Interestingly, even as the world copes with some major changes in the talent market, executive hiring seems unaffected. This highlights how today’s organizations, in the face of constant disruption, are looking for the right leadership and guidance. What is certain in this uncertain world is that hiring teams, HR and business leaders, all need to recruit leaders who can navigate and drive change with future-focused knowledge, skills, and capabilities. And this is an infamously challenging task.

Ask any reputable executive search firm and they would tell you that when it comes to hiring C-level leaders, a vast and diverse talent pool makes all the difference—that’s where it all begins.

Tapping a broader talent pool: Why it matters

One of the most significant changes in C-suite hiring has been accelerated digital transformation across industries. As businesses adapt to a world that is becoming increasingly digital every day, they need leaders who not only understand technology but can also leverage it to think ahead and drive growth and innovation. Now, this expectation is no longer limited to CTOs or CIOs. Today, companies and the new generation of the workforce are looking to their C-suite leaders for strong guidance on powering digital transformation. Regardless of their background and past experience. And this is one of the advantages of hiring from a wider pool of candidates—it translates into diverse skill sets, competencies, and expertise.

When hiring executive leaders today, a broader talent pool ensures that the organization’s recruiting process looks beyond traditional ideas and welcomes individuals with common value systems but unique perspectives. The latter is another key asset for the C-suite today. Leaders who are independent thinkers, are open to taking thoughtful risks, and challenge the status quo are much in demand to operate successfully in this highly competitive business world. While things may have been different in the past, today authenticity and individuality are valued in a leader. Organizations are looking for individuals who can make unique contributions, question the relevance of established processes and procedures in the present context, and who are keener on driving a culture of innovation than ‘playing it safe’.

The real risk of like-mindedness

However, the process of hiring C-level leaders is already a long and complex one. Despite its benefits, most companies shy away from making any further changes and prefer sticking to the tried and tested methods of reaching out within known talent networks. While it may have worked in the past, today it puts organizations at the risk of being a hotspot for homogeneity. On the contrary, when an organization is led by a diverse set of people collaborating freely, they challenge each other’s assumptions and ideas, leading to more creative problem-solving while inspiring a culture that does not glorify or welcome the habit of being a yes-person. What sounds like a harmless behavioral issue, actually negatively impacts the business. How can an organization move forward when its leaders are not empowered to disagree or present their own opinion?

Choose potential over pedigree

In an ideal scenario, a C-suite leader will possess an exemplary pedigree while also bringing with them tremendous potential. But we all know that reality can often be different. While I strongly believe that relevant experience matters, when it comes to choosing between pedigree and potential, I would always recommend the latter. This is where looking beyond the CV helps. Companies, especially emerging ones, need leaders who are open to learning, and who demonstrate the flexibility to adapt and evolve with changing times. There is a dire need for leaders who are ready to make mistakes and grow from them. It is, therefore, essential, that leaders and recruitment teams move past their biases for same-industry/same-alma mater candidates and look for potential, instead.

Final thoughts

Hiring for the C-suite is always a decision for the long term which makes it critical to find the right fit. Frankly, the lack of a rich, varied talent pool puts organizations at a competitive disadvantage, resulting in them missing out on crucial talent—leaders who could have brought in a future-ready culture and improved individual and business performance. This is especially true for companies operating in global markets, where a diverse executive team can help the organization better understand, connect, and serve demographically and culturally different customers. According to me, this is exactly why organizations should adopt a more open approach to hiring executives; start with a recruiting team that values and welcomes divergent thought processes, challenges potential biases within themselves, and consciously avoids groupthink to make superior hiring decisions.