Securing an Executive Seat on the Board

Whatever your current leadership role or stage of life, becoming a board member can be one of the best ways to turbo-charge your career and personal and professional development.

Harvard Business Review research found that serving on a board increases an executive’s chances of becoming CEO to an S&P 500 firm by 44% and boosts pay by 13% regardless of any promotions.

So how does a modern-day boardroom work and who should be looking for a place on it and why?

Functions of a board:

A board of directors is the independent governing body of an organisation which traditionally supports senior leadership in ensuring the company is:

• Adhering to compliance and governance regulations.
• Helping to shape and implement strategic, financial and value-led objectives.
• Representing stakeholders including employees, partners, customers and, in the case of publicly-traded companies, shareholders.
• Setting appropriate dividends or share buybacks  (in the case of publicly-traded companies) and CEO and Board remuneration.
• Identifying, assessing and reducing risks including cyber-security, reputational and fraud risk exposure;
• Ensuring the company maintains a suitable risk-reward ratio.
• Ensuring functionality of the board and preparing CEO succession plans.

In addition to these focus areas, today’s boards are also expected to encourage visionary thinking, creativity, innovation and future-proofing – especially in respect of emerging technologies and resultant new business models, as well as often being required to have a visible public presence which represents company values and actively promotes the brand.

Members can be executive – working within the organisation – or non-executive (NEDS), independent, external. Both have equally important but different roles to play.

While executive members still tend to overwhelmingly hold traditional C-suite roles – CEO, CFO, COO –  recent Rialto research into publicly-advertised UK executive positions show an increasing variation of more than 50 C-suite roles to reflect the changing landscape of work, such as chief information officer, chief data officer, chief automation officer and chief sustainability officer.

Who can/should join a board?

Literary and dramatic depictions of boardrooms tend to show the type of sycophancy and fear inspired by growling, sweary Roy Logan at the head of the family-run media multinational in award-winning TV drama Succession.

The untouchable patriarch is a trope oft-repeated in fiction for a reason – once upon a time, this was how big business was run.

However, in 2024, organisations cannot afford to model themselves around authoritarian CEOs who stand atop a fortress-like hierarchy, bullying senior leadership into submissive head-nodding and discouraging any dissent.

As businesses recognise the tangible, measurable benefits and commercial necessity of cultivating a genuine ethos of diversity, equality and inclusion from the top down, priorities of the board room are changing and their memberships with them. They should encourage collaboration, a safe space for generation of new ideas and healthy interrogation of all aspects of the business strategy from a multitude of perspectives and knowledge bases.

The UK government and European Union have focused on encouraging listed companies to increase boardroom representation of women and people from ethnic minority backgrounds on boards.

The EU Women on Boards Directive, which will also apply in the UK, has introduced a mid-2026 deadline for all stock-listed companies to have at least 40% female executive representation and at least 33% in all senior roles including non-executive directors and directors such as CEO and COO. However, more men than women were recruited to boards last year across Europe. In the UK, boards of FTSE 350 must set targets for BAME representation by 2027.

While there is still a long way to go before equality and parity are achieved across the economy, not just in listed companies, many progressive organisations are actively recruiting outside of their traditional talent hunting grounds.

This is opening opportunities for individuals from different backgrounds and on diverse career paths to gain a seat and reap all the practical, financial and self-improvement advantages this can bring.

Research has found diverse boards perform better. Fortune 500 companies with higher proportions of women outperform competitors in ROI and sales, for example.  Having a diverse board also attracts the best talent from diverse backgrounds.

Meanwhile, the urgency with which all organisations need to be evolving around emerging and disruptive technologies should be driving them to bolster boards with appropriate skills and expertise, including softer skills such as creativity, adaptability, mental agility and logic and reason.

As long as you have a strong, valuable and relevant value proposition to offer – whether it is a specific skill set, particularly those mentioned above, experience, contacts, influence or even just your time and energy – you can make a valuable contribution to a board as an executive director.

Benefits of seeking a board seat?

They include:

• Invaluable networking opportunities; spread influence and open doors.
• Working alongside great thinkers and business leaders from whom you can learn (and in some instances, you may also learn from directors who serve as examples of what not to do).
• Further development and refinement of leadership skills and expertise.
• Increased confidence in your capacity to contribute, negotiate and drive positive management change.
• Enhancement of your CV, proven to facilitate promotion and increased remuneration in your primary professional role.
• Signalling credibility and value to potential clients, employers, partners, and customers.
• Building market and industry knowledge.
• Gain a deep understanding of every facet of business development, management and each function within an organisation.

Naturally, the more thought, preparation, and research you invest in your position, the greater the rewards you’ll reap.

How to work towards securing a seat on the board:

If you want to win a seat in your current organisation, it can be difficult to predict when an appropriate opening is likely to present itself.  Good governance says no member should serve more than nine years which can help you plan ahead for a future position.

Do review the current make-up of the board in your existing organisation in relation to your current management role

• Does it already have representation in your field of expertise?
• Determine when the incumbent in that area is likely to step down after completing their nine-year term.
• Evaluate your willingness to wait for that duration.

If you are happy to wait, start to prepare by elevating your profile within the company through impactful contributions and on appropriate digital platforms. (See our previous insight on this for more detail.)  Attend networking events online and in person, engaging with questions that highlight your knowledge and interest. Investigate how current board members were elevated and plan your strategy accordingly.

If the current incumbent in the position you would like is approaching the end of their term, would you feel comfortable asking them for guidance and advice?

If you decide you cannot wait, is there a niche role you can develop to fill in any gaps in the board? That might be task-specific technological expertise. Perhaps your organisation is looking at AI solutions – are you the person they need on the board? Or can you support the embedding of sustainability models?

If appropriate, do promote and leverage your diversity, equity, and inclusion (EDI) credentials. Boards need more women, people from ethnic minority backgrounds and people who identify as disabled or LGBTQ, and not just to make up numbers. There is a proven business case.

You may decide that your current organisation is not the right place in which to seek an executive board role, in which case, think carefully about your options.

It could be a good time for a re-pivot into a more forward-looking sector which will prosper as operating models evolve and disruptive technologies revolutionise the world of work. Upskill if necessary and explore opportunities in sectors that are thriving amid industry transformations.  Taking your personal area of expertise to a start-up could develop your knowledge and professional network and possibly open opportunities to get an executive director’s role in a company which is on a growth trajectory.

Executive career consultants can also help you re-position yourself for a change of direction.

Expanding your Executive profile:

If you already have a boardroom seat in your current organisation, you can seek to extend your portfolio through further networking and personal brand development and visibility, leveraging your existing position and highlighting your exclusive skill set and expertise and its relevance to your target sector.

If your value can be seen, on LinkedIn, in business media and at conferences and networking events, for example, there is every chance you will be headhunted.

Having several positions can boost your salary significantly. The average NED position paid around £40,000 in 2022. In return, you are required to prepare for and attend board meetings, usually quarterly, and to stay on top of organisational and relevant external developments to enhance your contribution.

For more information, see our insight on how to gain a NED position.

The Rialto career consultancy team have helped 7,000+ senior level Executive & C-suite clients win prime roles in competitive markets in almost every country around the world. Contact us for a free initial consultation.

Whether you are CEO in an SME, in senior leadership in a FTSE or Fortune 500 listed company or looking to reinvigorate a stalling mid-career lull, expanding your portfolio with non-executive director positions will repay your years of personal investment of time and energy with dividends.

Here we look at the responsibilities, benefits and pathways to becoming a Non-executive director (NED).

What is the purpose of NEDs?

Non-executive directors (NEDs) play a pivotal role in corporate governance, offering an external and independent perspective to the organisation. Unlike executive directors, NEDs do not hold a position within the organisation they serve, ensuring that their insights are impartial and objective. Their primary purpose is to contribute to the strategic oversight and governance of the company.

NEDs can bring a wealth of specialist skills and experiences to the table, such as academic expertise or a focus on technical, EDI (Equality, Diversity, and Inclusion), or sustainability matters. They often participate in sub-committees, such as the Risk Committee, Remuneration Committee, or EDI Committee, where their specialised knowledge can be applied effectively.

Meanwhile, their independence can give them the distance, perspective and overview to ask the hard questions and inject fresh and novel thinking.  Their role is not confined to day-to-day operations, allowing them to focus on the broader strategic issues that impact the company’s success and sustainability.

Existing board members are tasked with identifying knowledge gaps within the boardroom and appointing NEDs who complement the existing team, not only in terms of practical attributes but also aligning with the company’s values and culture. This approach ensures a well-rounded and diverse board that can address a broad spectrum of challenges.

In recent years, there has been a growing emphasis on the role of NEDs in fostering diversity within corporate boards. Boards are increasingly turning to NEDs to bring a variety of perspectives, including those of women, individuals from ethnic minority backgrounds, and those with disabilities. The UK Corporate Governance Code underscores the importance of NEDs, mandating that they should constitute at least half of the board, reinforcing the commitment to independence and diverse representation at the highest levels of corporate leadership.

Who can become a NED?

Traditionally, NEDs would be expected to have some decades of experience behind them. However, the need for specific skills in fast-changing business environments means boards are welcoming much younger candidates with niche experience, though knowledge of the essentials, compliance, governance, technology trends  etc, or at the very  least a willingness to become proficient in them, are still a prerequisite.  

What are the benefits of securing a NED role? 

