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When CEOs… Wing It

Thanks to Adam J. Epstein, Veritas Executive Compensation Consultants

Public company CEOs and CFOs are used to being the smartest people in the room. And they know their industry and company better than virtually anyone else. So why would they need to prepare extensively to be interviewed? Many don’t think they need to. So, they basically just… wing it.

Winging it works sometimes. In fact, the smarter and more charismatic you are, the better the chances that you’ll stick the landing.

But when I reflect on the last couple of years of advising and investing in companies, I see a definitive link between inadequate preparation and… faceplants.

[Editor’s note: If it were just once or twice, I wouldn’t be writing this.]

A few thoughts on print and TV:

Print

Here are three things I’ve learned after being interviewed dozens of times – many of them by The Wall Street Journal – that too many public company leaders insufficiently embrace.

1) Many of the reporters are smarter than you.

1a) Read #1 one again.

2) They conduct more interviews in one month than you’ve done in your whole career.

3) They are going to accurately report what you said, not what you thought or wished you’d said.

I asked a great CEO one time how she prepares for print interviews. She said, “I read the reporter’s last five articles, I spend 30 minutes in a quiet setting thinking about what they’re likely to ask me, and then I record myself over and over again on my phone trying to succinctly render a handful of key points. And just before the phone rings, I remind myself to really listen to the questions, and thoughtfully pause before answering them.”

Wisdom.

TV

Apart from driving around the South Island of New Zealand and the Saturday NYT puzzle, few things are more challenging than live television.

Not only do you have all the dynamics of a print interview, but you also have to consider your appearance, speaking cadence, verbal crutches (e.g., “like,” “you know,” “right,” “I mean”), answer length, body language, and all the crummy answers that the print reporter mercifully omitted.

Like anything in life, experts make the hard stuff look easy. Take a look at my friend James Gellert in a recent CNBC appearance discussing automotive credit ratings. As I told him, “It’s so good, it’s almost annoying.”

Your chance of being that good… isn’t great. But your chances of being adequate and potentially getting invited back will go up immeasurably if you hire a media coach and humbly do everything they tell you.

So if the Journal or CNBC come calling, be smart: prepare, prepare, prepare… and save your face.

By webmaster|2025-05-05T10:28:55-04:00May 5th, 2025|Categories: Articles|

The Construction Materials Most At Risk For Tariffs

By Sebastian Obando, Reporter

Steel and aluminum prices have jumped sharply since the turn of the new year, and more volatility could be on the horizon.

Contractors are bracing for a new wave of tariffs set to take effect April 2, this time on certain material imported from Canada and Mexico — such as steel, aluminum and lumber. Though reports indicate the Trump administration could roll back the ultimate scope of this action, contractors say just the threat of tariffs can have an immediate impact on material costs.

That’s why that looming deadline on Canadian and Mexican imports has already sparked concern across the construction industry, particularly around reinforcing and structural steel, curtainwall systems and Canadian lumber, said Steve Stouthamer, executive vice president of project planning for Skanska USA Building.

Here, Stouthamer talks with Construction Dive about the materials most at risk, tariffs’ impact on budgets and negotiations and steps contractors can take to minimize financial exposure.

This interview has been edited for brevity and clarity.

CONSTRUCTION DIVE: Which construction materials do you expect will see the greatest price volatility due to tariffs?

STEVE STOUTHAMER: The materials being impacted the most are products made from steel and aluminum.

For example, reinforcing steel used in concrete, structural steel used in the building frame, aluminum curtainwall and window wall systems used in the building envelope, piping and ductwork used in mechanical and electrical systems and many building mechanical and electrical equipment components.

Steel prices have increased 15% to 25% since the beginning of January and aluminum is also up 8% to 10% from the beginning of January. The Trump administration has indicated Canadian lumber will be included in the reciprocal tariffs which are set to take effect on April 2. Lumber has already seen a significant increase, 10% to 15% in cost, in anticipation of this tariff.

How might these tariffs affect project costs and timelines?

We are in the early stages of helping our clients understand the order of magnitude cost impacts we see based on current tariffs and those will vary based on the type of project and the material composition of those projects.

At present, we are not expecting a near-term impact on project timelines. If there is a considerable shift to onshoring manufacturing, supply chain schedules could be constrained, but this is not like the situation we experienced during the pandemic where the supply chains were impacted by global shutdowns.

At the moment, the broader Mexico and Canada tariffs on products protected by the United States-Mexico-Canada Agreement are suspended until April 2. Upon resumption, it is our current understanding that 25% broad tariffs on all goods from Mexico and Canada would stack on top of the all-country steel and aluminum tariffs of 25%, resulting in a 50% levy.

With the latest tariff suspensions, it is unclear if this will ultimately be the case. We will be monitoring the situation in the weeks ahead.

