Executive Search in Taiwan’s Competitive Market

Boyden is generally credited with founding the retained executive search business in 1946 at the onset of the post-World War II era. Having the right leaders in place was recognized as essential to success in this new climate. Back then, Sidney Boyden and his small team would conduct some research before telling their clients, “This is your man.” (And in those days, it was always a man.)

Fast forward to 2024 and discover a world of digital transformation, AI, ESG, DEI, globalization, and climate change. While good leadership remains one of the most critical factors in determining a company’s success, a modern solution is likely to be much more complicated than “this is your man.”

Today’s leadership roles require executives with a more diverse set of skills and experiences. A list of the “must haves” for any C-suite role may include digital literacy, cyber security and business ethics understanding, strategic thinking, team building, change management, cross-cultural experience, and knowledge of various ESG requirements.

In addition to this set of leadership skills, an appropriate set of business management skills, such as financial literacy and organizational skills, are needed. Most companies will also seek executives who have deep insights into their industry.

So in the 80 years since “this is your man,” how has leadership recruitment evolved to address this changed landscape, and how do Taiwanese companies fit into all of this?

One obvious change is access to information. With the growth of LinkedIn, and other tools, the profiles of several layers of most multinationals’ leadership are easily identified. Couple this with the development of software and AI tools that can quickly scan the internet to find profiles that appear to meet company requirements. In today’s world, there are simply a lot more CVs to sift through.

In practice, this new reality means some roles can be filled quickly, whether handled by a third party or in-house. It must be noted that this process works best for positions where the primary hiring decision is based on whether the candidate meets enough of the specified requirements. In such cases, LinkedIn or other internet scraping tools bring a lot of value – provided profiles are accurately and recently updated and that there are no coding flaws mistakenly disqualifying strong candidates. However, when seeking candidates for C-level or mission-critical leadership roles, this approach has its shortcomings.

While a broad scan may reveal a set of executives that meet some of the more tangible requirements, soft skills are not generally apparent on a CV. A resume does not indicate how an executive instills loyalty or successfully goes about leading a change management process.

Moreover, for a recruitment process to work properly, candidates need to be willing to participate. After building a successful decades-long career, leaders are far more selective when it comes to considering new roles. Being identified as a potential candidate does not automatically translate into a willingness to engage. Concerns about confidentiality, timing, and potential poor fits prevent senior executives from participating in many recruitment processes.

Companies operating in Taiwan face particular challenges when recruiting senior executives for leadership roles. While Taiwan is home to industry leaders across various sectors, the talent pool for certain positions can be limited. Without delving into the reasons behind this shortage, companies should focus on impactful strategies for attracting the necessary leadership talent.

Building rapport and trust between candidates and search firms is critical to a successful recruitment process. As the conversation with candidates progresses, it will inevitably shift toward life in Taiwan. Companies must be prepared to address a range of inquiries, including those about the weather, air quality, housing and education options, and how easily non-Chinese speakers can navigate daily life in different Taiwanese cities. These questions must be answered with transparency and honesty, while recruiters remain sensitive to the candidates’ most pressing concerns.

In addition to concerns about life in Taiwan, candidates will naturally focus on the compensation package. For senior executives considering relocation, these discussions extend beyond base salary, bonuses, medical insurance, and car allowances. This can be especially challenging for companies unfamiliar with hiring expatriate talent, yet these factors can make or break the recruitment process. It’s not only the outcome of negotiations that matters but also the company’s perceived attitude and openness during these discussions.

Senior executives need assurance that their essential needs beyond salary will be met. Candidates rarely move for less money than they are currently earning, and they are unlikely to accept a position if the overall package – when factoring in all elements – results in lower compensation than their current role. Candidates expect housing costs to be addressed, as well as education expenses for children through high school. A company-provided car is typically standard, as is employer-funded home leave at least once a year. These are just basic examples, and companies must remain sensitive to the unique circumstances of each candidate.

It is not uncommon, especially among Taiwanese companies, for many of these benefits and considerations to be absent from standard compensation packages. In contrast, most successful global multinational companies have well-established policies for expatriate packages, used both for transferring executives abroad and recruiting senior leaders for roles that require relocation. Without these benefits in place, it is unlikely that a company will succeed in attracting senior executives from one country to relocate to another.

For companies operating in Taiwan, some challenges can be even more pronounced. A lack of familiarity with Taiwan, coupled with perceived risks such as tensions with China, can deter potential candidates. In today’s global marketplace, competition is not just about products – it is about attracting top talent, and companies must be prepared to meet the expectations of executives considering their next move.