EXTEND YOUR PROFESSIONAL NETWORK:

Board positions often offer extensive networking opportunities. NEDs connect with fellow board members, executives and stakeholders, creating opportunities for future personal and professional growth.

BUILD A PLATFORM TO LEVERAGE FOR A FUTURE EXECUTIVE BOARD POSITION:

NED roles offer a platform to showcase your governance, strategic, and advisory skills, making you a strong candidate for future executive board positions within your current organisation or in other ventures.

BUILD YOUR CV AND DIGITAL BRANDING:

Board positions enhance your CV, showcasing your experience in governance, strategy, and risk management. Ensure that your board roles are prominently displayed on your LinkedIn profile, contributing to a robust digital presence.

RESET, REVITALISE AND RE-PIVOT DURING A CAREER BREAK:

NED roles typically do not involve day-to-day operational responsibilities, providing individuals with a degree of flexibility in managing their time and commitments, whilst staying professionally active, gaining new insights, and remaining engaged in the business community.

HAVE A LASTING IMPACT ON A BUSINESS OR COMMUNITY ORGANISATION:

NEDs play a crucial role in shaping the direction and success of organisations. Contributing to positive change and sustainable practices can provide a sense of fulfilment and a lasting impact on the business or community.

DEVELOP BROADER INSIGHT INTO ORGANISATIONAL MANAGEMENT:

For those executives looking at new career pathways, becoming a NED offers a way to broaden strategic and executive insights on how different organisations are run. In addition, for those considering retirement, it’s a way to stay engaged in the business world, share accumulated expertise, and continue making meaningful contributions without the full-time executive workload.

FUNDAMENTALS OF GOOD MANAGEMENT FOR SMES:

If you are self-employed or run your own SME, a NED position offers insights into the fundamentals of good management. Learning from board-level experiences can help you apply strategic principles to grow and manage your own organisation more effectively.

How much are NEDs paid?

Compensation tends to reflect the size of the company and the expectations of the role. Latest figures show basic NED pay at the UK’s largest FTSE 100 companies ranged between £70,000 and £94,000 in 2023 though additional responsibilities such as chairing sub-committees will attract further remuneration. According to executive-search firm Spencer Stuart, salaries can reach £1.5 million a year for the highest-paid non-executive chairman. Most roles within the charity or not-for-profit sector are unpaid.  

How to gain the first NED board seat.

START SMALL:

If you are looking for a first directorship, consider your motivation for seeking a directorship, what you hope to achieve and what you bring to the table.

You may first wish to gain some experience with a local charity, as a school governor or on the board of an associate’s start-up.

This initial involvement provides valuable insights, helps you learn the language and etiquette of board membership, and provides the first rung on the ladder.

BUILD YOUR BRAND:

While considering your next move, it’s important to understand and develop your board value, specific to your target sector.  Make yourself visible in relevant circles by participating in webinars and online events. This not only allows you to connect with key individuals but also provides an opportunity to learn about specific industry nuances and general business trends.

SHOWCASE YOUR EXPERTISE: 

You need to demonstrate skills in independent thought leadership and understanding of risk, compliance and the trends and developments within that market. Seek executive career advice to identify your own unique skill sets and experience against key current market trends. Clearly articulate how your expertise can contribute to a board’s strategic discussions and decision-making. 

IDENTIFY APPROPRIATE POSITIONS:

Spend time reflecting on your career path; are you looking for stepping stones or a single, rewarding position? Do you want to have an immediate impact in a smaller organisation or sit back and learn from a bigger, established one? Clearly define what you can offer to a particular organisation and where you see yourself fitting in. 

RESEARCH THE BOARD AND LEADERSHIP:

Who are the influencers? How can you reach them? What can you offer them? Explore their membership of digital communities, look for shared areas of interest through which to connect. Reach out to them through email or LinkedIn and clearly communicate your value, why you are interested in their particular organisation and how your skills align with their needs.

BOARD MEMBERSHIP IS A SERIOUS BUSINESS…

NEDs are as legally liable as executive directors if anything goes wrong. Taking a share of the responsibility for an organisation of any size is a big undertaking that requires commitment, hard work, ethical judgement and continuous learning. Decisions made in a boardroom can have a tremendous impact – for good or for bad – on the lives of many people. Consider whether you have the resources and bandwidth to fulfil and do the position justice before actively engaging with the market.

If you’re seeking guidance in this journey, the Rialto executive career advice service is available to help shape your strategies, prepare your NED-focused CV, and enhance your personal branding to increase your perceived value and market opportunities. Contact us for a free initial consultation.

The world of work is changing at a dizzying pace, led by the accelerated evolution and expanding application of disruptive technologies, post-pandemic cultural shifts and continuing globalisation.

In response, boards need to continue to develop strategies that embrace strength and foresight but also dynamism, agility and resilience. Business models must be built like Tokyo skyscrapers – reaching to the future yet flexible enough to be able to withstand powerful earthquakes.

Senior leadership must therefore embrace transformational leadership and ensure a depth and breadth of relevant technical and soft skills to ride the crest of the wave instead of being washed aside.

With ongoing pressure continuing, following the trauma and turbulence of the pandemic, it is perhaps little surprise that 2023 became the year of the Great Resignation. The number of CEOs stepping down doubled on the previous year and was higher than in any year since consultancy firm Challenger, Gray and Christmas Inc. started keeping records in 2002.

Now is the time for senior executives and leadership with ambitions to reach the highest echelons of management to take stock and reposition themselves in a state of readiness for whatever the near future brings.  And if the last four years have taught us anything, it’s that we must prepare for everything and anything.

Here we share the five executive skills and areas of expertise that are most valued in 2024 and which feed into the Rialto Accelerated Leadership Index (RALI) research.  Through our surveys and day-to-day work with executives from a range of functions and sectors, these are the capabilities that are most commonly felt to be the most essential to optimise organisational stability, change management, growth and transformational leadership in the current environment.

Strategic Thinking: 

Why? Senior leaders need to be equipped to make informed decisions in moments of extreme pressure or crisis as well as to forward-plan strategies like a master chess player, taking every foreseeable eventuality into account and revising the game plan move by move if necessary.

They will need to see the big picture, anticipate changing conditions, customer requirements, workforce needs including post-pandemic mental health and hybrid or home-working, compliance and technological evolution.

How? Stay ahead of current and coming trends; look into the future, where will the new markets emerge? How will your client or customer base change? What technologies will augment your current operations and how can you best integrate and harness them? What are your competitors doing here and overseas? Choose a trusted team of colleagues and advisors who, between them, possess the skills and expertise to help you design and constantly adjust an agile business model that will enable sound, knowledge-based decisions; keep asking questions; exercise your own mind to keep it agile, read or listen to the latest management books and theories; play chess or squash – or anything that requires speed, decisiveness and strategy.

Leadership and Social Influence: 

Why? In an increasingly complex and interrelated world, senior executives may need to connect with, direct, foster collaboration with and/or inspire confidence in a much more complex network of stakeholders than ever before. These will include close colleagues, the wider workforce, clients and customers, partners, funders, shareholders and influencers.  Leadership needs to take centre stage, to embody organisational ethos and essentially sell themself to sell their product or service. People are no longer content to be sold an abstract or an idea – they want to see the wizard behind the curtain before they decide where to put their money or resources or with whom to entrust their own careers. Leaders need to be as confident holding an audience on Zoom as they are in a room.

How? Leaders often need to exert influence without formal authority. In-person networking and inter-personal communications still remain essential to gain trust of other stakeholders; however social influence is increasingly a core requirement of senior leadership, essential for driving collaboration, building team cohesion and achieving goals.  Leaders must be storytellers, articulating visions and strategies with clarity and authenticity to capture, celebrate and promote the work, progress and unique identity of their organisation.

In a world where Insta, Facebook and others open direct lines of communication between CEOs and any connected individual in the world, visibility, presence and image need to be flawless and carefully choreographed. Think of Amazon founder Jeff Bezos insensitively tweeting about his dog-sledding holiday in Norway when his customers were queueing at food banks. The backlash was quelled with a costly minimum wage rise at his warehouses.  His momentary error of judgment demonstrated the need for qualities that have emerged as newly essential in the wake of Covid: compassion and empathy. Steely aloofness, ostentatious success and imperious superiority are no longer valued qualities as hierarchical structures are swept away. It is not enough simply to do the right thing. Leaders must be seen to be doing the right thing.   They should be confident in sharing honest and difficult news, encouraging and raising people up, demonstrating an authentic commitment to a vision, influencing through actions as well as words.  Stakeholders should be made to feel that the communications goes both ways; transformational leadership must efficiently disseminate appropriate and targeted messaging, but equally, listen and respond. Successful executives know how to use teams and technology to filter the noise and extract the invaluable gems of sentiment and satisfaction from customers and employees – and to respond and adapt appropriately.  Playing team games such as cricket or football or volunteering can help keep executives grounded and connected with people beyond their professional networks.

The 3 As: Agility, Adaptability, Acumen. 

Why? These 3 trusted A’s continue to figure highly as three central pillars of effective leadership. They are vital to change management and shaping competitive advantage to deliver operational excellence in a world which we have established is forever changed and changing, quickly and constantly.

How? Business acumen has been a constant requirement; understanding the questions that need to be asked, the conventional pathways to success, possession of organisational skills and confident decision-making capacity. Acumen is an integral foundation of good leadership. These skills can be picked up in business school and on the job and be refined and kept relevant by excellent mentoring and continuous learning, though elements of innate common sense, humility and perceptiveness will also go a long way.

