As we start Q4, the aftershocks of the downsizing that defined much of the previous year are still being felt. While the layoffs of 2023 are behind us, the consequences of eliminating key leadership roles like the Chief Product Officer (CPO) in the pursuit of profitability have left many companies grappling with the resulting voids.
In our Q4 market analysis, we’re seeing several trends that are reshaping the landscape of product leadership and talent acquisition.
Founders Taking Back the Product Reins
One of the most prominent trends is first-time founders stepping back into product leadership roles after letting go of their CPOs. These founders are often reminded of why they hired a CPO in the first place:
They’re not product leaders: Many founders lack the deep product management expertise required to scale a product effectively.
They’ve never led a business as large as their current one: Founders are hitting the ceiling of their experience, which limits their ability to push the company to the next level.
They’re missing experienced leadership: At this critical stage, founders should be surrounded by leaders who have “done this before,” particularly when investor expectations have never been higher.
The pressure on founders is immense, and the reality is that without experienced product leadership, many are struggling to meet the demands placed upon them.
Cheap and Ineffective Hiring Strategies
The belief that hiring a nuanced, highly skilled CPO or VP of Product is as simple as posting on LinkedIn or Indeed is, quite frankly, baffling. CEOs who try to sift through the overwhelming flood of irrelevant candidates without professional help are often paralyzed by indecision.
Consider this: If your largest client sued your company, would you rely solely on your in-house legal team to defend you? Or would you hire a top-tier defense attorney? The same principle applies to product leadership roles. Hiring a professional search firm to guide the process isn’t just a good idea—it’s often necessary to find the right candidate and save precious time.
Teams Are Struggling
Without strong product leadership, many teams are floundering. We’re seeing growing dissatisfaction and burnout among employees, with more people switching to LinkedIn’s “open to work” setting, signalling their readiness to leave.
Here’s what’s happening within these teams:
Leadership exodus: The leader they admired—the reason they joined—is gone, and the culture has deteriorated.
Lack of vision: There’s no clear direction, and everyone is shouldering more responsibilities than before.
Eroding confidence: Employees’ faith in the CEO is slipping as uncertainty about the company’s future grows.
Career stagnation: Without a visible career path or clear opportunities for growth, many are questioning their long-term prospects.
In-office mandates: New in-office work requirements are making everything feel harder, and for many, it’s simply “not worth it.”
The In-Office Debate
The return-to-office push is picking up steam. Every week, more companies announce in-office mandates, to the dismay of employees who have grown accustomed to the flexibility of remote work. In some markets like New York City, candidates are more amenable to these mandates due to space constraints and a desire for workplace interactions. But for suburban workers—especially parents with young children—the pressures of commuting and office life are much more taxing.
How this dynamic will play out in spring 2025 remains to be seen, but the friction between employers and employees over in-office work is a growing source of tension.
The Pressure for Domain Expertise
CEOs today are more focused than ever on rapid ROI regarding leadership hires, and they tend to associate domain expertise with faster results. Right or wrong, hiring leaders with experience in the same product category continues to be the number one priority for many companies.
This fixation on domain expertise can limit opportunities for candidates who don’t check every box on paper but may bring fresh perspectives and new ways of solving problems. CEOs need to balance this desire for a perfect match with the need for flexibility and innovation.
The AI and GenAI Revolution
The rise of AI and generative AI (GenAI) is undeniable, and product leaders are being forced to confront this new reality. CPOs need to start learning and forming strong opinions about AI—if they haven’t already. The more hands-on they can get with these technologies, the better positioned they’ll be to guide their companies into the future.
It’s Not All Doom and Gloom
This period is especially challenging for junior and less experienced employees. Many who entered the workforce during times of prosperity struggle to adjust to the slower rebound we’re experiencing. Seasoned professionals know that economic recovery can take years, not months, and this knowledge gap is becoming increasingly apparent.
Despite the challenges, companies are still hiring. But make no mistake—it’s an employer’s market. With such a high demand for top-tier talent, not every interested candidate will get a callback or interview. It’s just not feasible for employers or recruiters to respond to every inquiry. The key for candidates is to keep pushing, continue refining their approach, and ensure they have the right skills and qualifications in place.
If you’re a VP or CPO whose resume, stuffed with ATS-friendly keywords, isn’t getting you noticed, now might be the time to consider professional resume coaching to help you stand out in this competitive environment.
Q4 2024 presents a tough but not insurmountable set of challenges for leaders across industries. Whether it’s navigating in-office mandates, balancing the need for domain expertise, or embracing new technologies like AI, the companies that remain agile and willing to adapt will thrive.
If you’re struggling to find the right product leader for your team or need help optimizing your hiring process, don’t hesitate to reach out. Our expertise can help you identify the product talent you need to take your company to the next level.