How evolution can create an environment for change

You are an 'employee-owned business' – what exactly does this mean, in terms of your daily business and operations?

It means the business is owned in trust and for the benefit of all current and future employees. Essentially, as “owners” of the business, everybody is more invested in the success of the business, and cares that little bit extra about everything we do – sharing in the upside and supporting each other when things are tough. We’re still in the early stages of our employee ownership journey but the impact has been amazing.

How easy was this to enact?

We had great advisers who had extensive experience helping companies transition into employee ownership, and that made the legal and structural elements pretty straightforward.

In terms of the team, we wanted to make sure everyone understood what this move meant for them, so we took our time to explain and answer questions before going “live”.

The response from the team was overwhelmingly positive, which made that aspect pretty straightforward too. It was about explaining the benefits and getting the team on board. Once you have that, they start to drive the move too – which is what it’s all about.

What are the benefits from this?

On a financial level, it means all employees can receive an extra tax-efficient bonus annually. We paid out our first in April.

From a cultural perspective, this extra “skin in the game” leads to greater commitment and discretionary effort across the board, which we believe is the major benefit to our clients and candidates.

Towards the end of last year, for example, we faced challenging conditions following a slower summer across the industry.

We got together as a leadership team, laid out the situation, and identified urgent action was needed.

It was vital we got out on the front foot to tackle it. The team rallied and we delivered a record end of year. That’s when you see the true value.

From a governance perspective, we have two elected employee trustee directors who make sure we run the business for everyone’s benefit.

In general, we hope it helps us continue to be the executive search and senior finance recruitment partner of choice for our clients, candidates, colleagues, and community partners.

What key attributes do you look for in a candidate – is every executive different, or is there a perfect mould?

It very much depends on the organisation and role – so the short answer is everyone is different.

However, being purpose-led, ambitious, adaptable, and resilient tend to be important characteristics for all leaders regardless of sector and function.

The modern workplace and working environment is evolving too, with greater regulation in areas such as ESG, and the impact of developing technologies including AI. We don’t expect every CEO to know the full ins and outs, but an appreciation and understanding of the significance of these areas is definitely an advantage.

Ultimately, good people skills are essential.

The best leaders have the ability to bring together and unite a diverse range of skills, experiences, expertise, and personalities, and a track record that demonstrates this helps candidates stand out.  

What are the greatest challenges you face during the recruitment process?

Scarcity of talent is the biggest challenge. There is a demographic element coupled with cyclical trends in hiring and talent development. The demographics, as evidenced in the most recent census, show us that the larger baby-boom generation are transitioning out of the workforce and there are simply fewer people following behind them.

Succession at C-suite level is increasingly hit by the challenges this contracting talent pool creates.

Cyclical trends mean the hiring and development of early career talent tends to be shelved during challenging economic times, leading to an imbalance in talent pipelines when markets recover. These challenges mean that searches need to be even more rigorous and far-reaching than might have been the case five to 10 years ago, and employers need to be ever-more competitive with what they offer in what continues to be a war for top talent.

What key elements do you believe have to be in place for a company to attract the right talent?

Clarity of purpose and a transparent understanding of the difference an organisation makes beyond its core product or service are very important. So, too, are culture, package, and progression.

Previously, we have seen trends with one or two of these elements “the most important” – such as ESG being more important than package – but at the moment, candidates are looking for it all to be in place.

Scarcity of talent is a principal driver of this, but also, following “the great resignation” that took place in the latter stages of the Covid-19 pandemic, we are seeing candidates being much more cautious and selective about the roles they will consider in the current market.

Do companies here in Scotland face any unique challenges in recruitment compared to international markets?

We are fortunate to work with clients across the globe, and every country has unique challenges and opportunities when recruiting.

In Scotland, our international reputation for warmth of welcome and hospitality, coupled with easy access to stunning scenery and outdoor pursuits from our major economic centres, make us an attractive option for international relocators.

On the flip side, a level of political uncertainty, and more recently further changes to tax bandings, are hurdles that we are helping our clients navigate when recruiting talent into the country.

What would you say is the biggest development to have taken place in your industry in recent years and how big a change has the pandemic driven?

The biggest development has been the adoption of communications technology such as Teams and Zoom – which were coming before, but were dramatically accelerated by the impact of the pandemic.

At our heart we are a relationship-led industry, and it is interesting to look into the impact of these new working practices on the quality of relationships people are building. There are certainly many efficiencies that come from not needing to travel to meet in person, and when we were locked down the tech was an absolute necessity.

However, I believe there is still real value to meeting in person, and too many meetings that historically would have been in person are now conducted via video, and the relationships are sometimes weaker as a consequence.

Generative AI is the incoming disruptor, but I don’t think we are seeing the major transformation of the industry – at least not yet.

Jamie Livingston is founder and CEO of Livingston James Group, a purpose-led executive search firm based in Scotland

livingstonjames.com