Agility and adaptability have become increasingly important in recent years for reasons we have stated above. Executives and senior leadership need to stay alert, fit, fully informed and at the top of their game, ready to swing into action and change tack with the wind when necessary. That means staying physically fit, mentally well and self aware.  An open mindset, willingness to let go of the familiar and embrace the new and presently unknown is also essential. We encourage individuals to push themselves outside of their comfort zones, in their private lives, taking up a new hobby, embracing new cultural genres, as well as opening their minds to new technologies or business practices.

Global mindset and cultural sensitivity: 

Why? Globalisation has dissolved economic borders. Post-pandemic, the mass adoption of hybrid and home working has further opened up international workforces, while the permanent switch to online buying has extended marketplaces to corners of the earth that were previously beyond the wildest dreams of marketers and sellers. Leaders who represent their brands and organisations must be seen to be looking beyond their regional borders and to show a deep and genuine understanding of the complexities of different markets and the diverse peoples within them.

How? As their organisations increasingly look further afield for the skills in short supply at home, leaders need to show that they are educated around different cultures. Executives responsible for strategic development and sales need to be evaluating new and emerging markets and looking at unfamiliar business processes, customs and requirements to tap into and exploit globalisation. What sells here may sell there but it may need a completely different approach and delivery. In executive meetings and communications, this means being fully briefed about customs and appropriate use of language.

Cultural insensitivity combined with the risk of instant public exposure via social media can inflict fatal reputational damage on any brand. Marketing executives need to reflect the diversity of the global marketplace and of its targeted regions and honour local customs. Consult people on the ground and listen to feedback. Boards of international companies need to ensure diverse representation at the top and ask for reassurances and visible evidence on organisational literature and branding which demonstrate a global mindset.

Pepsi Cola made what seemed like an innocuous branding tweak when it changed  the colour of its vending machines in South East Asia from deep to light blue. Local knowledge would have warned them the paler colour is associated with death in the highly superstitious region. The company lost its marketplace dominance to its great rival. This revealed the need for executives to ensure globalisation and cultural sensitivity are embedded into the company DNA.

Resilience, stress tolerance and flexibility:

Why? No matter how many times epidemiologists warned that a pandemic was probably imminent, no country, economy or organisation in the world was prepared for the seismic shock when Covid-19 first hit. UK business insolvencies rose by more than 50% from 2021- 2023, with commentators blaming the aftermath of the pandemic exacerbated by Brexit. Those that survived – and some that thrived – showed resilience, stress tolerance and flexibility.

How? Like a suspension bridge, secure businesses also need stress tolerance built into their models and it is up to leadership to regularly interrogate their own organisations for structural weaknesses. Leadership should be constantly checking any stress points and ensuring counterpoints are built in. They should be asking, what if? What next?

On a more personal level, executives and senior leaders need to be able to absorb and deflect economic and organisational shocks and be seen to embody strength, stability and resilience, ready to withstand even the most devastating and unpredictable events, whether generated internally or environmentally, and make sound, knowledge-based decisions which ensure the best outcomes.

This is how they will lead their organisations through the challenges and opportunities presented by the dynamic business landscape of 2024.  As we continue to witness unprecedented levels of disruption, the ability of leaders to demonstrate these skills and ensure they run through the veins of the company will determine the success of their organisations and shape the future workplace.

The Rialto Accelerated Leadership Index (RALI) research underscores the importance of these competencies.  It is imperative for current and aspiring leaders to cultivate them through continuous learning, self-reflection and proactive engagement with the challenges of our times. Only by doing so can leaders ensure they are not only prepared for the future but are also actively carving out a strategic vision it in a way that is resilient, inclusive, and forward-thinking.

We will share further insights and trends from our research with you. If you are interested in taking part in events such as our leadership dialogues and surveys, please contact us on +44 (0) 20 3746 2960 or email info@rialtoconsultancy.com

Last year, the global economy defied expectations in potentially history-making ways. Despite challenging conditions – wars, escalating inflation, and the most significant interest-rate surge in four decades the global economy managed to avoid a major downturn, instead experiencing a steady slowdown. This was an unfamiliar plotline: It implies the world economy held some resilience in ways we might not yet fully understand. Looking ahead to 2024, the World Bank’s latest “Global Economic Prospects” report predicts that global growth will slow to 2.4% before edging up to 2.7% in 2025.  This forecast provides optimism for avoiding a global recession. However, certain factors, including a notably weak UK market, heightened uncertainties regarding conflict escalation, and fluctuating energy prices, will continue to introduce unpredictable elements into the economic landscape  whilst interest rates are likely to remain elevated for the foreseeable future.

Worryingly for the executive outplacement market, corporate restructuring specialists Begbies Taylor warned that the number of companies in critical financial distress in the final quarter of 2023 had risen by 25.9 per cent on the previous three months. Meanwhile a hiring pause has led to demand for workers falling to its lowest level in a decade, according to business advisory firm BDO’s employment index.

For in-post senior leadership, head down and business as usual is not an option. They need to meet the current climate with a dynamic plan of action; to actively prepare for each predictable challenge while optimising every opportunity for growth and improved performance by incorporating disruptive technologies into forward planning strategies that fully involve every department and every function.

And for those seeking a new opportunity or facing executive outplacement, challenging times mean doubling down on efforts to identify and seize the openings that are still most definitely out there.

Here, we offer our review of the market, look ahead to the coming months, seek out any bright spots and advise on how best to take the driving seat on what looks like being another bumpy ride.

Job Market snapshot

Latest ONS labour market overview estimated that vacancies in the UK fell in the final quarter of 2023, down by 49,000 to 934,000. It was the 18th consecutive fall, the longest continuous downturn on record. Wholesale and retail was affected most of the 17 out of 18 sectors that experienced a drop, down 13,000.

However, openings do remain above pre-Covid levels, up 133,00 since January-March 2020. Similarly, payrolled employees were down 24,000 on the month but up a percentage point on the previous year and 1,195,000 since February 2020 to 30.2 million. Unemployment was unchanged on the quarter and up by a fraction over four years.

The total number of online job adverts on January 12, 2024, was down 16% on the previous year – but it had risen 3% in a week. Vacancies fell furthest in small companies employing 0-9 employees followed by the largest, with workforces over 2,500.

The International Labour Organisation (ILO) redundancy rate for the UK in May-July, the most recent figure available, was 3.6 per 1,000, higher than any time since July 2021 but comparable to pre-pandemic levels.

Earnings increased across the board, up by an average 6.5% including bonuses in September to November 2023 to £666 per week, a little higher in finance and business, up 7%.  Accounting for inflation, total real pay rose by 1.3%, the same as the previous three-month period.

Predictions for Q1 2024

The world economy:  

The global economy defied World Bank predictions and multiple pressure points last year to deliver 2.6% growth, largely down to the US economy and strength in some of the emerging markets including Brazil and India.

Another year of raised interest rates, increasing geopolitical tensions and inflated energy and consumer prices after the system shocks of the pandemic and Ukraine War will really test its resilience. The World Bank is talking about further slowdown to 2.4%.

This time last year we were focusing on conflict in Ukraine and its impact on oil and gas prices. This year, there is also a very real chance of Israel’s war on Hamas in Palestine spilling over into the region. The UK and US are already bombing Houthi targets in Yemen in a bid to halt their pirate attacks on commercial shipping routes which are severely disrupting movement of goods and tensions are building with some of the oil-controlling Arab nations.

Further expansion of hostilities to Iran and beyond could destabilise global economies further. Though a glimmer of hope comes with tentative talk of a possible two-month ceasefire. That might be enough to allow imminently-anticipated interest rate falls in the US and government fiscal stimulation in China to brighten the immediate outlook.

The UK economy;

Russell Investments’ 2024 Global Market Outlook suggests that the UK faces the greatest risk of recession of the major economies as it struggles to bring inflation down, delaying any release of the fiscal brakes. Inflation is remaining stubbornly at 4%, down from its 2022 high of 11.1% but still double the Bank of England’s target to start cutting interest rates.

Meanwhile thousands of companies servicing debts built up during years of record low interest rates are reaching the limits of their financial subsistence. Almost 50,0000 are in critical distress.

A sixth of companies say they are planning to reduce staffing levels, led by a downturn in tech and construction, while many more are stalling recruitment until they see real signs of recovery.

Consumers, who had been propped up through the lean times by government support and savings accrued through Covid, are running out of funds and now spending less and borrowing more.

So, the word of the first quarter of 2024 is just as it was this time last year: caution.

Fittingly, we may start to see some green shoots in spring, when the government is expected to introduce tax cut sweeteners worth £20 billion ahead of a General Election, mooted for autumn. Along with anticipated interest cuts, they could help push the engines of the economy out of neutral and into first gear.

How to thrive in a contracted executive job market.

No matter how much uncertainty may lay ahead, dynamic leadership will not be assuming a watch and wait attitude. Just as market investors can profit by buying the dips, periods of stagnation present the chance to audit and strengthen assets, streamline processes and work towards readiness to leap into action and take full advantage of opportunities when the economy starts to turn.

It will undoubtedly be a more challenging market to enter and find success in. In December 2023, there were 863 publicly-advertised chief executive vacancies, down from 1,131 in January 2023, and 348 chief finance officer roles, down from 539 a year ago, according to Adzuna research.

