April 7, 2020
Hiring 09 May 2017
4 Reasons CEOs need to be in the Recruiting Loop
Gisel Malek
CEO's, recruiters, organizational behavior, disconnect, HR, department goals, loyalty, millennials

The gap between recruiters and CEOs seems to be getting wider and wider. This is largely due to the fact that most HR departments are not communicating properly with their CEOs about their recruiting. CEO’s have a million things to do, so why should they get involved? The answer is very simple:

It’s the CEO’s job to make sure they have the right people in their organization whom can carry out their vision and strategy. No one knows the vision of the company as well as the CEO, and the ones who are successful are the ones who are extremely integrated with the company’s hiring strategy and team. As they become more involved in the recruiting loop, recruiters will greatly improve from their expertise and the company as a whole will benefit.


The Main Issue:

When HR is looked to “staff” and not recruit their departments, they will end up with this:

“At most companies, people spend 25% of their time recruiting and 75% managing their recruiting mistakes.” Richard Fairbank, CEO at Capital One

This observation by Fairbank illustrates the primary issue of not recruiting, but rather “staffing” employees not qualified to meet the needs of your organization.

With the CEO involved in the process, they can dramatically improve the effectiveness of the HR department. According to a nationwide CEO survey done by PWC, 93% of CEOs recognize a need to change their strategy for talent, yet only 39% have taken the first step!

The Benefits of Getting Involved:

Know your People

The most important reason for a C-Suite to get involved with the recruiting process is to know the people that are working for them. Not having a hand in hiring your employees is a lot like going to a wedding where you don’t know anyone by name. Better yet, it would be your own wedding! Even if it is to implement something in place where you can meet the person and let them meet and hear from you, it would greatly benefit both the CEO and the employee. If millennials don’t get a chance to meet the people at the top when they interview, they don’t feel the connection to your organization as much as they can. That connection leads to purpose and understanding within their job roles. 

Recruiting Vs. Staffing

Getting involved in the hiring of your employees sets the precedent that you are interested in recruiting instead of staffing. Recruiting implies that you want people to last at your organization, that you are concerned with their growth and success. It suggests that you are looking for the perfect fit. This makes recruits feel more invested in the company since they feel lucky to have been chosen. Above all, it lets people know that you are deeply invested in the purpose of your organization which translates to your recruits feeling the same way about it as well. When companies staff, it suggests “filling in a spot” and people don’t want to be a stand-in, knowing that many others can and have done the same thing in the past. 

Increase Loyalty

When a candidate is looking for a new job or career, it is safe to assume that they want to know who they are working for and what the organization means to the C-suite team. No one is going to care about a business more than the person who slaved to start and grow it from the beginning. But, with some luck, you may find yourself in the position of hiring those who appreciate knowing what the company means to you and want to go on that journey with you. Though, it’s not easy to get there. It’s not just about meeting the recruits, it’s about getting involved with their hiring process. It’s about being there to tell them they are a fit for the team. It’s about the recruit going home and telling their family and friends who the CEO is, what they are like and what they have in common with them. The reciprocity lies in knowing your recruits will do everything that they can to make your business successful and staying loyal to you during the ups and downs. Millennials and younger generation job seekers have been dubbed the job-hopping generation, but it doesn’t hold true when good organizational behavior is practiced by companies.  

Lower Turnover

The most measurable benefit to companies is not needing to hire as often as most. Many staffing agencies are constantly bringing in new people, and for certain companies that hire in bulk, high turnover is a huge problem. When CEOs get involved in the hiring, they are essentially putting their stamp of approval of the individuals that come in every day and put in the 40 hours a week. This goes a long way in assuring that those are the right people for the job. Doing this encourages employees to progress on their career pathway and makes sure they stick with you for the long run. While many large corporations hire too many people to get involved with hiring every single person, the VPs and Directors can do a better job of keeping that communication chain alive between the lower level coordinators the higher level, let’s say VP of talent. All of these efforts will reduce the many costs associated with hiring new people. 

Millennials expect a lot from the companies that they want to work for - so now more than ever, the connection between the top and HR is dire in constructing a team that will bring success to any company. 

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