Winter for C-suite hiring as psychometric trials and AI tests become the new norm
Headhunters caution that the coming year will be a slow one for middle and senior executives looking to change jobs. Psychometric tests, peer interviews, and questions about work done with AI are becoming the norm. And, then, there will be a waiting period before the final offer is rolled out.
The era of rapid-fire executive poaching is cooling, as corporate India enters a period of deep caution. For senior and middle management, the path to a new corner office in 2026 will be defined by gruelling vetting processes, artificial intelligence litmus tests, and a "last-in, first-out" anxiety that is keeping potential candidates from jumping ship.
The shift marks a departure from the aggressive expansion seen in previous years. Executive search firms said that the timeline to close a senior mandate now frequently exceeds six months, as boards prioritize operational resilience over headcount growth.
In a bid to de-risk high-stakes appointments, hiring panels are increasingly looking outside their own industries. The goal is to find "disruptors"—leaders who have navigated market volatility or digital transformation in other sectors and can apply those lessons to new environments.
"It will be a slower year as we expect less attrition among CXOs," said Puneet Kalra, managing director at Russell Reynolds Associates. "Companies are moving away from sudden business decisions typically fuelled by strong growth. Increasingly, firms are seeking leaders who can navigate AI and technology-led disruption, which naturally makes the hiring process more rigorous."
This scrutiny has introduced new hurdles for candidates, including psychometric testing. Once reserved for the top rung, these assessments are now standard for middle management.
Peer-level reviews are in too.
"Peer group evaluations are now done in seven out of 10 mandates at the middle and senior levels," says Pranshu Upadhyay, regional director at Michael Page India. This involves interviewing a candidate's to-be colleagues and subordinates to gauge cultural fit and soft skills.
In fact, startups backed by global PE/VC firms “take slightly longer" due to global rounds and multiple stakeholders involved. “However, on the bright side, new profiles like that of AI ethicists, virtual reality experience managers and AI tutors are emerging, giving a boost to the recruitment trends and outlook," said Upadhyay.
The "lethargy" in the market is also driven by candidate hesitation. With global macroeconomic jitters persisting, many executives fear the "last man in, first man out" phenomenon, where the newest hires are the first to be pruned during a downturn.
The slowdown is visible in the data. While the previous fiscal year saw a 30% to 40% surge in CXO mandates, that growth is expected to crater to just 10% in the coming year, according to Upasana Agarwal, partner at ABC Consultants. "Companies want to retain existing talent because the cost of business loss during a six-month vacancy is too high," she noted.
The hiring lag is particularly acute in the startup ecosystem. Backed by private equity and venture capital, these firms now require multiple rounds of global stakeholder approvals before signing off on a new lead.
However, the news isn't entirely grim. While traditional roles are stagnating, a new class of "AI-native" positions is emerging. Roles such as AI ethicists, virtual reality experience managers, and AI tutors are beginning to surface in recruitment briefs, offering a silver lining to the otherwise muted outlook.
The demand for AI-savvy professionals has surfaced in campus recruitments as well. AI startups such as Javis, Abacus AI and Auxo AI competed with companies from consumer goods and technology industries for AI-linked roles in campus placements at engineering colleges for the batch of 2026.
"Hiring in 2026 will remain highly cautious," said Manu Saigal, country manager at Hays. "Global hiring momentum is slow, and that sentiment is spilling into India. CXOs will face growing pressure to demonstrate how they can drive resilience rather than just expansion."
topics
