Articles

Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor  – Hunt Scanlon Media

Despite a growing emphasis on holistic workplace motivators, senior executives are showing a clear preference for financial rewards over job titles and remote work options. The latest Executive Search survey reveals that while company culture and mission alignment are valued, competitive compensation remains the most crucial factor for executive satisfaction. Let’s take a closer look at the report’s findings.

Despite evolving workplace trends emphasizing holistic motivators, reports continue to find that executives prioritize monetary incentives as a key validation of their efforts and value. Additionally, while company culture and alignment with organizational missions are important, Executive Search’s Annual State of Executive Employment Survey found that executives place a stronger emphasis on competitive pay over remote work options and job titles, highlighting the complex balance between financial security and professional fulfillment.

When asked what would make them more satisfied in their roles, the majority of executives pointed to higher compensation as the most significant factor.  “This strong preference for increased financial reward highlights the enduring importance of monetary incentives in executive satisfaction,” the study said. “Despite the growing emphasis on holistic and intrinsic motivators in the workplace, it’s clear that, at the executive level, compensation remains a primary driver of job satisfaction. This could be due to the high stakes and demands placed on executives, who often face considerable pressure to deliver results and drive company performance. For these leaders, competitive compensation packages may serve not only as a reward for their efforts but also as a validation of their worth and contributions to the organization.”

Beyond compensation, the survey also found that executives also considered several other factors that contribute to job satisfaction. These included company culture and values, leadership, organizational stability, personal fulfillment, professional growth opportunities, recognition, work-life balance, and the ability to work from home.

“Interestingly, the option to work from home was the least likely factor to increase satisfaction among executives. This contrasts with trends seen in other segments of the workforce, where remote work options have become highly valued. For executives, the lower priority placed on work-from-home options could be due to several factors. Many executives may already have a degree of flexibility in their roles, reducing the appeal of additional remote work options. Additionally, the nature of executive leadership often requires a physical presence for effective team management, strategic decision-making, and engagement with stakeholders, making remote work less critical for this group.”

Layoff Concerns

Regarding layoffs, executives were asked whether layoffs had occurred or were likely to occur within their companies. The responses revealed that the majority of executives equally cited two primary factors as the most likely causes of potential layoffs: financial instability and poor leadership or management decision-making.

Financial instability was identified as a major concern, reflecting the executives’ awareness of the economic pressures that can lead to workforce reductions. “This concern could stem from various factors, including declining revenues, market volatility, increased competition, or broader economic downturns,” the study says. “Financial instability not only threatens the immediate financial health of a company but also erodes confidence among employees, potentially leading to decreased morale and productivity. Equally significant was the concern about poor leadership or management decision-making as a driver of layoffs. This highlights a recognition among executives that leadership plays a critical role in navigating challenges and making strategic decisions that can either stabilize or destabilize a company.”

The survey explains that poor leadership decisions—whether related to mismanagement of resources, failed strategic initiatives, or ineffective crisis management—can exacerbate financial difficulties, leading to the need for layoffs as a last resort to cut costs.

“The equal emphasis on financial instability and poor leadership suggests that executives see these issues as interconnected,” the report said. “Financial challenges can often be exacerbated by weak leadership, just as strong, decisive leadership can mitigate financial risks and potentially avoid layoffs. The fact that these two factors were cited equally indicates that executives are aware of the dual importance of maintaining financial health and ensuring competent, strategic leadership to safeguard jobs and maintain organizational stability.”

Confidence in Leadership

When asked about their confidence in fellow executive leaders, executives provided a noncommittal response, with the majority indicating they were “somewhat” confident in their peers. This tepid response suggests a level of uncertainty or ambivalence within leadership teams.

“While there isn’t outright distrust or lack of confidence, the lack of a strong, affirmative endorsement points to potential areas of concern or room for improvement in leadership cohesion, decision-making, and communication,” the report said. “It may reflect underlying issues such as misalignment on strategic goals, inconsistent leadership styles, or a lack of clarity in roles and responsibilities among executive leaders. This sentiment could have implications for the overall effectiveness of leadership teams, potentially impacting organizational performance and morale if not addressed.”

