As your business evolves, hiring a CEO can streamline your operations and allow you to focus on priorities other than organizational strategy. Maybe you already have a CEO who is retiring or whose performance doesn’t align with your expectations. In either case, the future of your company depends on finding the right person for the job.
Hiring the wrong CEO can cause lasting damage and pile even more responsibilities onto your shoulders. As a recruiter who helps businesses across industries hire the right executive leaders, I created this guide to help founders and owners hire the right leader for this critical position.
As a business owner, hiring a CEO can give you the freedom to focus on priorities other than high-level strategy.
My team works with many businesses where the owner starts out taking on most, if not all, C-suite roles. While this approach is common, it can quickly lead to burnout and a lack of work/life balance. I recommend building out your C-suite team as soon as it makes financial sense. While your CEO probably won’t be your first C-level hire, they will easily have the biggest impact on your day-to-day responsibilities.
Timing is everything when hiring a CEO.
The right CEO at the wrong time could hurt your company’s bottom line, and the wrong CEO at any time could throw your growth trajectory off track. Ensure you have ample room in your budget for the executive’s salary before starting your search. Rushing to hire a CEO at a lower salary than you could offer down the line will cause more problems than it solves.
To determine when it makes sense to hire a CEO, consult other stakeholders in your company. Mapping out your needs, goals, and budget for the role can help you get a clear picture of when the hire can hit the ground running.
Determine specific needs before starting your search for a CEO.
This may sound obvious, but hiring teams’ priorities frequently shift mid-search. Starting a search for a CEO without being fully certain what you need them to achieve is a recipe for failure. Strong candidates may get turned away after multiple interviews, and the person you hire may not deliver what you need them to.
Start by nailing down the technical leadership qualifications your CEO needs to have. Industry expertise is always a plus, but you may struggle to find qualified candidates if you only look within your industry. The best CEOs are adaptable and can successfully grow and lead organizations, no matter what they produce or who they serve.
Decide if you’re searching for candidates internally or outside of your company.
Determining who will conduct your search for a CEO is a make-or-break decision. These are the most common approaches:
Hiring from within your existing team is a cost-effective option.
This method eliminates the need to use resources on a search. It involves meeting with your existing leadership team and/or other relevant stakeholders to decide together if an existing member of your team is the best fit for the job. This often works better at larger companies, where a board can help guide your decision.
If you have the resources available, a search by your internal hiring team could make the most sense.
If your company has a strong internal recruiting function and executive hiring experience, running a CEO search internally can be effective. However, internal searches demand significant time and focus from senior leaders. Without dedicated resources, these searches can move slowly and may not surface strong candidates.
Working with an outside recruiting firm connects you with CEO candidates you may otherwise miss out on.
An executive recruiting company like Journey Search Partners can connect you with passive candidates who align with your needs. Our CEO searches are retained to prioritize your search, offer confidentiality, and give you a dedicated search manager.
Posting on job boards will attract applicants, but probably not the right ones for your CEO position.
Job boards are sure to get you applications, but the candidates who apply aren’t likely to meet your needs beyond what’s on paper. Most qualified CEOs are not actively searching for job postings and need to be sold on leaving their current positions.
Publicly posting that you’re looking for a CEO can also be risky, causing speculation from employees or investors. Having your internal team or outside recruiters reach out directly to candidates can keep your search confidential and ensure everyone in the running has what it takes to lead your company.
If a CEO doesn’t work out, take swift action to find a qualified replacement.
If the unexpected happens, and a CEO placement doesn’t go as planned, moving quickly can prevent more problems from arising. With the CEO at the helm of your company, misalignment with other leaders can slow down decision-making and create uncertainty for your team, customers, and other stakeholders.
If stakeholders are already aware of the situation, promoting a member of your leadership team to be interim CEO may be the best option while you look for a permanent replacement. If the situation is under wraps, launching a confidential search for a replacement CEO may be the best path forward.
If you worked with an outside executive recruiter to hire your CEO, and they offer a guarantee, they should be able to start confidentially looking for a replacement right away. If your internal team found your CEO, it may be in your best interest to engage an outside recruiter who can keep your search for a replacement confidential.
A CEO is the highest-stakes hire you’ll ever make.
The right leader can accelerate growth, strengthen culture, and free you to focus on where you add the most value. The wrong leader can stall momentum and force you into reactive decision-making.
There is no one-size-fits-all approach to executive hiring. The best path forward depends on the size of your company, your growth stage, needs, and available budget. Whether you hire from within, launch your own search, or partner with an executive recruiting firm, clarity and preparation are essential.
If you need to hire or replace a CEO, Journey Search Partners can help you connect with candidates who meet your specific needs. Our leadership team partners closely with founders, owners, and boards to run confidential, retained CEO searches designed for long-term success.
Book a no-pressure discovery call with our team to learn whether a partnership with Journey Search Partners is the right fit for your next CEO hire.