By webmaster|2025-04-01T10:52:04-04:00April 1st, 2025|Categories: Articles|

Board Composition: Building Your Dream Team

By Paul DeNicola, Barbara Berlin, and Carin Robinson

VERITAS EXECUTIVE COMPENSATION CONSULTANTS

Board effectiveness begins with and depends on who’s in the boardroom. Management looks to the board for oversight and counsel, and it’s critical that the directors evaluating information and making key decisions be the right people for the company and for the moment. As companies’ operating models shift and the business landscape changes, boards need to adapt in tandem, regularly assessing whether they have the right skills, experience, and diversity of thought for the future direction of the company, and refreshing the board as needed.

Directors should regularly examine who sits on the board. The board’s composition changes as directors retire or leave for other reasons, and board members should have a robust succession planning process to identify the right individual to fill an open seat. Too often, the replacement of a director is done in an ad hoc manner without making a thoughtful and comprehensive review of what the board needs.

Boards today are feeling pressure to make refreshment a priority. Shareholders are increasingly scrutinizing board composition — asking whether the current makeup is best suited for today’s strategy — and some will even vote against individual directors if they feel they have seen too little progress toward reshaping the board.

Nominating/governance committees, who often take the lead in assessing and managing refreshment, should assess board skills, consider board refreshment, identify gaps and plan for succession, ensuring that these processes are robust and occur at least annually. The full board also needs to be engaged and weigh in so that there is an overall agreed-upon plan to achieve the optimal board composition.

Assess Board Skills and Attributes

A board of directors is, of course, dynamic rather than static. The board is an assemblage of skills, experience, personalities, and perspectives that must continuously adapt to the changing business environment and the company’s shifting strategy. Boards bring on new members not only for their current expertise but for their ability to learn and continue to add value, both individually and as part of the team.

Boards need to work to align their blend of skills and attributes with the company’s long-term strategy, asking themselves: What would the ideal board look like to support the company’s strategy? Input from management on the skills and experience leaders value at the board level can also be helpful.

What are the skills most important to have on boards today? In PwC’s most recent C-suite survey on board effectiveness, only 28% of executives said they feel their boards are armed with the right combination of skills and experience. The survey also shows a wide disparity between executives and directors on the importance of having specific areas of expertise on their board. While executives prioritized industry, regulatory/public policy and environmental/sustainability expertise as their top three competencies, directors prioritized more traditional board oversight areas such as finance, risk management and operations.

The board should consider not only skills and expertise but other attributes such as diversity of perspectives. Diversity goes far beyond gender — it can mean race, ethnicity, age and even geography. A diverse board can generate different questions for management, and a broad spectrum of thought and perspectives can benefit overall decisions.

A board composition matrix can help lay out the board’s knowledge, skills and backgrounds — and can be helpful in determining what’s lacking and/or missing on the board today. With investors increasingly asking for transparency and disclosure on the board’s composition, many boards voluntarily offer this information in their proxy statements.

When evaluating the board’s skills, the objective is to compare the current directors’ suite of attributes with those matching the company’s future. Identify any gaps and incorporate this information into a plan to move the board toward an ideal makeup, aligning expertise and experience with strategic goals and business trends.

Some boards may decide to expand in size to add a director with a specific skill set or to bring more diversity. This can be a short-term solution to meet the ideal board makeup until a director seat becomes available. Boards must consider their optimal size: small enough for efficiency but large enough for committees to discharge their responsibilities.

Does the Board Need Deep, Technical Expertise?

Since boards have a finite number of seats, the question of whether a seat should be filled with someone who has only deep, technical skills but not broader business acumen is one that is determined by each board based on the company’s industry, strategy, and risk profile. The board must strike the right balance of the skills it needs based on the various topics it oversees.

Adding a director with deep but narrow skills poses two key risks:

The director may struggle to contribute to other board agenda topics. In this case, the candidate should have both specialist knowledge and broad business and leadership experience to contribute meaningfully to other areas of board oversight.
With an expert on the board, other directors may be less willing to voice their opinions on the subject. Ultimately, board decisions are the responsibility of the entire board, so all directors need to consider how they are upskilling themselves to gain understanding and actively engage in decision-making.

An alternative to adding a director with specialist skills is to upskill the existing board or committee members. This can be done by having management deliver board education sessions as well as by hearing from external parties or organizations on the topic and attending external training programs.

Tackle Director Tenure

Many boards look to mandatory retirement ages to spur refreshment. A smaller number of boards use term limits. But the keys to successful board refreshment are fostering a healthy attitude toward board tenure, guiding director expectations, and conducting effective board, committee, and individual director assessments.

Board leaders should work to instill a culture that encourages directors to think of tenure as earned. They should set the tone about the length of director service and make that clear during the nomination process. Board members should not assume they will be renominated for service each year — rather, service must be earned with high performance and continued alignment with the company and board composition strategy.

