Executive Hiring Increases

December 21, 2010    

Original Article: Recruiting Trends

Benchmark data from major players in the executive search market space are showing positive trends. In September, ExecuNet’s Executive Job Creation Index (EJCI) held positive for a ninth consecutive month, and the latest quarterly Boyden Executive Outlook has revealed increases in upper management hiring activity in several industry sectors. Even so, movement in executives’ compensation packages appears to be modest.

The rate of hiring among employers expected to add executive jobs in the next 6 months outpaced those planning to eliminate or postpone filling top roles by 7 points, according to the EJCI, extending a positive trend but still weighed down by employer hesitancy to hire for top jobs. Fifty percent of the 147 executive recruiters responding to the EJCI are “confident” or “very confident” the executive employment market will improve over the next six months, up four points from August.

Executive recruiters anticipate 44 percent of companies will leverage the economic climate by selectively “trading up” management talent with new hires for existing executive roles, and 23 percent will add new leadership roles. Furthermore, the number of recruiters expecting companies to wait to fill executive job vacancies decreased to 8 percent in September, down from 13 percent in August. An additional 21 percent of companies are expected to maintain their current management staffing, while 4 percent are expected to eliminate executive roles over the next six months.

Drilling into industry trends amidst ExecuNet’s promising findings, Boyden’s quarterly report finds that demand for management talent remains more active in Wealth Management and Treasury in Financial Services; E-Commerce in Technology and Consumer companies; and Country Managers for Mining organizations.

The counterpoint to these findings appears to be compensation trends in the C-suite. Data from Compdata Surveys tempers the much-needed good news with a bit of reality: Fewer companies are now offering perquisites to their highest ranking employees, according to Compdata’s Executive Compensation 2010/2011 survey results. Down from 89.8 percent in 2009, now 77.6 percent of organizations offer perquisites to their CEOs. Of these perks, supplemental life insurance is the most prevalent (31.7 percent). Company cars and club memberships are offered at a rate of 30.7 and 26.1 percent, respectively. More than 20 percent of companies offer supplemental disability and voluntary deferred compensation programs to CEOs.

Original Article: Recruiting Trends

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