Many businesses grow at a rapid rate and require a key person to make decisions on the company’s behalf, here is some quick advice on how to hire a CEO for your company if you are searching. The job of chief executive officer (CEO) is often handed to one individual who holds many responsibilities such as planning for short- and long-term goals, making executive decisions, communicating with employees and shareholders, solving problems and preparing budgets.
Identifying Great Candidates
When recruiting potential CEOs to hire, it’s important to cast as wide a net as possible. Look for candidates within your company, as well as outside. The following can help you find a job candidate who is focused on strategic thinking and building relationships that are key to success in the position:
Target industry contacts: Look for recommendation from industry contacts and run background checks to determine if the person has any hidden motives.
Corporate culture fit: Look for candidates who share a similar work ethic and values as your company.
Financial stability: Research financial stability of the candidate and ensure they’re ready to take on the role of CEO. Consider hiring someone with temporary training or experience, as you may want to evaluate their skills over time before officially offering them the job.
Leadership history: Look for a candidate who has demonstrated strong leadership skills and helped build a successful team in the past.
Meet the Candidates
Once you’ve identified potential CEOs to hire, it’s time to meet face-to-face and go over your expectations. Be sure to ask any potential candidates about the following topics:
Vision of the company: Do they share your vision for the company’s future?
Do they share your vision for the company’s future? Communication style : How do they want to communicate with employees and shareholders? Is it a formal email format, or prefer casual meetings, text messages and phone calls?
: How do they want to communicate with employees and shareholders? Is it a formal email format, or prefer casual meetings, text messages and phone calls. Financial knowledge: Are they comfortable with the company’s financial situation and have they created a strategic plan for short- and long-term goals? What experience do they have creating budgets, setting executive budgets and preparing financial reports?
Executive decisions: If you are considering handing over day-to-day operations of your business (i.e. sales, marketing, financial operations) to someone else, what type of background and experience do they have in this area?
Check References
After meeting with a job candidate, contact references. Ask them the following questions:
How would you describe the candidate’s leadership style? How would you describe their communication skills? What is their approach to making big decisions? What are some challenges the candidate has had to face? How did the candidate deal with them? Support their answers with specific examples.
When you’re done checking references, make sure you ask yourself: Is this candidate the right fit for my company? Do they have the right leadership skills and personality that will help your business grow? If you can’t answer yes to both of these questions, keep looking.
Make the Offer and Negotiate Contract Terms
Once you’ve found a CEO you’re ready to hire, who is a good fit for your company, it’s time to negotiate contract terms.
Consider the following:
Salary and benefits: What type of salary and benefits package will incentivize the candidate to join your company? Do they have a proven track record of success in managing company finances? Is this a fair compensation package?
What type of salary and benefits package will incentivize the candidate to join your company? Do they have a proven track record of success in managing company finances? Is this a fair compensation package? Contract length: Will you offer temporary or permanent employment at first and is this typical in your industry? How long should the contract be for in order to see results from their work with your company? You may also consider offering seasonal work, such as off season (i.e. summer or Christmas) work.
Job responsibilities: What are the key job responsibilities involved with running your business (i.e. financial, marketing, operations)? What is the primary focus of the job and will you offer training to help them excel in this role?
Redundancy: Is there a possibility that they may be moved to another department once they’re hired or will they work on your core team?
Contract terms: You may negotiate contract terms with potential candidates based on the following areas:
Do they purchase their own health insurance (if not, consider allowing them to purchase it from you at significant savings)
(if not, consider allowing them to purchase it from you at significant savings) Do you allow. Commission, or free product as a form of compensation instead of a salary (if so, include this in the contract)
as a form of compensation instead of a salary (if so, include this in the contract) Will you purchase their mobile phone with extra features (i.e. big screen, large storage) for business use
with extra features (i.e. big screen, large storage) for business use Challenging job: Consider offering an additional 5-10% over the market average to entice the candidate to take on your most challenging job roles and responsibilities.
Expenses: Will you pay for expenses (i.e. car lease, travel, cell phone bills) incurred while doing business with your company? Do they have any other expectations beyond wages and benefits?
Negotiation Tips and Best Practices
When you’re negotiating job contracts when ready to hire a CEO, be sure to follow these best practices:
Offer a non-negotiable salary. This offer can be made in writing and should be the same for all candidates. Do not negotiate this point.
This offer can be made in writing and should be the same for all candidates. Do not negotiate this point. Make a written contract . This should include an offer letter, application to payroll and a copy of your employee handbook. These contracts are a good way to protect you from claims of discrimination or wrongful termination.
. This should include an offer letter, application to payroll and a copy of your employee handbook. These contracts are a good way to protect you from claims of discrimination or wrongful termination. Consider providing bonuses at the end of the year that can be based on performance.
as part of your negotiation. These should be tangible goals that can be measured and tracked.
that can be based on performance. These should be tangible goals that can be measured and tracked. Keep the contract short and sweet. It should include a breakdown of compensation, specific responsibilities, job requirements and performance expectations (i.e. monthly/weekly or other timetable)
It should include a breakdown of compensation, specific responsibilities, job requirements and performance expectations (i.e. monthly/weekly or other timetable) Negotiate any non-compete agreements . These require candidates to agree not to compete with you within a certain radius around the city they live in.
. These require candidates to agree not to compete with you within a certain radius around the city they live in. Do not negotiate job start dates. If you plan on hiring them in a specific time frame, do not negotiate on this front.
If you plan on hiring them in a specific time frame, do not negotiate on this front. Tell the candidate about key meetings and communication with others in the company. Allow them to decide if they want to work at night or on weekends (if applicable).
and communication with others in the company. Allow them to decide if they want to work at night or on weekends (if applicable). Set goals for working together and make sure they are mutually beneficial by creating a roadmap of goals and plans for the next few months.
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Nathan Ware is the founder and CEO of Axe Staffing & Recruiting, a recruiting agency serving North-America and beyond. Connect with Nathan at www.axerecruiting.com or on Twitter @axerecruit. To read more articles by Nathan, follow him on LinkedIn at https://www.linkedin.com/in/staffingandrecruitingsolutions/
Many businesses grow at a rapid rate and require a key person to make decisions on the company’s behalf. The job of chief executive officer (CEO) is often handed to one individual who holds many responsibilities such as planning for short- and long-term goals, making executive decisions, communicating with employees and shareholders, solving problems and preparing budgets.