Nominating/governance committees should consider overall director tenure on the board. This is an area in which investors may be particularly interested. The committee should seek to balance fresh perspectives with institutional knowledge, looking to stagger board member turnover. A leading practice is for leaders to think of the board as one-third recently arrived directors, one-third with medium tenure and one-third seasoned veterans; this can help with succession planning.

Take Action From Board Assessments

Regular board assessments are valuable tools — if they’re used effectively. Board, committee and individual director assessments can help the nominating/governance committee understand what skills are lacking, whether training or coaching is needed at the board or individual director level, and if individual directors have the essential skills and experience for the strategic challenges facing the company. The assessment process can help identify opportunities for improvement and needed changes, with the goal of optimizing overall board composition.

In the surveys, directors routinely cite an ineffective assessment process and board leadership’s unwillingness to initiate difficult discussions about stepping down as two key obstacles to board refreshment. While 58% of respondents to our 2024 Annual Corporate Directors Survey say their boards are taking action based on assessments, only 9% reported that their board assessment process resulted in the decision not to renominate a director. In other words, too few boards are using assessments to drive board refreshment. Only 45% of executives surveyed in our most recent board effectiveness survey trust their boards to remove underperforming directors.

Develop a Succession Plan

Nominating/governance committees should adopt a multiyear perspective toward director departures, proactively planning for expected and unexpected vacancies in the boardroom. It’s ideal to take a three-to-five-year view to properly plan and not fall back on an ad hoc approach when a director retires. And, of course, the nominating/governance committee needs a contingency plan for unforeseen departures.

Building on the director skill matrix and focusing on optimal board composition, nominating/ governance committees should develop a succession plan that considers board roles (including leadership and committee membership), board tenure, expected retirement dates and other relevant factors. Planning far ahead allows time to recruit the right candidate with the right skills and incorporate a transition period.

Succession planning should place emphasis on the board and committee chairs, making sure there is ample time for transition and the ability to fill a seat quickly when an unexpected departure occurs. Nominating/governance committees will also want to pay close attention to regulatory requirements. For example, SEC rules require the audit committee to include at least one qualified financial expert (or disclose why the committee doesn’t have one); if the board’s resident financial expert departs, suddenly or otherwise, an immediate replacement plan needs to be in place.

While the nominating/governance committee is primarily responsible for succession planning, the full board should understand, review and agree with the plan. The plan also should be reviewed and updated at least annually.

Recruit to Close Gaps

With a comprehensive assessment of the board composition and known vacancies, nominating/ governance committees are equipped with the necessary information to create the desired director profiles to fill open board seats. It’s important to recognize that one candidate may be unable to fill all the board’s needs. The nominating/governance committee will need to prioritize its needs to identify realistic candidates. The goal: to have in place a slate of candidates whose skills, experience and character can address gaps and opportunities to meet the company’s strategic needs in the years ahead.

Regarding recruitment, all directors should be part of the pipeline strategy, teeing up potential candidates. But recruitment needs to look far beyond board members’ contact lists — looking at director search firms and other relevant organizations for potential candidates. The nominating/ governance committee is generally responsible for keeping a running list of potential director candidates and cultivating relationships with them for future board service. By actively engaging with prospective candidates over time, the committee can better assess not only whether they meet the necessary qualifications but whether they would be a good cultural fit.

Cultural Fit Matters

When evaluating potential board members, it is essential to consider how they will integrate with the existing board culture. Successful board dynamics hinge on effective collaboration and productive working relationships. The nominating/governance committee should assess candidates not only for their qualifications but for personal characteristics and potential to contribute to a cohesive and effective team. Our publication Why good boards make bad decisions: Four factors undermining board effectiveness delves into the significant impact of interpersonal dynamics on board productivity and decision-making.

Provide Transparency to Stakeholders

Increasingly, large investors, proxy advisory firms and other stakeholders are paying close attention to board composition and want to better understand the board’s approach to refreshment. Many investors and proxy advisory firms have also adopted policies to expressly support board diversity; some are even looking to vote against nominated directors or nominating/governance committee chairs or members when they see diversity as lacking, director tenure as overly long or the board refreshment process as less than robust.

The nominating/governance committee should work to stay updated on stakeholders’ evolving views on, and interest in, board composition and refreshment.

Conclusion

Who’s on the board holds immense importance. Board composition, in terms of both individual and collective quality and decision-making ability, directly influences board performance and long-term shareholder value. A board that proactively assesses its skill sets, addresses director tenure, incorporates outcomes from board assessments and plans for succession can help guide the company toward future success. Directors have the power to make real change happen — and enhance effectiveness when it’s needed most.

For assistance in recruiting Board Members, contact Brooke Chase Associates, Inc. for a no cost discussion.

