As Taiwan’s fierce competition for executive talent intensifies, companies must adapt their recruitment strategies to secure the global business leaders needed for success.
This text was first published by Taiwan Business TOPICS. Find the original article here: https://topics.amcham.com.tw/2024/10/executive-search-in-taiwan/
Boyden is generally credited with founding the retained executive search business in 1946 at the onset of the post-World War II era. Having the right leaders in place was recognized as essential to success in this new climate. Back then, Sidney Boyden and his small team would conduct some research before telling their clients, “This is your man.” (And in those days, it was always a man.)
Fast forward to 2024 and discover a world of digital transformation, AI, ESG, DEI, globalization, and climate change. While good leadership remains one of the most critical factors in determining a company’s success, a modern solution is likely to be much more complicated than “this is your man.”
Today’s leadership roles require executives with a more diverse set of skills and experiences. A list of the “must haves” for any C-suite role may include digital literacy, cyber security and business ethics understanding, strategic thinking, team building, change management, cross-cultural experience, and knowledge of various ESG requirements.
In addition to this set of leadership skills, an appropriate set of business management skills, such as financial literacy and organizational skills, are needed. Most companies will also seek executives who have deep insights into their industry.
So in the 80 years since “this is your man,” how has leadership recruitment evolved to address this changed landscape, and how do Taiwanese companies fit into all of this?
One obvious change is access to information. With the growth of LinkedIn, and other tools, the profiles of several layers of most multinationals’ leadership are easily identified. Couple this with the development of software and AI tools that can quickly scan the internet to find profiles that appear to meet company requirements. In today’s world, there are simply a lot more CVs to sift through.
In practice, this new reality means some roles can be filled quickly, whether handled by a third party or in-house. It must be noted that this process works best for positions where the primary hiring decision is based on whether the candidate meets enough of the specified requirements. In such cases, LinkedIn or other internet scraping tools bring a lot of value – provided profiles are accurately and recently updated and that there are no coding flaws mistakenly disqualifying strong candidates. However, when seeking candidates for C-level or mission-critical leadership roles, this approach has its shortcomings.
While a broad scan may reveal a set of executives that meet some of the more tangible requirements, soft skills are not generally apparent on a CV. A resume does not indicate how an executive instills loyalty or successfully goes about leading a change management process.
Moreover, for a recruitment process to work properly, candidates need to be willing to participate. After building a successful decades-long career, leaders are far more selective when it comes to considering new roles. Being identified as a potential candidate does not automatically translate into a willingness to engage. Concerns about confidentiality, timing, and potential poor fits prevent senior executives from participating in many recruitment processes.
For an organization to successfully recruit the next set of leaders, it must be able to reach likely candidates, it needs to be able to engage with them, and adequately assess them. Companies that are competing on the global market or on a regional level need to cast a wide net to develop a viable pool of candidates. For a small market like Taiwan, this is particularly true. Despite the high quality of talent in Taiwan, the small pool makes competition fierce.
Successful companies recognize the importance of developing and nurturing internal candidates. Not only does this help ensure that succession plans are in place for critical roles, but it also helps with retention. Career-minded employees are more likely to stay in a company if they believe they will be given the opportunity for advancement.
Some companies also devote time to monitor interesting talent in the market, executives working for competitors, or those in related industries. If a critical opening develops and there is no apparent in-house candidate, these already identified individuals can be tapped and perhaps brought on board.
Outside help
There are times when a company faces a critical need, lacks in-house talent, and finds no readily available candidates in the market. In such cases, retained executive search firms often provide the solution. While these firms leverage advanced technology to compile an extensive list of potential candidates, they also recognize that accurate assessment and securing candidate commitment requires the irreplaceable value of human interaction.
To build trust and gain buy-in from potential candidates, executive search firms ensure that personal data is handled with professionalism and confidentiality. Candidates also need to believe that the role presented is genuinely worthy of their consideration. Trust in the individual and organization that approached them is essential – they must feel assured that questions will be answered transparently and truthfully, and that their concerns will be treated with respect. An experienced professional is crucial to engaging candidates, guiding them through the recruitment process, and, when necessary, exiting them from the process with professionalism and care.
Once a pool of candidates has been established, the assessment process begins. While evaluating the basics is relatively straightforward, gauging soft skills, personal attributes, and cultural fit is far more challenging, yet these factors often determine which executive is ultimately hired. The cornerstone of any evaluation is a thorough, structured interview process that delves into the candidate’s successes, failures, reasons for career transitions, and experiences with change management, team building, strategic planning, and other key areas of interest to the hiring company.
It is essential to understand the candidate’s career goals, how well the opportunity aligns with those ambitions, and whether the role will meet the candidate’s expectations. By collaborating closely with the hiring company’s selection team, a shortlist is developed. From there, the client makes the final choice. Once a selection is made, it is considered best practice for the executive search firm to work with both the company and the candidate to reach an agreement on compensation.
Companies operating in Taiwan face particular challenges when recruiting senior executives for leadership roles. While Taiwan is home to industry leaders across various sectors, the talent pool for certain positions can be limited. Without delving into the reasons behind this shortage, companies should focus on impactful strategies for attracting the necessary leadership talent.
Building rapport and trust between candidates and search firms is critical to a successful recruitment process. As the conversation with candidates progresses, it will inevitably shift toward life in Taiwan. Companies must be prepared to address a range of inquiries, including those about the weather, air quality, housing and education options, and how easily non-Chinese speakers can navigate daily life in different Taiwanese cities. These questions must be answered with transparency and honesty, while recruiters remain sensitive to the candidates’ most pressing concerns.
In addition to concerns about life in Taiwan, candidates will naturally focus on the compensation package. For senior executives considering relocation, these discussions extend beyond base salary, bonuses, medical insurance, and car allowances. This can be especially challenging for companies unfamiliar with hiring expatriate talent, yet these factors can make or break the recruitment process. It’s not only the outcome of negotiations that matters but also the company’s perceived attitude and openness during these discussions.
Senior executives need assurance that their essential needs beyond salary will be met. Candidates rarely move for less money than they are currently earning, and they are unlikely to accept a position if the overall package – when factoring in all elements – results in lower compensation than their current role. Candidates expect housing costs to be addressed, as well as education expenses for children through high school. A company-provided car is typically standard, as is employer-funded home leave at least once a year. These are just basic examples, and companies must remain sensitive to the unique circumstances of each candidate.
It is not uncommon, especially among Taiwanese companies, for many of these benefits and considerations to be absent from standard compensation packages. In contrast, most successful global multinational companies have well-established policies for expatriate packages, used both for transferring executives abroad and recruiting senior leaders for roles that require relocation. Without these benefits in place, it is unlikely that a company will succeed in attracting senior executives from one country to relocate to another.
For companies operating in Taiwan, some challenges can be even more pronounced. A lack of familiarity with Taiwan, coupled with perceived risks such as tensions with China, can deter potential candidates. In today’s global marketplace, competition is not just about products – it is about attracting top talent, and companies must be prepared to meet the expectations of executives considering their next move.
