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Boyden Executive Outlook Finds Push For Profit Boosts C-Level Hiring
Top global executive search firm reports in areas of opportunity companies are bringing in talent to fill gaps and build for new company plans«| Page 1 of 1 |»
NEW YORK, October 12, 2010 — Fresh hiring decisions are being made at senior management levels, due to CEOs’ bold moves to reshape businesses to the more permanent competitive reality, according to the quarterly Boyden Executive Outlook, released today by Boyden Global Executive Search.
Demand for management talent in Wealth Management and Treasury in Financial Services; E-Commerce in Technology and Consumer companies; and Country Managers for Mining organizations are among the areas that remain most active. Companies also are continuing to aggressively recruit new Directors to fill talent gaps on Boards of Directors.
“We are seeing a rebound of hiring at senior levels as CEOs drive for more profit in a slower growth environment,” said Chris Clarke, President and CEO of Boyden World Corporation. “Companies need new teams to deliver the shifts in strategy. That means new leadership for certain sectors, though some companies are holding off on hiring at the mid and lower level ranks.”
“There's also an increase of senior executive hires by Asian companies planning further expansion in the US and Europe enabled by their stockpile of dollars,” Mr. Clarke added.
“Financial Services companies are cautiously optimistic given some areas of growth and other uneven results in certain sectors,” said Jeanne Branthover, Leader of Boyden’s Global Financial Services Practice and Managing Director at Boyden New York. “In the areas of expansion, banks continue to hire new talent to capitalize on revenue opportunities, while some companies are holding off because they over hired in sectors slow to come back.”
Areas of growth include international banks taking off of the upswing in overseas markets and U.S. banks heavily expanding in emerging markets, according to Ms. Branthover. Increasing emphasis is being placed on recruiting and retaining “commercial-minded” Heads of HR, Heads of Talent Management as well as Compensation & Benefits experts as the business re-aligns and stabilizes after the earlier deep layoffs, adds J. Gregory Coleman, a Managing Director at Boyden New York.
In addition, there’s an increase in recruitment of Wealth Management positions in South Florida and Boston as well as more hiring by banks in Latin America, adds John Byrne Managing Director at Boyden Chile.
In China, particularly in Shanghai, banks and investment banks are expanding talent recruitment to increase new business and leverage growth opportunities,” said Brian Renwick, a Board Member of Boyden World Corporation and Managing Director of Boyden China.
In Europe, certain foreign banks are beginning to hire with an initial need for management with top-level experience in investment banking, risk management, merger and acquisition and compliance, according to Anders Lindholm, Managing Partner of Boyden Italy.
“UK public companies are tightening up governance and many organizations are building stronger director ranks,” said John Ellis, Managing Partner of Boyden UK. “Governance standards have become broader and there’s increasing pressure on boards from shareholders to ensure companies are meeting new guidelines.”
In the US, the challenge of director recruitment has toughened as boards are contending with a never-ending barrage of government regulation, pressure from rating firms such as ISS and Corporate Library and closer scrutiny by activist shareholders, according to Thomas Flannery, Leader of Boyden's Board Services Practice in North America and Managing Director at Boyden Pittsburgh.
“Directors are spending more time than ever on compliance issues and they are also being asked to add value to the companies as board members,” said Mr. Flannery. “The number of hours committed directors are required to spend on board work has climbed into the hundreds and there is no end in sight. What this may lead to is reluctance of CEOs to have their best and brightest executives serving on outside boards despite the obvious advantages.”
“Digital entertainment and interactive media have grown 40 percent in the last year and will likely continue on the same patch over the next couple of years,” said Daniel Grassi, Managing Director at Boyden Atlanta. “Companies need leaders who understand how to build a revenue model for online businesses and how to engage the consumer. Demand for talent is greater than the supply of qualified candidates.”
Companies are recruiting executives who possess “traditional” training which transitions effectively to the online entertainment industry. Positions most in demand include Chief Marketing Officer, General Manager in Merging Media, Head of E-Commerce and Head of Digital Media, according to Mr. Grassi.
In Europe, the technology market is facing challenges with the integration of hardware and software, and concurrently the telecommunications market is tasked to effectively integrate mobile and fixed lines, according to Miguel Angel Zuil, Managing Director of Boyden Spain.
“Many technology companies are adding client value by offering strategic consulting services,” explains Mr. Zuil. “Thus, there’s an important demand for technology talent who have a global perspective, a long-term strategic perspective and a vision of how companies can offer the best integrated solution with hardware and software deployment.”
