Executive Career: Chief Technology Officer (CTO)

In recent years, many of our personal and professional practices have become technologically aided, from the way we shop, socialise, and learn, to the ways in which we conduct our workday. Customers have developed new sets of digitally driven standards and higher expectations, making it much more difficult and implausible for businesses to continue to progress without the assistance of more advanced tools. As we face challenges from an increasingly disrupted global economy, the adoption of new technologies will be more imperative than ever to help organisations continue to adapt and deliver results for their customers and stakeholders.

Digital transformation is an all-hands-on-deck process, with everyone in the organisation having a role to play. The Chief Technology Officer (CTO) will most often be the one leading the project, and will face many challenges along the way. Here are some of the top skills required to be successful in this executive career, and some areas today’s CTOs should focus their attention for the foreseeable future.

CTO Snapshot

The Chief Technology Officer is the most senior executive in an organisation’s technological function, occupying a seat on its board. They oversee research and development and determine ways in which the organisation might use technology to enhance its products, services, or practices to benefit its customers. This is a highly visible role requiring a combination of both deep technological savvy and strong leadership and communication capabilities.

Historically, the role of the CTO was the most loosely defined board position. With time, organisations have begun to distinguish the responsibilities more between the technology chief and those of the Chief Information Officer (CIO). The main difference between these two executive careers is their focus, with the CIO focusing inwardly on the organisation itself while the CTO looks outward. Therefore, successful CTOs must have a finger firmly on the pulse of their market and the needs of their customers, being both commercially minded and CX focused.

Much like the broader technology industry itself, the UK’s CTO population lacks in gender diversity. Previous reports found that only 15% of FTSE 100 CTOs are female. However, CTOs can expect to be well compensated in the UK, earning a median base salary of £92,179. Total packages including base, bonus, and profit share can range up to £175,000. Those based in London can expect higher earnings with an average salary of £106,963, and those with 10 or more years of experience can expect to earn up to 23% higher than average.

Top CTO Skills

The executive role of the CTO has become increasingly important in recent years given greater Board investments in technology and the rise in digital transformation as well as societal trends towards e-commerce, hybrid and remote working, digital media consumption and more. It is the role of the CTO to understand how these trends will impact the business’s customers, and how to leverage technology to meet these evolving needs. Because of the commercial nature of this position, CTOs require a unique combination of skills to be successful. These include:

• Technological Savvy:  It goes without saying that the head of the technology function should possess a strong understanding of tech from both a technical and practical standpoint. Typically, CTOs possess a strong technical background to begin with, but must also be willing to branch out beyond what they know. In addition to overseeing the company’s current technological setup, the CTO needs to be looking a step—or multiple steps, when possible—ahead at trends to understand where technology is heading and how it may impact the business and its customers.
• Business Development: Innovation is a crucial element for driving an organisation forward. The CTO is tasked with helping to achieve high-level business objectives with the use of technology. This may involve advising on any technical bets, but also may require the CTO to come up with and oversee the development of new products, features, or services that fill gaps in the marketplace and satisfy evolving customer needs. CTOs will be involved in various aspects of the process, which will require close collaboration with other members of the C-suite and throughout the business. They will work closely with product heads or the head of engineering to ensure that all strategy is aligned with the company’s technology goals, and they may also collaborate with the marketing team to ensure all products have the proper technological support.
• Tactful Communication: Oftentimes, it falls on the CTO to get the rest of the C-suite on board with technological initiatives. Generating this buy in requires a tactful and strategic communication style wherein the CTO can provide clear cost benefit analysis and demonstrate business need, usually while having to explain highly technical ideas in a way that non-technical minds can comprehend. But never is it solely the board’s trust that needs to be earned. The CTO must also be able to win over the organisation’s key stakeholders such as its investors or shareholders, its partners, and its people. In terms of the lattermost group, the CTO will not just need to influence those in their own team or department. It will fall on the CTO to get staff in all functions on board with any new initiatives and ensure that these team members understand the role of technology in the business, its implications for their role, and the impacts on the customer. These conversations with staff will be most valuable, as those closest to the customer will have the best insight into what their needs are and what processes could be improved. Ensuring positive and open communication and encouraging innovation and ideas from others will be important in this role to ensure that the best solutions can be reached.
• Customer Centricity: Keeping the customer front of mind during those conversations and when making decisions is critically important for the CTO. Today, so much of the customer journey occurs digitally that the tools and processes involved must be up to a certain standard to meet expectations. But in an increasingly competitive marketplace, meeting those standards is no longer enough. CTOs need to combine their technical knowledge with their understanding of their customers to find solutions that will help further the business’s objectives, create loyalty in a saturated market, and obtain the competitive advantage. That said, CTOs cannot afford to be purely technical or purely commercial. Their ability to leverage both sides of themselves will be crucial for their success.

Top Market Challenges Impacting CTOs

The skills above will be critically important as CTOs attempt to navigate the challenges of the current technological and economic and employment landscape. Some of the top factors that technology chiefs should be aware of are:

• High Stakes Digital Transformation: Digital transformation has been high up on the strategic agenda, but the pandemic and its resulting challenges pushed up the timeline and added additional pressure for businesses to adapt. It often falls on the CTO to spearhead digital transformation within the organisation, and today’s CTOs face higher stakes and tighter timelines than ever before. There is no room for vanity projects or adopting new technologies for the sake of it, so CTOs will need to help to ensure that the intended projects create value for the customer and revenue for the business. CTOs will likely be tasked with selecting the software and hardware that will be implemented in the organisation, managing the phasing out of legacy systems, and drafting new procedures and policies. These choices will need to be made strategically with the best interest of the business and its customers in mind. Businesses will be looking to invest, but budgets may be tighter than expected due to economic difficulties. CTOs may be challenged to make the most of the resources they are allotted and create major impact with minimal cost.
• Talent and Skills Shortages: As the head of the technological function, the CTO needs a strong team behind them and will likely be involved in hiring and training. However, a record number of businesses are doubling down on digital transformation, which has created an exponential demand for tech talent and has made securing and retaining qualified staff more difficult than ever before. Not having the necessary skills on hand limits what a business is able to accomplish and influences how it prioritises, and therefore the high rate of attrition poses major threats to the progress and results the CTO is tasked with delivering. Since the talent crisis does not look to be ending any time soon, CTOs will need to start being strategic about how to do without. This may require adapting their transformation plans or exploring training options to upskill current staff.
• Cybersecurity and Data Privacy: New threats in cybersecurity emerge every day. With individuals more dependent on technology than ever and businesses’ IT systems spread out across locations following the adoption of hybrid work models, CTOs and their teams are now having to be vigilant about cyberattacks that are more frequent and more complex. Staying on top of these threats will require continuous monitoring and improvement of systems, which can be both costly and time consuming. CTOs will need to consider a reasonable approach to tackling any breaches without it having to become their team’s full-time occupation. Alongside that, the shift to digital has endowed businesses with more customer data than they often know what to do with. Not only is it the responsibility of the CTO to find was to use technology to leverage and derive value from that data, but also to keep it safe. Customers have become much more sensitive about the personal information that is gleaned from their activities, and all it takes is one breach to lose all trust. The CTO needs to be customer focused at all times, and therefore it is now a vital part of the job to protect customers’ confidence while shaping their experiences.

Top Priorities

Given these challenges, current and aspiring Chief Technology Officers should focus their attention on these 3 key areas:

• Crafting Customer Experiences in a Crowded Market: Digital has expanded the playing field, meaning businesses are no longer just competing with those in their local area anymore. Customers are spoilt for choice in products, services, applications, platforms, and so on, all thanks to the digital landscape. CTOs will soon be assessed by their ability to deliver engaging experiences that differentiate and build loyalty. Doing so will require you to know your customer as well as you know your technology. Prioritise building solutions that are reliable, efficient, and experience driven.
• Optimising and Prioritising: Strong business acumen is a requisite for the success of a CTO. This skill will be especially crucial as businesses navigate recession, talent shortages, and a disrupted global supply chain. Over the next few years, CTOs will need to find ways to create results for the business despite any issues with resource allocation. This may involve finding ways to optimise technology investments, prioritising projects that will deliver the most value, and making the most of the talent that is available. The ability to adapt and adjust will be what sets great CTOs apart from the rest during this tough economic period.
• Maintaining Future Readiness: No CTO wants to invest in solutions that may be fit for purpose today but cannot flex to serve the business tomorrow. Innovation should be a major focus for all CTOs. This will involve understanding and embracing the emerging technologies such as IoT, AI, and big data that are disrupting our current landscape while keeping an eye on those beginning to boil in the background, like the metaverse and cryptocurrencies. CTOs will need to be able to separate hype and business value to determine which technologies will be right for the business and which are better kept as buzz words. Continuous learning is essential. The rest of the board will be looking to the CTO for guidance, and it is essential to be ready and informed.

The executive career of the CTO is an incredibly important one and will only become more so over the next few years. Success will take innovative thinking, flexibility, continuous learning, technological savvy, and strong customer centricity. It is certainly a challenging time to be in this position, but an incredibly exciting one as well given the impact these senior executives will have in shaping the future.

If you are a current CTO looking to enhance your executive career, or an executive looking to transition into a CTO role, we can help. The Rialto Consultancy offers a range of career strategy services including Executive Outplacement, Executive Career Coaching, and Personal Branding. Get in touch with our team to discuss your options.

It is easy to understand why so many professionals choose LinkedIn as their preferred medium for building their personal brand and navigating an executive job search. When used correctly and strategically, this platform can be an incredibly powerful and valuable tool for senior executives looking to build their profile, enhance their career prospects and expand their networks. One study found that 122 million people received an interview through LinkedIn with 35.5 million having been hired by a person they connected with on the site, highlighting the potential to create real opportunities from this platform.

With approximately 830 million LinkedIn users in more than 200 countries worldwide, the site has become a staple of professional activity. Because of its popularity, many executives are drawn to building their presence on LinkedIn as opposed to pursuing other thought leadership avenues such as registering as a speaker, creating their own website, or starting a podcast. LinkedIn boasts built-in audiences and some great features to allow you to reach them.

We know that crafting a personal digital brand is not like creating your CV, so bringing it to life online takes more than simply having a flat profile on multiple platforms. Creating a successful personal digital brand involves taking the time to be present and comfortable in a nonstop online discussion environment and to effectively live out the brand you have established.

If LinkedIn has been your chosen medium thus far, it is likely that you have the basics completed but are looking to take your LinkedIn use to the next level or have some questions about how to use the site to your maximum advantage. We have compiled a list of five frequently asked questions from our clients about using the site in an executive job search and beyond that may help you enhance your presence and derive real benefit from your LinkedIn activity:

1. Should I use the ‘Repost’ or the ‘Share with your own thoughts’ option?

The ‘Repost’ feature on LinkedIn is one of its newest additions as of summer 2022. Similar to Twitter’s ‘Retweet’ function, choosing ‘Repost’ will share that post with your followers. It will appear the same as it does on your feed, with a small bar above it that indicates you have reposted it.

