How would you describe executives’ mindset in the current market?
Despite all the layoffs in the news, there are pockets where the market is extremely hot, especially for certain skill sets, functions, and industries. If anything we see increased risk tolerance and appetite for major career transitions in 2023, probably because the pandemic taught all of us that there is no such thing as ‘security’. Leaders across all levels are becoming increasingly hesitant to simply wait out internal succession planning. Instead, they are starting to look externally, research the market and prepare their Plan B.
Is there a specific ‘anxiety factor’ that keeps transitioning executives up at night?
Yes, two actually. Most people know that they need to put in the prep work to research, network and so on — even at the highest levels where poaching is the norm. That said, most leaders have two areas of frustration centered around those areas that feel outside of their control and highly stressful: Compensation and Negotiation.
Why are Compensation and Negotiation such paramount concerns to executives?
Executives don’t want to leave money on the table, and these areas can be ambiguous or barriers for maximum ROI.
Compensation Transparency:
There is immense frustration around lack of compensation transparency and leaving money on the table. Currently, leaders across all levels have to go through great lengths to piece it all together: Leverage their network for intel, call favors from friends in HR and Compensation, source public crowd-sourced data or job descriptions, research SEC filings, etc. People are generally very displeased with the lack of available data and the effort it takes to get to a point of — even moderate — confidence with pay data.
Negotiation:
Fear to negotiate is a trickle-down effect that often results from compensation in-transparency because it’s hard to negotiate when the full picture is unknown. ‘Excavating' the ranges for base pay, short term bonuses and long term equity from recruiters and headhunters is a real skillset when this information isn’t shared up front and some leaders are better than others to make sure they get the information they need to make the right decisions for themselves. Especially for legacy leaders, negotiating with new employers or proxies is often a muscle that hasn’t been to the gym in a while. At ABREO, we are Harvard-trained in negotiation and get them there.
With changes in legislation around salary disclosures, isn't pay transparency getting better? How can transitioning executives take advantage of the changes in the legislative landscape?
It’s getting better overall, but it's still too slow and on a too small scale for many individuals in transition. Companies get around base salary range transparency by opening up the job for several locations, and bonus and equity aren’t published or shared at all. ABREO will disrupt and level the playing field for candidates in 2023 by providing compensation advisory services to executives who want visibility to market pay data from sources like Mercer or Towers Watson. Part of it will be to provide guidance on where their negotiation sweet spot would be based on their experience, the company’s growth state, and other factors.
Any final recommendations for executives who are considering to go to market?
Do the work and do it well. Much has been said about interview prep, such as doing company, competitor or industry research, call preparation, follow up, etc. — all critical. What’s equally critical is the preparation before going to market and that’s where high net-worth executives with an aggressive ‘future state’ mentality prepare extremely diligently with us.
Path clarity: They are extremely clear on their next role and level, as well as the industries and organizational sizes they are willing to consider in order to get not only to the next desired level, but 2-3 positions down the road.
Resume: They make sure their resume is ready to go and tailored for the next step and trust outside experts.
Research and Dream Team Assembly: High profile executives will spend extensive amounts of time on research: Compensation intel for the next level, getting legal support lined up to review offers and severance arrangements, reconnecting with their network of industry professionals and headhunters, reaching out to organizations that interest them, etc. Going to market is work, and better preparation leads to better interviews and higher ROI in terms of titles and compensation.