DEI Initiatives

When it comes to diversity, equity, and inclusion (DEI), the survey found that the majority of executives expressed concern that their employer does not have a clear set of DEI initiatives in place, indicating a gap between the organization’s stated values and actionable strategies. This lack of clarity can hinder meaningful progress in fostering a diverse and inclusive workplace, as it may lead to inconsistent efforts and a lack of accountability.

However, despite this shortcoming, many executives still acknowledged that DEI is “somewhat” a priority for their organization, suggesting that while the commitment to DEI exists in principle, it has yet to be fully translated into concrete, strategic initiatives. “This ambivalence highlights the need for organizations to move beyond vague commitments and develop robust, clearly defined DEI strategies that can drive real change, ensuring that these values are not just aspirational but integral to the company’s culture and operations.”

Compensation, Mission Alignment, and Remote Work

Most executives stated they would rather have personal alignment with the company mission than simply holding a job title. “This preference highlights the increasing importance executives place on finding meaning and purpose in their work,” the study said. “For many leaders, aligning their personal values and beliefs with the mission of the organization they serve is critical to their overall job satisfaction and fulfillment. This alignment allows executives to feel that they are part of something larger than themselves, contributing to a cause or vision they genuinely believe in. In today’s rapidly changing and often challenging business environment, this sense of purpose can be a powerful motivator, helping executives navigate the complexities of their roles with greater commitment and resilience.”

However, when it came to compensation, most executives prioritized it over both alignment with the company mission and holding a title. “This indicates that while mission alignment is important, financial rewards still play a dominant role in executive decision-making,” the search firm said. “The high demands and responsibilities associated with executive roles often make compensation a critical factor in job satisfaction. For many executives, compensation is not only a measure of their value within the organization but also a reflection of their achievements and the impact they have on the company’s success. The prioritization of compensation over mission alignment suggests that, for many executives, financial security and recognition through compensation remain essential components of their professional fulfillment.”

In another question, personal alignment with the company mission was still valued more than the ability to work from home. This suggests that while remote work options are appreciated, they pale in comparison to the importance executives place on aligning their work with their personal values and the broader mission of the organization. The preference for mission alignment over remote work may reflect a desire among executives to feel deeply connected to the purpose of their organization, a connection that is perhaps less tangible in a remote setting.

These findings reveal a nuanced set of priorities among executives, according to the report. “While compensation remains a top priority, personal alignment with the company mission is also highly valued, surpassing both job title and remote work options in importance,” the study said. “This suggests that for many executives, true job satisfaction comes from a combination of financial rewards and a deep, personal connection to the work they do. The fact that remote work options rank lower in comparison indicates that, while flexibility is valued, it is not as critical as ensuring that their work aligns with their personal beliefs and that they are compensated in a way that reflects their contributions and responsibilities. Ultimately, these insights highlight the complex and multifaceted nature of executive satisfaction, where purpose, recognition, and financial security all play integral roles.”

By Warren Shoulberg, IWF News

 The one-half-point cut was larger than many predicted, triggering positive signs for the building and construction trade. 

It took longer – far longer – than many of the experts predicted and just about everybody in the building trade was hoping for but the Federal Reserve finally reduced interest rates earlier this month and they went all-in, putting through a half-point cut rather than the less aggressive quarter-point some had forecast.

Leading up to the announcement and in the days thereafter we’re already seeing the impact of the lower rates for the all-important housing market. Leading the way is the ongoing reduction of mortgage rates, which many say will continue to come down in the months ahead. Mortgages had been as high as 7.79 percent 11 months ago and had only just begun falling below the 7 percent mark earlier this year.

Now, the average interest rate for a 30-year fixed mortgage is 6.09 percent, a drop from 6.2 percent just the week before. Sam Khater, chief economist at the federal mortgage agency Freddie Mac, told The New York Times the cut is “reviving purchase and refinance demand for many consumers” and he expected “rates to fall further, sparking more housing activity.”

The country is already seeing positive signs in housing although the month-to-month results remain inconsistent. Earlier this summer home sales went up 1.3 percent, the first increase in more than five months. That rise did not continue in August but when the September numbers are released there could be good news again.