While this may help a post from your peer or company page get more views or engagement, it does very little for you in terms of thought leadership. We usually recommend our Personal Digital Branding clients use the ‘Share with your own thoughts’ option and take the time to add a bit of commentary with your thoughts on the posts’ content. The only drawback of this option is how LinkedIn’s algorithm treats Shared posts. If you have used this feature before, you may have noticed that your Views or interactions were lower on these posts compared to any original posts you may have sent. There is no real explanation for why LinkedIn does this, but it is something to consider when debating what option to use.

A great alternative is to leave a salient and thoughtful comment on the original post, as posts you’ve commented on will still appear in your followers’ feeds. This option will also put you in front of the original poster’s audience and potentially lead to more eyes on your profile, new connections, or opportunities.

2. Can others see the things I like and comment on?

Yes. Anyone who visits your profile can see what you have shared, what posts you have liked, and what comments you have left on others’ posts in the ‘Activity’ section. Those you are connected to will see this content on their feeds, and above the post in question will be a bar with your name and an indication of how you interacted with that post (i.e. “commented on this” or “finds this insightful”).

Therefore, it is important to be mindful of what you say and do on the platform both inside and outside your own profile. You never know what recruiter, potential employer, or other potentially beneficial connection may see your activity and what impressions of you they may draw from it. It is critical to ensure that all aspects of your professional profile, including your activity, are aligned to what your current or future employer might expect from you. It is also crucial to consider what audiences you might want to reach, networks you may want to be a part of, or thought leadership perceptions you may want to create and tailor your activity to those specific audiences. If you want to be associated with a specific thought leadership subject, try to interact with content related to those subjects so that anyone who checks your Activity will see that you are truly engaged with the topics you are championing. Ensure that the trail you are leaving online is a good reflection of how you would like to be perceived professionally.

3. Is there a limit on how many connections I can have?

Yes and no. To push the value of quality connections over quantity, LinkedIn caps the number of ‘Connections’ you can have at 30,000. The thinking behind this is that no one could possibly know or communicate with more than 30,000 people on a professional level, and even that many is overly generous. When you are Connected to another LinkedIn user, you gain access to each other’s networks, you can send direct messages to one another, and you will see each other’s content on your feed. But what happens once you exceed 30,000?

Anyone who tries to Connect with you after you hit this threshold will instead become a ‘Follower.’ What this means is that they will see your content in their feed, but not vice versa, and they will also lack all of the other benefits of a Connection. The same will apply if you try to Connect with anyone else.

LinkedIn does offer the option for you to trigger this earlier than 30,000 Connections with what it calls ‘Creator Mode.’ If you enable this setting, no one will be allowed to Connect with you, even if you have less than 30,000 Connections. Instead, the only option is to Follow. They will see your content, but you will not see theirs.

While enabling this setting may sound appealing from a thought leadership standpoint, we typically advise our Personal Digital Branding clients against it. Most senior executives will be looking to expand their networks and engage in meaningful interactions with industry peers. If your aim is to make a career change or to attract new opportunities, Creator Mode makes it much more difficult to get in contact with you. Creator Mode is best reserved for those purely focused on thought leadership who are not interested in building out their network. Think of business leaders like Richard Branson and Bill Gates, whose LinkedIn profiles are set to Creator mode and only enable you to Follow rather than send a Connection request.

4. Should I ‘cold connect’ with someone on LinkedIn?

If you are looking to build a stronger network and actually derive value from it, then you need to be thoughtful and strategic about the people you connect with. Networking can certainly be a numbers game, but at the senior level you should have a good idea of which Connections might or might not be ones you can share useful insights with. Our experts’ advice is to not just accept any and every Connection request that comes through and instead exert a bit of judgement over the potential shared benefit of being in the same network.

That said, that does not mean you cannot connect with someone you have never met in person. If there is someone you feel could be a good Connection for you to have, there is no harm in sending them a request. However, if you are going to do this, we recommend that you think about what shared value, interest, or connection you have that would persuade this person to want to connect with you. For example, if you have something relevant in common such as your membership in the same LinkedIn Group, attendance at the same industry event, or Connections in common, that could provide the link you need and demonstrate enough mutual benefit for that person to accept your invitation.

If a link is present, customise the text of your Connection invite to reflect this. After saying hello, make brief mention of why you are sending an invite or how you came across their profile, and mention that it would be great to connect before signing off the message. While technically a ‘cold connection’, you have warmed up the connection with relevancy and are more likely to be successful at adding this person to your network.

If there is not a common link, you will need to be a bit more strategic with your approach. Connections should be mutually beneficial. You will have identified your reasoning for wanting to connect with this person, but what benefit could the connection bring to them? Since you will not have common ground to work from in this case, you will need to approach your connection invitation from those benefits you have identified. Since this is a true cold contact, you need to clearly express why it is you have reached out and what benefits you feel the connection could produce. If you are unable to determine what those benefits are, or if they skew in your favour with little to no benefit for the other person, it is probably best not to pursue that cold Connection.

Remember, your Connection request messages can be a maximum of 300 characters, so use them wisely. Consider this invitation to be the short elevator pitch, opening the doors to a longer conversation once the request has been accepted.

5. What are some Settings I should enable or disable?

LinkedIn offers a whole host of privacy and visibility settings to enable you to share as much or as little as you’d like. However, there are a few that we recommend either enabling or disabling completely, most of which fall under the Visibility category.

Your Visibility settings control what visitors to your profile can or cannot see before they are a Connection. The first on this list is Profile Viewing, which offers three options for visibility. We strongly recommend you use the first option, which shows your profile photo, full name, and headline to everyone. The other two settings make your profile much more vague and makes you harder to find, which can be detrimental for attracting opportunities or recruiters.

Also under Visibility, you will find ‘Connections.’ This setting allows your Connections to see your full Connections list. You might be okay with this, in which case you can leave it On. However, you may want to be a bit protective of your Connections for various reasons. For example, if you are in a highly competitive and contacts-driven industry, you may not want competitors to be able to use your Connections list to identify who your clients are. If you feel it best to keep your Connections private, turn this setting to Off.

Another key Visibility setting is ‘Profile discovery and visibility off LinkedIn,’ which controls whether or not your profile can be found via search engines such as Google. We strongly recommend leaving this enabled so that your LinkedIn appears as one of the top results when anyone Googles your name. The more places you are visible, the better. It is up to you whether or not you would like potential contacts to find you on LinkedIn using your email or phone number. These settings are more of a personal preference.

A final setting you may want to consider whether to disable is ‘Share profile updates with your network’ under Visibility. If you have this setting enabled, your Connections will receive a notification any time you update your profile with a new role, education, awards, and so on. If you are someone who updates your profile frequently or are in the process of making some major changes, you may want to switch this setting to Off to avoid overwhelming your network with notifications. Alternatively, if you are not someone who regularly updates their profile or have not amended your information in a while, having this setting enabled may be a good way to prompt your contacts to touch base with you about the new changes in your career. If you are on the fence about whether or not to use this setting, an alternative is to disable it and instead share your milestones and good news in a post.

LinkedIn may seem tricky to master but be patient with it. Over time, you may find that what works for others is not the same as what works for you. Do not be afraid to experiment until you find the settings, habits, and content that serve you best.

We hope this Q&A helps give you a jumping off point with some best practice, and if you would like some personalised help with your LinkedIn presence and personal digital brand, you can reach out our team on +44 (0) 20 3746 2960.

It’s no secret that most senior-level roles are secured via the hidden job market, making who you know and who your profile is visible to extremely critical if you are looking to undergo an Executive career transition. Knowing exactly who the right people are and making an impression on them are two of the most critical steps in accessing these roles and are the biggest hurdles most executives face. When done right however they often uncover many more promising and rewarding meetings, discussion and opportunities.

Here are three key activities you should focus on to be more effective when seeking out those unknown or hidden opportunities.

1. Establish a Market-Aligned Value Proposition

You would never go to market with a product that no one wanted to buy. Instead, you would look at trends in your target market, find out what your target consumers’ needs are, come up with a strategy for how to position your product and how to reach them, test and retest to ensure you are putting the best possible product out there, and then you’d go to market. If you would invest all of this time and effort into perfecting and aligning a product that is going to represent your business and bring in value, why would you not think of yourself in the same way when you as a senior executive will need to bring value to whatever organisation you are aiming to join?

Having a value proposition in general is a bare minimum requirement but having the right value proposition and making it unique is another thing entirely. You need to approach this stage critically and do your research. Things move swiftly especially so in today’s digitally driven and continuously disrupted marketplace. The demands that were present in the market when you were last looking for a role have certainly changed since then, even if it was only a short while ago that you last searched. You need to be up to date with what is happening now and what the needs of your industry, desired organisation, or target role are at this point and time and moving forward.

A good starting point is our Career Growth Index, which can help you determine your readiness to take the next step in your career and where you need to invest more time to be market ready . Based on the insights you glean from the Index and your own research into the market, you can then determine how you align with your career objectives. Knowing this information will allow you to better target your search and determine who the ‘right people’ are in terms of your specific goals, what matters to them, and how you need to position yourself and communicate your value during any discussions.

2. Leverage Your Personal Digital Brand

LinkedIn currently has approximately 830 million registered members in more than 200 countries and territories worldwide. With recent stats showing that approximately 50 million people searching for jobs on the site every week, it comes as no surprise that 87% of those looking for talent regularly use the platform. The value of this particular social network should not be overlooked, as a study found that 122 million people received an interview through LinkedIn with 35.5 million having been hired by a person they connected with on the site.

Having a presence online is a basic requirement for today’s senior executive, especially those in transition. But are you using it properly? Are you establishing yourself as a thought leader? Are you expanding your network and making introductions? Are you using it for research and to prepare for any meetings or interviews?

So much of today’s executive job search is conducted digitally, and therefore how you present yourself online and leverage the tools at your disposal can make all the difference in being seen by the right people and ultimately securing a new opportunity. You need to be thinking carefully about the information on your profile, the content you are sharing and interacting with, and the people you are connecting with or messaging as all these factors come into play when looking at career progression. In our coaching programmes, we focus on the digital element of the search very heavily with our clients to help them secure new roles, promotions, and NED opportunities with much success. This has become one of the most valuable focus areas for attracting the right attention, and while it may be time consuming, getting it right really pays off.

3. Build a Strong Network and Start the Conversation

An executive job search needs a compelling value proposition seen by potential employers at scale.  It can be a numbers game. The more of the right people you can get in front of, the more likely your success. Back in 2021, LinkedIn began applying limits to the number of connection requests you can send to 100 per week. Prior to this, you could send hundreds of requests each week and grow your network exponentially in a short amount of time. While the old way was great in theory for building a large network, quantity does not ensure quality.

Building a valuable network takes a lot of time and effort. To begin, you need to find the members of the audiences you have decided to target. This might be recruiters, current executives, influencers in your industry, or other key figures you identified in your research. It is much smarter to invest the time and effort in connecting with these individuals rather than making many connections that may not lead anywhere. As a current senior executive, you probably have a pretty good idea of who the decision makers are in the hiring process and who you likely need to influence. Do not be afraid to send a connection request to these people. Instead of connecting with any and everybody, cast a wide net within your target group. Try to find as many of these decision makers as you possibly can and take a shot at connecting with them. The worst that can happen is that they decline the request, which will add to your learning and enable you to relook at your messaging and improve this for future approaches.

