How a Human capital services can help find alternatives for staffing.

 

Human capital services are experiencing a huge trend right now, as private equity involvement in the business grows. I've been saying it for a long time, and it shows no indications of abating. In reality, considerably over half of the CEO searches my firm does in the sector at any one moment are for private equity-backed boards and executive offices.

Outsiders once described the contingent workforce as an industry of peaks and valleys and unpredictable development, but it has attained a level of maturity and a constant stride as almost every type and size of business relies on it to run.

The staffing market is expanding, and investors are taking notice.

 

Opporchies Come with Challenges

Fortunately, the increased emphasis on personnel, along with the current status of the labour market, means that there is more potential – from top to bottom – than ever before. The reality is that we don't have the talent pipeline to fill even our own open roles, which is probably a desirable thing to have.

 

When a Human capital Development firm has an opening of their own, they will aim to follow the same practises they do when staffing for their clients. But sometimes even specialists require experts, as is the case – more often than not – when it comes to open c-suite jobs in corporations.

 

How to Find Someone

Private equity boards and the staffing businesses in which they have invested, through no fault of their own, have a tendency to rigidly begin an executive search by looking for someone who is currently doing the position somewhere else for the same sort of staffing company. The truth is that good CEOs are difficult to come by. And it's doubtful that you'll discover a current CEO with the exact experience you're searching for.

 

Fortunately, there are other options.

If you're in charge of a c-suite search, here are four possibilities to consider:

1. Significant P&L experience. Consider applicants with significant P&L experience as division presidents, senior vice presidents, or executive vice presidents. If you're a $50 million company looking for a CEO and come across a division president with a $200 million P&L, the breadth of experience could mean scale and growth for your company.

2. Extensive cross-functional experience. Cross-functional experience from Human capital Development  is another element to consider while seeking a CEO. If a division president has only worked for one Human capital services firm in one industry and neither of those matches what you're searching for, that's generally a good individual to avoid. However, if you have a cross-functional division president who has managed numerous lines of business, or someone who has worked in HR technology or another area that is complementary to the staffing ecosystem, this may be an excellent candidate to consider. Dynamic experience, such as cross-pollinating between industry verticals, demonstrates that an individual is capable of altering their approach and changing their attitude... and that they've felt at ease transitioning from the smartest person in the room to the newest.

3. Experience with turnaround. One of the most important characteristics of a good CEO is the ability to handle a mess. It is also a good idea to consider someone who has turned around a failed product, executed a large business turnaround, or revitalised a failing business line. Those who raised their hands to take on one of these challenges would be especially strong candidates to consider. If they've proven their ability to manage risk appropriately – and have the confidence to take on a turnaround experience – those are success c-suite stories waiting to be told.

4. Entrepreneurial experience. Someone who has launched a new product or service for a Human capital Development firm is also a suitable candidate for a CEO position. For example, if a multibillion-dollar staffing Human capital services  firm created an RPO business and this employee led that newly formed business line, he or she would most certainly have faced the same level of uncertainty and risk as someone with turnaround or cross-functional experience. Not to mention that someone had faith in that person to invest, which is a fantastic sign for you as a prospective future investment.

Matching resumes to corporate descriptions, let alone job descriptions, takes a back seat in C-level searches. In my experience, the CEOs I've double-backed – who may not be the obvious first option, but are a terrific pick – have typically driven the most influence and results.