By webmaster|2025-03-04T08:55:23-05:00March 4th, 2025|Categories: Articles|

Female CFOs, CEOs at Big Companies Outearn Male Counterparts

By Jim Tyson, Senior Reporter

Women have made gains in recent decades at companies of all sizes but are far from attaining parity with men in all ways in the workplace, according to recent reports.

Dive Brief:

Female CFOs and CEOs at Standard & Poor’s 500 companies will outearn their male counterparts this year, bagging at least 5% more in median compensation compared with top male executives, the Conference Board said Monday.

At the same time, women lag far behind men in rising to the No. 1 role at big companies, filling just 7.9% of CEO positions among S&P firms, the Conference Board said in a report co-written by FW Cook and ESGAUGE. Women held 6.4% of the top jobs in 2020.

“Since women remain underrepresented in CEO roles, companies are likely offering more competitive compensation packages to attract and retain female leadership,” said Matteo Tonello, the Conference Board’s head of TCB benchmarking and analytics. “These higher pay packages reflect both efforts to improve diversity at the executive level and the recognition that such talent is scarce.”

Dive Insight:

Women CEOs at S&P 500 companies will earn $16.5 million in median compensation compared with $15.6 million for top male executives for a 5.37% advantage, according to Conference Board data. Women CFOs at S&P 500 companies will earn on median $5.8 million, or 8.4% more than the $5.35 million compensation for men.

Women have made gains in recent decades but are far from attaining parity in the workplace, McKinsey said last month in a report. They lag men in opportunities at all levels of the corporate pecking order, from entry level, to senior manager, to the C-suite.

Although women fill 29% of C-suite positions compared with just 17% in 2015, they are less likely than men to gain an entry-level job and to attain their first promotion to a manager role, McKinsey said after surveying 281 organizations employing more than 10 million people for an annual report on women in the workplace.

More broadly, progress by women in wage gains, labor force participation and in rising to the upper tier of management has stalled in recent years, according to the Pew Research Center. “Large gender gaps persist at the top levels of government and business leadership,” Pew said.

Only 11% of Fortune 500 companies are led by women CEOs, Pew said, adding that Fortune 500 boards are just 30% female.

Among the 10 highest-paying U.S. occupations — ranging from physicians and dentists to lawyers and airline pilots — women have increased their presence to 35% last year from 13% in 1980, Pew said in its February report.

Yet U.S. employers have made limited progress during the past two decades in aligning average earnings among women and men, according to Pew.

U.S. women in 2022 earned just 82 cents for every dollar men earned, only 2 cents more than in 2002, Pew said.

Among Russell 3000 companies, female CEOs gained $6.7 million in median compensation compared with $6.1 million for their male counterparts, the Conference Board said. Still, women CEOs lead only 6.9% of Russell 3000 companies.

“The CEO position is extremely visible, and compensation arrangements for public companies are disclosed in detail,” FW Cook Managing Director Dana Etra said in an email response to questions.

“Boards are acutely aware of the disclosure implications, as well as the message that pay arrangements send externally,” she said. “The sensitivity around the broader gender pay gap and potential perception of such contributes to boards’ decision making around female executives’ pay.”

Women have led men in median CEO pay since 2018, with the exception of 2023, when they made about $10,000 less, the Conference Board said. Since 2018 their pay advantage has narrowed to 5.37% from 8.15%, according to the Conference Board.

The trend of higher pay for women CEOs will probably continue, according to analysts at the Conference Board and FW Cook.

“The trend is likely to continue in the immediate future,” Etra said, while predicting that “as the talent pipeline evens out, the compensation will as well.”

By webmaster|2025-02-18T10:01:05-05:00February 18th, 2025|Categories: Articles|

Here are the tax changes for 2025

The IRS has adjusted tax brackets to account for inflation

Mark Huffman, Reporter

Jan 30, 2025

The 2025 tax season got underway this week as the Internal Revenue Service began accepting 2024 tax returns. Those who are planning their 2025 tax strategy might want to review tax changes in the new year, starting with tax brackets.

The marginal tax rates for 2025 remain largely consistent, with the top rate at 37% for single taxpayers earning over $626,350 and married couples filing jointly with incomes exceeding $751,600. Other rates include 35% for incomes above $250,525 for singles and $501,050 for joint filers, and 32% for incomes over $197,300 for singles and $394,600 for joint filers. Lower brackets are set at 24%, 22%, 12%, and 10%, with corresponding income thresholds adjusted for inflation.