Having the right people in your network is a great way to expose them to your thought leadership content and create some name recognition. But connection should be just the beginning. No one is going to offer you an opportunity simply for connecting with them. You need to warm up that pipeline with conversation and value. It can be as simple as starting by sending a brief ‘thank you for connecting’ message with a short elevator pitch relating to your market research. Either way, do not let the connection go cold through lack of communication.

That said, sending numerous connection requests and engaging those who accept can be time consuming. Many senior executives search for their next opportunity while already employed or while juggling other obligations, and therefore may not have the time to dedicate to this level of activity. If you are in this situation you may want to consider an automation service driven by the latest targeting technologies. Through a trusted technology partner, Rialto provides a skilled and customised service that handles much of the targeting process automatically by finding connections to key audience targets and engaging them. This allows you to focus on nurturing that relationship and drawing mutual value from it. This method typically creates between 45-75 openings within a three-month period for our clients, who have been able to secure some amazing opportunities as a result. This service aimed at lightening the initial load can be of major benefit to busy executives who want to make the most of their networking efforts but may not have the time to commit to the time consuming targeting and market segmentation requirements that will support success.

Finding hidden opportunities and building a mutually valuable network does not happen overnight, but with the right time investment and focus it can be done. If you would like our experts’ support in developing a stronger individual profile and personal brand awareness to support your career progression, explore our career transition services and get in touch with our team.

With ongoing disruption in the marketplace, many businesses and their leadership are facing pressures to continue delivering results amid financial challenges whilst likely having to make hard executive outplacement decisions and handling difficult conversations with their people.

If the businesses that we have widely viewed as recession-proof or too promising to fail are struggling, you would be naïve to think that your own organisation will not face some tough decisions moving forward. The pandemic was the first domino tipped in what is likely to be a series of economic peaks and valleys over the coming years. With that in mind, it is no longer a matter of if tough financial periods will come to pass, but rather a matter of how to properly navigate these situations with your people as they arise. It is likely that leaders will be having difficult conversations more often, and there is real value in learning how to master this type of communication. So, how do you do it? What do you need to consider?

Types of Difficult Conversations

In the current climate, the top challenging conversations that our clients are finding their leaders need most support with are:

• Informing an employee that their performance is not at the right level: Turbulent times are the most inopportune moments for performance to slip, though this may happen as the personal impacts of financial strain and the stress to deliver weigh on your employees. Other times, an employee’s performance might be good, but has the potential to be great. In a time of disruption, you need all team members performing at their very best and as a result, you may have to have some difficult conversations about performance. These conversations may not just involve your junior or mid-level staff. Often, peers or individuals in senior roles may also not be performing at the necessary level as businesses aim to evolve and grow, which requires them to change their style or upskill to keep up. The pressure will certainly be on for senior roles in a position of responsibility in an economic crisis, and there is no room for complacency.
• Informing an employee their role is at risk: Letting an employee know that their role is at risk can induce anxiety for both the person receiving the message and the one delivering it. Honesty is always the best policy when communicating with your people, but you need to decide what level of information to share to avoid causing more harm than good. On one hand, the news may instill necessary pressure to perform at a higher level. On the other, the employee may shut down under the stress. These conversations can go either way and vary by employee, so it’s important to anticipate and plan in advance.
• Confirming to an employee that their role has been made redundant: This is the conversation that no employee or manager wants to have. Letting someone go is one of the most difficult people decisions a leader will have to make, and the situation becomes much more heightened when there are financial stressors at play. Your reasons may be business performance based or financially focused, yet neither will come as much consolation to whoever you must let go. Executive outplacement conversations are the most challenging to master and require the highest levels of empathy and consideration.
• Informing an employee that they aren’t getting a salary increase, bonus or a promotion: Being made redundant is a tough blow to bear but having one’s career progression halted can be just as upsetting. In most organisational structures, hard work and loyalty tend to yield reward in the form of financial compensation, a new role, or both. Not receiving these expected incentives as a form of recognition might feel like a bit of a slight to the employee and can negatively impact morale and individual contributions.

A Checklist for Handling Difficult Conversations

Businesses appoint individuals to positions of leadership to provide their people with trustworthy figures to lean on in times of trouble and to embody organisational purpose. Effective leadership is increasingly difficult to deliver and comes with a lot of responsibility.  A number of leaders don’t receive adequate support to deal with change during turbulent times, and therefore may not feel practically or emotionally ready to deal with these challenges when the moment comes.

So how can leaders prepare themselves for these challenging conversations, and successfully deliver sensitive news?

• Don’t close the gates of communication: It can be tempting to shy away and communicate less frequently and less openly in situations where the leadership team lacks clarity, as the feeling is often to wait until there’s more certainty to share. Avoiding the situation often makes it worse, builds resentment, and can damage the credibility of the leadership team. If anything, your people need to hear from their leaders more frequently during these times, even if it’s just to say that that situation is being addressed and more information will be shared as it is gained. Clear, regular, and transparent team communication are more important than ever, no matter how ambiguous the situation.
• Plan out the conversation in advance: Oftentimes, the hardest part of having a difficult conversation is knowing where to start. Therefore, it is usually helpful to decide on your objectives for the meeting in advance, list the main topics you wish to cover, and indicate how you want to connect them all together. You do not need to script the entire conversation beforehand, but it might be helpful to keep a mental list of a few specific messages that you want to convey. Determine how you are going to open the conversation and rehearse to build your comfort levels.
• Understand the three levels of processing: When planning your discussion, understand that there are potentially three levels of processing all taking place within this singular conversation. The first is the Factual Level, or the basic facts of what’s happening. The next is the Emotional Level, which is how the employee feels about the news being delivered. The final level is the Identity Level. This is often the most complex and tricky level to navigate as it involves what the employee feels the topics of this conversation say about them as a person. Being let go or told that one’s performance is not meeting an expected level can feel very personal. By understanding that these three levels of processing will be happening simultaneously and working to anticipate what points you may need to make at each level will enable you to be much better prepared.
• Be empathetic but remain emotionally steady: While you do need to maintain your professionalism to keep on track during these conversations, it’s normal to have some uneasy or sad feelings about having to deliver tough messages. At the end of the day, we’re all human. You need to acknowledge what you are feeling within yourself, but do not allow these emotions to lead to stress responses, frustration, rumours, or other non-productive behaviour. Team members are always watching and taking their cues from their leaders. While it’s okay to let that vulnerability shine through in the form of empathy and understanding, how you show up in times of crisis matters to your people. As a leader, you’re not required to be unapproachable or unfeeling, but you do need to keep collected. Your people need leaders who seem calm in the face of chaos to provide reassurance and stability. Let the recipient of your bad news know that what they feel is okay and that while you empathise with them, as a leader you have a commitment to remain emotionally steady for the rest of your team. Your ability to remain collected in these tough moments will be of benefit to those who will be looking at you for cues.
• Anticipate the hardest parts: If starting the conversation is the hardest part, then finishing it is a close second place. What will you say to bring the meeting to a close? How will you manage if the person is still upset? You may choose to open the discussion up for questions to give the employee a chance to share their perspective or gain closure. If holding a conversation about performance or a role being at risk, it might be beneficial to end by agreeing some actions. What can the employee do to improve their standing? What outcomes will you be looking for post-meeting, and by when? If letting an employee go, you may choose to acknowledge their hard work and contribution whilst recognising the emotions they’ve expressed. Where internal or external support such as career transition or outplacement services are available, discuss the benefits of this support and next steps. The objective is to end on as positive a note as possible, even if spirits are low. In the best-case scenario, your message will be accepted and the conversation will close with a level of understanding. But it’s also important to prepare for the worst. Emotions may run high, and the employee may react poorly. Anticipate any feelings of anger, shame, anxiety, or sadness and determine how you might react to those emotions. By preparing for the best- and worst-case scenarios, you’ll be ready for anything in between.

Success in a leadership role involves being calm, open, and steady, all while painting a clear vision for the future. The expectation is that you will treat everyone fairly and equitably and hold individuals accountable when they cross a line or aren’t delivering what’s needed for the team to come out on top. This can be difficult to do when economic stressors are weighing on you, the business, and your people.

Difficult decisions and challenging conversations come with the territory of modern leadership, and our current economic conditions will mean having to do so more often. Remember that you are the steady rock for your people in these times, but you are also still human. Check in with yourself, be clear on your objectives and outcomes, and prepare for every possible scenario to approach these situations as successfully as possible.

As we enter the halfway mark of 2022, we reflect on executive job market dynamics that are intensifying the strategic efforts needed for those anticipating or undergoing an executive job search.

At the beginning of the quarter, we saw the end of COVID-19 restrictions and hybrid models starting to become the norm. However, we are now seeing many organisation wavering on their pledges to make hybrid work the norm and calling staff back to the office full time, causing a greater level of uncertainty and misalignment between staff and business priorities and a continuation of the ‘Great Resignation.’

The war in Ukraine, which initially led to unprecedent fuel shortages worldwide, has continued to cause disruption to supply chains. We’ve seen new highs in global inflation, interest rates, and costs of living around the world, leading to economic disruption for both businesses and consumers.

As we enter the summer of 2022, here are factors you need to consider across the executive job market if you are considering a career change or job move.

Job Market Snapshot

The post pandemic economic recovery many had hoped for at the start of the new year hasn’t quite materialised. This is evidenced in the latest edition of the Office for National Statistics (ONS)’s Labour Force Survey (LFS) released on 14 June.

The UK employment rate increased by 0.2 percentage points to 75.6%, while unemployment fell 0.2 points to 3.8%. The number of full-time employees increased to a record high, with the timeliest estimate of payrolled employees reflecting an unprecedented 29.6 million. Data from Bullhorn shows that contractor jobs increased by 34% between May 2021 and May 2022, while permanent roles increased 25% year-on-year. Looking at month-on-month comparisons, permanent roles increased by 16% between April and May 2022 while contract roles were up by 19% during the same period. The simultaneous rise of the employment rate and fall of the unemployment rate is good news, but another record-breaking figure indicates that the UK’s growth prospects will sustain continued damage.

In March to May 2022, the number of UK job vacancies rose to a new record of 1,300,000. For the first time in our recorded history, we have more jobs available than we have people available to fill them, which paints an interesting picture of the current market. The LFS data from May shows that total job-to-job moves increased to a record high of 994,000 during this reporting period, driven by resignations rather than dismissals. In the June LFS, reports of redundancies in the period decreased to a record low of 2.0 per thousand employees. This indicates that we are in a workers’ market, meaning that those who choose to leave their roles will have a decent chance of finding another.

Most of the movement from the Great Resignation is occurring at entry and mid level in most organisations, but that’s not to say that senior executives are not impacted. Every few years, the ONS releases data from their population surveys that give a rough idea of how many UK adults possess specific roles at the time of survey. In 2021, the number of adults aged 16+ acting as Managers, Directors and Senior Officials stood at a total of 3,365,100, accounting for 10.5% of the total UK workforce. In 2020, this figure was 3,657,400 (11.3%), and 3,684,500 pre-pandemic in 2019. It is clear that COVID-19’s challenges had a major impact on the executive market, reducing the roles available as many businesses downsized their teams or collapsed.

