Decision making should be an integral factor in the Leadership Hiring process

💡Decision making is the ‘missing piece’ in hiring strategy for leadership positions

A quarter of senior executives say they were not asked about their decision making capabilities at interview stage and only around a third (36%) say that their decision making style aligns with that of their organization. There is also evidence to suggest that, even when asked about decision making, senior executives are not pressed to elaborate on their approaches to the process and thinking behind their decisions. Those who are satisfied with decision making effectiveness in their organization are 3.6 times more likely to be satisfied with their jobs overall, compared to those who aren’t satisfied with decision making. This suggests that effective organizational decision making is a key driver of executive success and happiness, according to a new interesting research published by Kingsley Gate using data from senior executives at C-suite, C-1 and C-2 levels from 13 industries and 5 countries conducted by FT Longitude in May and June 2023.

✅Leadership as the most influential factor for organizational decision-making

Findings of researchers also reveal that the decision making capabilities of individuals are, cumulatively, the main driver of improving decision making in the organization overall

When senior executives are dissatisfied with the way decisions are made, this leads to job dissatisfaction and, potentially, resignation, which could have a profoundly negative impact on an organization.

As well as the morale and productivity impact of losing a senior executive, the cost of failing to empower your employees to make decisions can be damaging. It is estimated to cost six to nine months of an employee’s salary to replace them so, to replace an employee making $600,000 a year, that would be $300,000-450,000.

When asked which factors play the biggest role in driving improvement in their organization's decision making, senior executives cited company leadership as the most influential factor, followed closely by new employees’ making a direct improvement. 

👉Effective decision making has mutual benefit for the happiness of the individual and the success of the organization.

Senior executives who were asked about decision making in their interview are over 2 times more likely to be satisfied with the organization’s decision making, compared to those who weren’t asked and are 1.4 times more likely to be satisfied with their jobs.

✅Decisions are more rationale/data-driven than intuition-driven

Researchers found that nearly three-quarters (74%) of senior executives say that their personal values and beliefs often influence the way in which they make decisions.

So people are the main driver of improvements in decision making, ahead of data and processes. This could suggest that, even when decision makers use data and processes, personal values and beliefs still come into play, and personal subjectivity is necessary to make decisions

Researchers believed that "Human" qualities, such as values and beliefs are, therefore, necessary components of decision making. Strikingly, they found that 60% of senior executives say they frequently rely on intuition or ‘gut instinct’ when making decisions; this rises to 76% for C-suite respondents.

 ✅Decision making differ between cultures

Researchers found that decision making approaches vary between countries. However, people centric factors (i.e. company leadership and new employees) rank highly across all countries for driving improvements in decision making. 

☝️Overall, the UK seems to adopt a more conservative approach to decision making compared with other countries surveyed and Executives in UAE, meanwhile, favor a consensual approach, with 82% looking for input from others when making decisions, compared to 77% overall and 86% prioritizing the wellbeing of others when making decisions, compared to 75% overall.

✅Decision making effectiveness a crucial aspect of assessing leadership

Researchers found that Senior executives who discussed decision making before taking up their role are more likely to be satisfied:

✔️ In their roles overall

✔️ With their organization’s decision making process and ability to make decisions effectively

✔️ With the degree to which they are empowered to make decisions

✔️ With many elements of their roles, such as workplace culture and environment, opportunities for career growth and having a sense of purpose

✔️ Are also more likely to have seen an improvement in their organization’s decision making over time.

This shows that decision making shouldn’t just be one element of the recruitment process; rather, it should play a central role in hiring senior executives.

📌 Finally researchers suggest that recruiters should ensure that decision making is discussed with the candidate during the hiring process. Assessing the candidate’s decision making ability and style will lead to the company’s hiring good decision makers, which, as the research shows, enhances decision making in the company overall.

Focusing on decision making styles during the interview process will ensure that C-suite employees bring a fresh perspective without causing friction. 

As well as authority, cultural factors such as an acceptance of uncertainty or ambiguity; individualism vs collectivism; and attitudes towards different gender identities can come into play when determining decision making style

Researchers suggest that leaders also need to be able to decipher what decisions need to be made and by who. Also a greater level of transparency is needed in the recruitment/onboarding process so candidates understand the level of autonomy they will have before starting a role.

Finally, they suggest that this transparency and two-way communication in the recruitment process should also filter into decision making in general. This research shows that greater transparency is the most important factor in improving decision making.

Thank you🙏 Kingsley Gate  researchers team for these insightful findings: 

Umesh Ramakrishnan Jude Reser, MS, SHRM-SCP David Livermore

Dave Ulrich George Kemish LLM MCMI MIC MIoL

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