You’ll probably wear multiple hats when beginning a new firm. Being the CEO while managing operations, marketing, and other duties is not uncommon. It’s possible that you’ll feel prepared to assemble a formal executive team as you gain ground and start to climb.
Your specific demands, available funds, and long-term objectives will determine which C-suite jobs are best for your company. The objective is always the same: to appoint people that will ultimately contribute to the success of the firm. What is appropriate for one organization may not make sense for another.
With that said, let’s take a closer look at how and when to assemble an executive team.
When is the right time to hire an executive team?
The answer depends on what your current operations look like. If you’re a startup with little cash on hand to pay operating costs, you might be bootstrapping your way through the early going. Working long shifts and cutting expenses are frequently necessary for this.
But, there comes a point when bringing in senior leadership is the logical and appropriate course of action. Consider it an investment in your business: you’re providing resources (pay) to hire highly qualified personnel who will ideally take it to the next level.
Filling executive leadership positions will probably allow you to spend more time on other things, which is another advantage. Your chief marketing officer can now handle it rather of being overwhelmed with, say, social media initiatives. This enables the business owner to concentrate on what they do best, which is managing their company.
What does the C-suite look like?
The best executive leadership positions will depend on the nature of your company. According to employment resource Indeed, that may include some of the following:
- Chief executive officer (CEO): This is the top position within a company. The CEO is a key decision-maker who oversees all other departments and guides the overall direction of the business.
- Chief financial officer (CFO): As the name implies, the CFO is responsible for major financial tasks. This typically includes reviewing financial reports, overseeing budgets, managing overall financial planning, and more.
- Chief technology officer (CTO): This executive ensures technology initiatives are running smoothly and supporting overall business goals.
- Chief marketing officer (CMO): This person is tasked with creating and executing the company’s marketing strategies. This typically includes doing market research and carrying out targeted marketing campaigns.
Take this opportunity to think creatively. Depending on your industry, you could require an executive-level position that is particular to your company, such as chief creative officer or executive for employee well-being. The good news is that you get to pick what your executive leadership team looks like. The most important thing is to make expectations clear for each role.
What if I can’t afford to expand yet?
C-suite positions can be expensive, as is obvious. Executive leadership positions typically pay six figures annually. If money is short for your company, you can decide to fill these roles gradually, giving priority to the positions that are in the greatest need. Start by considering what your company needs to grow.
You can think about hiring capable consultants to handle important duties instead of hiring them on a full-time basis. For instance, you might decide to engage with a freelance accountant to handle important financial obligations if your business has dependable bookkeeping software. That can make your temporary requirement for a CFO unnecessary.
There may be standard executive leadership roles that aren’t appropriate for your company, depending on your organization. You can also be a business owner who takes pleasure in some manual labor. Organizationally, handling some executive-level responsibilities oneself might make sense (and save you money).
This all means that there isn’t a single right or wrong technique to assemble your executive team. It’s crucial that you assess your company’s needs and determine when to start adding new expenses.
How to hire an executive team
Experience and skill are usually top considerations when hiring new personnel. When filling executive leadership jobs, this is much more true. LinkedIn advises focusing your search on applicants who:
- Have eight to 10 years of corporate management experience under their belt
- Have an entrepreneurial mindset
- Have been successful in past leadership positions
- Showcase the ability to be strategic
- Can easily communicate their vision and expectations
You can use your internal recruitment procedures to identify qualified individuals after you know what you’re searching for. As an alternative, you can decide to collaborate with a staffing firm that focuses on executive leadership positions. Just make sure that your pay and perks are competitive enough to draw in top-notch applicants.
Retention and this go hand in hand. How will you continue to motivate your executive leadership team once these positions have been filled? For instance, incorporating a bonus structure can offer internal drive.
Striking the right balance
Putting all of your resources into your executive team has many advantages. The goal is to assemble a group of functional experts who are all committed to the same objectives. Please remember to take care of the rest of your company.
A disproportionate amount of resources may be going toward executives if your organization is too top-heavy. Making an investment in your regular employees is as crucial.
Employees are often more engaged at work when they believe the mission of the firm aligns with their own. Also, it seems to increase staff members’ commitment to the organization and their propensity to refer business to others. Translation: It might be good to tap into your employees’ values.
What’s important to them? How can you integrate these ideals into their work? The development of employees is just as crucial as assembling a management team.
This could entail providing employee training sessions, support networks, mentorship opportunities, and more. Investing in your workforce can also assist in bridging any communication gaps between upper management and the workforce.
Establishing a competent executive team won’t happen overnight. The most important thing is to lead with your company’s demands and objectives while remaining true to your company’s core principles.
Contact MCDA CCG, Inc today with any questions about your business!