Because so many of senior roles are never advertised, it is difficult to pinpoint just how many of these opportunities there are available in the market at any given time. Browsing LinkedIn or an executive job search site might provide insight into what roles are publicly listed but may not be a full representation of what opportunities are out there. When looking to transition career, it would therefore be remiss to underestimate how many roles are secured through word-of-mouth, making it an imperative to ensure you are maintaining a strong network and making yourself visible to the right people.

So, with job vacancies at an all-time high, an unemployment rate below 4%, and fierce competition for workers in the executive job market, where do we go from here? What factors should those looking to expand their teams or undergo an executive job search be most aware of?

Key Trends

The Skills Imperative

Now more than ever, businesses need strong leaders of the future with the right capabilities to navigate them through these more challenging times. In PwC’s Pulse Survey, 77% of executives said hiring and retaining talent is their most critical growth driver in 2022. However, businesses are struggling to recruit the right talent for these critical roles. In West Monroe’s Quarterly Executive Poll for Q2 2022, 74% of respondents reported that executive leadership roles are harder to fill than they were last year. Therefore, executives possessing in-demand skillsets will be at a major competitive advantage in the job market.

Tech skills remain top of the list as organisations double down on digital transformation in order to drive growth in current economic conditions. Many companies will turn to automation, AI and other advanced technologies to navigate this environment with greater agility, mitigate the impacts of talent shortages, and build smarter and more resilient supply chains. Executives who are well equipped to lead or contribute to transformation projects will be of high value to potential employers.

‘Growth’ will be a major keyword throughout the second half of 2022 as economic stagnation takes hold. Executives with experience in new business development, planning, operations, sales management, financial capabilities and new business model creation possess some of the most sought-after specialisations today. When in the process of seeking or interviewing for a new role, be sure you can demonstrate concrete examples of delivering results and driving business forward.

On top of these business-focused capabilities, soft skills remain a major focus in the hybrid working world. High emotional intelligence and effective communication are critical skills needed to work with staff spread out across locations, as are elements such as motivation and accountability. But beyond that, businesses need leaders with strong people skills to help with overall talent retention and attraction. Talent has become business’s most valuable resources, and organisations need senior executives who can effectively empathise, communicate, and inspire. Demonstrating one’s ability to effectively lead, motivate, and deliver results will be of major benefit to any executive looking to take on a leadership role.

Priority-Driven Moves

Businesses cannot afford to lose valuable staff, but the prediction of an incoming recession has reprioritised salary expectations and requirements to new levels. The most recent LFS reflects the largest fall in UK staff’s real wages in nearly two decades, with growth in total pay at just 0.4% and regular pay at negative 2.2% after adjusting for inflation. This is likely to have a major influence on the jobs market, as a recession will impact the moves employers are willing to make and potentially push more executives into transition.

It is clear that employees of all levels will be looking for higher wages in order to offset rising costs of living, but that does not appear to be the only benefit driving moves in the career market. According to Korn Ferry, flexibility, career prospects, belonging, social issues, and purpose are all amongst the priorities driving professionals when exploring a new role. If unwilling to provide these elements, employers will continue to struggle with attracting and retaining their top talent and senior executives may have difficulties finding and securing a new role that satisfies their priorities.

Industry Snapshots

CIPD’s Labour Market Outlook Spring 2022 helps provide insight from employers into where the biggest gaps and opportunities can be found in the marketplace. While there are a record number of vacancies available in the UK market overall, some industries continue to thrive in their recruitment of talent. Net employment intentions are particularly high in areas such as construction (+54), information and communication (+53), hospitality/arts and entertainment (+47) and business services (+47), where employers intend to onboard rather than downsize.

Manufacturing is lower down on CIPD’s list with a net of only +24. However, Make UK’s Manufacturing Outlooks report for Q1 2022 was optimistic for the industry, predicting a 30% growth in employment and investment in the three months of Q2. Vacancies are high in this industry, but talent is hard to come by. While the all-UK vacancy rate grew 65%

between March 2020 and 2022, the manufacturing vacancy rate grew by a staggering 91% in that same period despite the manufacturing industry offering 12% higher wages on average than the wider economy. There are a multitude of factors at play that are making it far more challenging for manufacturers to access labour, such as difficulty sourcing labour from the EU following Brexit, an expensive labour market, changing workforce attitudes towards flexible working, and reduced hours or early retirement. Executives looking to make moves in this sector will likely have a fair share of challenges to overcome to innovate, deliver to customer expectations and realise growth potential.

Our monthly City Financial Services Job Market Indexes (found here) help to shed some light on the situation in the UK’s financial services sector. In Q2 thus far, we have seen increases in overall hiring demand across financial services, rising 3% between March and April and 1% between April and May. The biggest gains have been found in Banking & Markets, Investment Management, and Information Services. Wealth & Private Banking and Fintech both decreased in demand between March and May, with the latter’s decline potentially linked to a wider malaise in tech stocks and the start-Up market though it is too early to tell. Overall, this sector has had less movement than experienced to date, with our overall index up a healthy 70% year on year when compared to May 2021.

That said, even though some sectors are growing, employers across practically all industries have roles available that they are struggling to fill. According to CIPD’s report, 45% employers overall reporting hard-to-fill vacancies. These types of vacancies are most common in healthcare (54%), the voluntary sector (49%), and education (49%). But even those who are looking to grow have hard roles to fill, with 46.9% of employers in construction, 45% in hospitality/arts and entertainment, 45% in business services, and 37% in finance and insurance reporting having hard-to-fill vacancies.

As we learned from the LFS this month, there are simply more jobs in the marketplace than there are workers to fill them. The vacancies deemed ‘hard-to-fill’ are a bit deeper-rooted than a general lack of available staff, caused more by lack of skills, fierce competition for necessary talent, or an unwillingness to provide the types of benefits and work-life elements todays professionals have come to prioritise. Executives seeking to obtain one of these more difficult vacancies should consider what skills and experience they can bring to the table, and whether or not they are willing to be flexible with their ‘must-haves’ at all.

Conclusion

The height of the pandemic was an interesting and challenging period for the jobs market, but the first half of this year has proven that the era immediately post-pandemic will be no less tumultuous. With how unpredictable these initial 6 months of 2022 have been, it is impossible to forecast what shape the rest of the year may take. However, there is no need to put career plans on hold. Executives in transition should continue to take the time to assess their capabilities, strengths, and skills to best position themselves as aligned and relevant to market needs and as sought after leaders of the future.

If you are looking for personalised help to make a successful executive career change, Rialto can help. Alternatively, to gain further insights on areas to focus on to secure your next move, complete our career growth index here.

What makes a great leader? What is it about them that inspires others to follow their directives? Why is it that when they speak, others seem to listen? There is no blueprint, no set path to follow. Successful leaders don’t all come from the same school, town, or walks of life.  Leaders take all different forms, as do their styles of leadership. It’s reassuring, as this signals that all of us have the potential for greatness within us. So then why is it that some rise to the top while others don’t?

Are great leaders born, or are they made? That’s up for debate, but there are certainly leadership lessons to be learned from those who have reached the very top. Whether you agree or disagree with their styles or approach, their impact is undeniable. Therefore, this blog aims to examine some of the most successful, inspirational, and influential leaders of both today and yesterday to provide insight into what it is that sets certain leaders apart from others.

Here are some valuable leadership lessons you can apply to your own approach and consider working into your leadership development efforts:

Winston Churchill – Be direct in your communications

The first leader on our list needs no introduction, having lead Britain through one of its most challenging periods and setting a lasting example for leadership that still persists today. Many of the Prime Ministers who came after him, as well as several American presidents and global political leaders, have cited Churchill as inspiration or directly quoted him in their own speeches.

It makes sense then why one of Churchill’s greatest legacies is his skills as a communicator. He was not one to mince words, and was a firm believer in sharing the truth with the public during Britain’s darkest hours. He regularly communicated exactly what he thought and felt in a clear and open manner, directly with his intended audience instead of relaying it through those lower down. At just about every point of his tenure at Prime Minister, his fellow Members of Parliament, other world leaders, and the people of Britain knew exactly what his stances were. He is also known to have preferred to deliver bad news personally, providing yet another opportunity for openness and clarity.

While most of us will never have to lead a nation through a troubled time, many leaders today are facing their own darkest hours due to challenges from the pandemic, the worsening global economy and impending recession, staffing challenges from The Great Recession, threats from technology, and more. As we navigate these issues and adjust to new ways of working, there are notes that can be taken from Churchill’s style of communication. Be open, honest, and transparent with your people. Keep them in the loop, even when the news is bad. You shouldn’t scaremonger, but sugar-coating the issues can potentially damage trust and buy-in over time. Treat your people as peers and respect them enough to share your true thoughts and opinions with them. As a leader, there should be no questions about where you stand on the issues and what you are working to do about them.

Mary Barra – Don’t be afraid to evolve with the times

General Motors (GM) is one of the most recognisable names in automotive manufacturing, and for several decades of the 20^th century, it was also the most successful. That winning streak came to an end in 2009 when the company filed for bankruptcy when saddled with more than $100 billion of debt. The company was still recovering from financial woes as well as several safety-related controversies when Mary Barra was appointed CEO in 2015, becoming the first female Chief Executive of a “Big Three” car manufacturer.

The tradition of GM runs deep in Barra. Her father spent his whole career working for the company and so far so has she, starting as a line inspector at just 18 years old. With that level of investment in the company’s heritage, it would likely have been tempting to stick to the status quo and get wrapped up in the old way. Instead, Barra took note of the changes happening the world around her and pushed for innovation. She eliminated outmoded operations and shifted the company’s focus towards areas that today’s consumers are becoming more interested in. For example, in recent years, GM has invested millions in electric vehicles and self-driving cars and is projected to overtake Tesla as the top US-based seller of electric vehicles by 2025.

The lesson here is that while it can be tempting to stick to what’s comfortable, innovation is usually the best option. Today’s leaders are facing an increasingly disrupted business landscape with strong global competition and ever-evolving technology. Rather than fighting to keep their heads above water, the best leaders are those who embrace change early and double down on innovation.

Nelson Mandela —Lead from the back

There are many things that former South African president and Nobel Peace Prize recipient Nelson Mandela should be celebrated for, such as his determined activism and courage in the face of fear. His work landed him a 27-year prison sentence, during which time he continued exerting his influence to further the anti-apartheid movement. He played a critical role in its success, and will go down in history as one of the greatest activists and democratic leaders of all time. But despite all of the great work he did and the impact he personally made, Mandela’s greatest lesson is that leadership isn’t about the leader at all.

In his autobiography, Mandela wrote: “It is better to lead from behind and to put others in front, especially when you celebrate victory when nice things occur. You take the front line when there is danger. Then people will appreciate your leadership.” Leadership is often misunderstood as a hierarchy, with those at the top diffusing down directives to those below them. While some leadership initiatives will take place this way, in general, the leader needs to guide from the back of the pack. When you march out in front, you do so with the hopes that everyone will follow, which isn’t always the case. From the front, you miss out on all that happens behind, and by the time you turn around to check in it may be too late.

