Turnover and Executive Search
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CEOs and other C-level executives have departed via resignation or termination at alarming rates since the deep recession. C-level turnover reached peak levels in June 2011. Since the “end” of the recession (has it really ended yet?), CEO and C-level turnover has continued unabated.
Finally, the number of senior executives departing their employers declined in July 2011. Global outplacement consultants, Challenger, Gray & Christmas, reported that CEO separations dropped by 7.9 percent. These statistics helped contribute to a 6.7 percent decline in turnover when compared to the same period in 2010.
Executive Job Search Orders Increase
Fortunately, along with this turnover decline, executive job search efforts are increasing. The Association of Executive Search Consultants (AESC) reports that this growth started in early 2010. Although modest, this expansion rose 8 percent from the second quarter 2010 to the second quarter 2011.
This resurgence of executive job search activity stems from a combination of resignations (the largest reason for turnover), retirements, and those CEOs who have “stepped down,” typically translated as those who still remain with their company, often as a chairman of the board.
The recovery, albeit underwhelming, has also contributed to the search order increase enjoyed by executive recruitment consultants. The seemingly ever-growing health care industry has enjoyed/endured the most C-level turnover activity. In July 2011 alone, the health care industry witnessed 20 CEO changes.
Unfortunately for U.S. C-level execs, Central and South America had wonderful quarterly search growth of 32 percent, compared to only 2 percent in North America. The technology sector was the only major industry to record a decline in executive recruitment consultants’ search orders. However, the decrease was only 3 percent in the second quarter 2011.
AESC is not as optimistic in the continued strength of executive job search expansion in more established markets. While enjoying growth, these economies (U.S., UK, Germany, and France) still project a relatively “flat” trend line.
Some Industries Still Volatile
October 2011 saw the fewest CEO departures (91) since November 2010. Interestingly, the financial and computer industries witnessed the most CEO turnover activity in October. Both sectors should finish in the top-5 industries for C-level turnover for 2011.
Surprisingly, the combined government and non-profit sector reports the second heaviest turnover in October. However, this sector will probably finish second for C-level changes in 2011.
As noted, health care organizations will lead the way in 2011 CEO turnovers. This designation does not necessarily indicate industry problems. Health care employment outlooks continue to be positive. Executive recruitment consultants should offer some exciting C-level opportunities in the coming months and years.
C-Level Employment Optimism
While the U.S. still hungers for some significant growth in the economy and the overall jobs picture, C-level opportunities, because of turnover and some modest industry expansion, should be fairly strong in the coming months. Senior executives considering a move should stay in touch with executive recruiters in the near future for up-to-date information.
Female executives should pay close attention to C-level turnover and available opportunities. Even iconic computer giant, IBM, has joined the ranks of major companies offering senior executive positions to women. In October 2011, IBM named their first female CEO, as Virginia Rometty replaced Sam Palmisano as chief executive.
This is one of the subtle signals that more C-level opportunities are appearing for women. Once again, one of the positives of active senior executive turnover is the need to replace resigned, retired, and terminated C-level management. Qualified people of either gender should be rather optimistic, even if the U.S. economy cannot muster this same positivity.
These expanding C-level opportunities also create the need for creative transition strategies. The struggling economy often makes previously successful strategies inappropriate and ineffective when senior executives assume new roles with current or new companies. Stoke up your creativity if you are about to occupy one of these exciting positions.
While C-level turnover is declining, there remains consistent senior executive change activity in all business sectors. As the senior workforce ages, at all levels, these changes will continue. Renew your network, update your resume, stay in touch with executive recruitment consultants, and stay abreast of executive job search notifications.
Senior executive turnover mirrors the uncertain condition of the economy. While this sends troubling signals, you might enjoy the opportunity to enhance your executive career. Remember to commit to design creative transition strategies to help ensure that your new C-level role includes documented success. Take advantage of this turnover to enhance your already impressive senior management career.
Source:
http://www.cpifinancial.net/v2/fa.aspx?v=0&aid=1029&sec=Business Lifestyle