And as Freddie Mac’s Khater said, these lower interest rates will also make refinancing a better prospect for current homeowners staying where they are. Often, the proceeds of refinancing deals are put towards home improvement and remodeling projects.

Finally, lower interest rates will be advantageous in the cost of financing materials for builders and others in the construction trade. With the cost of money coming down the savings are likely to help the bottom lines of those in the business.

Make no mistake, interest rates are still high – more than double from just a few years ago during the pandemic-fueled housing boom – but they are now heading back in the right direction.

Finally.

By:  Kelsey Raymond and Kendra Okposo

Best practices simply don’t go far enough in today’s climate. Based on our research into large-scale enterprises across industries, we recommend CEOs adopt these six new ways of thinking, doing, and excelling to remain future relevant.

It was more than seven years before LinkedIn hit 100 million users. For ChatGPT, reaching the same milestone took just two months. Welcome to a world of sudden upheaval and change, where only the future-relevant will thrive.

Within this ever-changing landscape, leaders are forced to face unpredictable and unprecedented disruption. While they go to bed in the present, they wake up in the future. And they have to navigate abrupt shifts from all angles with confidence. It’s an arduous task, especially for those clinging to yesterday’s best practices.

What’s wrong with tried-and-true best practices? They are static. A best practice focuses on the here and now. That’s not good enough for a world that can pivot overnight. In contrast, a “next practice” has the inherent dynamism needed to help navigate the constant flux of tomorrow with greater adaptability and resilience.

Put simply, best practices don’t go far enough. Next practices do. Based on our research into organizational health and future-readiness and our work with large-scale enterprises across industries, we recommend you adopt six new ways of thinking, doing, and excelling to remain future relevant.

1. From setting direction to adapting direction.

 Your job as a leader may include setting and approving plans, but great leaders never view any plan as final. Great leaders recognize that while every good plan has a clear vision and goals, it must also have built-in flexibility to take advantage of emerging opportunities and sidestep potential risks. This is the act of planning itself, the ability to be adaptive and iterative and recognize and mitigate potential risks, which is a greater predictor of success than the plan you have written down. To ensure your plans are adaptable without losing a clear sense of direction, keep your vision in mind. Having a guiding North Star assures that your plans stay agile but don’t deviate from your overall purpose.

Take the well-worn but still very instructive example of Netflix’s DVD delivery service, which brought the video rental industry onto the web and simplified the customer experience by reducing the need for laborious searches and storefront business models. Passed over by Blockbuster for acquisition, Netflix went on to roll out its streaming services nearly a decade later, and while it was not the first to do so, the venture’s success shifted an entire industry to pursue the web-based distribution model.

Netflix continues to be a powerful example of a company that was able to continuously adapt to meet the changing technological landscape and customer needs. In contrast, Blockbuster serves as an example of how the inability to adapt to market disruption leads to a loss of market share and capacity to remain competitive over time.

2. From leading others to leading with others.

To be future relevant is to create conditions for employees to do their best work unfettered by conventional hierarchies. This shift doesn’t necessarily require moving to a completely flat organization. It does mean that as a leader, it’s your job to create the conditions so that employees at all levels—not just your directs—are empowered to contribute ideas based on their views, thus seeing themselves as leaders regardless of title or role.

Microsoft, for instance, has softened its hierarchy-related employee experiences by putting stock in what it calls a “thrive” score. The software giant measures how well its employees are thriving by how energized and engaged they are. When you start expecting everyone to have an influence within your company, you gain more functionality (and flexibility) as an organization.

3. From pushing down decisions to building shared commitments.

Does every team member understand their decision-making authority, or do decisions tend to flow from the top down? Democratizing decision-making—with the right information and guardrails—allows your company to move fast and do the right things for the business. Future relevant organizations lean into the power of data and insights to empower decision-making while creating accountability.

