A 2023 survey by Deloitte found that “nearly 70% of C-suite executives have seriously considered quitting to find a job that better supports their well-being,” a startling fact that we think should have boards of directors concerned about 2024 budget pressures resulting from having to replace an executive leader.

And, boards should closely consider the costs of vacancy-related disruptions. Leadership vacancies at the top can exacerbate competitive pressures, result in lost sales, and cause a drop in difficult-to-regain market share.

When Commitment Isn't Enough

Here’s the thing. Many of these executives are burning out. Despite their commitment to their jobs, their success in cultivating a robust workforce, and surpassing revenue projections, their performance is dropping. They’re likely facing health concerns rooted in stress and unhealthy habits, too. 

Is termination really the answer here? Wouldn’t it be better - and less expensive - to help the executives?

Hard Costs of Replacing an Executive

Let’s look at some facts boards of directors must consider when weighing the need to build in funds in the 2024 budget for C-suite remediation and retention versus termination:

• Depending on the executive search firm retained, search fees can range from a $100,000 flat fee up to 33% of the executive’s first-year salary, which can be $165,000 for an executive compensated at $500,000 – not including stock options and other perquisites. 

• Directors should ask themselves what is the cost of a failed hire. Research from the Corporate Executive Board (CEB) estimates that 50% to 70% of executives fail within 18 months of taking on a role, regardless of whether they were an external hire or promoted from within.

• Add to that the significant investment in a new hire’s salary/time/productivity during what could be a lengthy onboarding process,  and there’s clear evidence for investing in programs designed to retain rather than replace burnout-prone executives – who are essentially a major company asset.

• Studies showed that 65% of leaders experienced burnout, leading to decreased productivity, increased absenteeism, and higher turnover rates in their teams.

The Same Leader, Only Better

It doesn’t have to be this way. We faced burnout in our own high-pressure careers, and we created a new way forward for ourselves with balance, and with mind, body, and nutrition working in synchronicity to maximize health and performance. 

Personal exhaustion, stress, and operational fatigue can result in career-ending poor performance in addition to family, relationship, and health breakdowns. Our 90-day Total Transformation program is a concierge-style health and performance coaching program that changes lives at a fraction of the cost of C-suite replacement. 

Schedule a complimentary 30-minute strategy session to see if our program can help retain and reignite your executives.