The Talent Trends 2027 indicate a chicken-and-egg situation near the boardroom than most trends predict.
Organizations will have less capacity next year than they will have talent (shrimp on the rice, but still required, though). And for leadership, down to the executive team, the same indeed applies.
When hiring for the C-suite, it's a space to invest less time in filling a job and more time into determining the adaptability of a leader as well as their ability to make sound AI risk assessments and gain the trust and confidence of the board within a short timeframe.
Decision-making on whom to promote will be made at an earlier stage and on their readiness rather than pedigree.
Talent Trends 2027 Begin With a Capability Gap
The findings of the HRC survey, which included over 1,300 talent and senior leaders from over 75 countries, revealed that 77% believe that the new year (2027) will be tougher with capability gaps than with talent gaps. Another 78% noted that the level of people's readiness to do work is insufficient at the top of the list of most desired skills: adaptability, followed by critical thinking and collaboration.
This is, on the surface, an HR story when they most commonly cover it. It is also a C-suite story, since a wrong match-up will be most costly at the top where the CEO and his peers establish the change “agenda” of everybody below.
If Boards already have a workforce mapping process they are working with a leadership consulting firm, they should request a workforce mapping of the leadership team:
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Disability functioning that the 2027 strategy should rely on
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Which of the top officials are clearly engaged in them; and
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Which are taken for granted, granted due to some title Forty-two.
Talent Intelligence directed at the leadership team. Talent intelligence pointed at the leadership team.
Why Boards Favor Proven CEOs, & Where that Hedge Falls Short
The first half of businesses with the top stock market listings saw 23% of incoming CEOs have previously run a publicly listed business, the highest proportion of the past nine years of data. 88% of new CEOs who took the job in the S&P 500 were internal hires. In times of doubt, boards tend to go toward those leaders that they have already experienced.
Instinct is good and is not complete. The latest survey, by PwC of 250 directors and CEOs, found that 50% of the CEOs thought they had been ‘cautious' in their previous CEO appointment.
The more you know, the less likely you will be to have a bad cultural fit. Provides limited protection against something which the business has not yet faced. In the aforementioned survey, only 49% of CEOs who chose to take on their first CEO role indicated that they were comfortable in handling the risk of AI and emerging technology, while only 30% of those on the boards indicated the same.
For evidence of adaptation, you should look for: Outline the reason the candidate changed their mind, the cost of the alterations, and how they altered thereafter.
Succession Has to Start Earlier & Run Longer
The survey also found that half of boards reported starting succession planning too late in the last CEO succession and 70% reported that they were not getting enough 360-degree feedback. 17% conduct succession planning on a quarterly basis.
That's feeble evidence on which to base a decision which affects the years to come. While boards consider the readiness of every “ready now” name, boards should also ask about the company’s three-year strategy, which will be implemented once there is a gap in the number of chairmen, board members, and C-level executives.
Stronger trust is created more slowly than confidence. 83% of directors felt their first-time CEOs were capable of leading the organization; but only 10% believed the new CEO has a complete connection with and is trusted by the board. Use minimum transition time in a search.
Schedule in advance some early decisions made by both CEO and board, and determine and communicate beforehand who will provide candid feedback for a year or so after the CEO's arrival.
Executive Mandates Are Changing Faster Than Titles
The study of 665 Fortune 500 and S&P 500 companies in the middle of this year revealed that 10.7% had a Chief AI Officer or another business-wide AI leader. The same studies predict 18.3% turnover for CFOs in 2026, higher than what was seen last year in 2019 and the average turnover over the last 10 years, which is 16%.
Other new positions that are anticipated in the October talent survey include a head of skills, a head of work design, and a head of human-AI, while a whopping 69% of those responding to the survey believe that the hiring and learning teams need to collaborate more closely.
These are the percentages of the change that are observed and/or expressed. Structures are still settling, and it's more likely to be about one title, rather than two, that may engage in different roles.
The character of a business's CFO differs based on whether they are bringing the CFO into the organization to recover reporting discipline or to serve as a CFO charged with overseeing investments in artificial intelligence.
Tell about the search that will be finding the problem which the leader will have to solve during his first 24 months. If it is still being determined, then the interim executive can stay in power until the board makes the decision; otherwise, it's riskier if it gets voted in with a mandate that will be changed once they are elected into office.
Assessing Leaders When AI Speeds Up the Search
AI can streamline the sourcing and screening process. It can't demonstrate a board leader's service in a time frame of changing facts. A CV tells about one's experiences, but offers little information about how they made decisions (with imperfect information).
When looking at the best executive search firms available on the market, boards should question each search firm to see how they are testing for adaptability and judgment, and how quickly they're able to prepare a shortlist.
Some good habits include having sessions with the candidate where the context is clear and actual decisions he has made, not in abstract, just concrete things that the people he would have worked for or under would have considered; and evaluating the candidate's leadership assessment based on the future strategy that the company will be following.
Building the Leadership Bench For 2027
Since 2002, the founding team of independent senior search consultants and HR advisors have worked together as a global executive search and leadership consulting practice at The Taplow Group.
We work in C-Suite Executive Search, Executive Interim Management, and Advisory work for the board, and in leadership development and assessment through succession planning.
Hunt Scanlon has ranked us in the top 40 search companies in the world. If searching, assessing & succession are in organizations' 2027 plans, that range provides a one-and-a-half-step process.
