Boyden Executive Outlook Reveals Shift Back To C-Level Innovation And Marketing Leadership
Top global executive search firm finds senior executive recruitment beyond finance and cost control expertise as organizations seek to maximize revenue with economic recovery«| Page 1 of 1 |»
NEW YORK, February 2, 2011 — Companies are once again prioritizing innovation and marketing talent in addition to finance experts in their C-level leadership, according to the quarterly Boyden Executive Outlook, released today by Boyden Global Executive Search.
“The new transformational leadership is in focus as opportunities with economic recovery emerge,” said Trina Gordon, President and CEO of Boyden World Corporation. “As companies earn stronger profits, the demand for talent will increase globally.”
Board Members in all sectors, Chief Marketing Officers (CMOs) and Sales Executives in Technology; Portfolio Managers, VPs of Operations and Business Development Executives in the Industrial/Energy Sector, Chief Information Officers (CIOs), Private Bankers and Wealth Management Advisors in Financial Services are among the positions most in demand. In addition, senior executives with an expertise in the mega growth markets of China, India and Brazil are highly coveted.
“For CEOs and senior leaders in the consumer/retail sector, charisma and the ability to motivate global teams are becoming more important factors in hiring decisions,” said Dirk Friederich, Leader of Boyden’s Global Consumer/Retail Practice and Managing Partner at Boyden Frankfurt. “We also expect an uptick in hiring of CMOs, Chief Financial Officers and Diversity Managers.”
In the UK, in the final quarter of 2010 demand surged for senior level management within retail and consumer markets, though the outlook for the retail sector in 2011 is mixed due to a tough economic climate, according to Victoria Stead, a Managing Partner of Boyden UK. However, pent up demand from not hiring key people over the last couple of years has driven a surge within executive search. Emerging markets such as China and Brazil continue to provide strong platforms for further economic growth, she added.
“There has been an increase in hiring activity to penetrate new markets including Asia, South America and Eastern Europe,” said Anders Lindholm, Managing Director of Boyden Italy. He added that in the consumer sector, VPs of Sales and Marketing are among the positions in demand, whereas the traditional luxury companies are recruiting Country Managers and Sales Directors.
In the US, the hiring outlook for 2011 is more optimistic than in recent years, especially for executives with e-commerce/digital marketing and merchandising backgrounds, according to Howard Gross, a Managing Director at Boyden New York. He added that boards and CEOs of retail and fashion companies who had been reluctant to hire are now more inclined to consider outside talent, based on positive spending trends.
“Recruiting activity for the consumer goods sector has been disproportionately skewed toward the companies which are positioned to offer more value, including more value-oriented retailers and companies that make private label products,” said Doug Ehrenkranz, Managing Director at Boyden Houston. “The pendulum is now swinging back as we have seen a solid up-tick in recruiting assignments for more mainstream consumer packaged goods companies and retailers. Demand for upscale and luxury goods is also coming back.”
In South America, retail expansion in Chile, Colombia and Peru is resulting in a surge of recruiting for Infrastructure Management and General Management of malls and commercial projects, according to John Byrne, Managing Director of Boyden Chile.
“In 2011, for financial services the outlook is for a good year and for companies to expand their management ranks,” said Jeanne Branthover, Leader of Boyden’s Global Financial Services and Managing Director, New York. “The biggest changes are that base salaries are up 50 percent in some cases, and bonuses are being considerably deferred to maintain cash, reduce risk and retain talent. We expect many companies will adopt this new compensation structure as a standard best practice.”
Wealth Management, Compliance and Business Development are among the areas of stronger recruitment. Chief Information Officers and Technology Management have also increased in demand, as financial services organizations need to support new product development, updated electronic trading platforms and new government compliance systems, added Ms. Branthover.
“The financial services sector is hiring intensively as it seeks avenues back to growth,” said Armin Meier, Managing Director of Boyden Switzerland. “Many global financial institutions and head offices are moving to Switzerland, in part due to factors such as political freedom, democracy, moderate tax rates and liberal government regulations. All this means that there are more people to place for corporate headquarters in Switzerland.”
In Latin America, there’s a jump in hiring of Wealth Managers, Private Bankers and Financial Advisors with a surge in salaries and signing bonuses for talent in Brazil, Chile, Colombia, Peru and Mexico. In addition, companies are recruiting Directors of Tax and Audit, according to Manuel Corsino, a Managing Director at Boyden Miami.
“South America is proving to be politically stable and consumers in most cases trust their governments,” explained Mr. Corsino. “This stability and economic growth has resulted in an increase of wealth, a growing preference to keep investments in their home countries and, thus, robust competition for Financial Advisors with premier client portfolios.”
In China, the financial services sector is still very active in Shanghai and Hong Kong as both local and overseas banks are gearing up for greater RMB trade and expansion, according to Brian Renwick, a Board Member of Boyden World Corporation and Managing Director of Boyden China. “Companies are looking to fill positions, usually at the mid-level, with local people – which has led to a high demand for managers who satisfy these hiring requirements,” said Mr. Renwick.