Still, those vacancies are there and need filling and the drop in quantity does not equate to a fall in the quality of positions available.

So what can candidates seeking a new role or facing executive outplacement do to boost their chances of landing a prime position, suited to their skill sets and experience, in such a bleak job market?

• Mindset is perhaps the most crucial attribute and keeping it match-fit can be an exhausting exercise. It is always good to have a trusted sounding board to keep your spirits raised through any disappointments or lapses in energy and motivation, and reflect on opportunities for learning and personal growth, whether family, friend, mentor or career coach.
• Reset if you feel you have lost your focus. Perhaps you have been applying for the wrong jobs in desperation after too long out of the market. You know you are wasting your time. Go back to basics: what is it you do best? What do you have to offer? Who needs your skill set? Where are you looking for work? Why isn’t it happening for you?
• Analyse the market. Where is the demand and what are the new jobs? Why did your last position not work out? Has the market changed and do you need to find a new fit? What about the hidden market? Do you know how to access it? Do you need help? Do you need to catch up on changes in recruitment methods?
• Sharpen your image. You know you have the credentials, but are you transmitting that information to the right people in the right places? Is your LinkedIn profile up to date? Does it reflect what employers want? Does it reflect what you want and can do? Does your CV stand up to scrutiny in 2024? When did you last look into preferred formats and required information?
• Research the meeting zones for people in your field. On what digital platforms is the networking and hiring happening? Are you missing out on a whole world of online business and opportunities?
• Audit your own skill set. Are the advertised vacancies using technical terms you don’t understand or asking for experience with frontier technologies that sound like a foreign language to you?  Do you need to retrain and repivot away from a dying sector or market into a dynamic emerging one?

To summarise, then, we would issue an amber warning for the first quarter of 2024: more storms ahead but a chance of brighter skies for those who can weather them.

Rialto can help you refine and target your search when going through executive outplacement or executive transition with one-to-one personalised support. We have helped many thousands of c-suite clients win prime roles in competitive markets in almost every country around the world. Contact us for a free initial consultation.

“Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window.” Peter Drucker (a founding father of modern management theory)

If death and taxes are the only certainties upon which we can rely, the best we can do is consider and interrogate the likely developments of the near future and prepare our business models and personal career growth plans accordingly.

Here are some of the major themes that the Rialto team believe will influence the economy and global executive job markets in 2024.

1: Optimising AI.  

If 2023 was the year that early adopters got ahead and most doubters came round to the reality that generative AI is here to disrupt every part of our lives and many occupations, 2024 will see a more mature, pragmatic and strategic integration of frontier technologies into all aspects of work automation priorities.

It is imperative that executives prioritise the need to ensure senior leadership are bringing in the talent or hiring expertise to identify the most appropriate applications and introduce them across the business as seamlessly and effectively as possible.  By the end of 2024, the gulf between believers and dinosaurs will become increasingly evident.  The influence of generative AI is developing exponentially. Looking back at the pace of acceleration of adoption in 2023, it is almost impossible to imagine the disruptive force it could generate over the coming 12 months.

As McKinsey succinctly stated in its recent report, “What matters most? Eight CEO priorities for 2024”,  executives need to ask: “which parts of the business can benefit? how can applications be scaled from one to many? and how will new tools reshape their industry?”.

This is not just a paradigm shift, it is a revolution, with accelerated change now a constant; business models and mindsets need to adapt to be able to respond in real time to stay ahead of the competition.

Rialto can help you benchmark your personal readiness for the future of work and identify any skills gaps. We also offer a programme of live online events presented by experts in specific fields around the frontier technologies and their application in various functions and sectors.

2: Another year of economic uncertainty.

2023 proved to be a year of economic contradictions and we go into 2024 with the same equivocation. Despite all of the crosswinds which threatened to push the UK and major global markets into recession, including conflict in the Ukraine and the Middle East, double-digit inflation, record energy costs, high interest rates and the legacy of Covid driving a cost-of-living crisis, markets ended the year buoyant with the US indices reaching record highs.

With inflation falling rapidly, interest rates likely to follow later in the year, wages rising faster than prices, and promised tax cuts in the Spring, many forecasters are now predicting a grey market up to the UK national election, with stagnation rather than recession.

In the background, the risk of conflict spreading and causing energy prices to spike will continue to prompt caution among investors.

Executives and board members across most sectors will be emphasising the need for resilience, efficiency and frugality. Spending is likely to be targeted on processes, technologies and strategic priorities that will focus on savings to build up reserves and create agile business models to adapt to the fast pace of AI-driven change; leaders will look for creative, low risk ways to promote growth in an otherwise stale UK economy which continues to lag behind other G7 countries.

That could offer little in the way of relief to the lean executive job market which Rialto highlighted with exclusive data at the end of 2023. It showed a dramatic fall in publicly-advertised executive level vacancies on the year, highlighting the increasingly critical need for the most senior level job seekers to be able to access the hidden market, identify the opportunities meeting their requirements and upskill or retrain if necessary. Pivoting towards new roles created by the technological revolution could open further pathways to successful career transitions.  The focus is on creating a brand and skillset which are more relevant than ever to the new market demand curve for leadership talent.

3: Elections.

2024 is a year of elections, local, national and global.

Will it be a 1992 – the year Labour leader Neil Kinnock snatched defeat from the jaws of victory after taking a tumble on Brighton beach? Or another 1997-style landslide for Keir Starmer’s more centrist Labour party? Markets are always averse to uncertainty. How might that affect the economy?

PM Rishi Sunak has indicated he will call a General Election mid=way through the year.

Will his promised tax cuts fuel increased consumer confidence and prompt a commerce-led recovery? – or spook markets concerned about further increases to record borrowing levels?

The most recent polls put Labour 19% ahead of the Conservatives which would give them the seats they need for an outright majority and a strong mandate for change.

However polls are notoriously inaccurate. Not only did they get it wrong in the last two US elections and our Brexit referendum, they can reduce turnout for the leading party from voters convinced the outcome is a foregone conclusion.

Rishi Sunak will betting on an economic turnaround as inflation and interest rates fall globally to carry him over the line but will his immigration all-in on the divisive Rwandan policy see him go bust and bring on a surprise early election?

And what will it mean if Labour do win? Starmer is keeping his cards close to his chest so little detail in his manifesto so far. He and shadow chancellor Rachel Reeves are, however, determined to prove Labour can take care of business and keep tight fiscal control with new powers for the Office of Budget Responsibility so don’t expect any big public spending contracts, though the construction industry would see a shot in the arm with a promise to build 300,000 new homes a year for five years.  They have promised is to secure billions in private funding to promote growth in the regions, focusing on the green energy economy for which a massive injection of cash would follow a Labour victory.  Along with AI, it’s the growth sector of the moment. Can Starmer pull a rabbit out of the hat and rejuvenate the former industrial heartlands?

In contrast, Sunak has backpedalled on renewables in a bid to put fresh air between him and Starmer, so uncertainty over related future financial and economic policies is likely to deter foreign investment at a crucial time for the sector, potentially leaving the UK too far behind to play catch up with China and the US who are going full steam ahead in the race to become the green superpower.

Whatever and whenever the result, executives seeking new positions and career transitions could do worse than to reskill and pivot towards these emerging technologies.

Business leaders also need to keep an eye on regional elections, including the London mayoral election which could have a big impact on the City, and global elections, including US Presidential elections which will have an important bearing on Western relations with the crucial Chinese market.

4: Laser-focused strategic growth.

As leaders and executives seek to navigate stormy waters at the beginning of the year,  laser-focused strategic growth will be more important than ever.

Budgets remain tight, investment in new technological infrastructures will remain a priority; now is a good time to revisit and update McKinsey & Company’s 2022 10 rules for intelligent growth.

1. Put competitive advantage first. Find your winning formula first then scale up.
2. Make the trend your friend. Stay on top of emerging markets; recognise when the trend is waning and change.
3. Don’t be a laggard. If you’re ahead, keep moving to stay ahead, no treading water. Be more Apple, less Blackberry.
4. Turbocharge your core. How can you build strength into the core that will support new growth? Technology? Product development?
5. Look beyond the core. Expand organically using natural connections and progression.
6. Grow where you know. Optimise your local advantage, knowledge, connections etc.
7. Be a local hero. Win strong loyalty and brand awareness in your locality.
8. Go global if you can beat local. But be sure your product will transfer to new markets first
9. Acquire programmatically. Plan organic growth alongside new ventures. Think about the emerging sectors such as AI and green technologies.
10.  Shrink to grow. Prune dead wood and re-seed for stronger growth,

In this time of uncertainty, it is more important than ever that all leadership teams are constantly looking for opportunities for growth and development with minimal risk, whether micro or macro, into new markets, new sectors or improving on core business performance. Entrepreneurial curiosity needs to be built in to the workforce with strong two-way communications to open opportunities for all employees to contribute ideas to optimise performance at every level.

5: Filling skills gaps.

Technology is disrupting the way we do business at all levels but we need the right people at the wheel to prevent a kamikaze ride into the future.

Generative AI and other frontier technologies are bursting with almost limitless potential but are also fraught with tensions and risks that need a human touch. The most advanced business leaders are starting to recognise that abstract skills such as empathy, curiosity and adaptability are becoming more valuable to the fast-changing, AI-led economic landscape than traditional qualifications such as superior formal education. Emotional intelligence, creativity and strategic thinking are among the skills that cannot (yet) be replaced by technology.

