Some commentators noted that the rise in number of in these C-level positions could create opportunities for diversity, not only in personnel but also in decision-making processes. Keeping an eye on how your client’s business processes might change with additional C-level personnel may be one key way to keep competitive.
LinkedIn’s most recent WorkForce report highlights a new trend: more bodies on the C-level than ever before. With new titles like Chief Development Officer and Chief Growth Officer, it can be hard to know who to pitch to and who is a must not miss on a marketing invite. As the authors note, the key to all the C-Suite’s new occupants is the focus on culture. As corporations grow and change, the emphasis on preserving culture has turned into an investment in it in the form of high level managers. Some commentators noted that the rise in number of in these C-level positions could create opportunities for diversity, not only in personnel but also in decision-making processes. Some even noted that the best and most interesting C-level position is Chairman of the Board. And with more roles in the C-Suite beyond CEO, the path to Board Chair could be opening up. Keeping an eye on how your client’s business processes might change with additional C-level personnel may be one key way to keep competitive.
Others have noted that with the additional new kinds of roles in the C-Suite, the path to that level of management has changed. That may mean that an advisor who might not have had the right level of contacts at company may be positioned to pitch for a wider array of business in the future. Or it may mean that the younger associates in your office may grow your business more than you planned for. Could it mean that diversifying your less experienced staff would pay off? It could be something to watch in the future.
Back to that LinkedIn report, it notes “[f]resh analysis by LinkedIn’s Economic Graph team provides fascinating clues. Data scientists and economists looked at U.S. hiring patterns for 57 different C-suite jobs, ranging from long-time standards such as chief financial officer to catchy new titles such as chief people officer.” Yes, fifty-seven C-suite jobs. A veritable platoon of C-level jobs. Actually, possibly even two platoons of C-Suiters (if your average platoon is 30 to 40 soldiers).
The key take-aways from the LinkedIn report are that the growth in C-level positions represents the focus businesses are having on solving their major problems. “Many industries are expanding the C-suite in hopes of addressing their most chronic operating challenges. Print publishers and television-station operators are in a hurry to hire chief digital officers. Non-profits are scrambling to add chief development officers (who focus on fund-raising.) That’s creating big opportunities for specialized problem-solvers….” For advisors looking to ensure that decisions and long term strategy on retirement plans for businesses and nonprofits is well designed, that problem-solving approach may mean that learning about the new C-level folks can show where your client is most concerned. For example, nonprofits with a Chief Development Officer may be concerned about long term strategy to ensure major gifts. A savvy advisor would include that CDO in any discussions about investment strategy: it would be not advantageous to lose a major donor because the investment strategy for a nonprofit addressing children’s welfare included funds with stock in businesses which had questionable advertising to children.
The report also noted that the growth rate for Chief People Officers was 32% a year. Those jobs involve more than human resources, but also touch on work culture and strategic goals. Given the importance Millennials and Gen Z’ers place on benefits as part of culture, it may be important to learn the background of your client’s new CPO.
Finally, another key point in the LinkedIn report notices four paths to the C-Suite now developing: “inch one’s way up the ladder at a leading employer… leap from company to company, gaining the attention of recruiters handling hard-to-fill positions. Being a founder saves all these headaches…. And in rare cases, gifted leaders can skip steps on the way up, reaching the C-suite unexpectedly quickly, because they’re that good.” Keeping an eye on your business contacts, and those of your up and coming associates is always a good idea, but now may be even more important.
Before leaping into the unknown, we recommend a thorough examination of your plan. Because we are experts in the field, we know the marketplace and know what your existing vendor is capable of offering. Through this examination, we can help you optimize the service you receive.
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