchange, adapting to new remote working methods represents a significant challenge. Communication, an essential pivot of leadership, thus faces unprecedented obstacles, requiring a reinvention of methods and tools to maintain effective cohesion. Similarly, some are faced with the need to question management models inherited from the classical school. Talent retention, globalization, alignment of teams on a regional or international scale, and new working practices demand an agile and innovative approach. In this new context, leaders are increasingly open to exploring new leadership models.
A global managerial model to rethink
The pandemic having accelerated this transformation, rethinking strategies and adopting more flexible and people-centered approaches becomes mandatory. This management model provides a thoughtful response to current challenges by recognizing the importance of adapting strategies to the needs and aspirations of the entire group. By fostering a work environment where autonomy, trust, and personal development are encouraged through flexibility, this type of management can contribute to boosting team engagement and fostering an environment conducive to innovation and collaboration. In addition to the concern and need to address new demands in work organization, this shift towards more flexible management offers an interesting perspective for companies keen on optimizing their performance and cultivating an organizational climate conducive to long-term growth and success. While the expectations of candidates and managers are (re)known, the concerns and challenges facing executives when integrating into a new organization are also numerous and complex.
Agility for opportunities in an unstable context
Furthermore, market diversification and managing activities in politically unstable regions pose unique challenges to today’s leaders.
In a context marked by the health crisis and the conflict in Ukraine, Europe still faces its concerning vulnerabilities, highlighting its known energy dependencies.
The pandemic having accelerated this transformation, rethinking strategies and adopting more flexible and people-centered approaches becomes mandatory.
Take, for example, the Inflation Reduction Act (IRA) presented by Joe Biden in August 2022, which allocated $369 billion to the green industry. Stirring up the European Union due to the hypothetical relocation of major European companies across the Atlantic to benefit from these aids, Brussels adopted last year the regulation for a “net-zero emission” industry. A measure allowing simplified procedures and shortened deadlines to authorize the establishment of factories manufacturing components for strategic sectors… with semiconductors leading the way. Geopolitics and fluctuating legislation thus require prudent and informed management, testing the resilience and adaptability of decision-makers. The ability to lead geographically and culturally dispersed teams becomes an essential skill to ensure the success of international projects.
Another major concern for executives lies in their relationship with the Executive Committee (ExCom) and their ability to align effectively with it and their management style. This convergence is essential to meet the CEO’s expectations and ensure strategic cohesion within the organization. In a shifting context, where internal and external dynamics evolve rapidly, this harmonization is more necessary than ever. To address these perpetual changes, technological advancements, AI, and market transformations, companies are not only looking for hard skills but also soft skills.
Executives are expected to demonstrate adaptability and responsiveness to these disruptions and increasingly international environments. They will be challenged on their ability to foster engagement, maintain connection with employees, while retaining the strategic alignment of the company, its mission, and vision. To merge the growing interests of candidates, the strategic needs in recruiting top talents, and business objectives, investing in the development of a strong employer brand helps attract the best talents, as well as foster engagement and long-term retention. A strategy that is more profitable than ever in a local and international economy that is more open and uncertain than ever.
KEY POINTS
- The currently unstable economic context does not prevent candidates from considering a potential job change and/or career advancement.
- Companies must rethink their management models to meet the new expectations of executives.
- The pandemic has accelerated the transformation of work towards more flexibility and adaptability.
- Geopolitical instability and the current economic situation require prudent management and effective leadership of dispersed teams.
- Executives must quickly respond to technological developments to remain competitive.
- In an uncertain context, a strong employer brand and good communication are essential to attract, engage, and retain the best talents.