Here’s how it breaks down:

37% taxable incomes greater than $626,350 ($751,600 for married couples filing jointly)
35% for incomes over $250,525 ($501,050 for married couples filing jointly)
32% for incomes over $197,300 ($394,600 for married couples filing jointly)
24% for incomes over $103,350 ($206,700 for married couples filing jointly)
22% for incomes over $48,475 ($96,950 for married couples filing jointly)
12% for incomes over $11,925 ($23,850 for married couples filing jointly)
10% for incomes $11,925 or less ($23,850 or less for married couples filing jointly)

Other changes

For 2025, the standard deduction sees a modest increase. Single taxpayers and married individuals filing separately will benefit from a $15,000 deduction, a $400 rise from 2024. Married couples filing jointly will see their standard deduction increase to $30,000, up by $800, while heads of households will have a deduction of $22,500, marking a $600 increase from the previous year.

The Alternative Minimum Tax (AMT) exemption amounts have also been revised. For unmarried individuals, the exemption increases to $88,100, with a phase-out beginning at $626,350. Married couples filing jointly will see an exemption of $137,000, phasing out at $1,252,700.

The Earned Income Tax Credit (EITC) for taxpayers with three or more qualifying children will rise to a maximum of $8,046, up from $7,830 in 2024. Additionally, the qualified transportation fringe benefit and parking limitations will increase to $325 per month, reflecting a $10 rise.

Health spending

Health flexible spending arrangements will see an increase in the contribution limit to $3,300, with the carryover amount rising to $660. Medical savings accounts for self-only coverage will have a deductible range of $2,850 to $4,300, while family coverage deductibles will range from $5,700 to $8,550.

The foreign earned income exclusion will increase to $130,000, and the estate tax credit exclusion amount will rise to $13,990,000. The annual gift exclusion will also see an increase to $19,000. Lastly, the adoption credit for a child with special needs will be up to $17,280.

These adjustments aim to account for inflation and provide taxpayers with updated thresholds and benefits, ensuring that the tax system remains equitable and responsive to economic changes.

By webmaster|2025-02-05T11:33:57-05:00February 5th, 2025|Categories: Articles|

Construction Market Braces for Trump Tariff Impact

By Jacob Arends Senior Development Associate

The U.S. construction market is bracing for the impact of President Donald Trump’s anticipated tariffs on finished materials imported from China, Canada and Mexico. With approximately 46% of U.S. construction materials sourced from these countries, and 35% to 50% of total multifamily project construction costs tied to finished materials such as lumber, appliances and HVAC equipment, the tariffs are inherently inflationary. Based on these numbers, it can be reasonably estimated that material costs for multifamily construction projects could spike 7.5%, which could increase total construction budgets by 3% to 4%.

An informal survey of our construction partners showed that they are looking toward the first half of 2025 with concern about tariffs as well, particularly on lumber and electrical gear—but those fears are dwarfed by another, more immediate concern. Read on to find out how they believe the year could shape up.

Multiple Challenges Facing Construction Industry

However, while the math points to rising costs due to tariffs, the actual impact may be tempered by current market conditions. Capital market challenges and softened rents (read the latest rent growth forecast from Multilytics®️ for more on that) are creating further headwinds on new construction starts. Moreover, forward-looking indicators such as building permits and starts in all housing sectors continue to show elevated completions relative to new starts. However, as shown in the chart below, this spread is narrowing. That suggests demand for construction materials is likely to remain subdued in the short term, at least partially offsetting any inflationary effects of tariffs.

The fact that permitting has remained flat to slightly negative over the past two years suggests that in the long term, completions will remain subdued. Bigger picture, this means that the pernicious housing shortage the U.S. faces will persist.

Implications and Strategic Response

Near-term impact on new projects: Tariff-driven cost increases and existing market challenges likely will delay new project starts. Another key element integrated into tariff-related policy is oil and gas, which we are monitoring closely. Energy prices directly impact the production, transportation, and availability of key materials like asphalt, concrete, steel and plastics. All rely heavily on petroleum-based inputs and energy-intensive manufacturing processes. Higher energy prices can mean higher transportation costs that can ripple through the entire construction supply chain. Monitoring energy market trends allows us to better anticipate changes in material pricing, and plan budgets and project timelines more accurately. Other potential offsetting factors that could counterbalance tariff pressures include:

Supply chains may shift to other countries, reducing reliance on affected imports.

Subcontractor fees and supply chain efficiencies might help absorb some of the impact.

Rent increases and/or reductions in the cost of capital may make new projects more feasible.

Immediate concerns for ongoing projects: With potential tariffs on the way, projects already under construction would face new cost pressures. To mitigate this, we are exploring options to purchase materials before the tariffs take effect and reduce exposure to price volatility. In the next three to six months, we are monitoring material supply chains, exploring alternative sourcing options, and ensuring cost management across our portfolio. Longer term, we will assess how market adjustments—such as shifts in global sourcing and potential rent increases—might change our assessments of project viability.

Construction Partners Survey Results

Twice a year, we survey our construction partners across Origin’s investment markets to gather dollar-per-square-foot pricing for local markets, broken down by multifamily building product types (build-for-rent townhomes versus garden style, for instance). In our previous survey, covering the second half of 2024, our partners expressed uncertainty about pricing forecasts due to the presidential election and anticipated Federal Reserve rate cuts. With those events behind us, we are using these new responses to better understand priorities and expectations for the future.

