Why Companies Are Finding It Increasingly Difficult to Find Quality Leaders

Amid continuously dynamic economic growth, one challenge increasingly faced by the business world is no longer merely finding employees, but finding leaders capable of steering organisations through survival and growth.

This phenomenon is not confined to multinational companies. Family businesses, national firms, and startups entering their growth phase face similar problems. A vacancy can be publicised in minutes, yet finding the right figure to lead an organisation often takes months.

Indonesia, after all, has an enormous labour market. The Indonesian Labour Market Indicators publication for February 2025, released by Statistics Indonesia (BPS), shows that national employment dynamics are continuously monitored through the National Labour Force Survey (Sakernas), the main reference for tracking changes in the Indonesian labour market. These changes concern not only the number of workers, but also job quality, productivity, and workforce characteristics.

The problem is that a growing labour force does not automatically make it easier for companies to find the right leaders.

When the Old Ways Are No Longer Effective

For years, many companies have relied on the same recruitment pattern: advertising vacancies, waiting for applications, conducting interviews, then selecting the best candidate.

This approach remains relevant for many operational and administrative positions. However, when companies need a General Manager, Director, Chief Financial Officer (CFO), Chief Human Resources Officer (CHRO), or even a Chief Executive Officer (CEO), this pattern increasingly runs into limitations.

The reason is simple. Most top professionals are not actively looking for work. They already have stable careers, competitive compensation, and the trust of the organisations they work for. They do not browse job portals every day, but that does not mean they are not open to genuinely compelling opportunities.

Professionals in this group are known as passive candidates. They are precisely the ones often targeted by companies seeking leaders capable of driving change.

Leadership Challenges Are Increasingly Complex

Changes in the business world have also changed what defines a leader.

Where technical experience was once the primary consideration, organisations now need figures who can lead transformation, manage change, build cross-functional collaboration, harness technology, and simultaneously preserve corporate culture.

This means recruitment is no longer simply a matter of matching a curriculum vitae to a job description.

In this context, job quality becomes increasingly important. BPS, through its Decent Work Indicators in Indonesia 2025 publication, which refers to the International Labour Organization (ILO) framework, shows that job quality is a key indicator in describing the state of national employment. The better the job quality an organisation offers, the greater its chances of attracting and retaining top talent.

In other words, companies now compete not only on salary, but also on development opportunities, a healthy work culture, flexibility, and trusted leadership.

Talent Competition Is No Longer Local

Technological developments have blurred geographical boundaries.

Indonesian professionals can now work for national companies, regional firms, and even global organisations without leaving the country. Conversely, companies in Indonesia also compete with foreign companies for the best talent.

This makes recruitment ever more competitive. The best candidates often have more than one option. They weigh not only compensation, but also company reputation, career development prospects, leadership quality, business stability, and the meaning of the work involved.

In such a situation, the candidate’s experience during the recruitment process becomes part of the company’s image itself.

The Cost of Choosing the Wrong Leader

A mistake in recruiting a leader has consequences beyond recruitment costs.

A poor decision can affect organisational productivity, slow strategy execution, raise employee turnover, and even undermine customer and investor confidence.

Therefore, recruitment at management level should be viewed as a strategic decision with long-term implications for the company’s sustainability.

Time to Change the Mindset

Companies need to start treating recruitment as an investment, not merely an administrative activity.

Organisations that succeed in securing quality leaders generally do more than wait for applicants. They actively build professional networks, map talent in their industries, maintain relationships with potential candidates, and understand shifting workforce expectations.

This approach allows companies to reach professionals who may never submit an application, but who possess the competencies needed when the right opportunity arises.

Leadership Is a Competitive Advantage

Ultimately, technology can be bought, capital can be raised, and business strategies can be drafted.

But the quality of leadership remains the factor hardest for competitors to imitate.

Companies able to find, attract, and retain quality leaders will have a stronger foundation to face future economic change, technological development, and market dynamics.

In an era of accelerating change, the ability to find the right leader is no longer merely a human resources function. It has become part of the business strategy that determines a company’s competitiveness.