Beaumont Bailey’s Cobi Busst delves into the minds of the global cement industry’s top talent.
The cement and heavy building materials industry are undergoing significant transformations, driven by technological advancements, changing market demands and an increased focus on sustainability. To understand these changes from the perspective of industry leaders, a comprehensive study was conducted involving 150 hours of open conversation with more than 100 senior executives, including CEOs, General Managers and Managing Directors, all of whom oversee companies with more than €100m in turnover. These conversations and research shed light on leadership trends, diversity, compensation, satisfaction, and the primary motivations that drive career moves among these executives.
Profile of a typical leader
The career trajectory of a typical business leader in the cement industry is marked by extensive experience and high educational attainment. On average, these leaders attain their first country or significant business line leadership role after less than 15 years of professional experience. The vast majority hold a university degree, with a significant portion (44%) possessing an MBA. This educational background underscores the importance placed on formal education and advanced management training for senior leadership roles.
The typical age of a country or significant business line leader is 45.02 years, aligning with the extensive experience required for such positions. In terms of compensation, the average executive package amounts to US$305,170, with 66% constituting base salary, 23% bonus, and 11% long-term incentive plans. Despite these significant packages, only 56% of executives expressed satisfaction with their overall compensation. Approximately 25% were actively dissatisfied, and the remainder were neutral or indifferent. This dissatisfaction could be indicative of broader industry trends regarding compensation expectations and the competitiveness of the market.
Motivations and job market dynamics
One of the most striking findings from the study was the executives’ openness to new career opportunities. Only 3% of respondents were not interested in being informed about potential future positions. In contrast, 97% expressed interest in hearing about relevant opportunities, indicating a high level of career mobility and openness to change among senior executives.
Furthermore, 54% of the executives were either currently considering new positions or actively engaged in the process of pursuing a new role. This statistic reveals a dynamic job market where senior leaders are continuously exploring new opportunities in order to advance their careers.
What attracts executives?
The study identified several key ‘pull factors’ that attract executives to new roles. The top motivator was an increase in responsibility, highlighting the ambition of these leaders to take on more significant challenges. Increased autonomy and opportunities for change management were also highly valued, reflecting a desire for roles that offer greater independence and the chance to drive transformative projects.
Financial progression was another important pull factor, ranked fourth. This finding aligns with the noted dissatisfaction with current compensation packages. Other notable pull factors included a better organisational culture, improved work-life balance, and the appeal of moving to a different industry.
Why do executives leave?
In addition to understanding what attracts executives to new positions, the study also examined the ‘push factors’ that drive them away from their current roles. Personal ambition was the top push factor, indicating that many executives leave their positions to pursue higher goals and greater achievements.
Management conflicts were also a significant push factor, suggesting that interpersonal dynamics and leadership styles can greatly influence career decisions. Curiosity and boredom, along with reaching the peak of learning potential in current roles, were also notable reasons for leaving, indicating a need for continuous challenges and professional growth.
Financial progression, once again, appeared as a key motivator, both as a pull and push factor. Additionally, the perception of a glass ceiling and role uncertainty contributed to decisions to seek new opportunities.
Implications for the industry
The findings from these conversations have several implications for the cement industry. To attract and retain top talent, companies must focus on providing clear paths for career progression, competitive compensation packages and opportunities for increased responsibility and autonomy. Additionally, fostering a positive organisational culture and addressing management conflicts can help mitigate some of the push factors that drive executives away.
The industry’s efforts to improve diversity should also continue, as diverse leadership teams can bring varied perspectives and drive innovation. By understanding the motivations and challenges faced by senior executives, companies can better position themselves to attract and retain the best talent, ultimately driving the industry’s growth and success.
The insights gleaned from the conversations conducted provide a comprehensive overview of the current state of leadership in the building products industry. As the industry evolves, understanding the motivations, challenges and aspirations of its leaders will be crucial for navigating the future successfully. By addressing the key factors identified in this research, companies can ensure that they remain attractive destinations for top executive talent.