“We are cautiously optimistic about 2011 but all indications point toward another strong year of growth with a particular focus on the telecom sector,” said Mark Soden, a Partner at Boyden London. “The demand is being driven by growth expectations from shareholders and investors, and therefore there is pressure on Chairmen and CEOs to improve the quality of the executive management teams. We expect continued demand for Chief Marketing Officers, Chief Commercial Officers and other roles that can make an impact on the top line of the P & L.”
“There has been a definite uptick in hiring in the interactive media and social gaming sectors, as companies competing for talent are becoming more aggressive and creative in their hiring strategies,” said Daniel Grassi, Managing Director at Boyden Atlanta. “In particular, there is demand for functions such as General Management, Marketing (both product and consumer), Business Development and Engineering.”
In addition, CIOs are undergoing another major change in their roles and evaluating how they can best serve their organizations, according to Bob Concannon, Managing Director at Boyden Chicago. Cloud computing and new technologies that merge business and consumer functionalities are rapidly changing the way technology is applied to business processes, which is resulting in a new direction in recruitment, he added.
“In India, almost every one of the Top 20 Indian IT services and outsourcing companies has announced aggressive hiring plans for 2011,” said Dinesh Mirchandani, Managing Director of Boyden India. “This year we also expect more M & A activity in technology and more startups being created in the telecommunications sector.”
In Continental Europe, growth in cloud computing, mobile devices, tablets and virtual city services are all contributing to an increase in recruiting activity, according to Miguel Zuil, Managing Director of Boyden Spain.
“In the Industrial/Energy sector, CEOs have been spending more on infrastructure and in 2011 we expect companies to now invest more in people,” said Jim Hertlein, a Board Member of Boyden World Corporation and Managing Director at Boyden Houston. “Organizations are looking hard at their bench strength and pool of talent.”
In the US, recruitment is stronger for VP of Supply Chain Management, VP of Technical Solutions and VP of Distribution and Director of Logistics, according to Mark Young, a Managing Director at Boyden Miami.
In Europe, the pace of recruiting activity in the Industrial/Energy sector has picked up due to the global economic recovery and higher oil prices, according to Andy Baggus, a Partner with Boyden UK. Management talent in demand includes executives with track records in strategic sourcing and supply chain management.
“Overall growth in the mining sector appears bullish and we expect an increase in demand for quality senior-level executive hires, largely due to a surging demand from China and India,” said Michael Catlow, Managing Director of Boyden Australia. “With hiring in the mining sector becoming more competitive, we are also expecting an increase in remuneration packages of C-suite positions as companies try to attract the best management.”
In Latin America, there’s strong demand for Project Directors and Project Managers, thanks to an influx of $50 billion in new investment by multinational mining and energy companies, according to Mr. Byrne of Boyden Chile.
In addition, due to demand for Brazilian natural resources by Chinese, Indian and European companies, there’s a shortage of local executives with technical experience and who possess the ability to navigate the political and regulatory environment, according to Sonke Boge, Managing Director of Boyden Brazil.
“We anticipate recruitment of directors this year will approach levels of robust activity similar to 2006,” said Thomas Flannery, Leader of Boyden's Board Services Practice in North America and Managing Director at Boyden Pittsburgh.
“Due to increasing federalization by regulatory authorities, companies want to ensure they have the right experience for compliance and greater scrutiny posed by Dodd Frank and other activist initiatives. Most companies are dedicated to building boards which are composed of carefully selected independent directors who understand their responsibilities and who are clearly committed to the best interests of the company’s stakeholders,” Mr. Flannery added.
In the UK, non-executive directors are spending significantly more time on boardroom duties, due to the rising regulatory and economic environments. The increased commitment has resulted in a diminished supply of qualified directors who are willing to accept board roles. In addition, the increase in demand has pushed compensation up, which is a trend that is expected to continue, according to John Ellis, Managing Partner of Boyden UK.
“One of the important HR issues at the moment is employee engagement. There is a clear link between an organization’s profitability and the engagement of its workforce,” said Lisa Gerhardt, Leader of Boyden’s Global HR Practice and Partner of Boyden UK. “HR has a role to play in helping to rebuild trust among workers, particularly after layoffs during the downturn. With strong HR leadership, companies can engage their workforces, grow productivity and rebuild the company-employee contract of trust.”
Companies have increased hiring of HR management, although organizations are much more concerned about specific sector relevant experience, including track records in areas such as regulated or non-regulated environments, scientific or consumer sectors and blue or white collar industries, added Mrs. Gerhardt.
“We are now seeing a demand for HR executives, COOs and finance roles,” said Jules Kieser, Managing Director of Boyden South Africa. “This is a sure sign that many of our clients’ African operations are growing and maturing. HR professionals have a big role to play due to the complexity created by different cultures, languages and legislation across multiple countries.”
In the Life Sciences sector, the economic growth and higher incomes have influenced consumer behavior in Central and Eastern Europe and increased awareness of health, both of which have resulted in an increased level of industry recruitment, according to Kerstin Roubin, Director of CEE’s Life Sciences Practice.
“The pharmaceutical and medical technology companies are investing to strengthen their local entities,” said Mrs. Roubin. “We have seen an increase in search for technical and development management positions and sales executives.”
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.