Moving beyond the traditional recruiting model to fill C-Suite positions

Sunny Ackerman is Global Managing Partner Heidrick and Struggles talent practice on demand.

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There is high turnover of executives in corporate America, and many of these positions remain unfilled.

According to a 2023 report from data and intelligence solutions firm Altrata, between 2018 and 2022, COO turnover “was the highest at 27.3% across Fortune 1000 companies, followed by CMOs at 22.2%.” Additionally, the CEO role “saw the largest increase in turnover year-over-year, increasing by three percentage points” during that time period. Data from outplacement firm Challenger, Gray & Christmas revealed that in December 2023, the number of CEO turnovers at U.S. companies “increased 13% from 180 CEO departures in November to 204.”

Heidrick & Struggles’ internal analysis of key Fortune 1000 role data (June 2024 YTD) reveals an increase in C-suite vacancies compared to recent years. For example, 79 Fortune 1000 CFOs left their organizations, with the vacancies tracked in 2023. There are already more than 25% vacancies in CIO, CTO, and other technology leadership roles compared to 2023. And Fortune 1000 companies’ use of interim CROs in 2024 YTD is already matching what we saw in 2023.

Risk related to managerial vacancies

C-suite vacancies can put companies at risk for underperformance. When a C-suite executive leaves, a leadership gap opens up. The team is suddenly left without key leadership in a key area, such as finance, IT, or human resources. This knowledge and skills gap can make it difficult or impossible for a company to successfully complete key projects—and generate business results.

Meanwhile, given the disruption in the chain of command, non-C-suite team members are often expected to step up after an executive leaves. That can exacerbate existing burnout and drive higher turnover throughout the organization. Consider this finding from Gallup’s State of the Global Workplace: 2024 Report (limited): “Managers have more negative experiences during the day than nonmanagers and are more likely to seek new employment.”

Leveraging on-demand talent to fill C-Suite positions

While there are advantages to filling C-suite vacancies with permanent, full-time executives, such as greater long-term continuity and consistency, it’s not always the most strategic option. In my experience, filling C-suite vacancies can take months. During that time, critical business needs can go unaddressed, leaving companies in precarious positions, especially if they’re going through a major change like a merger or digital transformation.

Highly skilled, on-demand workers can help companies access the insights and skills they need to achieve critical goals despite C-suite vacancies. For example, say a company is undergoing a digital transformation and doesn’t have the required expertise internally. Instead of waiting months to get started while the organization screens candidates for a full-time CIO position, a company can hire an interim CIO to lead the digital transformation and set the stage for an eventual permanent hire. The interim CIO’s technical expertise and track record of effectively and efficiently leading a transformation can do the time-sensitive job of building strategy and executing around a major transition moment—buying the company time to fill the C-suite with a full-time executive who best fits its needs over the long term.

With that in mind, on-demand talent shouldn’t be viewed as a short-term or “stop-gap” solution, but as a long-term strategic advantage. For example, a company might decide that hiring an interim CMO best aligns with its strategic goals because its marketing team members can handle year-round marketing initiatives but need additional help with brand overhauls. In fact, according to Heidrick & Struggles’ 2024 Business Talent Group report, “the need for experienced and capable interim leaders at all levels has increased (+23% YoY, +170% from 2022) to address critical challenges, drive strategic initiatives, and provide stability during times of transition.” Company leaders should assess their goals and how on-demand talent can potentially help them meet urgent business needs; they should view this talent pool as part of their talent strategy, complementing full-time hiring and internal succession planning.

Best Practices for Integrating On-Demand Talent into Teams

Finding interim or part-time executives who are good fit for the company is a similar process to finding candidates for full-time executive positions—leaders should screen for necessary skills, cultural fit, role understanding, and more. Once an executive is hired for a specific project or time frame, it’s crucial for company leaders to embrace and integrate the new team member.

Setting clear expectations is key to successfully onboarding and integrating on-demand talent; they need clarity on their responsibilities, deliverables, and the metrics they will be measured against. They also need a solid introduction to the business, including how different departments will work together, introductions to key stakeholders across the business, its products, customers, etc. to ensure a seamless integration with the business. Of course, talent also needs access to the right resources to be successful.

Many forward-thinking leaders are adopting on-demand talent as a core workforce strategy to inject leadership bandwidth, expertise, specialized skills, and organizational agility exactly when and where it’s needed. Ultimately, this approach can be a strategic asset for companies, unlocking their next phase of success.

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