New York, NY, June 28, 2023 (GLOBE NEWSWIRE) -- Riviera Partners, a leading global executive search firm focused on the recruitment of top-tier technology talent, engaged in a study of 1,000+ executives to understand the most pressing dynamics impacting their talent-related decisions – both as candidates and hiring managers. Several data-driven themes boiled to the top, including short tenure for executives; rapid expansion of AI; PE-backed companies offering higher compensation than others; continued hiring challenges, and hybrid as the future of work.
The seven key insights illustrated in the report:
- Short executive tenure is the new normal
- Challenges remain for hiring managers
- With slowed hiring, compensation levels have been steady, with PE-backed companies being the exception
- Convergence in the C-suite: there’s a growing interest in consolidated roles, impact, & accountability of CTO and CPO
- Quality of leadership- including executives, investors, and the board- is getting more scrutiny from candidates than ever and is key to attracting top senior talent
- AI/ML interest spikes amidst a push for productivity
- All roads leading to hybrid in the future of work
The full survey report can be found here and is available at no cost here: https://www.rivierapartners.com/The-Future-of-Tech-Leadership
SHORT EXECUTIVE TENURE IS THE NEW NORMAL
Converging forces post-Covid – disruptive technologies, remote work, and funding pressure among them – have trained executives to view new companies as shorter ‘tours of duty’ with clear objectives, milestones, and calculations for personal gain.
Most leaders, 72%, have been with their employer — and in their current role — for less than three years. While many are satisfied in their current role, 2 in 5 (39%) are open to attractive opportunities, and 1 in 4 (25%) are actively searching for a new position.
HIRING CHALLENGES REMAIN
Reasons have changed, but hiring technology leadership ‘remains as challenging as 12 months ago’ (and the outlook bodes for more of the same). Nearly three-quarters of respondents report that hiring tech leaders over the past 12 months has been challenging — and they don’t expect that to change over the next year. Headcounts are expected to remain flat or grow slightly, with one in three seeing a slower pace of hiring. Contributing factors include valuation skepticism, ‘noise in the system’ from Big Tech layoffs, and ‘under-resourced internal talent teams.’
COMPENSATION LEVELS ARE HOLDING, WITH PRIVATE EQUITY-BACKED BUSINESSES BEING THE EXCEPTION
More than half of respondents reported flat salary levels, with 15% reporting increases. Chief among this group paying more: Private Equity-backed businesses and those in mid-market revenue bands. Amidst a cooling of the venture funding environment and dislocations among public company shares, growth equity and middle market PE appear to be filling the void with increasingly competitive compensation. Interestingly, equity compensation remains stable (as a % of available pools) despite the noise in the system around valuations.
CONVERGENCE IN THE C-SUITE? GROWING INTEREST IN CONSOLIDATED CTO+CPO ROLES
CTOs and CPOs have long advocated for more expansive responsibilities. Historically, resistance has come from CEOs who preferred division of labor and checks/balances over unified accountability. In the current market environment, where ‘leadership ability’ is the #1 hiring criteria for CEOs and boards, a shift is emerging toward consolidated ownership – especially at companies with product-centric CEOs. In fact, nearly 1-in-5 companies have interest or plans to merge the CTO and CPO roles, while 7-in-10 tech leaders would find a combined role attractive.
EXECUTIVE, INVESTOR, AND BOARD LEADERSHIP IS KEY TO RETAINING TALENT
Tech leaders evaluating new opportunities are more focused on stability relative to 2022. How do they measure stability? Not business performance, TAM, or profitability, but the ‘quality of leadership’ and the credibility of investors and boards. The same leadership lens has spiked for hiring managers, who called out a need for proven operators with ‘followership’ to help weather uncertain market dynamics.
AI/ML INTEREST SPIKES AMIDST PUSH FOR PRODUCTIVITY, OUTPACING CLOUD, DATA SCIENCE, SECURITY
Tech leaders are not waiting for large-scale strategic decisions related to AI, regulatory oversight, or industry guidelines. Across the spectrum of company size, they are rapidly experimenting with new technologies like Generative AI. Fully 1-in-3 companies have implemented AI to automate repetitive tasks, support code development and increase productivity. Enthusiasm exceeds more established priorities like Cloud, Data Science, and Security.
THE FUTURE OF WORK IS HYBRID
Where we work and how we collaborate have been moving targets post-pandemic. Fatigue maintaining cultural cohesion, waning collaboration, and less immersive onboarding in remote environments have underpinned a shift back toward office work. A plurality, or more than 1-in-3 companies in the study, now mandate 1-3 days/week ‘in the office’ (followed closely by 32% who are fully remote), and a net of 25% expect mandated time in the office to increase in the coming 12 months.
Candidates are similarly warming to return to the office. Half of the study's tech leaders said they would be open to roles requiring them to work in a different city multiple times per month. A net 40% said they are more open to multiple days/week in the office vs. 12 months ago. A net 20% said they are more open to fully relocating to a different U.S. city than 12 months ago, a directional trend shared for both U.S. regions and Europe (but not Asia or Latam).
About Riviera Partners
A driver of innovation for today’s most influential companies, Riviera Partners is a global executive search firm solely focused on engineering, product, AI, security, IT, and design leadership roles. The company is a partner at all private and public company growth stages and has completed thousands of searches globally across all major technology hubs and brands. Riviera combines over two decades of recruiting expertise with a proprietary platform that uses machine learning to score and predict the best candidate for a company's specific needs, driving successful outcomes. As a result, the company has become the go-to talent partner for leading private equity investors, venture capitalists, public companies, and technology innovators. Learn more about Riviera Partners at www.rivierapartners.com, and follow on LinkedIn.
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