What is the AERSLC's Purpose?
Our purpose is to enhance the effectiveness of our members. Global hiring practices are broken and most of world's workforce is disengaged. Global stick rates among executive placements are dismal, and many leadership products deliver little lasting value. Almost one in every two executive hires go awry within two years. That’s roughly 45% failure, at a cost that is incalculable.
According to Chief Executive Magazine article titled “What Causes CEO Failure”, up to a third of U.S. CEOs last less than two years, with top executive failure rates as high as 75 percent and rarely less than 30 percent.
In 2009, one major search firm CEO did a study of 20,000 of his firm’s own placements. "We’ve found that 40 percent of executives hired at the senior level were pushed out, or quit within 18 months. It’s expensive in terms of lost revenue. It’s expensive in terms of the individual’s hiring. It’s damaging to morale." So, said Kevin Kelly, CEO of Executive Search Firm, Heidrick & Struggles.
According to the Harvard Business Review, two out of five new CEOs fail in their first 18 months on the job. Further research shows the same pattern globally. CEOs and senior executives are routinely hired based on their drive, IQ, and resume. They’re fired for lack of emotional intelligence, poor people decisions, cluelessness and being totally out of touch with their workforces and customers.
Don’t take our word for granted. Google executive placement failure rate, or CEO placement failure rate. The statistics will astound you. According to Dr. Brad Smart, of Topgrading notoriety, only 21% of Fortune 500 CEOs he surveyed thought they were getting real value from their search firms and professionals.
The AERSLC is here to change all of this. Our members are held to the highest standards of performance, as determined by our members and our clients.
What Are The AERSLC Professional Practice Guidelines and Code of Ethics?
1. Purpose - Member firms serve with an absolute commitment to enhance client performance and place the client's interests above their own.
2. Discovery - Member firms gain a comprehensive understanding of each client's unique culture, specific performance expectations, and critical success factors.
3. Performance - Member firms track, and report retained search time to fill, completion rates, retention, and offer-acceptance ratios.
4. Alignment - Member firms ensure the leadership, assessments, workshops, and training solutions they deliver are in the best interests of the client.
5. Due Diligence - Members conduct assessments, reference audits, and background checks before presenting finalist candidates, to screen out all but A Players.
6. Transparency - Member firms present opportunities and candidates accurately, including strengths and weaknesses, to facilitate matches that last.
7. Persistence - Member firms follow through on each engagement until its completion, without time limitation.
8. True Search - Member firms commit to thoroughly canvas the market, surface and present talent NOT on the radar screen of the search community at large.
9. Alignment - Member firms will assess candidates to ensure cultural fit and the ability to deliver on specific strategic and tactical performance expectations.
What Is The AERSLC All About Again?
The Association for Excellence in Retained Search and Leadership Consulting is a new organization and the sole accrediting body for retained search and leadership consultants that hold themselves to the highest standards in the world.
AERSLC members practice retained search as it was intended, as a specialized form of management consulting, not as a transactional exercise of filling seats in a vacuum. We don't just sell cookie-cutter products, we practice leadership consulting with sustainability in mind. Everything our members do is designed with the transparency and knowledge transfer necessary to produce permanent solutions. We’re trying to change the world for the better, not just ring our cash register.