Before team members can effectively collaborate and make informed decisions, it’s crucial to establish clear strategic constraints. This clarity helps ensure that all decisions align with the organization’s goals and operational boundaries. Additionally, providing employees with access to necessary and relevant data empowers them to make informed decisions and, when required, justify them effectively. By setting a clear framework for where decision-making power lies and holding team members accountable for their decisions, your organization can achieve a balance of speed and precision that drives business success.

4. From teaming to collaborating in the ecosystem.

Forrester found that 79% of teams are siloed. If your workforce falls into this group, you’ll have trouble functioning efficiently or becoming future-relevant. Think of your organization as a body of loosely connected networks. For the organization to be healthy, all systems must be able to work in tandem. In other words, you must tear down barriers to communication between people and departments, internally and externally, while building the conditions for trust.

As trust grows across your ecosystem, you should begin to see partnerships form in uncommon places. These relationships will help your workforce shift to a larger network rather than as small team units.

A powerful example of collaborating with the external ecosystem is electric vehicle manufacturers universally adopting Tesla’s battery charging stations. By aligning one way to charge EVs across the country, car companies can focus on car manufacturing without worrying about how to charge the vehicles in a distributed network. This is a positive for Tesla, but it also allows other manufacturers to avoid the challenges of establishing a competing charging network.

5. From developing talent to accelerating talent.

Professional development is now table stakes for competitive employers, particularly since 70% of professionals admit they’re unprepared for the future of work. Beyond routinely upskilling and reskilling your employees, you must consider other ways to prioritize their personal goals and humanity. This means providing fair talent processes, flexible career maps, and the assertion that employees don’t need to sacrifice their well-being to be successful. In exchange, you’ll see lower turnover intentions and higher job satisfaction, motivation, and engagement. Employees know they are valued for their diverse perspectives and backgrounds instead of having to “fit in” or assimilate into a career path or culture.

Such practices also lead to significant organizational outcomes, including high motivation and engagement among team members, which naturally enhance efficiency and productivity. Moreover, by promoting a culture that values each individual’s contributions and well-being, organizations are likely to experience lower attrition rates and a heightened sense of psychological safety, fostering a more resilient and adaptive workforce.

Patagonia has taken this approach by offering benefits such as a 9/80 work schedule and paid time off for volunteer work. For years, Patagonia’s leaders have illustrated that talent development is a constant journey toward finding what works and what doesn’t.

6. From integrating systems to simplifying systems.

Business is complex enough. Why muddy the waters with complicated processes? General Electric (GE) is a prime example of how business structures can hinder or support success. By dividing into GE Aerospace, GE Vernova, and GE HealthCare, the company streamlined its operations, demonstrating that embracing simplified, minimally viable systems can prevent the debilitating effects of having too many moving parts. Simplification can also lead to more focused and effective business strategies.

Remember that simple isn’t synonymous with simplistic. Simplifying systems involves a continuous cycle of evaluating, investing, sunsetting, and reevaluating the systems and technologies you use. Like every forward-leaning approach, it’s never really finished.

The best practices have gotten you this far as a leader. Yet they may not bring you the adaptability and resilience you and your organization need to meet the demands, shake-ups, and surprises of what’s on the horizon. To meet the future head-on, you must retire old-school practices for these forward-looking strategies instead.

by Dora Lanza – Plethora Business

Congratulations! You have built a remarkable company that has a great impact in your industry.

Your leadership and vision have been instrumental in driving success, but as your business continues to flourish, it’s essential to confront a critical issue: over-dependence on you, the Founder CEO.

While your leadership has undoubtedly propelled your company to new heights, reliance on a single individual, particularly the founder, can pose significant challenges and threats. Not only does this dependency limit the scalability and resilience of your organization, but it also adversely affects your company’s valuation and complicates a potential exit.

Consider this: acquirers and investors often view companies heavily reliant on the founder CEO with caution. The prospect of a founder’s departure can introduce uncertainty and disrupt business continuity, leading acquirers to negotiate terms that ensure the founder remains in place until a suitable replacement is found. This dependence not only constrains your ability to negotiate favorable terms but also limits your options for a smooth transition.

The same is true of reliance on a single individual, particularly a key employee such as a top sales executive, IT specialist, or head of R&D. can pose significant challenges. This dependency not only limits the scalability and resilience of your organization but also adversely affects your company’s valuation and complicates potential exits.