The UK’s education system has been slow to catch on to the need for these skills to power the country’s future economic success. Even young people graduating from universities and sixth forms now have not been prepared for this brave new world.

Senior executives need to demonstrate these skills in their own leadership but also build them into the workforce through strategic recruitment and continuous upskilling and training. HR leaders should be bringing in AI applications to analyse and meet current and future skills requirements particular to the growth strategies of the business.

6: Minding mental health.

As the New Year blows in on the back of grey skies, driving rain and warnings of another gloomy economic 12 months ahead with further job layoffs and a lingering cost-of-living crisis, maintaining a feel good factor in the workplace is a challenge facing leadership in all sectors.

According to Gallop’s State of the Global Workplace 2023 report, almost six in 10 employees considered themselves quiet quitters – psychologically disengaged from work without a sense of meaning or purpose. It claimed that active and psychological disengagement costs the global economy $8.8 trillion a year or 9% of global GDP.

By genuinely committing to caring for the wellbeing and welfare of staff, companies could potentially make huge savings with minimal outlay at a time when critical skills shortages and economic uncertainty are threatening to undermine growth in every sector.

Investment in cultivating relational intelligence, empathy and introducing mental health toolkits, evaluation and support will pay dividends. That may mean hiring consultants or using AI programs to deliver focused training, continuous assessments and easily-accessed support services.

Employees who are being made to return to the office after the homeworking of Covid times and adjust to constant technology-driven changes in their daily operations may be at risk of burnout and disillusionment. Open, two-way communication, flexibility and understanding can all help cushion employees and make them feel safe and valued.

The CIPD claims flexible working can reduce staff turnover by up to 87%.

Some companies are going further, offering sensory spaces, menopause support and introducing wearable devices to track mental health, sleep patterns and AI programmes to analyse sentiment around workplace developments. HR directors should be actively analysing workforce engagement and identifying risks to reduce attrition rates and costs and maintain a healthy workforce to boost engagement and drive performance.

On a more personal level, executives and leaders have had to take on more responsibilities and cope with more change than at any time in history. Those in position should be aware of their own stress levels and look for ways of managing competing challenges, whether by re-evaluating leadership teams to maximise opportunities for delegation of duties or building in moments of decompression, rest and mindfulness throughout the working week.

For those seeking a career transition or out of work and actively looking for a new position, share your journey with a trusted relative, friend or consultant. It is too easy to get caught in a cycle of hope and despondency as opportunities come and go. Take time to reflect on any rejections and seek advice from someone who may have a more objective perspective and be able to help turn challenges into positive development.

There have been hundreds, thousands, some say millions of adaptations of Charles Dickens’ A Christmas Carol since its publication 180 years ago including blockbuster movies, theatre productions, graphic novels and even two operas.

Clearly, its lessons are as apposite now as they were in 1843.

Few of us would ever wish to be associated with old Ebenezer Scrooge, at least from the opening chapters. But, as we wind down for the festive break, could we perhaps take a moment to think about the literary miser’s journey and reflect upon what has brought us to this moment in time, be mindful of the present and ask how we can make our own futures brighter, more connected and, well, happier?

What actions can executives and senior leaders take right now to go into 2024 refreshed, focused and ready for a whole year of challenges new?

Chapter One: No humbug! – send your staff into the holidays with a boost. 

Dickens’ novella opens with the parsimonious money lender refusing an invitation to spend Christmas with his nephew, turning away charity collectors and only begrudgingly allowing his beleaguered and underpaid clerk Bob Cratchit a single day of paid holiday.

Sounds like the gig economy?!?

The ghost of Jacob Marley with his clanging chains of doom warns Scrooge to pay attention to the three ghosts unless he wants to spend his own eternity in a netherworld of miserable penance. Reflection and projection now will save much pain later.

2023 has been yet another tough business year with economic pressures, high inflation and interest rates and organisations forced to restructure to save costs. Maintaining morale from the factory floor up to the executive offices is never easy when money is tight and the future uncertain. There are steps senior leaders and HR professionals can take that cost little and can send staff into the holidays feeling valued and appreciated.

In recent research by Workhuman, a third of workers surveyed said feeling seen makes them more engaged and 40% said their performance improves. Not many employees would stick around like poor, undervalued Cratchit. Imagine the attrition toll if your CEO was Ebenezer Scrooge.

It costs nothing to say thank you to your people. Whether in person or via a live virtual link, a genuine, warm Christmas message, looking back on the year, celebrating the wins, acknowledging the difficulties you have faced together, looking to the future and capitalising on the communal festive cheer to build a seasonal sense of belonging and identity will go a long way. If you haven’t been able to afford generous Christmas bonuses this year, can you announce a surprise early closure for those you can lose for an afternoon – and promise an extra half day in lieu to the rest? If you can send your workforce home for the holidays with an extra boost you’ll reap dividends in loyalty and productivity when they return at what can otherwise be a depressed and lethargic time of the business year.

Get leaders and managers to personally thank everyone in their teams and identify and name the action or success that stood out for each individual in 2023. You want your workforce charging out of that door (or clicking laptops shut) with a smile and a surge of positive energy, not a sigh of despair and sense of dread at the thought of returning.

Chapter Two: The Ghost of Christmas Past – how did you get here? What did you learn? 

Before he could see and appreciate the lessons of the Ghost of Christmases yet to come, Charles Dickens’ Scrooge has to accept some very difficult truths of the past and present. The childlike Ghost of Christmas Past shows him for the first time how he was the architect of his own miserable isolation, driving his friends and his beloved away with his all-consuming pecuniary lust.

Understanding how we came to be where we are today, as individuals and as organisations, is an essential part of the cycle of development and growth. Have you been too single-minded? Too unapproachable or shied away from critical conversations? Have you missed golden opportunities?

Take time as you wind down for the break to analyse productivity levels over the year. Can peaks and troughs be explained? Instruct leadership teams to identify individuals or departments losing productivity. Are they suffering end of year ennui, a longer term burnout? How can they be reinvigorated, lifted, motivated, engaged? Where are the bottlenecks? Which teams are flagging? Where has the energy gone? Or has the market changed and your organisation failed to respond? What have your competitors done that you haven’t?

On a personal note, take time to think about your past, historic and recent. How did you get here? Why are you here? Did it happen by accident? Did you mean to go somewhere else? What motivated you to start on this path? Are you still as motivated? If not, why not? How can you get that back? Who did you meet along the way? Have you lost contact with anyone who could be valuable to you now? Look up your old contacts and friends, take the opportunity of the festive spirit to network and reconnect.

When were you happiest and why? When were you least happy and why?  Look at the dark times and the good times. Also, stand back and congratulate yourself on your achievements. Go through your diary for 2023, think about every win, no matter how big or small. How did you achieve them? How can you repeat that? Think also about what went wrong. How did it happen? What did you learn?

Chapter three: The Ghost of Christmas present. Now you’re here, is it where you want to be?  

Traumatised by the spectral visions of the previous night, Scrooge is whisked off by a jolly giant apparition who allows him to bask momentarily in the glow of joyful festive celebrations that will take place that Christmas – including poor Bob Cratchit’s, where Scrooge’s cold heart is warmed by the stoic charms of his crippled son, Tim, and his nephew’s, whose kind invitation he sullenly declined. He now regrets this and begs to stay.

This is a very good time to think about where you are now. Is it where you wanted to be? Do you look forward to every day? Or, now that you think about it, have you taken a wrong turn along the way? Bad advice? Or just allowed yourself to drift aimlessly?

Do you have burn-out? Have you lost your mojo? Do you have any serious regrets? Has your work/life balance gone all out of kilter?

If you are feeling dissatisfied, this break from the daily grind could present the perfect opportunity to assess your present situation. Can you leave an out-of-office message on your email and put your work mobile in a drawer for the holidays? Only then can you truly clear your mind to think about your executive career progression  with clarity.

Plan quiet times to allow those thoughts to crystalise. Try “naked” walking or running in the countryside or on the coast – don’t worry, you can keep your clothes on, just leave the phone in the car, no music, no company. Just your thoughts.

You may realise you are happy in your organisation but feel you have stagnated. Or perhaps, the time has come to seek pastures new. Do you need support to dig your way out of this rut? A fresh pair of eyes and professional coaching could be just what you need. Our executive career coaches see a surge in inquiries at this time of year from people looking for a career boost, so if that’s where you find yourself, rest assured, you are not alone.

On a more personal level, what can you do to recharge your batteries over the festive period? Think about who and what makes you feel happy. Can you even remember what makes you relax? The power of true rest and recuperation cannot be under estimated.

Work stress and lack of sleep can elevate damaging cortisol and epinephrine hormones which suppress your immune system and contribute to heart disease, high blood pressure and poor mental health. Allowing your mind and body to rest and engaging in healthy and happy pursuits, such as walking in nature and enjoying quality time with loved ones, reduces stress hormones and charges feel-good hormones like oxytocin and endorphins.

Using holidays to catch up on sleep and switch off from stress helps improve mood, memory and motivation, decluttering the mind and energising the spirit enabling you to return to work more focused and possibly even inspired.

A study by Ernst & Young showed that for every extra 10 hours of holiday time taken, annual performance improved 8%.

Aim to return to work free of the baggage you have built up over 2023 and go into 2024 lighter, clear-headed knowing what you want and how you are going to get it.

