|
CarterBaldwin, a premier executive search firm focused on identifying top industry leaders, including CEOs, Board Members, Vice Presidents and Directors, for dynamic companies, investigates the impact the shifting economy is having on the recruitment of top executive talent.
According to recently released data from the Association of Executive Search Consultants (AESC)*, the retained executive search industry experienced worldwide revenue growth for the second year in a row, expanding 6.5% from 2004 to 2005. Growth was consistent in three of the global regions surveyed: North America, Europe and Asia/Pacific and all industries experienced an increase in searches. Most notably were the Financial Services (22.8%), Industrial (21.7%), Consumer Products (17.7%) and Technology (17%) sectors.
Our own firm experienced a 35% increase in revenue for the year ending 2005 and is predicting a similar increase for the current year. These staggering statistics reflect the strength of North American economy and the core markets CarterBaldwin serves including the Business/Financial Services (15%), Consumer Products (17%), Manufacturing/Distribution (25%) and Technology/Telecommunications (22%) sectors.
More than 50% of our business since 2004 has in fact been from repeat clients and we’re happy to report that the Georgia Economic Outlook 2006, a report published by the Selig Center for Economic Growth at UGA's Terry College of Business, indicates that over 40,000 jobs will be added to the 28-county Atlanta area.
At this point, you are probably wondering what all these facts and figures mean to you. Well, in our opinion it’s a good time for your organization to take a close look at how you will recruit executive talent over the upcoming year. The awakening economy means the pendulum has shifted from an “employer market” to an “employee market” and therefore it is our belief that your recruiting strategies must also shift to meet the challenges of the changing market.
What specifically do we recommend? The following are our top tips for securing executive talent in today’s market:
1. Consider how much you are willing to invest to secure top talent.
There is a big difference today between a “fair offer” and a “compelling offer”. A fair offer meets a candidate’s minimum financial requirements, whereas a compelling offer meets both a candidate’s financial expectations and his or hers psychological requirements for making a change. Fair offers were certainly effective during the recession of 2001-2003, but to lure top executive talent today, offers must encompass both a role where significant impact can be made as well as a financially motivating package.
Consider this fact: in 2005, the average CEO of a major company received $11.3 million in total compensation, according to a study by compensation consultant Pearl Meyer & Partners. This represents a 27% increase in CEO pay over 2004. Be sure your offer is better than the average industry offer.
2. Don't believe a high salary will compensate for other important perks.
Many executives in today's market seek restricted stock, higher-level titles, broader responsibilities or other perks and would be willing to sacrifice dollars for them. During the interview process it is critical to find out what your finalist values and create a compensation/benefits package tailored to the individual.
3. Don't linger indefinitely.
While every aspect of the hiring process warrants thoroughness, keeping a candidate on hold for too long might lead him/her to accept a competing offer or reconsider the appeal of your company. Communicate your hiring process clearly from the start and maintain a high level of communication throughout. Once you decide on a candidate – move quickly with your offer. Our experience indicates that the acceptable offer period of three weeks after the final interview is shrinking to just days.
4. Don’t underestimate the effort it takes to recruit top talent.
Your company’s success ultimately depends on every person you recruit, and thus, every person involved in your hiring process is crucial. Make sure you dedicate your strongest resources to locating, referencing, recruiting, and retaining your executive team. Victory in today’s war for talent requires a fully coordinated effort between your Human Resources team, your Executive Team and your external search consultant. Successful companies generally recognize an exponential return on the hours and dollars invested in the recruiting process.
5. Partner with an expert.
Even the most talented athletes rely on a coach. You may be confident that you have the right resources internally to secure top industry talent, but we encourage you to consider the value of aligning with an expert that has the knowledge and comprehensive understanding of the intangibles required to create strong management teams.
Executive search firms can add insight into what other companies are doing in terms of recruiting executive talent. We can provide a clearer idea of what kind of candidate you should be looking for, help you locate and attract potential candidates who are not necessarily “on the market” and work with you to create the compelling offer it takes to secure your top candidate.
When you consider that for each search for which we are engaged, we typically speak with more than 100 prospects and meet with 20 to 30 of them face-to-face in order to develop a final slate of three to five top candidates, you might realize the significant time and dedication it takes to find not just a “good” candidate, but “the best” candidate. This is something CarterBaldwin has successfully achieved for more than 150 client companies throughout the United States.
For more information on CarterBaldwin, please visit: www.carterbaldwin.com
*The AESC’s State of the Industry Report represents activity of over 1,200 executive search consultants in 42 countries worldwide.
|