Instead, if you lead from the back and keep your people and purpose at the front, things begin to go unmissed. You can see if anyone is struggling or strays, and course correct if needed. This metaphor might conjure mental images of a shepherd flocking sheep, but what might it look like in a business setting? Leading from behind means empowering your people to share their thoughts and ideas, and ensuring everyone buys into the vision. It means being able to set aside your ego, the esteem of your position, or your own self-importance if it means that your organisation and your people benefit. Mandela put the bigger picture first, even at personal cost. Great leaders should be willing to do the same when the situation calls for it.

Marilyn Adams Hewson—Establish your priorities and set clear goals to achieve them

From fighter jets to spacecraft, Lockheed Martin has strongly cemented itself as the world’s largest aerospace and defense company. Much of its success in recent years fell under the leadership of Marilyn Adams Hewson, who served as Chairman and CEO between 2013-2020 and now serves as the strategic advisor to the company’s sitting Chief Executive. During her time in the top spot, Hewson helped to turn around a company threatened by defence budgets cuts and with a reputation for poor customer service.

Hewson has been applauded for her operational style of leadership characterised by strategic monitoring. During her tenure as CEO, she consistently sought feedback from customers and staff in order to form clear objectives and establish targets for achieving them. When the COVID-19 pandemic hit, Hewson was quick to establish priorities that ensured the safety of employees and maintained operations, many of which are critical to national security.

For leaders, it can be tempting to try to be everything to everyone all at once. It’s just not feasible. Instead, you should be determining what the priorities and focus need to be and building your strategy around those points. Determine what the expectations will be and clearly communicate them so that everyone knows exactly what needs to be done and how it will be assessed. That way, you can handle the most pressing issues first instead of spinning multiple plates that may not even be delivering the necessary value or ROI for your efforts.

Sir Alex Ferguson—Your success lies with your people

This next leader needs no introduction for football fans, but for those unfamiliar, Sir Alex Ferguson is the former manager of Manchester United. During his 26 seasons with the club, they won 13 English league titles along with 25 other domestic and international trophies, earning their spot as one of the most successful sports franchises of all time. There are many great leadership lessons to be gleaned from sport itself, but Ferguson was more than just a great coach. He understood that the key to leading a successful team was to build the right one.

Part of Ferguson’s strategy was to consistently rebuild better. He wasn’t afraid to trade his most famous players, some still at their peak, to experiment with new talent. Ferguson kept his focus on the long-term success of the club and was willing to invest in whatever he felt was best for achieving growth. Now, that’s not to say you should go sack your staff for a bunch of graduates, but you should be thinking about futureproofing. Sometimes, bringing in fresh talent is a great way to breathe fresh air into the business and get some new perspectives. But you cannot expect to win if the rest of your team is ill equipped to deliver impact in an evolving business landscape. Be a champion of continuous learning. Encourage and support upskilling amongst your people in order to better prepare them for what lies ahead. That way, you have the right skills and people on your side supporting your vision, and you are demonstrating that you are just as invested in their success as they are in yours.

Kathrin Jansen—Filter through the noise and let the work be your legacy

It’s safe to say that we would not be enjoying many of the post-pandemic freedoms we’re enjoying today and that many more lives would have been lost if not for the work of Kathrin Jansen and her team. Jansen, who recently announced her retirement, is a Senior Vice President and Head of Vaccine Research at Pfizer who is responsible for helping to create both the first vaccine for cervical cancer as well as the COVID-19 vaccine, the latter of which was done in record time.

The development of a COVID-19 vaccine came with various pressures from government bodies, the scientific community, and a global population that was eager to return ‘normal.’ Despite these pressures, Jansen and her team refused to sacrifice quality in exchange for speed. The result was the development of a vaccine that achieved 95% efficacy in under a year.

As a leader, you will regularly face pressure from all sides. You’ll have the C-suite and stakeholders in one ear, and your people and external audiences in another. Great leaders are able to filter through the noise and determine what feedback is worth heeding, and what isn’t right for the business at that moment in time. Listening is critical, but good judgement is essential.

Jansen will be retiring from the company as one of the best in her field, which is likely a goal for any leader. But rather than reaching that point by prioritising her own personal acclaim, Jansen will be leaving behind a remarkable legacy via the work she did throughout her career. Years from now, we may not remember that Kathrin Jansen was behind the Pfizer vaccine, but what we will remember is how the quick development of that vaccine helped change the course of the pandemic and save numerous lives. Some leaders, such as some of the others mentioned here, will have their names remembered beyond their industries and will be included in articles like this one for many years to come. But for most, the work itself is the legacy. As a leader, you have a chance to leave a positive and lasting mark on your organisation, teams, or industry. Your name may not go down in history, but you may create processes, practices, or standards that far outlive you.

The best leaders don’t do what they do for the personal acclaim. Any notoriety should be a side effect of leadership, not the objective. Be great at what you do, and the legacy will follow.

Bill Gates and Steve Jobs— Learn from your setbacks

That said, very few leaders’ names are so entwined with their industry as Bill Gates and Steve Jobs are to information technology and no list of leadership lessons would be complete without their inclusion. Both are considered to be two of the most influential entrepreneurs, innovators, and business leaders of all time, but Microsoft and Apple were both far from overnight successes. There were various iterations of their software and devices before they took off, yet both men remained determined to keep going.

We could create a whole article of lessons from just these two men alone, but their leadership has already been extensively covered in articles, books, case studies, documentaries, and more. Instead, we have chosen just one lesson we think will resonate with our executive audience most: it’s okay to fail.

Failure and setbacks are inevitable. You can set a path for yourself, but things will rarely ever go exactly the way you plan they will. It is how you react to these challenges that define you as a leader. Do not allow these bumps in the road to throw you off your course. Learn all you can from them, and keep going. As Gates wrote in his book Business @ the Speed of Thought: “Once you embrace unpleasant news not as negative but as evidence of a need for change, you aren’t defeated by it. You’re learning from it. It’s all in how you approach failures.” Great leaders keep going.

Queen Elizabeth II – Leaders provide stability

Finally, we would be remiss to omit Her Majesty, the late Queen Elizabeth II, who served as Britain’s monarch for 70 years. She reigned through various wars, de-colonisation, 15 Prime Ministers’ and US Presidents’ tenures, the rise of the internet, the entering and exiting of the EU, several recessions and economic crises, numerous scandals, and so much more. It’s very easy to forget she was never meant to be the reigning monarch at all.

While Queen Elizabeth II’s powers skewed more symbolic than actual governing, her 70-year service to the people was longer than any CEO, head of state, or senior executive will ever put in. We, our parents, and even some of our grandparents had all lived under her leadership and many had not really experienced a Britain without her prior to her death. Again, many leaders will never have that long to leave their own impacts, but most will likely weather troubled times during their tenure. If there’s anything to be learned from Queen Elizabeth II, it’s that leaders should provide stability during both times of turmoil and prosperity. Understand that your people will be looking to you as the steading hand, but shouldn’t only see you when there is trouble. Good or bad, win or lose, your people need you. Make sure they aren’t just seeing your face or hearing from you in specific situations.

Final Takeaways

Being a great leader does not mean having your name go down in history. The best that most can hope for is that they set an example that lives on through the organisation for many years to come. What matters most is what you do during the time you spend as a leader. Set clear goals for yourself and others, communicate them clearly, hold yourself and others accountable, lean on your team, and focus on the work. If you do that, you’ll be well on the path to leaving a lasting impact on those you lead.

If you are interested in honing your own skills as a leader, check out our upcoming leadership-focused webinars and our Leadership Development services.

If purpose is what gives a business a soul, its financial function is its heart, responsible for keeping the business alive and ensuring everything continues to run. As businesses evolve and plot their growth, this function of the business must continue to evolve its focus from number crunching to future-ready transformation. As activities like month end reporting become real time and ad hoc, finance teams will be under pressure to collaborate, form partnerships, and offer insights beyond the bottom line.

Driving all of this will be the Finance Director (FD) or Chief Financial Officer (CFO), who will need to master disciplines outside the finance domain in order to effectively navigate the organisation through an evolving investor and stakeholder environment. They will act as an internal consultant to business unit heads, set the tone for collaboration across the organisation, maintain a bird’s eye view of the business, possess a keen ability to see when the assumptions underlying the business’s plans have changed, and be able to support the modelling of new scenarios in order to change the financial priorities as a result. The most successful in this executive career are those who can work out how to lead business change and support growth without interrupting business or affecting the ability of the company to execute strategy, which will in turn require leadership capabilities and character traits that surpass what has been expected from their predecessors.

In this edition of our Executive Career series, we are shining the spotlight on the role of the FD and CFO to better understand these new expectations and how current and aspiring finance leaders can best deliver in their roles.

FD/CFO Snapshot

It should be noted that depending on the organisation’s structure, the Finance Director title can be used interchangeably with the Chief Financial Officer title in order to indicate the senior-most person in the finance function. Though more rare, there are also organisations where both a CFO role and FD role are present. In these cases, the CFO typically has a broader remit and would be concerned with things such as investor relations and private equity while the FD would be focused more on internal operations and business strategy. While there may be slight organisational differences between these two executive careers, we will use the terms FD and CFO interchangeably in this article as many of the same principles, responsibilities, outlooks, and skills apply to those with either title.

According to a US report that examined 674 Fortune 500 and S&P 500 companies, more than 60% of finance heads were younger than 50 when they were hired, and more than 85% of sitting CFOs are under 60. The average tenure of finance chiefs increases with age, with those in their mid-50s or older tending to stay longer in their roles. In the UK, FDs have an average age of 49, which is younger than the CEO average of 55. Diversity is lacking in these positions within the UK, as only 3.4% of total chair/CFO/CEO positions at FTSE-100 companies are held by ethnic minorities and for the first time since 2014, none of these individuals are Black.

Due to the level of responsibility and the deep financial knowledge needed in these senior positions, FDs will often ascend to the role as qualified accountants (ACA, ACCA, CIMA) with several years’ experience in a managerial position within the finance function. The previously mentioned report found that within the Fortune 500 and S&P 500, about three in eight CFOs have public accounting experience while approximately 13% have experience in investment banking. In the UK, Eton Bridge Partners’ CFO Pathways Report 2021 found that that traditional ACA qualifications remain the most likely route to gaining a CFO appointment. Out of 513 CFOs who disclosed their education in the survey, 7% were CIMA qualified and 3% were ACCA qualified.

The hiring potential for this role is promising, as those with financial expertise are needed by organisations in every industry and sector. The transferrable analytical, functional, and leadership skills of the role make it easy to change industry, and approximately 70% of all new CFOs or FDs will have a background in a different sector. It is significantly easier to move from private equity to a public limited company, as only 27% of CFOs appointed to private equity businesses did not have previous experience in this space.

However, it is interesting to note that internal promotion is the least likely path to this executive role, as 80.5% of CFOs are external hires according to Eton Bridge’s report. 69.9% of newly-hired CFOs came from a previous CFO or FD role.

Salaries will vary based on experience, organisation type, and geography. The average UK salary for an FD ranges from £95,000 – £120,000. The earning potential is highest in London, where the average FD salary is approximately £125,063. Those in Scotland as well as the Midlands, east, and southwest regions of the country can expect to earn an average salary near the lower end of the spectrum in the neighbourhood of £107,000 per year, while those in Wales should expect offers of around £101,000.

