The rise of the contract executive

Contract executives — also known as “CXOs” — are gaining popularity as an alternative to permanent leadership appointments, according to a recent report from The Wall Street Journal.

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The number of “highly skilled” contract and independent workers who earn more than $100,000 per year is up to 4.4 million people, according to a report by MBO Partners, a direct sourcing platform. That number has increased 47 percent in the past two years.

There are multiple factors contributing to the CXO surge, Erin Peterson, the head of talent for private equity firm Great Hill Partners, told the Journal

1. The uncertain economy has made organizations reluctant to commit to permanent leadership. 

2. When companies are preparing for a major transaction, like a sale or acquisition, they can bring on a contract expert to lead teams through the transition and efficiently exit once it is finalized. 

3. Hiring an interim executive can allow organizations to test out new leadership before committing them to the role permanently. Read more about how hospitals and health systems employ this strategy here

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Presenters: Imamu Tomlinson, MD, MBA, VituityWilliam Morice II, MD, PhD, Mayo Clinic LaboratoriesJordan Dale, MD, Houston MethodistAsh Tengshe, City of HopeChris Klay, MHA, MA, PT, FACHE, Hospital Sisters Health System

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