Despite concerns about tariffs, most respondents saw flat (40.9%) to moderate (45.5%) increases in construction pricing trends for 2025, while an optimistic 13.6% anticipated a moderate decrease.

Biggest Challenges Facing Multifamily Construction in 2025

While labor availability remains a concern, most respondents don’t expect labor costs to surge dramatically. Around 27% anticipate increases of 5% to 10%, while another 27% expect increases of 1% to 5%. Nearly a third predict no change in labor costs, and approximately 14% expect a decline of 1% to 5%. The optimism surrounding labor availability is further reflected in responses to our question, “How do you think subcontractor availability will impact your projects in 2025?” Over 70% of respondents forecast significant or moderate improvement, while 13.6% expect no change, and 13.6% predict a moderate decline.

Though financing remains the primary concern for most respondents, tariffs are also a notable worry.

Concern About Impact of Tariffs on Material Costs for Multifamily Construction in 2025

Apart from tariffs, respondents said they were most concerned about pricing volatility in lumber (40.9%), electrical switchgear and components (27.3%) and concrete (18.3)%.

While the multifamily construction industry braces for potential tariff-related cost increases, the road ahead includes challenges and opportunities. It’s likely the ripple effects of tariffs will lead to delays in new project starts and tighter cost management for ongoing projects. However, survey results offer some optimism. Our construction partners expect labor costs to remain stable or improve, that subcontractor availability may increase, and broader demand for materials may remain subdued. All these can temper the inflationary impact of tariffs.

By webmaster|2025-02-03T08:49:22-05:00February 3rd, 2025|Categories: Articles|

What You Need to Know When Using a Retained Search Firm for the First Time

Retained executive search consultants are primarily interested in passive candidates, and consultants manage far fewer searches at a time because of the nature of the search process. Because they are paid by the organization to conduct a search, they do not represent candidates.

What you should understand when using a retained executive search firm for the first time!

Retained executive search firms operate on an exclusive mandate. They focus primarily on senior level, specialty type leadership roles or difficult to fill positions. Like many other professional service organizations, management consultants, lawyers, accountants, etc., the retained part of it comes from the upfront fee that you pay to initiate the search process. This is key, as it means that there is a well-resourced back office that is crucial to conducting a focused, professional, and successful search.

Because executive search firms are retained by the client organization to conduct a search, they search out and recruit the best qualified candidates for the position based upon the specifications the search firm and client have established. They don’t just rely on resumes and their database for candidates. Rather, they will scour the hidden nooks and crannies of the industry–and allied industries–to find the ideal candidate. A significant investment of resources is made in every assignment to identify, connect with, interview, evaluate and assess candidates against the client’s position profile. They want you to hire the best possible individual for the position. This is why it’s called “SEARCH.”

Talent – the World’s Most Valuable Resource

Today’s pursuit for talent is as competitive as ever. Companies are not devoid of cash to invest in new products and services; they are devoid of the people to lead these initiatives.

The majority of our value-add is recruiting individuals who are:

Currently employed
Content in their current position
Appreciated by their employer
Not actively looking to make a change

By webmaster|2025-01-21T11:10:59-05:00January 21st, 2025|Categories: Articles|

FLEXIBILITY, DATA KEY IN TALENT ACQUISITION

By Katie Kuehner-Heber

Whether it’s questions around talent or tech, here’s how to know when it’s time to change strategies, and how to do it.

In today’s fast-changing workplace landscape, employers need to be increasingly flexible to attract and retain key talent. From hard-to-fill roles to mastering emerging technology, sometimes the best strategy is not singular, but being light on your feet, ready to switch things up.

Business demands constantly change. How are employers shifting gears to stay ahead?
In a down economy, there are not as many jobs, skills are shifting and many emerging job roles include an AI component. Shifting gears is necessary, and it requires building flexibility into the talent acquisition function.

Employers need to think differently about data. Many companies access data from many sources, but what they need is visibility and guidance on what to do with it to inform decisions. If you can integrate talent data from across the entire ecosystem of internal and external sources, you can quickly uncover hidden issues, determine the best path forward and foresee conditions ahead. Machine learning and predictive analytics lead to precise, actionable intelligence that informs effective planning.

Many employers are also expanding their candidate targeting and attraction capabilities. The focus is on creating a flexible, at-the-ready ecosystem of resources that can pivot swiftly as market conditions warrant. This approach can mean engaging a recruiting solution dedicated to a hiring project, reaching across industries for transferrable skills or opening roles up to both contingent and permanent talent pipelines to meet demand.

The talent function struggles to satisfy conflicting demands from the business. How do HR leaders “stop the noise?”