Top Market Challenges Impacting FD’s/CFO’s

We asked our consultants, some of whom have FD or CFO experience themselves, what challenges current and aspiring finance heads should be most concerned with. Based on their feedback and our own assessment of the marketplace, we recommend focusing on the following areas:

• The Demand for Data and Business Insight: The size, complexity, and importance of data is growing at a record pace, with the total amount of data in the world anticipated to reach 175 zettabytes (175 billion terabytes) by 2025. That constitutes an annual growth rate of approximately 66% over 2018 levels. As a result, FDs and CFOs are receiving more requests for data and analytics from across their organisations. As well as Board management packs, there’s an ever-growing need for more risk and compliance data, CSR reporting, omni-channel sales, marketing and operational reports, and macro-economic data. It is easy for finance heads to fall into a trap of delivering the board and investors short-term performance demands, but the real challenge lies in the FD or CFO’s ability to take even more responsibility in defining and telling the story of how value will be created in the organisation long term. Those CFOs and Finance Directors who can tell that story and provide proof points along the way are the ones who will be the most successful.
• Automation and Digitisation: Technology is one of the main culprits driving this increase in data demand, but also one of the best solutions for delivering that higher level of reporting as well as digital-driven business results. Following the pandemic, the way we do business and conduct our daily lives is more digital than ever before. Customers are more regularly engaging in e-commerce activities. Supply chain and operations deals are often conducted electronically without any paper exchanged. Therefore, there is much to consider in terms of how practices and processes may change or should be approached under the influence of technology. Successful heads of finance understand that the processes and practices they have in place now may not work in two years, and play a critical role in deciding where to go next and how to get there. Cloud computing, big data, and financial automation have made much of the day-to-day jobs of the finance team easier, yet a consequence of that is that FDs and CFOs must be far more tech-savvy than ever before and be comfortable making tough tech investment decisions. The FD of the future will play a critical role in sponsoring technology innovation, overseeing investment decisions, helping define what success will look like, understanding what technology can do and the benefits it brings. CFOs will be working closely with the chief technology/information officer to ensure that these new capabilities are fully embraced across the organisation.
• ESG Initiatives: Environmental, social and governance (ESG) issues continue to dominate the strategic agenda for many organisations, especially sustainability. A growing number of investors and customers are taking an intense interest in how companies are dealing with the medium- to long-term risks posed by climate change and environmental degradation throughout the value chain. CFOs need to thoughtfully examine and carefully consider how each ESG component informs the organisation’s overall strategy, operations, reporting, and beyond in order to deliver both resilency and results. The CFO serves as a member of the C-suite, and therefore plays a critical role in helping senior management build sustainability into the business’s strategy and in driving integration across all functions. This is not a change in the finance function, but rather an expansion of its scope. The remit of the CFO or FD may soon include activities such as sourcing funding options for green initiatives, evaluating business cases that include nonfinancial social value, exerting financial discipline around the costs of transitioning to a more sustainable enterprise, as well as setting and reporting on ESG-based metrics and KPIs. There is much that businesses can gain from switching to a more sustainable business model, and a successful finance head will be able to understand this and pivot towards it.
• Risk, Compliance and Regulation: With ongoing compliance and the increased exposure to risk, this too is presenting another challenge for leaders in finance. Board members today require directors to have access to risk and compliance data, but to capture this in real-time across an entire company is a challenge whether it is through financial management systems or multi-dimensional analysis. The implications of the pandemic, the Ukraine war, Brexit, higher costs of living, and other global economic challenges are all are examples of external factors reverberating through business. These challenges put financial directors under a lot more pressure to be accountable and aware of any potential external risks or compliance issues. And just as the world at large changes swiftly and often, so does the world of accounting. There are often new regulations, standards, and best practices to be aware of. It is critical that the finance head stay up to date with any changes not just impacting their country or industry, but also those that impact any other geographies the business operates in or industries where they might have supplier relationships.

Top Priorities

Given these challenges, current and aspiring Finance Directors and Chief Financial Officers should focus their attention on these key areas:

• Achieve a Holistic and Global Outlook: Next to the CEO, the head of the financial function is the person in the organisation with the most oversight of the entire business. CFOs and FDs must work collaboratively with every department and function to understand what is happening across the business. It is critical for the FD to have a deep knowledge of what the business does and how it operates in order to assess and make financial decisions. If coming into the role or business fresh instead of being promoted internally, the challenge is getting up to speed quickly and with enough depth to be effective. Be critical, be observant, and be open to learning.

Good CFOs and FDs are true experts in their business, but great CFOs and FDs are those who spend as much time looking outwardly as they do looking inwardly. Success will come from taking the time to stay up to date with the happenings in the world around you. What regulatory changes are coming down the pipeline, and how can you begin to prep the organisation now? How might a global event impact your supply chain, and what can you do to mitigate it? How are your customers receiving you, and what are they saying? When it comes to the finances of a business, the external has just as much importance as the internal and should not be ignored.

Part of that outward examination will involve developing a global perspective and setting one’s sights on multiple geographies at once. CFOs are the head of the financial function at the board level, and FDs are typically appointed at the group level. Therefore, both titles include some element of geography spanning. How do you deliver value and drive results across every arm of the business worldwide? How do you navigate the evolving needs and demands of customers and stakeholders when those expectations may vary from region to region? The financial head needs to be tuned in and constantly evolving in order to continue drive the business forward in every area it operates.

• Develop Strong Soft Skills: To gain that insight into the business, the FD/CFO will have to collaborate with many different parties. The activities of these executives are directly tied to every other department in the business, and therefore there is a lot of relationship building and management that goes into the role. Gone are the days of the FD being viewed as the ‘chief police officer.’ An important part of the role is building internal bridges and executing on agreed strategies. It is not simply a matter of being socially talented, but rather seeing diplomatic communication as a strategic necessity. The best finance director understands the required finesse when it comes to communicating with other departments versus communicating with the board or your own staff. Poor communication can result in the most failures to deliver results. This has always been true, but we are simply hearing more about it as competition continues to increase and companies analyse any potential weaknesses.
• Don’t Ignore Tech: Technological disruption should be front of mind for every leader in finance. With the changes in customer habits and the way we do business, it is critical for the FD to know and understand the role technology can, does, or will play in that process. The FD will be critical in determining which tools will be adopted and for presenting the business case for digital transformation. Being in tune with the digital world is absolutely imperative at this stage.

Personal Development and Career Progression

As mentioned, most FD and CFO appointments are external hires rather than internal promotions. Therefore, you can move companies or even switch industry for a stretch or new challenge. Because the FD is a functional expert, it is easier to jump from one industry to another than it might be for other executives. Your skills and knowledge are highly transferable, yet you may find that the challenge you are looking for lies in a new area. Each industry has its own guiding principles and financial regulations, so you could end up learning an entirely new system to what you are used to. Even if your title has not changed, this new challenge may be enough to make your career feel fresh by helping to broaden your horizons and test your skills.

Many FDs also choose to switch gears to a role in Operations as a COO or the Head of Operations for specific divisions or geographies. This transition often feels like a natural fit due to the finance head’s deep understanding of the business and their ability to think critically about both practice efficiencies and business impact. Also due to their holistic oversight and understanding of the business, FDs often make a natural fit for CEO roles. In fact, many CEOs ascended to where they are via the FD route. The financial sector has the greatest percentage of CEOs who were CFOs at 33%. So while the CFO or FD may be the top of the finance function, there are other relevant pathways within the business to try out in order to keep progressing.

That said, our experts advise any current CFO or FD looking to progress or anyone aspiring to this executive career role to take a high level of personal responsibility. You cannot sit back and rely on someone else to recognise that you are good at what you do and provide you with that opportunity. If you know that the FD/CFO, COO, or CEO role is what you want next, then you need to actively strive to get there. You will need to be proactive about getting that holistic experience in sales, marketing, operations, supply chain, and so on in order to build your capabilities and prove you have what it takes to do the job successfully. Take direct responsibility for yourself and your own career progression. Regularly ask yourself “Who do I need to influence? What skills gaps do I need to fill?” Benchmark and be critical, and most importantly be proactive.

Of course, if taking your executive career to the next level is of interest to you, you do not have to go it alone. The Rialto Consultancy have successfully helped over 6,000 senior executives globally to take that next step and further their career. Learn more here.

The challenges of the past two years have certainly highlighted the importance of purpose from a social standpoint as businesses have become more vocal and cause-driven than before. We have seen businesses take a stand on the issues their customers care about and that impact us all societally. Those who get it wrong or do so inauthentically have often fallen under the scrutiny of the court of public opinion, but those who get it right can reap major reputational and business reward. Research has found that 52% of purpose-driven companies experienced over 10% higher growth versus of non-purpose-driven companies (42%), benefitted from greater global expansion (66% versus 48%), launched more products (56% versus 33%) and had higher success in major transformation efforts (52% versus 16%).

With all that in mind, what role does business purpose play in 2022? As we begin the new fiscal year, how should leaders be thinking about and enacting purpose within their organisations in order to overcome these challenges, build stronger teams, and earn trust in the marketplace? Most importantly, how do you get it right?

Purpose Today

As a recap, your purpose is your ‘Why’ when following Simon Sinek’s Golden Circle Model. It is that highest level of fulfilment on Maslow’s Hierarchy of Needs after the basic requirements of sustenance, security, and socialisation are addressed. It is the principle at the heart of all of your business activities and the core reason for the organisation’s existence. On a more individualised level, purpose is the reason why you get out of bed every day. It is why you are in the role that you are in, doing the work that you have chosen to do. Purpose does and should underly every business activity, which is why it is essential that you have one.

Of course, every organisation exists with some money driven objective. It is the aim of organisations in the private sector to turn a profit, and even not-for-profit organisations typically have some sort of fundraising objective tied to whatever cause they support. While these financial goals are fundamental to the operations of the business, they cannot be the sole reason the organisation exists in 2022. Today’s customers will no longer accept it, and staff will no longer support it.

That’s because the past two year have accelerated a change that was slowly boiling under the surface. Being dealt so many societal and personal challenges all at once left us all a bit more empathetic of one another and more pensive about the bigger picture. We have experienced major shifts in the ways we live our lives and do business. Today’s customers want to do business with organisations they feel stand for something or share their values. In the wake of the ongoing ‘Great Resignation,’ staff want to feel like more than just a cog in a machine and want to know that they matter more than the bottom line. Identifying and living out a purpose is how the business and its leadership are able to make that happen. One of our previous blogs goes into more detail on how to identify purpose, how to enact it, and why it matters, all of which are still relevant today.