If you are out of work, it’s the perfect time to take a break from the often demoralising cycle of applications and rejections, spend time with loved ones, do all of the above and boost your energy, health and motivation. Spend time talking with family and friends and work out what it is you really want to do so you can return to the job search feeling focused and confident.

Chapter 4: The ghost of Christmas Yet To Come. You have the power to shape your future? 

Another night, another ghost. This one silent, ominous, foreboding. Scrooge is guided through scenes leading to a funeral, clearly one of someone who was loathed and will never be missed, in contrast to the funeral of Tiny Tim whose future death moves Scrooge deeply. Pitying the poor unloved soul and keen to learn from his previous visitors, the old man asks, who dies with nobody weeping? He is shown his own gravestone. He begs for a chance to repent and make up for a lifetime of avarice and greed. And wakes back in his own bed. Is it ever too late for redemption?

When you have a quiet moment over the break, look into 2024. What do you see if you carry on the path you are walking? Is it a happy scene?

Where would you like to be in three months, six months, the end of the year? Visualise it. How will you get there?  Imagine looking back on 2024, what do you hope to have achieved?

It is a time for questions. What would you change if you could? Would you spend more time with your family? Is there room for development and growth or change in your current position and organisation? How can you progress within it while maintaining your work/life balance? Or is it time to start considering a total change of scene?

Think about first steps in the New Year and how to start it in the right spirit. Look at blogs, Ted talks and news articles on predicted executive trends. Will you be ahead of them? Do you need to freshen up your skill set and knowledge? We can be certain technology, and especially AI will continue to play a big part.

If you’re making New Year’s resolutions, how about mixing up work and personal. Have you always wanted to learn how to play banjo or jive? Throw pots? Grow vegetables? What are you waiting for?

We all know we should do more physical activities but all hobbies, even sedentary ones, can be hugely beneficial. Learning a musical instrument can boost your memory and has been linked to lower levels of dementia while doing anything that you enjoy stimulates those feel-good hormones, boosts creativity and motivation while repetitive engagement and learning anything new stimulates the mind.

Chapter five: Embrace the spirit of Christmas and take it into 2024. 

Grateful to be alive and given a second chance, having seen the bleak future unchanged, Scrooge rushes out into the street brimming with Christmas cheer. He finds the Victorian chuggers he had turned away and hands over an extremely generous donation, sends a huge turkey to the Cratchits and surprises his nephew’s family by showing up and throwing himself into the day. He is a changed man, spreading kindness and joy for the rest of his years and becoming an avuncular figure to Tiny Tim, who thrives thanks to his new benefactor.

Whether you are feeling run down and on empty after a difficult year or you’re throwing yourself into the social whirl of the season, could you do more to embody the spirit of Christmas? think of Scrooge’s transformation. You will never feel poorer for making a generous donation to a cause you really care about. Can you spare time for a soup kitchen? How can you help practically? Do you have any neighbours or friends who will be alone this Christmas? Philanthropy is good for society and good for the soul. Research shows that giving can boost your physical and mental health in numerous ways.

Is there something you could do on a more permanent basis throughout the year? Voluntary work? Create a strategy to involve your business in a worthwhile cause, if you don’t already have one. Working as a team to do good boosts morale and belonging in the office, two assets you can’t just buy off the shelf.

Like Scrooge, if we can know how to keep Christmas well… “May that be truly said of us, and all of us! And so, as Tiny Tim observed, God bless Us, Every One!” 

“Information is power. Particularly when the competition ignores the opportunity to do the same.” US billionaire Mark Cuban.

 At Rialto, we pride ourselves on staying abreast of current and emerging market trends with one eye on the present and another into the future. This is one of the ways in which we support our clients from c-suite and senior leadership level to stay ahead of the competition, whether seeking career progression or career transition.

We share some of the most relevant, timely insights our executive career coaches and other colleagues through our regular articles and blogs, and our quarterly programme of webinar events

Here, we review what we believe to have been the top five themes of 2023, largely aligned with our predictions from the end of last year, linked back to some of our previous insights and articles of the year.

1: Generative AI

Without doubt, Generative AI was the biggest business trend of 2023 and, barring any unanticipated seismic disruptions, most likely to hold its place into 2024 and beyond. This time last year, ChatGPT was a bit of a novelty. People were using it to write poems to their dogs and test its joke-telling ability. Two months later, it had broken all records by acquiring 100 million active users. In May 2023, a Gartner poll of 2,500 executive leaders found that publicity around ChatGPT had driven almost half of them to increase AI investments with 70% in exploration mode and 19% piloting or using the technologies.

As we head into 2024, the breadth and scope of generative AI and its more analytical technological sibling, large language models (LLMs), is almost limitless, affecting every single sector and function of work with a market expected to grow from $6.2 billion in 2023 to $58.5 billion in 2028.

Over the last year, Rialto insights, articles and webinar events have reported on the dazzling potential of GenAI applications in areas including, but not limited to: intelligent recruitment, training tailored to current and anticipated skills needs, market trend analysis and response, enhanced employee engagement, resource optimisation, supply chain management, sales and marketing, personalised customer experiences, report writing, content generation, sentiment analysis and insights, data management and analysis, internal communications, real time reviews of diversity, equality and inclusion policies and sentiment.

We also looked at research into which areas were expected to see the biggest productivity gains from AI while this article looked at how c-suite executives should be forming a strategic relationship with technology to drive impact. Here we looked at key areas where HR leaders can harness AI to revolutionise recruitment processes, enhance employee experiences, and provide data-driven insights to inform strategic decision-making HR.

Rialto has been ahead of this sharp curve in raising awareness with many senior level clients on how to become proficient in these technologies, building the confidence and expertise needed to oversee transformation strategies to integrate appropriate applications seamlessly and safely across the business. We have supported others seeking new opportunities to learn the language and capitalise on the capabilities of AI or pivot towards emerging technology-based C-suite roles such as chief data officer, chief information security officer or chief digital officer.

A central role played by these new positions is to safeguard organisations from reputational and AI financial risks.

Highly-trained co-pilots will be essential in managing ethics and compliance, monitoring accuracy and, of course, ensuring all AI-driven objectives and outcomes are imbued with human sensitivity. Here Rialto explored five skills needed for an AI-enabled executive workforce.

2:  Resilience and adaptability

Disruption and unpredictability have become the new normal. Today’s business leaders need to be able to absorb the shocks, endure adversity and adapt their business models, cultures, systems and workforces to respond and adapt fluently, with resilience no longer being a “Nice-to-Have”.

Executives have had another tumultuous 12 months, dealing with the legacy of 2022’s UK leadership chaos, sky-high inflation, rocketing costs and energy prices, economic uncertainty and pessimism, a slow job market, conflict close to home in Ukraine and Middle East, continued post-pandemic changes to working culture, not to mention the new technologies discussed above.  Those who have shown resilience and adaptability have been better able to create a unified, collaborative business environment, driving cultures of innovation and learning, and making faster and more dynamic decisions.

On a more personal level, in-position executives continue to need to adapt their own leadership style and skills to evolve with the fast-changing market and the traditional requirements of their roles. We looked at common challenges faced by those preparing for navigating senior leadership transitions, Top Resilience Strategies during Career Transition and how to turn a negative into a positive, making the most of rejection in an executive job search. while this piece looked at ways executives can adapt, evolve and pivot to reposition themselves in a more desirable, future-focused niche.

3: Strengthening relationships

Whether encouraging belonging among increasingly geographically-isolated staff, developing a wider network or consolidating stakeholder partnerships, building stronger relationships has shown itself to be at the heart of successful leadership in 2023.

A recent YouGov poll found that half of UK employees work from home some or all of the time and while the jury is out on the impact on productivity, many surveys have shown that distance workers often feel disconnected and worried they are invisible and so less likely to progress in their careers. C-suite need to work with HR to explore more collaborative operating models to recreate the interactive and sociable in-person dynamic alongside well-organised real life meet-ups. This approach can help avoid drops in morale and productivity, pitfalls of silo working, to build cohesive cultures, positive workforce identity and maximise joined[up performance.

In this insight, our expert Rialto executive career coaches shared five essential strategies they encourage executives to employ when seeking to enhance their leadership influence to motivate teams, engage stakeholders, inspire confidence and shape outcome from a distance.

We also looked at the value of continuous executive networking to build new and reinforce existing partnership relations. Data from McKinsey shows that only 14% of professionals have grown their networks since 2020, while less than 50% reported making any effort to do so. Yet the more extensive & relevant your network is, whether long-established or newly-connected, the greater your reach when you need to expand into new sectors or terrains or bring in expertise for business or personal growth. We looked at four key activities we recommend our executive clients to practise when networking: personal benchmarking, development and growth, gaining wider perspectives on innovation and sharing insights and advice.

4: Still reaching for Glass Ceiling

This term was first coined in 1978 to describe the invisible social barrier preventing women from reaching higher levels then almost exclusively occupied by men.

More recently, its meaning has been expanded to include any prejudices or working conditions that hold individuals back, whether due to gender, race, disability, mental health, age, sexuality or gender identification. 2023 also saw people start to talk about the impact of the menopause on women in the workplace and ask how explorers could support them.

Equality, diversity and inclusivity (EDI) are now built into any successful business model and there are legal requirements to do so with serious consequences for discrimination.

