Retirement Trends Are Changing the Executive Search Conversation
Every month I get to write a Blog on a topic that relates to Executive Search – usually from the perspective of my firm. Topics can be quite diverse – ethics is one of my favorites. The market, demographics and trends are all areas I like to discuss. I keep a list of possible topics but usually have one in mind that I feel needs to be discussed. For March 2026, I chose Executive Search, Succession Planning and Coaching and how they can come together. Lately (especially in the last few years), these topics have come together more frequently.
For the Blog writing process, I start writing key theme ideas for the Blog topic a few weeks in advance. I then fill in the theme areas about two weeks before the Blog is posted. I was well into this current monthly writing process when I found an article that told me my Blog was very timely.
“Silver Tsunami”
Each morning, I begin my day with a routine – checking Facebook (I don’t want to miss a birthday), looking at varying financial and economic trend data, and then reading from three different news sources (Star Tribune for local news and both CNN and FOX for national and global information). On March 8th (just over a week ago), FOX News posted an article called Silver Tsunami.
Here are a couple of excerpts from the article:
- Nearly half of U.S. small-business owners are 55 or older, yet just 54% have a succession plan in place – setting the stage for a potential retirement shock that could leave many companies vulnerable over the next decade, according to Forbes.
- The stakes are high. Small businesses employ more than 62 million Americans and account for roughly 43% of U.S. GDP, according to the U.S. Small Business Administration.
Trends
People that know me are aware that I track and report on trend data. My LinkedIn posts are commonly economic updates. They come from the daily routine/reading I referenced above. They also come from the work that we do in Retained Executive Search. For the past few years, our work has seen one theme more prominently than some others – the word retirement has been mentioned as the reason for going to Search. Interestingly, since COVID (six years ago), the words Surprise Retirement have been used together. Succession Planning is then mentioned as well.
As the FOX article referenced above mentions, many organizations do not have a full succession planning process in place. The calls about search we receive do commonly mention Succession Planning candidates but the calls also tell us that the search needs to be comprehensive, looking internally and externally at the same time.
Search Process
Regardless of the impetus for the search (retirement, growth, replacement due to turnover, etc.), all search processes start the same. We need to interview the hiring leader(s) and other key organization leaders to develop a solid understanding of the need. The job description we are commonly given is just the start. We learn about the business, its challenges and the presenting opportunities. We learn about the culture and how the organization truly operates.
During the search initiation process, we are often told of possible internal candidates. To be honest, we don’t have any preference or preconceived conclusion when this happens. Our goal is to ensure the best candidate is selected for the role. Internal or external doesn’t matter as long as it’s the right person for the position.
Regardless of the candidate chosen, there are always professional attributes that could use further coaching and development. No candidate, no matter what their background, is perfect. An internal or external candidate has obviously not been in the executive position that is open. They may be in a similar position; they may be in a similar organization. They may have been doing work with the person leaving (if they are internal). Regardless, an internal person is stepping up; an external person is likely stepping over from a different environment and culture.
Coaching With Executive Search
We – Abeln, Magy, Underberg & Associates – do one thing. We do Retained Executive Search. That said, the addition of coaching (through a strong outside executive coaching partner/ organization) can be a key success to succession planning. With internal candidates, this can be especially important. If the internal candidate is chosen, their new role will change their relationships internally. Previous peers are now direct reports. The role they played in leadership team meetings will significantly change. Their interaction with the board will also change. How they interact and make decisions will be different.
If the internal candidate is not chosen but was considered a viable candidate, it will be critical to develop a plan to retain them and help develop them further. This is for future internal opportunities. Coaching for development is indeed a benefit worth offering. If they were a viable candidate, the organization clearly wants them to stay. Coaching will help increase that chance.
For an external candidate, coming into a new organization can be a challenge. Existing teams with any amount of tenure have their way of communicating. New styles from the new leader are exactly that – they are new (and different). Onboarding and development coaching will help with the smooth transition.
Add This To The Search Agenda
A search process discussion should include coaching as an option. While some organizations do a great job of this through their own internal staff, considering an outside expert for this should at least be discussed. Search at the executive level is indeed a process that is often considered complete when the new person starts in the role. More realistically, the search process continues past the start date – informally with check-ins (with the candidate and the hiring leader) and formally with onboarding and development coaching.
A well-executed onboarding process (the start of coaching) along with developmental coaching can be a key to success and longevity. Whether done internally or externally, ensuring it is done well is a critical step.