Why Companies Are Finding It Increasingly Difficult to Find Quality Leaders

For years, many companies have relied on the same recruitment pattern: posting job advertisements, waiting for applications, conducting interviews, and selecting the best candidate. This approach remains relevant for many operational and administrative positions. However, when a company needs a General Manager, Director, Chief Financial Officer (CFO), Chief Human Resources Officer (CHRO), or even a Chief Executive Officer (CEO), this pattern increasingly encounters limitations. The reason is simple: most top-tier professionals are not actively seeking employment. They have stable careers, competitive compensation, and the trust of their current organisations. They do not browse job portals daily, but that does not mean they are closed to genuinely attractive opportunities. These professionals are known as passive candidates, and they are often the primary target when companies need a leader capable of driving change. The changing business world has also altered the definition of a leader. Where technical experience was once the main consideration, organisations now require individuals who can lead transformation, manage change, build cross-functional collaboration, leverage technology, and simultaneously maintain corporate culture. This means the recruitment process is no longer sufficient if it merely matches the contents of a curriculum vitae with a job description. In this context, the quality of work becomes increasingly important. According to the Decent Work Indicators in Indonesia 2025 publication by BPS, which refers to the International Labour Organization (ILO) framework, job quality is a crucial indicator of national employment conditions. The better the quality of work an organisation offers, the greater its chance of attracting and retaining top talent. In other words, companies are now competing not only on salary but also on offering development opportunities, a healthy work culture, flexibility, and trusted leadership. Furthermore, technological developments are blurring geographical boundaries. Indonesian professionals can now work for national, regional, or even global organisations without relocating. Consequently, companies in Indonesia are also competing with foreign firms for the best talent. This makes recruitment increasingly competitive, as the best candidates often have multiple options and consider factors beyond compensation, such as company reputation, career development, leadership quality, and business stability. The cost of a poor leadership hire extends beyond recruitment fees; it can affect organisational productivity, slow strategy execution, and impact customer and investor confidence. Ultimately, while technology and capital can be acquired, leadership quality remains a distinct competitive advantage that is difficult for competitors to replicate.