Rialto director Richard Chiumento says: “Most executives may remember a time when the boardroom and senior management were homogenous zones of white males. Today, it is a joy & much more appropriate to see a make-up from every cultural background and of all ages, a real diverse group of individuals which makes the workplace so much more vibrant, dynamic, productive and interesting”.

However, while things have improved greatly, and progressive business leaders are truly recognising the unmistakable value of having an expansive plurality of views, experience and backgrounds in any boardroom or business environment, there still remains much work to be done.

“We still hear from clients who are coming up against these discriminatory barriers, whether seeking to progress within their organisation or looking at career transition. We help them to identify and overcome them while also advising leaders how to capitalise on an increasingly global market by building visibly and displaying a genuinely inclusive and welcoming culture.”

From 2022, the Financial Conduct Authority set “comply or explain” targets for listed UK companies of 40% female board members including at least one senior position and at least one member from an ethnic minority background.

The deadline saw a flurry of new appointments, with 60% of new non-executive vacancies filled by women in 2021-2022.  However, the theme for 2023 was something of a regression with boards wary of geopolitical and economic tensions reverting to the security of experience over the unknown, suggesting that for some, it remains a box ticking exercise rather than a genuine commitment.

Headhunter Spencer Stuart surveyed the UK’s 150 biggest listed companies and found increased caution around appointing first-time directors, down to 31% from 44% the year before. The number of candidates from ethnic minority backgrounds was at its lowest level this year since 2020 while the proportion of non-executive vacancies going to female candidates peaked at 60% in 2022 but dropped to 51% in the 12 months to April, 2023.

Richard Chiumiento said: “Instead of just paying lip service to EDI, organisations need to set metrics and actively seek to redress any imbalances or obstacles to genuine equality of opportunity and remuneration parity. As well as ensuring compliance, this ensures better, more trusting and productive relations with employees, potential candidates and other stakeholders. Organisations that do not comply or only commit to the bare minimum risk a damaging financial impact as well as reputational damage.”

We spoke to some of our female clients about their experiences to mark International Women’s Day in March, 2023. They told us some of the greatest barriers they felt were thrown up by unconscious bias, imposter syndrome, misunderstanding of equality and AI bias within automated recruitment processes. You can read more and find advice from our executive career coaches here.

We will revisit EDI and look at the tangible benefits of a healthy and robust culture and policy in the New Year.

5: Talent shortages:

Post-Covid, we saw a “quiet quitting” trend, where employees and leaders at all levels stepped away or down in search of a better work-life balance having spent so much time out of the office during lockdowns.  In 2023, finding, attracting and keeping the best talent from the resulting smaller pool became a strategic priority for every sector and at every level, as did investing in existing teams.

We talked throughout the year about the many tools and methods organisations can employ to ensure they have an intelligent recruitment system and a positive culture, which encourages organisational commitment and an ethos of continuous learning and career progression.

We looked at strategic HR priorities including cultivating talent and upskilling, and taking the initiative with AI to help achieve those objectives and drive growth and productivity.

We looked at how predictive analytics can identify trends and patterns needed now and in the future. AI can then find potential candidates with those skill sets, even if passive, and tailor individual job offerings based on market and internal data and the individual’s experience and requirements. While generative AI can create and deliver bespoke training programmes designed to meet organisational and individual need and ensure the workforce remains agile and responsive to the dynamic internal and wider economic landscape.

We also analysed what this meant for our clients who were seeking career transitions. Unfortunately, our exclusive data revealed that the talent shortage had not led to an abundance of opportunities.

Our analysis of publicly-advertised mid and senior level executives and leaders found an incredibly worrying decline in vacancies. For example, in November 2022 there were 12,761 publicly-advertised UK Chief Executive Officer vacancies. In October, 2023 the number was down to just 115. Non executive directors were down from 4,034 to 42 and Chief operating officers dropped from 1,814 to 82. (figures are a snapshot, and not a 100% accurate depiction)

We shared some of the invaluable advice provided to senior clients on how to shine in a gloomy marketplace and some of the bright spots on the otherwise gloomy horizon.  Rialto director Nick Storey also shared his advice on staying ahead in executive career transition.

It has certainly been a tumultuous year and we hope you have found some of our insights and articles helpful in navigating the fast-changing marketplace and economic landscape. We will continue to monitor trends and developments across 2024. Please let us know if there is any subject or angles you would like us to look into.

In a recent survey, chief executives cited financial growth as the second highest priority for HR in 2024 after talent management.  HR leaders rated this tenth, revealing a disconnect which could be limiting potential for growth. CEOs also placed “efficiency and productivity” and “technology review and investment” much higher than HR Leaders.

Here are three key areas where HR Leaders and the C-suite should be working together to strengthen the contribution and impact of HR and add greater value to their organisation.

1: Leadership effectiveness  

HR need to constantly evaluate the evolving challenges and expanding responsibilities that functional business leaders are now expected to take on. A substantial three quarters of HR professionals acknowledge that leaders in their organisation feel overwhelmed by the growing scope of their responsibilities with more than half stating that their leaders bear more responsibility than they can effectively manage.

Regardless of sector or discipline, these are just a few of the day to daily challenges leaders may face on top of their specific positional duties: balancing short-term responses to crisis vs longer term visioning, cultivating fit-for-purpose behaviours, understanding and integrating fast-developing technologies, leading hybrid teams, managing multiple, sometimes competing stakeholders. On top of all that, they must oversee healthy cultures with clear EDI policies and execution and motivate workforces who may feel burned out and be seeking better work/lifestyle balances.

In order to thrive and drive productivity and efficiency, organisations require HR to step up and proactively support the path to navigate multiple priorities.  This means listening and being responsive. Among the strategies HR can employ to assist are: resetting expectations; enabling effective delegation and communication training through access to coaching and training for staff; simplification of structures and tasks; identification and help integrating new technologies to improve efficiency; and ensuring directives around business culture and expectations are clear and visible.

Leaders should be made to feel confident in asking for help without being judged and have built-in time for reflection and mentoring.

2: Talent Management and upskilling  

In the domain of talent management and upskilling, HR has an opportunity to take centre stage in its strategic input to the rapid evolution of workplaces and business models.  The integration of AI into HR functions will support the evolution of job specifications, with HR leveraging AI audits to assess skills, experience, and talent. AI applications will further empower HR to identify and cultivate individualised training programmes, aligning upskilling initiatives with the dynamic and agility needs of an organisation.

As the landscape of talent acquisition continues to transform, acquiring, retaining and optimising talent extends beyond traditional measures.  In a survey conducted by Gartner, only one in four employees surveyed said they felt confident about their careers. Scope for promotion, progression and personal enrichment can be as important as income when valued employees consider factors influencing their career decisions.

This shift requires a focus on creating a holistic approach encompassing employee wellbeing, coaching, transparent career progression and more flexible work arrangements as well as a commitment to continuous learning and upskilling.

Career progression is moving further away from being a vertical ladder with clear scripts and gateways, unfolding instead as a matrix with interconnected paths.  HR leaders should be ready to tailor talent strategies to these new business models which will open wider career possibilities, more diverse employee expectations and opportunities that represent finite cycles of work with dynamic possibilities for personal growth.

3: Embracing AI  

Surveys show C-suite buy-in to AI advantages is not being matched by enthusiasm from HR leaders. More than two thirds of executive leaders agree benefits of AI outweigh risks yet only a fifth of HR leaders are actively engaged in AI discussions across their organisations.

Most describe the application of AI as being something that will become increasingly important in the future. However, the most advanced organisations and their HR leaders are using it now to streamline processes, improve efficiency and enhance employee experiences, lifting HR’s role in the organisation.

First steps for HR are creating a framework to assess and identify appropriate AI applications and support departments to adapt existing organisational working models to assimilate and fully exploit their potential to drive progress and efficiency.  Importantly, they must also be aware of the risks and create a framework to ensure their ethical, transparent and responsible use.

There are known issues around generative AI, such as bias and a built-in tendency to “hallucinate” – literally to make things up. Whether you have AI tools built for your organisational needs or integrate existing applications, ensure there are humans testing, overseeing and constantly assessing output before it reaches any audience.

While younger generations may be unphased and embrace the fast pace of technology-driven change, adoption of frontier technologies may alienate some older workers who are already feeling bewildered by the pace of change, post-Covid, and worried about being displaced by automation.

Manage their concerns with genuine, effective two-way communication. Explain any changes, why they are necessary and how they will benefit them, ensure they get proper training to co-pilot the technology effectively, open channels for feedback, listen and respond.

If you want to learn how Rialto can help your HR teams to explore and prepare for the future of work and emerging business models, contact us on +44 (0) 20 3746 2960.

As organisations grapple with the complexities of talent management, employee engagement, and the ever-changing dynamics of the workplace, the adoption of AI emerges not just as an option but as a strategic imperative for HR.  Far from being a threat to traditional HR practices, AI serves as a powerful ally, with opportunities to revolutionise recruitment processes, enhance employee experiences, and provide data-driven insights to inform strategic decision-making HR. 

In the near term the potential to improve productivity through a more streamlined, focused, strategic HR function is around 30%, yet 56% of HR professionals believe it will be at least three years before they will be prioritising AI.    

