Despite slowing overall economic signals, not many companies are indicating they expect to lay off executives in the next six months, and there remain pockets of hiring at the executive level — though hiring has clearly slowed from earlier in the year. Meanwhile, recruiter confidence declined for the fourth straight month to 32 percent and reached levels not seen since late 2008-early 2009 at the bottom of the last recession. This does not bode well for a near-term improvement in executive hiring.

According to an ExecuNet survey of 142 executive recruiters, recruiters indicated that 1 in 5 companies (22%) of employers still expect to add executive level jobs in the next six months and only 4 percent plan on eliminating jobs. Another 7 percent said they were opting not to fill existing management job vacancies. With the number of companies expecting to hire out pacing the number of companies contracting, ExecuNet's exclusive Executive Job Creation index remains positive at +12. It is down from +32 in April.

"Some companies are clearly hiring and those who are not are not retrenching as they did heading into the last recession," said Mark Anderson, president and chief economist of ExecuNet. "In the last recession the number of companies laying off executives was close to 30 percent, as an example. We are not seeing that yet. Regrettably, the low level of recruiter confidence suggests that the prospects for improvement are more than six months away as companies are taking a wait and see attitude."

Despite the caution shown by some employers, recruiters reported that forty-seven percent (47%) of companies said they were willing to "trade-up" for talent, if presented with the right person with the right skills.

"Executive job seekers should find reason for optimism in this fact that employers are selectively replacing management to strengthen their operations and build executive bench strength at a time when corporate pressures and competition are mounting," said Anderson."Our latest data suggests savvy executives who think a career move may be in the cards as well as those already engaged actively in management job search should be cultivating their professional networks because it could be a longer process than they expect. The economy certainly isn't doing them any favors, but opportunity favors those who know what it takes to influence the hidden job market because the most attractive executive leadership roles aren't publicly advertised online or in print," said Anderson.

ExecuNet's Executive Job Creation Index is based on a monthly survey of executive search firms and reflects responding executive recruiters' expectations of how companies are managing their executive talent needs. The Executive Job Creation Index compares the number of companies expected to add executive positions over the next six months versus those planning to downsize their management teams or delay filling vacant management roles. In September, that figure hit 12 points, down five points from August.

Joseph Daniel McCool
Joseph Daniel McCool is senior contributing editor with ExecuNet and principal of management recruiting/succession advisory firm The McCool Group. He is also the author of Deciding Who Leads: How Executive Recruiters Drive, Direct & Disrupt the Global Search for Leadership Talent, recognized widely as "one of the best business books of 2008," and its Brazilian Portuguese translation, Escolhendo Líderes, published in June 2010.

Add Your Comment

Lessons learned from and about six-figure leadership and executive career management

Rules of Engagement for Executive Insider

Leadership

Dave Opton’s Six-Figure LearningsPatty Azzarello's Business Leadership BlogJohn BaldoniRussell BishopWally Bock's Three Star Leadership BlogGeorge Bradt’s PrimeGenesisBuilding ChampionsCEO Blog – Time LeadershipCrucial SkillsScott Eblin’s Next Level BlogAdrian GostickLeadership FreakDavid LivermoreJohn MaxwellN2Growth BlogDaniel PinkTerry StarbuckerWorking Knowledge

Recruiting/HR/Search Firms

Allen Associates Executive Search BlogThe Asia Pacific HeadhunterAsk the HeadhunterBoston Search Group BlogThe Cynical GirlThe Executive Search Group BlogNorton Folgate: The Recruiting UnblogGESBlogGuerrilla Job HuntingAmitai Givertz’s Recruitomatic BlogHeidrick & Struggles BlogsHR BartenderRecruiting AnimalThe Recruiting Inferno

Career Management

Best Fit ForwardThe Career CatalystCareer ChaosCareerFolkCareer HubCareer Pro TalkCareerowners’ BlogCareer SolversCareer Thought LeadersCareer TrendCFO CoachDesign RésumésElite RésumésExecutive ActionsExecutive Career BrandExecutive Power BrandGet Hired Stay HiredJibberJobberJob Search NewsHire EffectInspired ChoiceKeppie CareersLessons Learned on the Road to KonaMy Executive Career CoachTalent CultureTim’s StrategyTotal Picture RadioPenelope TrunkQunitessential CareersUnbridled TalentSusan WhitcombWorkStrongThe Write SolutionYour Best Impression

Topics

robyn greenspan joseph daniel mccool execunet executive recruiters leadership executive job search executive employment networking job search the economy executive careers dave opton market trends business confidence innovation mark anderson executive job market search firms world business forum recruiter confidence index executive hiring world innovation forum most read search firm hiring index skills popular talent management culture hiring strategy