Why Everyone Is Playing It Safe in Executive Hiring Right Now

Why Everyone Is Playing It Safe in Executive Hiring Right Now

I've been having many conversations lately with companies and senior executives about their next strategic moves. Patterns that emerge are: 

A Market Defined By Caution 

Companies are in survival mode right now. Everyone's consumed with firefighting, cutting costs, optimizing everything. When you're in that headspace, strategic talent moves just aren't top of mind.

Companies are in survival mode right now.

Don't get me wrong, executive roles are still being filled – but selectively. It's only the absolutely critical ones. Those "nice to have" or "let's see if we can find someone better" searches have disappeared. 

And when companies do need to fill a role, many are favoring internal promotions - even when the internal candidate might not be the ideal choice - it's all about perceived risk reduction. 

Executive roles are still being filled – but selectively.

A Big Shift in What Companies Want

The types of leaders companies want has also shifted. Everyone wants CFOs skilled at turnaround and restructuring. Conversely, growth-oriented roles for international expansion are not high on anyone’s priority list. 

Everyone wants CFOs skilled at turnaround and restructuring.

The Decision-Making Paralysis 

Perhaps most striking is the decision-making paralysis. A company will take an excellent shortlist of candidates and then spend months asking themselves "Are these really the right profiles? Should we pivot our strategy? Do we actually need something different?" What used to take 3-4 months now stretches to 6-9 months - no one wants to make the final call.

And The Candidates?

Senior executives are equally cautious. So we've got this weird situation where there's amazing talent available, but everyone's too nervous to make a move.

Everyone's too nervous to make a move.

Déjà Vu

This whole situation reminds me of 2008/9. Back then, companies went 2+ years without making essential senior hires they desperately needed. 

The bad news: I believe this cautious environment will persist throughout 2025.

The good news: History suggests we’ll see a significant recruitment surge once confidence returns. After 2009, there was a massive recruitment boom. I bet we'll see the same thing again - it's just a matter of when, not if.

We are bound to see the same massive recruitment boom again - it's just a matter of when, not if.

What This Means for You

If you're on a board: Now's probably a good time to take a hard look at your leadership bench. When things turn around - and they will - are you going to be ready? Do you have the right succession plans for this new reality?

If you're running a company: While external hires may feel risky right now, some orgs are quietly scooping up talent while everyone else is sitting on the sidelines.

If you're a senior executive looking for a next step: This is tough, no sugar-coating it. But there are real opportunities here for proven crisis-leaders. Plus, you're building relationships and positioning yourself during a downturn. When hiring accelerates again, you'll be first on their list. 

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ABOUT THE AUTHOR

• Marion Heil is the founder and managing director of Board+CEO Advisors. She is based in Vienna.