To hold back in adopting AI now is to hold back on elevating the role of HR to new heights.  Here are five practical uses in which AI comes into play in HR functions: 

1: Recruitment and onboarding 

AI should be embraced in recruitment and onboarding processes for its ability to streamline and enhance the hiring experience. By leveraging AI algorithms to analyse applications, identify top talent, and automate routine tasks, organisations can significantly reduce time-to-hire, improve candidate matching, and ensure a smoother onboarding process, ultimately creating a more personalised experience for candidates and leading to a more efficient and effective workforce. Consider the following:

• Predictive analytics can help identify trends and patterns both outside and within an organisation and identify skills needed now and in the future by an organisation, department or team.
• AI can then find potential candidates with those skill sets, even if passive, and tailor individual job offerings based on market and internal data and the individual’s experience and requirements.
• Generative AI can produce marketing and recruitment materials.
• “Chatbots” can respond to job advert questions.
• AI-enabled software can sift through unlimited numbers of applications and produce shortlists based on organisational need, matching behavioural attitudes to company culture as well as qualifications and experience.
• Digital platforms can create and deliver automated onboarding and training programmes.

2: Talent management 

AI can act as a game-changer in talent management, offering insights into employee performance, career development, and succession planning. By harnessing AI algorithms, organisations can optimise talent acquisition, identify skills gaps, and foster a proactive approach to employee development, ensuring a strategic and future-ready workforce.  Consider:

• Tracking employee sentiment, predict exit risk and inform and advise managers to respond appropriately.
• Enabling and managing self-service portals allowing access to services, training and information and reducing the workload of HR professionals.
• Identifying and preparing potential successors for outgoing leaders to ensure a seamless transition.
• Automating repetitive tasks allowing employees more time for creative and collaborative work, boosting productivity and job satisfaction

3: Learning and development 

AI integration in learning and development is essential for personalised, data-driven insights that cater to individual employee needs. By leveraging AI-powered platforms, organisations can deliver targeted training, recommend tailored learning paths and continuously adapt content to keep pace with evolving skills requirements. It can be used to:

• Audit skills within an organisation and market trends to prepare for future needs.
• Identify which employees should be upskilled in which sectors and specialities to ensure a smooth, dynamic, responsive workforce.
• Create personalised training modules which adapt content to the individual and promote a culture of continuous learning.
• Design training to nurture soft skills such as resilience, leadership and adaptability to prepare for shocks, crises and disruptions.

4:. Compliance 

Navigating the intricate landscape of HR compliance has never been more dynamic and AI can streamline these processes, ensuring that nothing falls through the cracks. It can track and manage workflows related to compliance tasks, such as background checks or policy acknowledgments.    Create compliant documents and update them with legal and internal policy changes. Applications can:

• Detect any real or potential legal or regulation violations and alert appropriate departments in real time.
• Analyse pay equality and Diversity, Equity, and Inclusion (DEI) issues.
• Use algorithms to detect current and future risks by recognising anomalies such as insider trading or money laundering, freeing employees from the intensive, time-consuming analysis of vast amounts of data.

5: Administration:  

Overall, AI has a huge role to play in reducing administrative tasks by automating scheduling, carrying out data analysis, and report generation, allowing HR teams to optimise time management, make more data-driven decisions, and streamline communication to support change management and leadership initiatives. This can include:

• Providing automated HR support to staff.
• Writing and disseminating company announcements.
• Monitoring sentiment towards proposed and actual changes and creating communications to reflect and assuage concerns and build positivity.
• Tracking and recording content from meetings and highlighting action points.
• Generating and disseminating reports.
• Creating content for employee surveys, distributing, analysing responses and producing insights and action plans.

We encourage all HR teams to embrace the transformative potential of AI, moving it from being seen as a buzzword to a powerful workforce ally.

If you are a HR leader and would like to explore how to be part of the AI lead within your organisation or you are a senior executive and want to know more about how to AI can be used to transform HR into a more strategic, valuable, insight-driven asset, contact Rialto on +44 (0) 20 3746 2960.

The Rialto resident number cruncher has been tracking publicly-advertised executive-level vacancies for the past 12 months and our exclusive data for the year to October 31, 2023, reveals a truly worrying trend.*

Our analysis of the last year of publicly advertised senior vacancies looks like a Himalayan mountain range falling down to sea level – wild fluctuations bottoming out almost completely as traditional open c-level level positions all but dry up as the landscape shifts in the face of seismic shocks from the explosion of AI.

Here, Rialto director Richard Chiumento casts his expert eye over the figures –  and finds the bright spots on an otherwise gloomy horizon.

So, Richard, a pretty bleak picture emerging here?

In my 30 years of supporting global business leaders to take their next professional career transition I can honestly say I have never seen anything like it. It reflects what we’ve been hearing from our executive outplacement clients who are exploring moves into similar positions in different companies or sectors. Many come to us having drawn a complete blank with their usual actions of registering with headhunters (who have limited mandates to fill) or approaching target companies. I’m afraid this data only confirms worst fears. The volume of the most senior level positions is reducing quickly and substantially.

Which Executive roles have been hit hardest?

In terms of traditional mid and senior level executives and leaders, the decline in vacancies is across the board CEOs, CMOs, HR directors, NEDs, COOs, etc, and it is global. For example, our data shows that in November 2022 there were 12,761 publicly-advertised UK Chief Executive Officer vacancies. In October, 2023 the number was down to just 115. Non executive directors were down from 4,034 to 42 and chief operating officers dropped from 1,814 to 82.*

We have to be careful as these are not definitive figures but they do show real indicative trends which we discuss and use to plan successful strategies with our clients. We can also see old-style candidate profiles diminishing as traditional executive functions start to disappear.

What’s behind it?

A perfect storm of factors: the legacy of Covid, economic uncertainty, the geopolitical tensions in Russia, Ukraine and now the Middle East; inflation and rising interest rates have led to a cost of living crisis. Consumers are buying less and companies are reacting by investing in pay increases where possible and cutting their own costs where they can. They are accelerating digital transformation and investment in generative AI and other frontier technologies rather than people. Many have imposed a recruitment freeze and are choosing to reshuffle internally or are culling expensive senior staff – particularly those who have failed to stay relevant to organisational, market and customer needs and don’t recognise that they need to stay open to continuous learning.

So should people just hold on and wait for the storm to settle?

It’s not that simple I’m afraid and we tell our clients that doing nothing is not an option. Against the background of this inauspicious economic landscape we find ourselves in the midst of the greatest revolution to hit the workplace in history.

Last week, Elon Musk told Rishi Sunak he believed AI would one day make all job functions obsolete and that we would all get to choose whether we want to work as a sort of recreational hobby. I don’t buy into that though I do agree AI will have a seismically disruptive impact.

Historical projections about AI-related job losses have put the repetitive tasks in the firing line, driving, coding, accounting. However, our data shows that executive segments are equally vulnerable.

Senior level individuals are better off actively taking control of their career asset and driving assertively into the future instead of sitting back and allowing their value to rust and  depreciate.

I’ve been talking about the transformative impact of AI for a long time and it’s no co-incidence that we started tracking this data in November, 2022 when ChatGPT launched and changed the way work is done. The generative AI that powers it and other models such as Bard, Perplexity, Cohere Generate, AlphaCode, Synthesia, will have more of an impact on our lives and workplace than any other technological development in history. Companies are already drastically reducing and rebalancing their workforces as they adopt these efficient new technologies. Where they are recruiting in numbers it’s in these new technology-led spheres.

This is not like the previous downturns we have seen – this is the dawn of a new era and there’s no going back. But there are positives – there are new opportunities opening up which see executives working alongside AI, co-piloting, and these are the roles for the future.

What are the emerging executive roles?

We also analysed emerging roles being created by companies looking for different skill sets as they employ new business models, digital transformation and generative AI applications. They include chief automation officer, chief digital officer, chief data officer and chief experience officer. We are seeing real growth in these roles and a shortage of skills, in contrast to the massive oversupply of traditional senior role skillsets. It’s the new skillsets and opportunities we support our clients to pivot into.

What actions are you taking to enable clients to make the jump.

It’s more of a turn, a pivot, than a jump. We’ve been able to look at the big picture and join up the dots between old world and new.

We help senior executives realise how they need to adapt and evolve, upskill or reskill; that’s whether they wish to stay in their current role, move to a new company in a similar role or move into one of these new roles I’ve discussed. Some are doubtful, initially, either because they are fearful and overly-pessimistic about being obsolete or over-confident that they can live off past glories. Our market mapping data really supports what we’ve been advising them: they need to be as dynamic as the times, keep moving forwards.

We have a finely-tuned and highly successful programme to help them to stay relevant. We identify and evaluate their aspirations and risk factors against our knowledge and research of current market trends.

We identify the priorities, actions and opportunities that would best suit each individual according to their own unique set of goals, skills and experience. We encourage our senior level clients to feel positive and confident about their place in this new world and to be proactive about positioning themselves as the best, most informed, stand-out candidate when they set their sights on a new position.

How do you see the picture developing?

The existing world of work is dying and the skills that made people attractive to employers are dying with them in most sectors and in most functions. The pace of change is faster than I think almost everyone realises. The World Economic Forum says 1.1 billion workers will need to reskill before 2030. Our core message to clients is this: the executive job market is moving faster & is more disruptive than at any time in history – if you stand still, you’re going to get left behind.

Figures are not 100% accurate and should be read as a trend rather than as definitive data.

*Sources: LinkedIn up to July and Adzuna from August to October 2023. Figures are not 100% accurate and should be read as a trend rather than as definitive data.