Source: LOHAS Weekly Newsletter
Published: Thursday, November 01, 2001

ENGLEWOOD, Colo.—Despite a slowing economy, companies must still look forward to future growth prospects and consider what kind of management personnel might best fit new strategies and goals. In this process, how should that search begin, and what guidelines should be followed to maximize such a search?

According to Art Volkman, president of Englewood, Colo.-based executive search company The Volkman Group LLC, there are three basic considerations a company must examine when trying to find the right executive: size, industry and position. “A company needs to look for someone who has been, or is at, a similarly sized company, within the same industry, and who holds a similar position,” he says. If these requisites aren’t met, Volkman says, a relationship between the executive and the company will most likely not work.

Patsy Byers, director of human resources at Horizon Organic Dairy (HCOW), says it is also important that the individual believe in the company’s mission. “It is critical to our mission that people who are coming in have some understanding of organics and sustainable agriculture,” she says. She notes that the level at which an individual must have a background in these areas varies depending on the position. “For the VP of finance it may not be as important as it is for the VP of marketing,” she notes.

Volkman asserts that companies must examine a person’s competency level, or skills, his or her capacity to deliver future results, and the individual’s level of desire to contribute to the company.

Desire Most Important Element

Desire is an intangible quality that Volkman rates as the most difficult to find. Without it, the first and second issues are moot. “You have to want to do the work,” he says. “The best executives in any field are defined as having the desire to grow and change themselves and their company.”

Byers notes that this “desire” must be prevalent in people who work for HCOW, not only because of the mission, but because it is still a small company where everyone is really asked to stretch themselves as far as they can go. “They [candidates] might think it would be a great challenge and then it is more than they bargain for. Others think it is refreshing.”

“The principles of attracting the best talent in the natural products industry really aren’t that much different than those for doing so for other industries—but I still like to think of our industry as ‘kinder and gentler,’” says Heather Berg, CEO and president of Berg Recruiting Naturally, in Redmond, Wash. But despite this friendlier work environment, Berg notes that a new hire must be compatible with the company environment and that it is important to look at corporate-culture issues. “I don’t think you can have an individual from outside the industry be a CEO and not have someone within the industry to balance it out. Our industry is different. We have a wide variety of players to deal with, and sometimes outsiders are extremely competent, but they lose sight of the issues,” Berg says.

In addition to examining those outside an organization, it is important that companies do what they can to attract strong candidates. “A strong business plan and being the best in a given field will attract strong executive candidates,” Berg says.

Volkman agrees and notes that top candidates aren’t attracted to failing products or weak business plans. “You can give them money and perks, but if you don’t have a good business plan, they won’t be attracted to the company.”

Byers notes that individuals coming from outside the industry or from larger companies have to make adjustments, but often times find it worthwhile. “They might not make as much money, but they feel good about what they are doing. People are willing to give up some of the big perks.”

Volkman also asserts that a company ultimately needs to have a strong, believable story to tell. “Companies must have a business plan that works and an economic formula that makes sense. If they don’t, then hopefully they are divesting products or businesses that aren’t working. Companies without a strong tactical or strategic plan are going to have a very difficult time recruiting strong candidates,” he says.

In spite of slower growth and overall economic uncertainty, both Berg and Volkman believe the naturals industry will continue to grow and that executive recruiting will continue to be an issue for growing companies.

“Companies are being more cautious about hiring until they can justify it for the long term, but there are sectors that will remain steady, such as Food & Beverage. These companies are looking to add on and upgrade their staff,” Volkman says.

Recruiting a Recruiter

And then there is the consideration of whether or not a recruiter is the best path to take. HCOW has gone both routes, contracting a recruiter and then trying to go about recruiting on its own, and Byers says it is extraordinarily difficult and consumes a lot of time and energy to go out and search for executive level managers. “You need clout to get in to talk to the kinds of people who would be appropriate for the position, and recruiters have that. They are experienced at talking with the candidates and know what it is that we both want.”

Prior to beginning a search, Byers says a recruiter will want to know everything from the company’s goals and objectives to whom the individual will be interacting with, to the salary. “That’s usually the first question they ask, because their fee is based on a percentage of the first year’s compensation,” she notes. And in the end, says Byers, using a recruiter eliminates many unqualified resumes, as well as doubts.

Berg says that employment at the management and senior executive levels should show signs of increasing during 1Q02. In response to this demand, in early September Berg Recruiting Naturally announced a strategic alliance with Toronto-based NPIcenter to develop a natural products industry career center on the Web at www.npijobs.com, where companies can post job listings and individuals can search them. For those companies that are struggling, Berg advises not to simply eliminate individuals. “Some companies have hiring problems because they think they only need to get rid of who they have and start over, which is not necessarily the best thing to do. Often, the issues are with the company culture or business plan and not the individual,” she says.

Finally, Volkman notes that all companies need a strong and involved board of directors to address any ills. “A committed board will make sure the CEO is doing everything to maximize shareholder value, and if not, it will find a new CEO. I see the senior management team as critical to the success of the company, and the CEO as the most critical member of that team.”