HR leaders face many business demands. Hiring managers raise alarms about open vacancies, unsatisfactory candidates, or low-performing hires. Those leaders are also expected to keep up with innovations, stay ahead of competitors and prepare for the future. At the same time, the C-Suite wants a solid strategy and measurable results.

Data removes emotion from the conversation. Use data to ask the right questions. If there is a hiring problem, where is the disconnect? Is one location or role skewing the whole process? Is the offer too low?

Are the right recruiting resources assigned to the task? Is a contingent worker or permanent hire best, and if contingent, what is the ideal bill rate? Is there one point in the candidate journey where applicants are held up or drop out?

Employers benefit from an approach that pinpoints problems and suggests specific solutions supported by a data integration and analytics platform.

Another way to stop the noise is with small wins. It could be an executive search placement, a project hiring effort where a few dozen hires are delivered on time or working with a procurement leader to identify and contain an uncontrolled cost. These wins are personal, and they create supportive allies for HR leaders.

Filling high-value and hard-to-fill roles can shape the credibility of HR and talent acquisition. How are leaders addressing those needs?

Hard-to-fill roles will always be a part of recruiting. Those roles may demand new skills, target professions in short supply, such as healthcare clinicians, or involve roles with all eyes on HR leaders to get it right. Whether you need a new VP of sales or 200 industrial workers to open a new facility, those high-value roles demand attention.

Seeing the challenges early is a significant advantage. When you identify the risk early, you can adjust strategies, bring in specialty recruiters or expand your sourcing. Challenging hires also involve broader strategies.

Is AI really changing the talent market, and if so, what should we do about it?

Talent acquisition functions rely on AI to manage high volumes of talent, distill enormous amounts of market research and automate communications to make the candidate’s journey easier. Candidates use tools like ChatGPT in the application process. This use of AI remains controversial, but accepting such tools will lead to improved application processes that enable companies to treat generative AI as the legitimate but imperfect business tool that it is.

The benefits of AI extend across industries, too. A Stanford study found that roughly 30 percent to 65 percent of decision-makers benefitted from cost reductions and revenue increases based on AI, with manufacturing at the top at 66 percent.

Digital acceleration, including AI, shows up in nearly half of companies’ three-year plans, according to a 2024 Mercer study, and redesigning work to incorporate AI and automation is number five out of 20 on the report’s HR priority list.

AI tools give employers more recruiting power than ever, but competitors have the same benefits. AI will be different a year from now. The same can be said for all parts of talent acquisition—the markets, the priorities and what it takes to secure high-value talent.

Stay focused on building change readiness into your talent acquisition function. Flexibility is a priority, and that ability to shift makes the difference when striving to meet your business and workforce goals.

By webmaster|2025-01-07T08:52:19-05:00January 7th, 2025|Categories: Articles|

How to Successfully Manage Remote and Hybrid Employees

By Jovanka Lakic – MarshMcLennan Agency

In today’s work environment, remote and hybrid work arrangements have become increasingly prevalent. As a manager, leading a remote and hybrid team presents challenges and opportunities. Here are some valuable insights and practical advice from a manager’s perspective on effectively managing remote and hybrid employees.

Establish clear communication channels: One of the essential foundations for managing remote and hybrid employees is establishing clear and effective communication channels. Regularly scheduled team meetings, one-on-one check-ins, and virtual collaboration tools can help foster open lines of communication. Encourage team members to share updates, ask questions, and provide feedback to ensure everyone feels connected and engaged.

Set clear expectations and goals: It is crucial to establish clear definitions of roles, responsibilities, and performance expectations for every team member. Setting measurable goals and delivering consistent feedback are vital for keeping employees motivated and on track. Regularly reassess and modify goals as necessary to accommodate shifting circumstances.

Encourage a culture of trust and autonomy: Trust is crucial when managing remote and hybrid employees. Allow team members the autonomy to manage their work and make decisions independently. Have confidence that they will deliver results and meet deadlines. Encourage open communication and be available to provide guidance and support when needed. Nurturing a culture of trust empowers team members and fosters a strong sense of ownership and accountability.

Prioritize employee well-being: Managing remote and hybrid employees requires paying attention to their well-being. The boundaries between work and personal life can become blurred in remote work scenarios, potentially resulting in burnout. Encourage a healthy work-life balance by promoting regular breaks, setting clear boundaries around working hours, and encouraging employees to take time off when needed. It is important to show empathy towards personal challenges and provide available resources for mental health support.

Foster team collaboration and engagement: Remote and hybrid work arrangements can occasionally result in individuals experiencing feelings of isolation and disconnection. As a manager, it is essential to foster team collaboration and engagement. Encourage virtual team-building activities, such as virtual coffee breaks or team challenges. Use collaboration tools to facilitate brainstorming sessions and encourage cross-functional teamwork. Celebrate team achievements and recognize individual contributions to boost morale.