Our Advice

But as the new fiscal year begins, there are extra considerations that need to be made given our current social, economic, and geopolitical climate. Here are a few things we recommend leaders think about moving forward:

• Be clear about your purpose: If your business does not already have a clearly defined purpose, it’s time to get one. If you do have a purpose statement but it’s tied to profits in any way, it’s time to rethink it. Your purpose needs to be achievable, honest, and in line with what you do as an organisation. You aren’t trying to pull a rabbit out of your hat or make a purpose appear out of thin air. Odds are, you already have one hiding in plain sight. Why do you offer the services you offer or sell the products that you do? How does it benefit your customers or the world around you? The answers to those questions will likely highlight your core purpose, but once that is solidified it is okay to add on. You may choose to align your purpose with some of the macro issues in society. For example, you may decide that your business needs to play a role in helping combat climate change and work that into your purpose via changes in your supply chain or daily practices. You may be disturbed by any talent inequalities in your industry and decide to strive towards fairness, working equality into your purpose via your hiring practices or the makeup of your board. So long as you understand that your business stands for something bigger and you operate from that place, you are on the right track.
• Authenticity matters: That said, whatever you choose to champion needs to be something you are willing to and capable of enacting. Today’s customers are savvy, and they are willing to do their research. If you are publicly championing diversity and equality yet your HR figures don’t reflect that, your customers will see right through you and the reputational blowback will be damaging. Once you define what your purpose is, you then need to live it out. Do not say your organisation is dedicated to making the world a greener place if you aren’t doing anything to improve its environmental impact. You cannot call yourself a people-centric organisation if your staff are unhappy and feel mistreated. It all goes back to the idea of ‘walking the talk’ from our previous blog, which now feels more relevant than ever. Say what you mean and mean what you say. In the digital age, businesses and their leadership are under constant scrutiny. Information spreads like wildfire and all it takes is one viral post to tank your customers’ trust and support. You need to ensure that whatever it is you claim to stand for is what you are living out day to day.
• Purpose and your people: But it isn’t just your customers who are invested in your organisation’s purpose. Your team are critically important for bringing it to life, all while having their own personal investment in the mission. The challenges of the past two years have made many professionals reprioritise what matters to them in their career, and the ways that businesses treated their people during this time had major impacts on their organisational success during this challenging period. Those who were more focused on their own profits while their staff contended will the damaging effects of the pandemic and struggled under the weight of higher costs of living are the businesses who were most likely to be hit hard by the Great Resignation. After living through so much loss and hardship, your people want to be treated like people instead of numbers. Your staff are not a means to an end; they are the heart and nervous system of your business and should be treated as such. Your people want to feel as though they are contributing to something bigger and that their work has meaning beyond just making money for those at the top. Purpose can provide that, especially once it becomes an integral part of the business and its operations. By providing that deeper sense of fulfilment and keeping your people front of mind, you may be able to more easily retain staff who are on the outs or attract new talent as the business grows and evolves. But you need to understand that the modern career is now about more than simply going to work, doing your due diligence for eight hours five days a week, and collecting a paycheque. Our careers are a major part of our lives and should provide some sense of fulfilment on both the micro and macro level.
• Tune in: As a leader, you need to think about purpose from both an organisational and a personal standpoint. You are responsible for helping the organisation define what it stands for, but also for diffusing that message throughout every level of the business. Part of that role is tuning in to what’s happening around you both inside and outside of the organisation. Is your messaging in line with what is happening in the world today? Are you addressing the types of issues that your people care about? What do your team’s individual purposes look like? What ties them to the organisation or motivates them to show up every day? Keeping your finger on the pulse and adapting accordingly can help you more easily transition your business through periods of challenge or change. Taking a stand is only half the battle. How you choose to behave every day after the fact is what will have the most impact.
• Take a human approach: To quote one of our consultants Lesley Lindberg, “Being human needs to come back into fashion.” Purpose is what humanises business and needs to be dealt with in a human way. If you are thinking about purpose as a means to an end or telling yourself that “I have to care about this thing so that the business can turn a profit,” then you are doomed before you even begin. The next chapter of business asks us to step outside of purely commercial thinking and embrace what it is that unites us as human beings. Every single one of us has needs, wants, desires, motivations, and challenges. Once we examine those more closely, it’s likely that we will find more similarities amongst ourselves than differences. The past two years have dealt all of us challenges to overcome, and while differences in opinion caused some societal divisions, we saw a rise in empathy and understanding. The pandemic levelled the playing field, and now that it is near its end we need to remember its lessons and continue to live them out. At the end of the day, we’re all just people. That understanding and mindset will be valuable as we continue to navigate the ongoing geopolitical, social, economic, technological and business challenges that continue to oppose us.

As we enter the 2022-23 financial year, purpose continues to be increasingly important to our business lives. However, given the ongoing and new challenges we face, purpose needs to be more than just pretty words shared on your company website or regurgitated in your comms. Know what you stand for and then actually work to live it out. If you do so authentically, you will have a much easier time navigating change, building trust and credibility, and keeping your people on your side.

Each March, organisations populate social feeds with praise for their female colleagues in celebration of Women’s History Month and International Women’s Day. While a nice gesture and a much-deserved celebration of women’s success, in many cases it can highlight the ongoing challenges that female professionals experience all year long.

Our Rialto Executive Career Coaches work closely with some of the world’s most accomplished, successful, motivated, and qualified female executives to advance their careers. Despite their acclaim, achievements, education, accolades, and positions, many of these women express feelings of an ever-present glass ceiling above them and limiting how far they can climb and what they can accomplish. But where do these feelings stem from, what limitations construct that ‘ceiling,’ and how can women break through?

A Seat at the Table?

It’s no secret that diversity is one of the biggest issues businesses face. In February 2022, the UK Government published data that revealed that the FTSE 100, 250 and 350 all improved the number of women in leadership roles in 2021. 39.1% of UK FTSE 100 board positions are now held by women, a massive increase from 12.5% just 10 years ago. This increase has allowed the UK to leapfrog over countries such as Norway, which has mandatory representation quotas, to become second in the international rankings for board representation. There are over 700 more women in leadership roles in the FTSE 350, and the number of women in Chair roles rose to 48, up from 39 in 2020.

While these statistics show that we are moving in the right direction, when examined closer it becomes clear that we still have a long way to go. While 39.1% of FTSE 100 board positions are now held by women, there are only eight female chief executives in that group and no women of colour. When you expand the field to the FTSE 250 where many more board roles are available, you might expect representation to be higher as well. Yet, women in boardroom roles for the top 250 companies is lower that the FTSE 100 at just 36.8%. In the FTSE 350, a reported 72 companies are still below the previously set 33% target for women on boards. Overall, only 1 in 3 leadership roles and around 25% of all executive committee roles are held by women.

How Much Are Women Earning?

When examining compensation, the chasm between genders deepens. According to the latest ONS report at the time of publication, in 2021, the gender pay gap among full-time employees was 7.9%, up from 7.0% in 2020 but still lower than it was pre-pandemic at 9% in 2019. The largest closing of gender pay gap between now and before the pandemic was found among managers, directors, and senior officials, showing that female executives are beginning to become more fairly compensated but are still not paid as equals. It would appear that there is a long way to go in order to close this gap, as the ONS data indicates that the largest gender disparity is among the highest earners with the 90th percentile of full-time men’s earnings sitting at an astounding 16.1% higher than those of females in the 90th percentile.

The gender pay gap often varies wildly at the individual company level, as was evidenced on International Women’s Day 2022 when a Twitter account called ‘Gender Pay Gap Bot’ (@PayGapApp) spent the day retweeting UK companies’ #IWD22 messages with their median hourly pay gaps.

Over 100 companies were retweeted on the day across sectors such as government, higher education, sport, healthcare, professional services, retail, and more. Some of the figures were pleasantly surprising. Both IT company Infosys and the UK House of Commons were revealed to have gaps of less than 1%, with several other organisations paying their female staff equally or higher than their male counterparts. Among the highest paid are the women of Barnet Council who are paid an impressive 25.5% higher median hourly wage than their male colleagues and broadband company Hyperoptic whose female staff earn more than double at 55.8%. However, the bot revealed more bad than good, highlighting huge gaps for organisations such as McKinsey (22.3%), Sheffield Wednesday Football Club (41%), Refuge Charity (32%), the Daily Express newspaper (22.5%), Loughborough University (23.2%), the UK’s Intellectual Property Office (30%), and most hypocritically, women’s lingerie brand Boux Avenue (31.4%).

The hourly wage gap is only part of the challenge that female professionals face with compensation. Having to choose between family and professional success is an unfortunate decision that many women end up facing at some point in their careers. As men move up the pay ladder, women fall behind by either staying in lower paid positions, reducing their hours, or both to take on the responsibilities of raising their families while others will choose to drop out of work entirely.

According to recent market research, nearly six out of 10 women (58%) say caring responsibilities have stopped them applying for promotion or a new job and one in five (19%) have left a job because it was too hard to balance work and care. Over time, this imbalance of familial obligations has led to more men in senior roles and some very damaging mindsets. At the core of the issue is a longstanding assumption that senior roles inherently require long hours and constant availability, and thus cannot be done flexibly or part-time. Academic research into the matter has found that long working hours have been proven to be inherently gendered and to exacerbate the gender pay gap. Over time, these mindsets have led some women to believe that they need to sacrifice one in favour of the other and have created biases in employers that female executives may not be ‘up for the job.’ Both of these beliefs are untrue.

Breaking Through the Glass Ceiling

Representation and imbalanced compensation are two of the most apparent and most widely addressed issues surrounding women in the workplace, but any female professional can attest that it is so much more than that. We asked our Rialto Executive Career Coaches which challenges they often see expressed by their female coaching clients, and for their career advice for overcoming these hurdles. Here is what they had to share:

• Speak Up: Due to the aforementioned lack in representation, female executives often find themselves in the company of people who are not like them. Often, this can lead to feelings of imposter syndrome, and may discourage some female executives from speaking their minds. Historical ideas of ‘femininity’ have conditioned us to believe that women who take charge, freely speak their opinions, and essentially behave in the same way as their male counterparts are viewed as off putting, bossy, cold, calculated, or worse. These are damaging societal ideas that we are progressing away from but have yet to fully overcome. For male executives, before you judge your female counterparts for speaking up, our advice is to consider whether you would ever think twice about doing the same. For female executives, our advice is to remember that you were hired for your role because of what you have to offer. By keeping your ideas to yourself or not speaking up when something is off, you are doing yourself, your position, your organisation, and your stakeholders a disservice. We know that telling you to ‘speak up’ is sometimes easier said than done, but just remember that that is what you are there to do. Standing in your power does not make you aggressive, pushy, loud, or rude. It just makes you good at your job!
• Build Alliances Carefully: Getting your voice heard is much easier when you have the right support in your corner. But again, women are often surrounded by people who don’t look, think, or act like them. Much has been said about the idea of ‘women supporting women,’ but men need to do the same. Unfortunately, there are some people whose biases run too deep and too stubborn to be swayed, but you’ll find that not everyone is working against you. Instead of wasting time trying to change minds that are unwilling to budge, choose your allies wisely and try to find strength in numbers instead. It’s a sad truth, but some people may be more open to hearing the same idea in a different voice. At the end of the day, the best interest of the organisation needs to come first and biases should not get in the way with that. You’ll find peers who agree and who will back you, helping to get your voice heard all the way through the top of the organisation. You are better off spending your time building and strengthening relationships with these individuals than you are trying to get through to someone who seems unwilling to really listen.
• Don’t Undersell Yourself: If you are putting in the same amount of work at the same level as your male counterparts, then there is absolutely no reason why you should be paid any less. Historically, asking your peers about their salaries has been considered ‘impolite’ or taboo, but there is really nothing wrong with doing so. Having these conversations is the best way to benchmark and to create transparency about whether or not the team is being fairly compensated. Ask the question. You’ll often find that your colleagues are happy to share their figures with you, and those who aren’t will decline and that’s that. Knowing what you could be earning within your same organisation, level, or department compared to what you actually are earning helps provide you with leverage for negotiation. Do not be afraid to ask for what you deserve. If others at your level are being paid higher, it’s often not because they were more qualified or were offered that. It’s often the case that they were simply more willing to ask for it or negotiated after receiving an initial offer. Our advice is to research the market. Use sites like Glassdoor to benchmark what others in your role earn in your city. Take all of these figures with you into salary or raise discussions. Know your number, and don’t back down. If you present these figures to your employer and they are unwilling to close the gap, do not be afraid to move on to a company that will value your work and compensate you appropriately. Women are often told that our contributions, skills, knowledge, and experience are ‘invaluable,’ but that praise isn’t quite enough. All of those factors combine to create a monetary value for the organisation, so why shouldn’t they create monetary value for you? Put a price on your skills and contributions, and do not sell yourself short.
• Set Boundaries: Women have often been the ones to sacrifice for the sake of family, but that doesn’t have to be the case. If the pandemic taught us anything, it is how to achieve better balance. The pandemic’s enforced remote work helped to challenge the misconception that senior executive roles cannot be done flexibly, and hopefully hybrid working becoming the norm will help to support this even further. Hybrid and flexible working models have made it much easier for working parents to be present for their children. This applies to both male and female caregivers, which in turn has helped the responsibilities of childminding become more balanced. However, women are finding it easier now to be both parents and professionals in these models as they do not require a choice between the two. Hybrid is also helping professionals draw clearer lines between their working and home lives and better manage both. This new era of work will likely see professionals regardless of gender setting higher standards and demanding more from their working life. It is essential that female executives determine what their non-negotiables are and stick to them. If flexible working models mean not having to sacrifice, then push for that. Now that we know most of our jobs can be done from anywhere, there is no reason to sideline oneself for the sake of having a family. If your current employer is not willing to work with you on that, perhaps it is time to find one who will. You are not asking for ‘too much’ by having boundaries and not settling. You’re simply commanding the respect you deserve as both a professional and a person with a life outside of their career.

For any real change to happen it’s not just women who need to speak up, demand more, set boundaries, or work together. Male executives, especially those with influence on personnel decisions, need to look inwards to challenge their own biases and assess how those beliefs and opinions might be impacting their decision making. Employers need to actively promote diversity and equality in their organisations rather than just talking about it. We can all do better to be more empathetic, to challenge what we see happening around us, and to speak in support of those we feel are being treated unfairly. The longer we continue to let the ‘status quo’ continue simply because it might not be effecting us directly, the thicker and thicker that glass ceiling gets and the harder it is to break through. Change starts and ends with us all.

It is hard to believe that we are only entering the third month of 2022 given how much has transpired in the executive job market since the start of the new year. We went from battling a dangerous new variant that set us back in our hard-earned progress to a total elimination of all remaining COVID-19 restrictions in the UK. Just as we were seeing a light at the end of the economic darkness caused by the pandemic, an unnecessary war in eastern Europe broke out, causing economic tremors that are likely to be felt worldwide.

As we exit winter, here are factors you need to consider about the executive job market as it stands as of Q1 March 2022.

Executive Job Market Snapshot

Our previous executive job market update was conducted right at the height of the Great Resignation, an employment movement which has seemingly continued into the new year. After a two month fall in the total number of vacancies during a period when businesses froze their hiring plans due to uncertainty from omicron, the total number of vacancies in the UK rose to a new record high of 1.3 million in January 2022. According to recent research from Benefex, 17% of UK workers are actively looking for a new job, 53% are open to new opportunities, and just 30% are committed to staying put for at least the next 12 months.

Even so, there appears to be recovery in the marketplace. According to the most recent Office of National Statistics (ONS) ‘Employment in the UK’ report, the UK employment rate was estimated at 75.5%, a slight increase from the previous three-month period but still lower than before the pandemic.  The unemployment rate also continues to fall, currently at around 4.1%. Many of the employment and economic figures we have been seeing month on month indicate that the market is rebounding, but we are still not where we were before the pandemic. One might assume that should we continue on the path we are on, it wouldn’t be unreasonable to expect a return to ‘normal’ levels by the end of 2022. While that may still be a possibility, certain trends in the market indicate that that recovery may not come as quickly as we had hoped it might.

Key Market Trends

Changing Roles for Compensation

People may feel that they are earning more on paper, but when considered alongside inflation and cost of living, wages are not growing at the rate they should be. Data from the ONS found the annual growth rate for average total pay, including bonuses, increased to 4.3%. The strongest growth was experienced by those in the finance, insurance, and property industries. In January of 2022, median monthly wages for payrolled workers increased by 6.3% compared to January 2021, and they were 10.3% higher than before the pandemic in February 2020. However, once inflation and cost of living are factored in, real pay fell on the year by 0.1% and wages excluding bonuses fell by 0.8%. We are likely to see this worsen as severity of the energy crisis deepens, the rise in National Insurance contributions takes effect, and the cost of living in the UK continues to increase. Prior to the events in Ukraine, inflation was expected to rise above 7% this year, but there is no telling what this figure could be come in the wake of this conflict.

If you are looking to alleviate some of the pressure from this financial squeeze, moving on to an external role may be your best option. Early in Q1, the Resolution Foundation think tank and the London School of Economics’ Centre for Economic Performance published a report that found that workers looking to achieve a pay rise this decade will need to change company in order to do so. If a pay rise is a priority of yours or a need to secure an improved financial trajectory, you will need to keep an open mind to making a change. That’s not to say that your existing organisation will be totally unwilling to promote you or compensate you further. You just might find that the grass is greener further afield.

Fierce Competition for Executive Roles

However, finding that new role might be a bit of a challenge. The Great Resignation has created a record number of vacancies in the market, but primarily in more junior roles. Executive roles are still rather hard to come by, with an increasing global pool of qualified candidates vying for the same spot. Executives are likely to find that the majority of jobs in the market do not match their skills or qualification and that when suitable roles that do become available, they go fast.

Executives should leverage and further extend into their networks to get a leg up on these openings, as many executive job market vacancies are never posted publicly.

Recent HBR research indicates that the leading indicator of career success is investing in and growing future relevant and aligned networks.

If your career transition goals involve entering a new territory, changing role, or switching industries, building your personal digital brand is crucial because more talent is sourced and found digitally.

So much of the modern executive job search is digital and having a notable online presence can be a great way to differentiate in a marketplace full of qualified executives with similar skillsets and experience. Not only that, establishing strong thought leadership can also help you get in front of the right people and expand your network to meet your objectives. This blog outlines how to accomplish this effectively. Navigating an executive job search is likely to continue to be a major challenge for executives, so setting yourself up to attract opportunities will be incredibly valuable during your transition period.

Shifting Priorities

But just because roles are scare, that does not mean you should settle for any opportunity that comes your way. If the Great Resignation and this pandemic period as a whole have taught us anything, it’s that the workforce is ready to command more from their working lives. 70% of respondents in the previously mentioned Benefex survey reported that their expectations have changed since the coronavirus, and three quarters said their experience at work is more important than it was a year ago. Nearly half admitted to raising their expectations when it comes to wellbeing, provision of high-quality digital tools, and the ‘where’ aspects of their workday. Benefits packages and adequate recognition for their work was also important for around 40% of UK workers.

With only 25% of workers rating their employee experience as excellent and only 36% of respondents reporting that they felt well looked after by their companies during the pandemic, it is likely that many will feel motivated to move on in pursuit of ‘more’ from their employers. Senior executives might especially experience this shift, feeling that they have reached a point in their career where they have earned the right to have more flexibility in their working lives.

Now that the remaining UK COVID-19 restrictions have ended, the time has come to put proposed new ways of working into practice permanently. Most organisations seem to be changing with the times and listening to their staff’s expressed desires by adopting hybrid or flexible ways of working, but a select few businesses are sticking to their guns and requiring staff to return to the office full time. In our previous market update, we advised anyone considering an executive job search to determine their stance on flexibility ahead of time. That advice is worth reiterating here, with some additional considerations. Businesses have had enough time to decide on a model and test it out, so by now many should know what the road ahead looks like for their teams and are unlikely to change their minds. Therefore, if flexibility is important to you in your next role, ensure you are looking at companies who are already demonstrating a willingness to offer that. The time for trial and error and toying with new models has come and gone, and businesses should know where they stand by now.

If their values don’t align with what you’re looking for, you might be better off holding out for an opportunity that meets your needs. As an executive, you have put in the hard work and the hours to reach the level you are at. But at the same time continue to develop and promote your value and your indispensability to your future employer to continue to succeed in your career.

The goal of an executive job search should always be to enrich your career in some way, whether it comes through higher compensation, increased stimulation, or better work life balance etc .

The marketplace has definitely shifted during the pandemic period to enable the UK workforce to become more comfortable with demanding more, and this is unlikely to revert any time soon. Know what your ‘must haves’ are and get a clear idea of what types of things would allow you to feel like you are progressing rather than remaining stagnant, and don’t settle.

Sought-After Skills

Given these trends, there are several skills that anyone undergoing an executive job search should focus on in order to successfully navigate the evolving world of work, differentiate themselves, and make maximum impact in their new role. Here are the capabilities our experts recommend you champion in the executive job market at this point in time:

• Adaptability: The ability to pivot remains a top skill for executives in the future of work. Things are changing swiftly and often. Demonstrating that you can change alongside of them, or even get ahead of them, will be immensely valuable to any organisation. Disruption has become a regular facet of working life, and the most competent and successful executives are those who do not get bogged down by change. An open mind, a willingness to listen, and a focus on continuous learning will be a major asset.
• Technological Savvy: As always, technological capabilities are of immense importance in an increasingly digital world. That’s not to say that everyone needs to learn to code or become an AI expert. For the executive, the focus should be on understanding the key technologies that are causing disruption and the role that they might play on one’s specific industry, organisation, and job function. We recently published a blog on what this might look like in various different senior roles.
• Soft Skills: This point has been made many times, but is worth reiterating once again in the context of the previous point. Part of developing a future-focused relationship with technology, especially AI, is understanding that the role of the human worker will inevitably change. The fact of the matter is that certain technologies can get the job done better and faster than we can, and therefore the attention will need shift towards filling the gaps these tools cannot reach. Many of these are what have been traditionally considered to be ‘soft skills’ such as creativity, communication, leadership, strategy, and so on. Your hard skills and experience are likely to get you into the running for the types of jobs you may be after, but being able to provide those extra capabilities will help better your chances at becoming the successful candidate.

The end of pandemic restrictions signals the official start of a new chapter in our professional lives, but many of the challenges we have seen in the executive job market these past two years are far from over and new ones are beginning to take shape. It is impossible to predict what shape the rest of the year may take, but there is no need to put career plans on hold. Executives in transition should continue to take the time to assess their capabilities, strengths, and skills to best position themselves in the marketplace and prepare for future success.