The cost of losing an employee to turnover is expensive. But the cost of losing an executive can be astronomical – upwards of 400% of the individual’s annual salary according to some estimates.

And while many employers fault the executive for leaving the company for a better opportunity, a study by Harvard University actually found that 80% of turnover stems from mistakes made during the hiring process.

The key, therefore, to mitigating at least some of this turnover is prevention. By having an intelligent and strategic process for recruiting executives, you can sidestep excessive turnover and prevent the costs associated with it.

Unfortunately, as an executive search firm in Sacramento, CA, we see many companies making the same mistakes in their approach to executive recruiting. While these missteps seem minor on their face, they can result in a more expensive, more time-consuming hiring process that doesn’t yield the best results – namely the right executive.

As a result, understanding these avoidable mistakes – several of which are outlined below – will help you make better, long-term hires for your company.

Not defining success.

Too many times, job descriptions outline the skill requirements. For instance, if you’re looking for a VP of Sales, you might think you need someone with “10 years of experience, at least 5 years in our particular industry, and someone who is a good communicator and strategic thinker.”

However, the problem with this approach is that it doesn’t define what you expect the person to deliver once hired. Just because an executive has the right number of years of experience in sales management does not mean they can deliver the right results for your company.

Before you begin your search, spend some time defining what success looks like for the position – e.g. “Within 12 months, improve sales by at least 5%.” Doing so will not only enable you to attract more qualified candidates, but it will also improve the interviewing process and help you make a smart hiring decision.

Letting budget drive decisions. 

Senior executives are the backbone of any organization. Without them, a company would cease to function. They are the ones not only managing employees, but also looking to the future to help the company take advantage of new trends, bring profitable products / services to market, and overcome challenges.

With that said, too many employers let cost solely drive their hiring decisions. But when you’re hiring someone that will help fuel growth and profitability, you must invest the appropriate resources to achieve that goal.

Limiting the talent pool.

Most executives aren’t on general job boards looking for new openings – nor are many looking for new opportunities at all. That is why, when it comes to connecting with these individuals, you need to delve much deeper. This includes using a mix of recruiting strategies such as attending networking events, asking for referrals, building a solid presence on sites like LinkedIn, and targeting job boards geared towards senior/executive level professionals.

Recruiting executives is vital to the success of your company. But simple mistakes – such as the ones outlined above – could cost you in the long run. If you’d like assistance with the executive recruitment process, Pacific Staffing can help. As a leading executive search firm in Sacramento, CA, we have extensive experience in sourcing, evaluating and helping companies hire mission critical professionals for executive level positions.

To learn more about how we can help your organization, please contact us today.