Embrace technology and tools: Leverage technology to streamline communication, collaboration, and project management. Invest in reliable video conferencing platforms, project management software, and virtual collaboration tools. Provide comprehensive training and continuous support to ensure that employees are equipped with the necessary skills and knowledge. Continuously assess and update the technology stack to align with the team’s evolving needs.

By webmaster|2024-12-17T08:19:13-05:00December 17th, 2024|Categories: Articles|

Annual Jobber Blue-Collar Report Reveals What’s Fueling Stigma Around Blue-Collar Professions and Its Impact on Gen Zs

By: Jobber Home Service Software

Jobber, a leading provider of home service software, released The Annual Blue-Collar Report: Gen Z and the Trades Need Each Other. The report, based on survey responses from 1,000 students in the U.S. aged 18-20, provides insight into how Gen Z navigates education and career choices, as well as offers solutions on how to inspire and encourage younger generations to consider taking advantage of all that blue-collar careers have to offer.

According to The Annual Blue-Collar Report, 76% of Gen Zs agree there is a stigma associated with going to vocational school over a traditional four-year university. This reality threatens our homes, economy, and the livelihoods of younger generations.

“If you own a home, you have a problem,” warns Sam Pillar, CEO and co-founder of Jobber. “While there is some renewed interest among the younger generation to pursue blue-collar careers, there’s still far too much work homeowners need done, and not enough workers to do it. We need to do a better job showing Gen Z how incredible the opportunities in the trades are, and encouraging them to consider that path.”

The U.S. housing stock is aging rapidly, with the median age of homes reaching 40 years. This is a critical problem as the U.S. is experiencing a labor shortage across most industries as labor force participation declines and the workforce ages and retires. In addition, the U.S. Bureau of Labor Statistics states that employment demands in trade industries are often greater than or pacing the 3% average of all occupations, representing not just a gap, but a growing chasm.

Key findings from the report provide deeper insights into why Gen Z is not pursuing blue-collar careers and how society can encourage younger generations to consider them. Despite the growing stigma and misconceptions that Gen Z has, The Annual Blue-Collar Report clearly shows that they actually do want blue-collar careers, and just don’t know it yet.

The “American Dream” needs a blue-collar rebrand

Gen Z has been taught to measure success through a white-collar lens, but AI, the economy, and layoffs are changing their minds. Their concerns around white-collar careers are clear.

One-third (33%) of Gen Z say that white-collar desk jobs are less stable today than they were for their parents’ generation.
41% of Gen Z agree that the potential for AI to replace jobs has made it harder to achieve the “American Dream” and 46% believe there will be fewer future job opportunities as a result.
70% of Gen Z say they are not optimistic about the future of the economy.
When asked what would make a trade career more appealing, Gen Z described what blue-collar professions already offer, including flexible work hours (73%), job stability (61%), and overtime pay (58%).

Gen Z’s biggest career influences are letting them down

Parents have blue-collar blindness, schools deserve a failing grade for blue-collar education, and Hollywood is doing hard work dirty.

Family (51%) was identified as the biggest influence on Gen Z and the careers they chose to pursue by a significant margin.
61% of Gen Z say their parents haven’t spoken to them about vocational school or told them not to consider it.
Just 17% of Gen Z say they have been educated on the benefits of vocational training following high school graduation. This was significantly lower than bachelor’s degree, community college, military service, and entrepreneurship.
More than a third (35%) of Gen Z say television shows and movies have influenced the careers they want to explore and 47% describe trade professionals as being generally portrayed negatively (incompetent, unhealthy, and/or unhappy) in shows and movies.

We simply need more women in the trades

While many workforces have evolved to accommodate the modern gender distribution of labor, the trades have yet to establish this balance.

Nearly half (48%) of Gen Z agree that women are discouraged from pursuing trade careers from a young age.
58% of Gen Z say that women face more discrimination within trade careers—compared to other career options—with the majority of women (68%) believing this compared to men (47%).

In addition to survey data and insights, The Annual Blue-Collar Report offers testimonials from people like 27-year-old commercial and residential electrician, Lexis Czumak-Abreu, who attests to the benefits of blue-collar work: “I studied pre-med in school, intending to become a surgeon but decided to become an electrician instead. Many people in my family are electricians, including my dad. The salary is great, the hours are stable, and the work is very gratifying!”

Finally, The Annual Blue-Collar Report highlights 10 specific calls to action for the general public, blue-collar professionals, policymakers and educators, and the media to help connect the dots between Gen Z’s fears and desires and the blue-collar opportunity in front of them, as well as eliminate the existing harmful stereotypes.

To access The Annual Blue-Collar Report Powered by Jobber, visit jobber.com/blue-collar.

By webmaster|2024-12-10T09:03:16-05:00December 10th, 2024|Categories: Articles|

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