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Uptick in Executive Jobs Seen for 2010
By Sarah E. Needleman - The Wall Street Journal
Recruiters are bullish on the outlook for executive-level job hunters in 2010.
Slightly more than half of 153 recruiters surveyed earlier this month said they expect a 19% rise in executive-search assignments during the first half of 2010, reports ExecuNet, a networking organization for recruiters and executives. That's the largest percentage increase since early 2008.
What's more, 21% of respondents said they're planning to add recruiting staff to support the anticipated growth.
Some 54% of recruiters also said they were confident the executive employment market - including assistant vice presidents, CEO and other executive team members, and board members - will improve in the next six months. That was up from 50% in November.
"The economy is recovering and companies that deferred hiring and froze work forces are now searching for the talent they need to grow," says Mark Anderson, president and chief economist for ExecuNet based in Norwalk, Conn. Industries where recruiting activity is expected to be strongest in 2010 include health care, clean energy, pharmaceuticals and high technology, he adds.
Economic Predictor
Predictions made by ExecuNet survey participants have proved accurate in the past. For example, in the second half of 2003, recruiter confidence increased by more than 40% and "the economy started to recover about six months later," says Mr. Anderson. "We're seeing that same change now."
John Wood, vice chairman of Heidrick & Struggles International Inc., says the latest findings mirror activity occurring at the Chicago-based search firm. "We are definitely seeing a resurgence in board and CEO recruitment and would expect that to continue in 2010," he says.
One reason for the turnaround, says Mr. Wood, is that many executives who had put off retirement are finally getting ready to step down. "As equity markets return and stocks trade up, people are now in position to execute their retirement plans," he says. Similarly, board directors are feeling less pressured to stick around. "They didn't want to make changes in the boardroom during a period of turmoil or difficulty," he says. "There's really the abatement of the siege mentality now. Things are starting to sort themselves out a bit so people are saying, 'I can step off.'"
Small Firms See Increase
Small search firms also are seeing a boost in recruiting activity. "We currently have about 20% more jobs on our plate now compared with the beginning of the recession," says Willie Hochman, chief executive officer of New York-based Joel Paul Group, which specializes in the nonprofit sector.
The increase in business is especially noteworthy, he adds, given that nonprofits tend to suffer more than most organizations in bad economies since they rely heavily on donations. "When the economy sneezes, the not-for-profit sector catches the flu," says Mr. Hochman. "We get hit hard."
These days, he says many clients are starting to invest in the hiring of executive directors, vice presidents of development and other senior fund-raising leaders, he says. "Most organizations now are hoping their donor bases will open up their checkbooks," he says. "They're looking for people who can bring in money that was there before the recession."
Lower on the Ladder
Meanwhile, a newly released CareerBuilder.com survey of more than 2,700 hiring managers and human-resources professionals suggests recruiting activity for positions lower down the corporate ladder also is increasing. The survey's findings indicate that 20% of employers plan to add full-time employees in 2010, up from 14% in 2009. Of the respondents, 61% don't plan to change staff levels and just 9% expect to trim their work forces, down from 16% last year.
Industries where hiring is expected to increase the most in 2010, according to CareerBuilder, are information technology, manufacturing, financial services, professional and business services and sales.
One-third of respondents said they plan to add technology staff and 28% indicated they intend to beef up hiring in customer service. Other job functions where employers expect to add staff include sales, research and development, finance and marketing, CareerBuilder reports.
In October, consulting firm Watson Wyatt surveyed human-resources executives at 201 U.S. companies, 96% of whom said they'd extended job offers over the next three months. Further, 49% said they planned to reverse hiring freezes by April 2010.
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