In the UK, there are pockets of activity in Cloud Computing and Virtualization, and Mobile Advertising is developing a more sustainable business model. “While companies’ confidence has decreased since the beginning of 2010, we are still seeing an increased number of searches where incumbents are being replaced,” said Mark Soden, Partner of Boyden UK. “We have seen an increase of 20 percent from the first quarter in 2009 to the first quarter of 2010.”
In the Industrial sector, companies increasingly upgrading their General Managers and Vice Presidents of Manufacturing with executives possess better global perspective and strategic vision, according to John Howard, Leader of Boyden’s Industrial Practice and a Managing Director at Boyden Pittsburgh.
“Industrial companies are demanding that operations heads bring superior business skills and a strong understanding of the needs of customers and management in other parts of the organization on a global level and not just in the region they manage,” explained Mr. Howard.
In Australia, positions in demand include Country Managers and Finance Directors in the Industrial sector, Chief Financial Officers and Managing Directors in the Mining and Mining Supply sectors, according to Michael Catlow, Executive Director of Boyden Australia.
In Latin America, recruitment of senior management by mining companies has jumped thanks to major new multi-billion dollar projects in Perú and additional investment in Chile, according to Mr. Byrne of Boyden Chile.
In the Energy sector, shifts in U.S. government regulation is pushing companies to consider strategic hires who can quickly adapt to new business models. Recruitment includes positions including VP of Business, VP of Development and Marketing and Sales Management, according to Jim Hertlein, a Board Member of Boyden World Corporation and Managing Director at Boyden Houston.
Many energy concerns are also picking up recruitment of directors to upgrade their oversight on company boards, adds Mr. Hertlein.
In addition, Cleantech recruitment is picking up via wind energy development in Americas with key producers hiring C-level executives to support new offices in Argentina, Brazil, Chile and Mexico, according to Mr. Byrne.
In Central and Eastern Europe, the Life Sciences industry remains one of the few growth areas, as multinational companies have targeted the region as a growing market, according to Andreas Landgrebe, Managing Director of Boyden CEE. He added that there has been more than a 35 percent increase in demand for Senior R & D Managers and over a 25 percent increase in need for Strategic Sales Executives, compared to a year ago, due to a focus on new product development and quality.
“The management profiles have changed in terms of experience needed,” said Kerstin Roubin, Director of CEE Life Science sector. “In recent times there’s been a shift in the Life Science Practice. Pharmaceuticals are still strong, though MedTech, BioTech and the Original Equipment Manufacturing business have increased tremendously.”
In the US, following the unprecedented layoffs that took place, the Life Sciences sector has entered a period of relative stability. Rationalization, reorganization and cost cutting initiatives have fueled a fresh round of M & A activity, focused investments and growth initiatives that will offset negatives included depleted pipelines, pending patent expirations and new tax obligations needed to fund healthcare reform, according to John Cornille, a Managing Director of Boyden New York.
“By the end of 2010, it’s expected that there will be less uncertainty hanging over Life Sciences and we will see growing optimism as business leaders navigate the political and regulatory landscape,” said Mr. Cornille.
He added the transition will increase demand for management talent in areas such as Medical Economics, Service Organizations for outsourced R & D, Marketing Analytics to build better linkage with patients/customers and Quality Assurance to improve companywide understanding of regulatory, legal and manufacturing standards.
“There has been more senior-level, general management hiring within retail and consumer companies in 2010 and candidates are more willing to consider new opportunities,” said Victoria Stead, a Partner of Boyden UK. “The trend to hire e-commerce leaders has continued unabated and this has led to a shortfall of talent, which is beginning to drive up compensation.”
In the US, e-commerce, mobile and other digital and interactive marketing initiatives are the sectors most retailers expect growth, which has spurred an increase of management hiring of candidates with digital marketing backgrounds, according to Howard Gross, a Managing Director at Boyden New York.
“There are still serious underlying economic conditions at play and retailers continue to tightly manage inventory and spending which impacts overall hiring trends,” said Mr. Gross. “However, with the improvement in retail sales as particularly evidenced by the performance upswing in September by apparel and accessories retailers, leaders are more optimistic about consumer spending and that critical fourth quarter of holiday shopping.”
About Boyden World Corporation
Boyden is a global leader in the executive search industry with more than 70 offices in over 40 countries. Founded in 1946, Boyden specializes in high level executive search, Interim Management and Human Capital consulting across a broad spectrum of industries. For further information, visit the firm’s website at www.boyden.com.