Why hiring functional heads needs special attention in today’s age

Leading functional units of businesses requires a unique blend of technical skills, which are connected to the specific domains, and also leadership and business skills, which take the company and the team forward. This is why companies have to be careful when selecting people for such jobs.

Companies that are growing need the kind of leaders with diverse skill sets, says Jyoti Bowen Nath, Managing Partner-Claricent Partners. Fast-growing companies need leaders who are extremely agile and can keep up with customers’ changing needs. They need leaders with personal and professional credibility who can lead by example. They also look for leaders with high emotional intelligence who can create an environment where high-performing teams thrive.

“These leaders must have a growth mindset, critical thinking and the ability to collaborate and manage scale and complexities. Skills like authenticity and empathy are also very important in today's context. The problem-solving approach and the ability to be decisive are also characteristic traits of leaders driving growth and, obviously, the ability to look at the larger picture," says Nath.

Where do companies find right functional heads

Businesses going global look to hire leaders with international exposure. It is usual for companies to internally elevate their resources to functional head positions as organisations are aware of the abilities of their employees. But they may also seek talent outside.

Sachin Alug, CEO, NLB Services, says companies must first assess their internal capabilities and talent pool. They should look for talent outside only if the right candidate cannot be found within the organisation. Companies must also evaluate their goals, skill gaps, succession planning and market positioning while hiring a functional head externally, he says.

Nath says, “As companies reach higher levels of growth, they often realise that there may be better candidates to lead them to the next level than the high-performing teams that fuelled their initial development phase. This is when we hear from our partners about their need for professionals with experience in successfully scaling up businesses. This need for experienced leaders also becomes evident during large-scale mergers and integrations.”

Critical skills functional head need to have
Apart from experience, Alug says such candidates should also possess certain key skills critical to the advancement of the departments concerned. Qualities like leadership, people management, problem-solving, communication, collaboration and empathy must be taken into account when a growing company hires functional heads. These attributes, of course, need to be coupled with skills relevant to their respective divisions, he says.

Growing companies often need people with niche and contemporary skills. There is a "talent deficit" in the new-age segments, says Nath. These could be roles like a CIO with skills in artificial intelligence (AI) and cybersecurity.

Another critical role growing companies hire for is chief of legal and compliance. With so much focus on these aspects today, the new-age chief legal and compliance officer must bring contemporary skill sets and super specialisation. Most organisations lack such talent.