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NEW YORK – Demand for Energy/Mining management remains strong, while Financial Services and other sectors are prioritizing upgrading talent in key positions as businesses undergo major restructuring, according to the Boyden Fall 2008 Executive Outlook released today.
“Now is the time to bring in the best leaders to plough through tougher times,” said Chris Clarke, President and CEO of Boyden World Corporation. “Today, smart organizations know it’s the moment to recruit executives that were previously unavailable. Recessions in major economies will reduce demand for exports from some emerging markets, and a new level of ingenuity will be necessary for organizations in both major and developing economies.”
The market for Consumer Products management has shifted because of globalization and increasing prices for energy/utilities.
“The impact from rumors of labor market weakness in U.S. and Europe continues to take a toll on the consumer,” said Dirk Friederich, Leader of Boyden’s Global Consumer Practice. “We’re seeing stronger demand for executive talent in companies with foreign exposed products including media, fast food, branded apparel/luxury goods and leisure.”
Growth in management is relatively prevalent in functions such as Logistics/SCM, Purchasing, Private Label, Control/Finance, which reflect the importance of intelligent answers to increasing prices in worldwide logistics or M&A scenarios.
The global and emerging markets will continue to be the growth centers in financial services firms. In addition, Wealth Management will be a key sector of revenue and hiring in firms where growth has been adversely affected by the general slow down, according to Jeanne Branthover, Leader of Boyden’s Global Financial Services Practice.
Changes at the senior management level will persist as firms continue to prioritize placing the very best executives heading businesses and divisions. A new generation of financial services leadership will emerge, and, in many cases, compensation structures are being realigned.
Energy and the Mining remain the most active sectors for management recruitment in the Industrial Practice. Companies are beefing up their ranks and the caliber of executives in Country Management roles, especially in Asia/Pacific, Eastern Europe, Russia and Middle East. The expansion includes significant jumps in executive expertise in infrastructure, equipment, manufacturing and service companies.
“Mining and energy companies are reinforcing management in each market, a substantial strategy shift from the past practice of oversight from U.S. or other headquarters,” said Jim Hertlein, Leader of Boyden’s Global Industrial Practice and Managing Director, Boyden Houston. “There’s a shortage of globally experienced executives, who bring a proven track record in these key emerging markets.”
The impact of the spike in Search Advertising and Mobile Applications development is increasing demand for executive talent in Technology. The development of mobile devices to accommodate a more transient society and social networking markets are creating a need for experienced management in both larger companies and start-ups. The success of Apple iPhone and other smart phone competitors is driving up talent demand in Technology.
Managers with knowledge base and creativity in “viral distribution” skill sets are highly coveted in today’s market, according to Bob Concannon, Managing Director of Boyden San Francisco.
During the past decade, Boards of Directors have developed policies (written or understood) related to external Board participation by the company’s “C” suite executives. These policies essentially restrict executives to one board assignment in addition to their own organization. This restriction and the demands of running a global Corporation have limited the availability of key executives to serve on Boards of Directors.
In the final months of 2008, Boyden’s outlook includes the continued demand for key executives to serve on the Boards of a wide range of companies. The fall out from the apparent lack of oversight in the risk management area by Boards in the financial services sector could complicate the search for new board members. There will be a growth in demand for executives with risk management, environmental and Clean Tech knowledge. Searching for new board members will continue to expand to individuals who are emerging in the Chief Financial Officer, Chief Marketing Officer and Chief Human Resource roles.
Talent management continues to be at the top of every company’s priority list. Recruiting and retaining high potential candidates are critical at all levels of the organization, and require effective solutions in compensation as well as leadership development and succession planning. HR professionals in those key areas will remain in high demand.
With the increasingly global marketplace, individuals with expatriate experience are highly valued. Those HR executives in domestic assignments who have demonstrated an ability to operate effectively across a global organization with sensitivity to cultural differences have an edge. In addition, strategic leaders for the Chief Human Resources Officer role are needed in industry sectors that that anticipate growth or those that require transformation.
Boyden is a global leader in the executive search industry with more than 70 offices in 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.