Executive Headhunting in the Gaming Industry: Tips, Challenges, and Strategies
In the midst of turbulent times for the gaming industry, where layoffs have become all too common, the conversation around executive-level headhunting takes on a nuanced hue. It's a domain that often seems distant, perched atop a pedestal of prestige and power.
Yet, as Gerard Miles, a games industry headhunter of over 14 years at Mission One, rightly points out, success in these roles isn't solely about ascending the hierarchical ladder. Those at the helm aren't inherently superior; rather, they possess a unique set of skills tailored to their specific roles.
This perspective is vital, especially as the industry grapples with the phenomenon of 'rightsizing,' which we recently discussed in our post on The Three Game Industry Trends to Watch in 2024. Amidst layoffs and uncertainties, understanding the intricacies of executive roles becomes more imperative than ever.
Mishka and Gerard delve into these complexities, shedding light on the multifaceted nature of executive positions and debunking common misconceptions about the executive sphere in the latest episode of the Deconstructor of Fun podcast.
I’ll highlight some of the themes below, but other topics discussed included:
Key Qualities of Exceptional Executives
How to Assess Cultural Fit
The Importance of Diversity in Executive Hires
Common Mistakes Executives Make During the Hiring Process
Clear Red Flags for Executive Hires
Why Big Companies Seek Executives from Smaller Companies
As they navigate through the layers of this discussion, it becomes evident that there's no one-size-fits-all approach to success in the gaming industry. Rather, it's a landscape defined by diverse roles, each demanding its own set of skills and expertise. Whether it's spearheading a performance marketing team or leading as a chief architect, excellence lies not in hierarchy but in alignment with one's strengths and passions.
Changes in the Gaming Industry Over the Last 10 Years
For a long time, the gaming industry was a close-knit community where everyone knew everyone, especially within specific regions. Whether it was London or Helsinki, local networks were sufficient for finding talent. However, with the rise of mobile gaming around 2010, the industry expanded rapidly, making it clear that relying solely on local connections could mean missing out on exceptional candidates.
In recent years, the gaming industry has seen a significant influx of talent moving both into and out of the sector. As gaming intersects with various other industries such as education, fitness, dating, and fashion, the demand for executives with gaming expertise has grown. These industries seek the knowledge that gaming professionals have in retaining attention and encouraging specific behaviors through gamification.
Why Hiring for Exec Roles is Different
Hiring a C-level executive is no easy feat. The process is much more complex and challenging than hiring for other positions for several reasons:
Extended Timeline: The timeline for executive searches is significantly longer. Identifying, vetting, and securing executive-level talent involves a meticulous and time-consuming process that can take many months, if not years.
Incentives Beyond Monetary Compensation: Many executives are already well-compensated, with typical annual compensation starting from $150,000 to $200,000 and potentially reaching into the millions. Therefore, appealing to their career aspirations, personal values, and desire for new challenges is often necessary.
Intensive Relationship Building: Building relationships with top-tier candidates often takes years. Headhunters need to understand their career trajectories, personal motivations, and professional networks to effectively engage and attract them to new opportunities.
How to Identify Good Candidates
Gerard and Mishka dive into the nuances of attracting top-tier candidates for executive roles, emphasizing that the best candidates often aren't actively looking for new opportunities. Despite being content and valued in their current positions, these executives are ambitious and constantly contemplating their next career move.
Understanding these motivations is key for headhunters. They build long-term relationships with candidates, discussing their aspirations and what challenges excite them. This personalized approach, coupled with honesty and direct communication, helps build trust and stands out from typical recruitment methods.
Furthermore, recognizing which stories and opportunities resonate with candidates is crucial. Tailoring outreach to align with their career trajectories and aspirations is essential, especially for senior roles. Building a strong network over time is vital, as personal relationships become increasingly important for senior candidates inundated with outreach messages.
Hiring from Outside the Gaming Industry: Pros and Cons
Over the past few years, there's been an increase in executives from other industries showing interest in the gaming industry due to its rising cultural and financial prominence. Bringing in talent from outside the industry can be beneficial as they bring a wealth of experience and new perspectives. However, there are challenges, especially in roles specific to gaming like product and design, where industry-specific knowledge is crucial.
Role dependency:
CFOs and Financial Roles: These roles can benefit significantly from outside perspectives, as financial skills are highly transferable. Executives with experience in finance from other industries can bring valuable insights and practices to gaming companies.
Product and Design Roles: These roles are more specialized and idiosyncratic to the gaming industry. Executives without gaming-specific experience may struggle due to the unique demands and nuances of game development and design.
CEO and Leadership Roles: The impact of an outsider CEO can vary. While fresh perspectives can be beneficial, the unique culture and priorities within gaming companies, such as a focus on creative quality over immediate profitability, can pose integration challenges.
Cultural Fit: Gaming professionals often have a strong attachment to the creative and artistic aspects of their work. Executives from outside the industry who emphasize profit over product quality may face resistance from teams dedicated to creating high-quality games. This cultural clash can lead to challenges in leadership and integration.
Hybrid & Gamified Companies: Some companies, like Duolingo, straddle the line between gaming and other sectors, demonstrating the potential for cross-industry innovation. These hybrid companies can serve as models for how gaming principles can be integrated into other business areas, and vice versa.
Gerard mentions Bernard Kim's transition from Zynga to CEO of Match Group as an example of cross-industry executive movement. He also notes the challenges faced by tech giants like Google and Amazon in establishing successful gaming divisions, highlighting that even well-resourced companies can struggle with integrating gaming expertise.
In the future Gerard anticipates more cross-industry hires as the gaming industry continues to mature and attract broader interest. However, the success of these hires will likely depend on the specific functions they fill and their ability to adapt to the unique culture and demands of the gaming industry.
Conclusion
It seems clear that the intricacies of headhunting for executive roles in the gaming industry reflect broader trends and challenges within the sector. As the industry evolves, so too must the strategies for identifying and recruiting top-tier talent.
Whether considering executives from within or outside the gaming world, companies must balance the benefits of fresh perspectives with the need for industry-specific expertise.
