Amidst widespread downsizing across the broader tech sector, there is a different narrative unfolding in the high-growth world of ClimateTech. This sector is brimming with novel technologies, burgeoning markets, explosive demand and an intense hunger for top-tier talent. From product start-ups to consulting firms to major industry players, the challenges of talent acquisition looms large.
Our firm has a long history of recruiting executive talent in the environmental services/products sector, and we are very active in today’s ClimateTech market. Through this involvement, we’ve witnessed numerous organizations wrestle with the challenges of building world-class management teams.
What follows are a few strategies adopted by the more successful firms.
1. Spotlight Purpose in Your Employer Brand
“Do you want to sell sugar water for the rest of your life or come with me and change the world?” — Steve Jobs to John Sculley
Companies operating within the ClimateTech sector share a distinctive trait – a powerful mission. The entire sector is underpinned by a deep-rooted sense of purpose as they work to enhance humanity’s ability to combat and adjust to climate change while contributing to a low-carbon economy. And the clock is ticking.
At the same time, large segments of today’s workforce are looking for meaning and impact in their careers. They are seeking employers whose values align with their personal aspirations, and work that makes a positive impact on the world. As a result, ClimateTech employers are wise to weave their existential purpose into their brand’s essence. By ensuring that this resonates across all employer-related communications – from messaging to content to social media strategy – their DNA will be unmistakably synonymous with a purpose-driven mission.
Companies that are deeply anchored in a meaningful purpose not only allure top-tier talent but also stand to cultivate lasting engagement and loyalty among their workforce.
2. Do your Homework
In many instances, key hires require proven experience in directly related or closely aligned technologies and industries. In some instances that talent will be in abundance locally. However, if the pool of local talent is shallow, or non-existent, it is important to identify where that reservoir of expertise resides and to understand the costs to secure it. Compensation will vary by geography and whether remote work is viable or relocation to headquarters necessary. Compensation is also a standalone discussion as wage inflation has mirrored the rise in demand. Adjusting for may be challenging , perhaps even triggering internal equity issues among the management team. These deliberations should be undertaken in advance. If possible, seek counsel from someone well-versed in the compensation trending/realities for that talent pool.
Context is another consideration. Steering a young, entrepreneurial enterprise requires an understanding of the attributes that spell success in such an environment. The decision to bring onboard executives with a history in small-scale ventures versus large corporations requires thoughtful consideration as a mistake can be costly.
It also bears acknowledging that recruiting executive talent involves an element of timing. Look for disruption in the market. For example, executives at recently acquired firms may be open to new opportunities as the dust settles. At the same time, executives working for highly acquisitive corporations may tire of the constant integration and reorganization that accompanies such firms and be receptive to a change. Private equity owned firms present their own dynamics and the occasional opportunity to attract executives. Finally, monitor announcements of leadership changes in companies of interest as these often unsettle the executive team creating opportunity for your firm to recruit there.
3. Think about Candidate Experience
Though it is overlooked, cultivating positive candidate experiences is a potent tool for setting an organization apart and luring top-tier talent. Beyond its immediate impact, a favorable candidate experience has lasting effects, influencing candidate decision-making, acceptance rates, and the organization’s overall reputation.
A well-structured and efficient hiring process that maintains transparency, provides timely updates, and respects the candidates’ investment of time and energy cultivates a sense of involvement and allegiance. Consequently, candidates become more vested in the hiring organization, display heightened motivation and a likelier inclination to accept offers, should they be extended. Unexplained delays and long periods of silence drains any and all momentum and goodwill.
It’s worth noting that a positive candidate experience spawns a ripple effect, catalyzing candidate referrals and network expansion. Candidates who’ve enjoyed positive interactions are apt to refer other prospective talents, enriching the pool of potential recruits and potentially reducing recruitment expenses. Furthermore, even those who weren’t selected but still had a constructive encounter with the organization are prone to share commendable feedback, thus contributing to a positive employer reputation. Such individuals might well emerge as future additions to the team. Some firms, especially in fiercely competitive job markets, have begun treating candidates with the same care afforded to customers, understanding that every interaction shapes their perception.
Nurturing a positive candidate experience isn’t merely a nicety; it’s a strategic imperative with far-reaching implications that can fortify an organization’s talent pipeline and bolster its standing within the industry.
4. Identify Transferable Skills
For roles such as sales, finance, marketing, operations, and HR, the prerequisite for specialized technical or climate related expertise can often take a backseat. In such instances, a strategic evaluation of the skills and experience that hold significance when assessing candidates becomes key.
These may include:
- Go-To-Market Models: Gauge the resonance of a candidate’s experience in similar Go-To-Market models. Assess their capacity/track record in aligning product strategies with target audiences, and bridging the gap between innovation and market demands.
- Customers/Markets: Scrutinize candidates’ track records in engaging with customers or markets of interest to your company. A candidate with adeptness in selling services/systems or products to specific vertical markets or sizes of businesses can likely adapt those skills to align with your business.
- Relevant Context Experience: Delve into the depths of their context-rich experience. Determine if they’ve previously worked in/helped scale founder-led or venture backed start-ups such as yours. Conversely, assess whether they have previously thrived in the complexities of large enterprises such as yours. Assess their acumen in introducing new products, developing emerging markets and/or working in purpose-driven ventures.
- Assess Executive Capabilities – Assess general leadership capabilities (see article titled ‘Spotting Talent’) as well as specific attributes such as adaptability (see ‘Mastering the Art of Assessing Adaptability’) By recognizing and valuing these transferable skills, your organization widens the pool of potential candidates to include individuals who may not necessarily possess direct sector-specific expertise but bring a wealth of versatile competencies that can seamlessly integrate.
As the urgency to combat climate change intensifies, the ClimateTech sector will to be a pivotal player, propelling innovation, driving sustainability, and reshaping industries. However, the success of organizations within this sphere will hinge on their ability to navigate a myriad of challenges – including how to identify, attract, engage, and retain exceptional talent. It is a challenge not to be underestimated.