How CEOs and Boards are Addressing the Talent Shortage in 2024

In 2024, the executive talent acquisition landscape is undergoing significant transformation, driven by rapid technological advancements, shifting workforce expectations, and evolving business priorities.

As Executive Talent Acquisition Specialists, staying ahead of these trends is crucial for ensuring your organisation attracts and retains the leadership talent necessary to thrive in an increasingly complex environment. This article examines the key concerns and priorities of CEOs and Boards of Directors as they navigate the challenges and opportunities of executive talent acquisition in 2024.

The Demand for Transformational Leaders

As businesses adapt to a post-pandemic world, the demand for transformational leaders has increased. CEOs and Boards are prioritising executives who can drive innovation, lead digital transformation, and navigate the complexities of global markets. According to a 2024 survey by PwC, 67% of CEOs stated that their organisations seek leaders with a strong track record in driving change and fostering innovation.

Insight: Identifying and attracting leaders who can manage and transform organisations will be a critical differentiator for companies in 2024. Talent acquisition strategies should emphasise the search for executives with a blend of strategic vision, agility, and resilience.

Diversity, Equity, and Inclusion (DEI) as a Strategic Imperative

In 2024, DEI remains a top priority for Boards and CEOs, not just as a matter of corporate social responsibility but as a strategic business imperative. A McKinsey report highlights that companies with more diverse executive teams are 25% more likely to have above-average profitability. This correlation underscores the importance of diversity in leadership for driving business success.

Insight: The percentage of Fortune 500 companies with women in C-suite roles has increased to 33% in 2024, reflecting a growing commitment to gender diversity at the highest levels of leadership. However, racial and ethnic diversity in executive roles still lags, with only 15% representation.

Actionable Strategy: To attract diverse executive talent, organisations must broaden their recruitment networks, ensure unbiased hiring processes, and offer inclusive workplace cultures that appeal to top talent from all backgrounds.

The Impact of AI and Technology on Executive Roles

Artificial Intelligence (AI) and technology are reshaping the competencies required for executive roles. CEOs and Boards are increasingly looking for leaders who understand the implications of AI and can leverage these technologies to drive growth and innovation. According to Gartner, by 2024, 70% of executive teams will include leaders with a deep understanding of AI and digital transformation.

Insight: The traditional skill sets required for C-suite roles are evolving. Leaders must now possess a strong grasp of digital strategies, data analytics, and AI-driven decision-making. Talent acquisition efforts should focus on identifying digitally savvy candidates capable of integrating technology into broader business strategies.

Retention and Succession Planning: A Strategic Priority

Retention and succession planning have become critical concerns for CEOs and Boards in the face of ongoing talent shortages. A 2024 study by Deloitte found that 58% of organisations consider leadership continuity and retention top challenges. The competition for top executive talent is fierce, making it essential for companies to develop and retain their leaders.

Insight: The average tenure of a CEO has decreased from 7.2 years in 2020 to 5.5 years in 2024, reflecting the increasing volatility in executive roles. This trend highlights the importance of robust succession planning and leadership development programs.

Actionable Strategy: Organisations should invest in executive development programs that prepare internal candidates for future leadership roles. This approach ensures leadership continuity and reduces the risks associated with external hires.

Globalisation and Remote Leadership

The shift towards remote and hybrid work models has expanded the talent pool and introduced new challenges in executive talent acquisition. CEOs and Boards seek leaders who can effectively manage distributed teams and drive global strategies. A report by EY reveals that 62% of organisations prioritise executives with experience leading remote teams.

Insight: The ability to lead across geographies and time zones is now a critical competency for executives. Companies should consider candidates who successfully manage global operations and foster collaboration in a virtual environment.

Data Point: In 2024, 45% of executive roles are filled by candidates who reside in different geographic locations than the company’s headquarters, reflecting the growing trend of remote leadership.

ESG and Purpose-Driven Leadership

Environmental, Social, and Governance (ESG) considerations increasingly influence executive hiring decisions. Boards seek leaders who deliver financial performance and align with the company’s ESG goals and corporate purpose. A 2024 survey by KPMG found that 55% of CEOs consider ESG expertise a critical factor in executive appointments.

Insight: As stakeholders demand greater accountability on ESG issues, executives who can integrate sustainability into business strategies are in high demand. Talent acquisition strategies should emphasise seeking leaders who are firmly committed to ethical leadership and corporate responsibility.

Actionable Strategy: Organisations should assess candidates’ track records on ESG issues and their ability to drive purpose-driven leadership. This approach will help companies attract executives who can balance profitability with positive social and environmental impact.

The Way Forward

The evolving landscape of executive talent acquisition in 2024 presents challenges and opportunities for CEOs and Boards. The demand for transformational leaders, the emphasis on DEI, the impact of AI, the importance of retention and succession planning, the rise of remote leadership, and the focus on ESG all shape the future of executive hiring.

By understanding and addressing these trends, organisations can ensure they attract and retain the leadership talent necessary to succeed in a rapidly changing world.

As Executive Talent Acquisition Specialists, staying ahead of these trends and aligning your talent acquisition strategies with CEOs' and Boards' evolving priorities is imperative.

Doing so will enhance your organisation’s ability to compete in the marketplace and contribute to building a leadership team equipped to drive sustainable growth and innovation in 2024 and beyond.

Dilrukshan Fernando

Chief Talent Officer | Executive Search Partner for Global Multinationals