To unlock your company’s full potential and pave the way for seamless exits, it’s imperative to diversify leadership and cultivate a strong management team capable of driving growth independently. This strategic shift not only enhances your company’s valuation but also mitigates risks associated with key employees and founder dependency.

Here are actionable steps you can take to diversify leadership and position your company for long-term success:

1. Identify and Develop Talent: Look within your organization to identify high-potential individuals who can step into leadership roles. Invest in their development through mentorship, training programs, and opportunities for growth.
   Promoting from within offers several additional advantages:

• Cultural Continuity:. Employees who have been with the organization are already familiar with its mission, vision, and values, reducing the risk of cultural disruptions that can occur with external hires.
• Morale Boost: Recognizing and promoting internal talent boosts morale among employees. It demonstrates that the company values and rewards hard work, dedication, and loyalty, motivating other team members to strive for excellence.
• Faster Integration: Internal promotions typically result in faster integration into new roles. Promoted employees already understand the company’s processes, systems, and workflows, allowing them to hit the ground running and contribute to the organization’s success more quickly.
• Employee Retention: Providing growth opportunities and career advancement paths within the organization increases employee satisfaction and reduces turnover. Employees are more likely to stay with a company that invests in their professional development and offers opportunities for advancement.
• Cost-Effectiveness: Hiring and onboarding external candidates can be costly in terms of recruitment fees, onboarding expenses, and potential salary negotiations, not to mention the costs associated if the external hire does not meet performance expectations, necessitating additional recruitment efforts and expenses to find a suitable replacement. Promoting from within often times proves to be more cost-effective while still achieving the desired leadership development outcomes.

2. Delegate Responsibilities: Empower your management team by delegating responsibilities and decision-making authority. Encourage autonomy and accountability, fostering a culture of ownership and innovation.
3. Promote a Succession Mindset: Shift the focus from individual leadership to collective success. Promote a succession mindset across the organization, emphasizing the importance of grooming future leaders and building a pipeline of talent.
4. Foster a Culture of Collaboration: Cultivate a collaborative work environment where ideas are freely exchanged, and teamwork is celebrated. Take stock of positions that are solely dependent on one person and put in place a plan to mitigate this risk. Encourage cross-functional collaboration and diversity of thought to drive innovation and problem-solving.
5. Lead by Example: As the founder CEO, lead by example by embracing change and relinquishing control when necessary. Demonstrate your confidence in your management team and empower them to take on greater responsibilities.

By diversifying leadership and fostering a culture of empowerment, you not only enhance the value of your company but also ensure a smoother transition when the time comes to exit. Embrace this opportunity to future-proof your organization and leave a lasting legacy that extends beyond your tenure as CEO.

Now is the time to act. Start the conversation with your leadership team, set clear objectives, and commit to building a stronger, more resilient organization. Your company’s future success depends on it.

By Warren Shoullberg, IWF News

An explosion at Tafisa’s Quebec plant, the largest particleboard factory in North America, knocked out some production the company says.

It will be “several more weeks” before Tafisa’s giant particleboard manufacturing facility in Lac-Magantic, Quebec in Canada is expected to get back up to full production, the company said.

The explosion, on June 14, affected one of the plant’s two production lines, it said, adding the cause was still unknown. There were no injuries and parts of the plant resumed normal activities within a few days.

“We are contacting each client one by one to provide the information regarding their order file,” Tafisa vice president of sales and marketing Pierre-Luc Bérubé said in an interview. He said the damage was isolated to particleboard line #2 and that particleboard line #1 was not affected.

The company said its new thermally fused laminate line #6, started up in January, was not impacted and that it resumed production two days after the explosion. Production of the company’s lacquered panels is done in a new plant built next to the particleboard plant, so there was no impact on production, according to a published report.

At 760,000 square feet, Tafisa said the facility is the largest particleboard manufacturing facility in North America, serving both Canada and the U.S. with more than 700 truckloads of wood fiber converted each week into 300 truckloads of particleboard and decorative panels.