Spring Update: Leadership, Labour Markets & The Realities Shaping Executive Hiring in 2026

As we move further into 2026, one thing has become increasingly clear: organizations are making leadership decisions more carefully than ever before.

There’s still caution in the market, but there’s also momentum. Companies are becoming more intentional about where they invest, who they hire, and how leadership aligns with long-term strategy.

Infrastructure investment and defence spending continue to shape economic priorities, while expertise in government relations, stakeholder engagement, and regulatory navigation is becoming increasingly valuable at the executive level.

At the same time, labour markets are shifting as AI and automation reshape how businesses think about growth, profitability, and workforce planning.

Locally, Ottawa is facing real headwinds. Public sector reductions, weaker consulting demand, and pressure within the tech sector are creating uncertainty, while retirements continue driving much of the senior hiring market.

Leadership expectations are also evolving. Organizations are looking for leaders who can adapt quickly, communicate clearly, and guide teams through increasingly complex environments.

Market Insights & Leadership Trends

The Defence Sector Talent Challenge

Demand for leadership talent across Canada’s defence and security ecosystem continues to grow, but the leadership pool remains shallow.

After recently completing two of Canada’s highest-profile defence CEO searches, one thing became very clear: organizations are increasingly looking beyond traditional defence backgrounds for leadership talent. Many of the strongest executives entering the sector are bringing transferable experience from infrastructure, manufacturing, logistics, technology, and other highly regulated industries.

We are also seeing the rise of “spiky executives”, leaders with broad, multi-industry experience and highly developed core capabilities directly tied to the biggest challenges facing a business. Increasingly, adaptability is becoming just as valuable as deep industry familiarity.

Ottawa’s economic outlook is also becoming increasingly tied to defence, which continues to emerge as one of the city’s most important long-term economic opportunities.

The Reality of Hiring: Referrals Still Matter Most

One of the biggest misconceptions candidates have is how executive hiring actually works behind the scenes.

Most organizations receive hundreds, and sometimes thousands, of applications for leadership roles, yet referred candidates still dominate meaningful hiring conversations because trusted networks provide credibility.

For job seekers, the takeaway is simple: make sure your network knows you are open to opportunities, but be specific. “I’m open to anything” is far less helpful than clearly communicating the type of role, sector, and value you bring.

Organizations are not hiring people to help them out. They are hiring people to solve problems.

Preparing for Interviews in a Different Era

Technology is changing how candidates prepare for opportunities, and AI can now be an incredibly effective interview preparation tool when used properly.

Uploading a job description to an AI platform and asking it to research the organization, leadership team, and likely business challenges can significantly improve the quality of preparation. Candidates can also use AI to refine their résumés, generate practice interview questions, and strengthen how they communicate their experience.

Preparation still matters enormously, but candidates now have access to much better tools to help them prepare effectively. The candidates who stand out are rarely the ones with perfectly polished answers. They are the ones who communicate clearly, provide specific examples, and demonstrate sound judgment and self-awareness.

Growth, Profitability & The AI Reality

AI is forcing organizations to rethink what growth actually means. For many businesses, the next investment may not be another hire at all, but instead AI tools, automation, consulting expertise, and process redesign aimed at improving efficiency and operational scale.

That shift will fundamentally change career pathways, particularly within professional services, where much of the foundational research, analysis, and administrative work can now be automated.

What will continue to matter is judgment and decision-making. Organizations will always want trusted advisors to help navigate difficult choices and provide accountability when the stakes are high.

Rethinking the Recruitment RFP Process

Another trend that deserves honest discussion is the growing complexity of recruitment RFP processes.

Increasingly, firms are being asked to complete 80 or 95-page proposals with extensive formatting requirements, even though executive search is fundamentally relationship-driven work built on judgment, communication, market knowledge, and execution.

In many cases, RFPs naturally favour firms with existing relationships or larger organizations with the resources to dedicate teams toward low-probability proposal exercises.

Personally, I would love to see more organizations move toward periodic pre-qualification models where firms are vetted every few years and selected based on project fit at the time of need.

Leadership Reflection

Lessons From CEO Hiring

One thing that becomes very clear after working on CEO searches over many years is that organizations often overemphasize experience and underestimate adaptability, communication, and leadership presence.

The strongest CEOs are rarely the leaders with the most perfect résumés. They are the leaders who can align teams, simplify complexity, make difficult decisions under pressure, and maintain trust when conditions become uncertain.

We also continue to see how critical onboarding and alignment are after a hire is made. Hiring the right leader is only part of the equation. Creating the conditions for their success matters just as much.

Managing Energy, Not Just Time

Over the last decade, I’ve attended well over 2,000 networking events, conferences, breakfasts, galas, and industry gatherings. What I’ve learned is that managing energy matters far more than maximizing attendance.

The highest-value events are often those with stronger barriers to entry because they foster more intentional conversations and stronger relationships. Eventually, you learn that not every event is worth attending and not every networking opportunity creates value. The quality of conversations matters far more than the quantity.

Looking Ahead

As we move toward summer, the overall outlook remains cautiously optimistic.

We expect continued momentum in defence, aviation, infrastructure, and sectors connected to long-term national investment priorities. At the same time, organizations are becoming more thoughtful about leadership risk, succession planning, operational resilience, and organizational adaptability as executive hiring decisions become increasingly tied to long-term strategy rather than short-term need.

Despite the challenges ahead, summer in Ottawa remains one of the best times of year anywhere in Canada. From Bluesfest and the Blackjacks to golf tournaments, patios, cycling, and community events across the city, there is a great deal to look forward to.

Ultimately, leadership remains the differentiator. Not because strong leadership eliminates uncertainty, but because it helps organizations navigate uncertainty with confidence, clarity, and purpose.