NEW YORK, May 4, 2011—The boom in BRIC markets is driving both corporate growth and a global demand for leadership to manage the new market potential, according to the quarterly Boyden Executive Outlook, released today by Boyden Global Executive Search.
“The growth of the BRICs is driving the hiring of executives throughout the Americas, Europe and Asia/Pacific,” said Trina Gordon, President and CEO of Boyden World Corporation. “Boards are focused on appointing leaders who can adroitly manage the transformation of business as well as the challenges in both the emerging and developed markets.”
“Until recently, strong global brands have always been prime movers in attracting the best executives, though ‘second tier’ companies can now land top talent by paying more and offering more upside and opportunity to grow a company,” said Dirk Friederich, a member of Boyden’s Global Consumer/Retail Practice and Managing Partner at Boyden Frankfurt. “Additionally, big worldwide retailers are stepping up management hiring, especially in developing markets.”
Due to expected retirements in the next few years, recruitment of CEOs is increasing in the consumer and manufacturing sectors. In addition, demand is increasing for Chief Marketing Officers and Senior VPs of Human Resources, much in part to help lead new business opportunities in China and other high potential regions, according to Pasi Koivusaari, Senior Partner at Boyden Finland. He added companies are also once again appointing management for Strategy and Research & Development.
“Our clients are looking for talent that is able to quickly assess the marketplace and how it has changed,” said Doug Ehrenkranz, a Managing Director at Boyden Houston. “In addition to changed economic conditions, the acceleration of digital technologies has changed how people shop and how companies manage their businesses.”
In the US, companies are pushing up priorities to recruit VP’s and Directors in the areas of Digital Marketing, and Social Media as well as Analytics and Consumer Behavior, Mr. Ehrenkranz added.
Some positive trends are being observed by retailers and their suppliers, though in the US there is continued reluctance to increase hiring due to great concern about the pressure on retail pricing from higher manufacturing costs and cautious consumers. Nonetheless, CEO appointments and numerous senior and mid-level executive assignments in Merchandizing, Product Development and E-Commerce are moving forward, according to Howard Gross, a Managing Director at Boyden New York.
“Strong and big offers are coming back in financial services,” said Jeanne Branthover, Leader of Boyden’s Global Financial Services and Managing Director at Boyden New York. “While companies are willing to go the distance for the right executive, they are taking as little risk as possible when looking at a candidate’s track record.”
Companies are investing in technology, new products and their own infrastructure to remain competitive. Organizations are also hiring top Financial, Compliance and HR Officers, added Ms. Branthover.
“Financial Services are strongly re-emerging, with a very positive outlook for profits, growth and expansion in all the sub-sectors, and particularly in the wealth management business,” said Armin Meier, Managing Director of Boyden Switzerland. “Firms are increasingly looking for financial advisors.”
In Asia/Pacific, Singapore is increasingly becoming a global hub for financial companies, triggering huge needs to build banking IT operations, trading floors and new teams of professionals to manage operations, according to Roger Wilson, Managing Director of Boyden Singapore.
In private banking, the increasing regulation involved in bringing over clients to new institutions is pushing up the threshold to recruit top Private Bankers to change firms, due to the trepidation that clients will not follow, added Mr. Wilson.
In China, financial services executive hiring remains robust in Shanghai, but is moderating in Hong Kong, according to Brian Renwick, a Board Member of Boyden World Corporation and Managing Director of Boyden China.
In Latin America, many major US banks are planning to gradually pull out of the region, due to tougher US government compliance. The opening is creating new opportunities to hire first-tier Private Bankers and for companies to up their expansion in the region including Morgan Stanley, UBS, HSBC and others, according to Manuel Corsino, a Managing Director at Boyden Miami. This includes adding top Wealth Managers, Compliance Officers, Product Managers and Finance Executives.
In the Middle East, despite social/political risks, 2011 has been a revival year in financial services, both in Private Banking and Investment Banking. Expectations are for continued increased hiring in the second quarter, though the third and fourth quarters cannot be predicted due to political uncertainty, according to Magdy El Zein, Managing Director of Boyden Middle East.
“Digital media and social networking companies continue to aggressively recruit seasoned digital marketing executives who can leverage social platforms to drive revenue,” said Daniel Grassi, Managing Director at Boyden Atlanta. “Compensation for this type of executive has increased given the high demand.”
To scale more rapidly, companies are committing to higher premiums for senior executives in General Management, Sales, Marketing and Engineering, according to Dan Grosh, a Managing Director at Boyden San Francisco. He added there has been a substantial increase in hiring by emerging growth and cleantech companies.
“Indian software services giants like TCS and Infosys continued to make strong gains to start the year,” said Dinesh Mirchandani, Managing Director of Boyden India. “We are also seeing changes in leadership at top Indian IT companies such as Microsoft India, Mindtree and Wipro with the recent spate of C-level resignations in this sector.”
The UK technology market remained buoyant in the first quarter as most technology firms saw a positive start to the year, according to Mark Soden, Partner of Boyden UK. The overall forecast for the sector in 2011 remains cautiously optimistic though, as Chairmen and CEOs continue to live with some level of uncertainty. “The general consensus among management is often that an inadequately executed strategy is better than no strategy at all,” said Mr. Soden.
Specific sectors of technology that continue to thrive are those connected with Cloud, Data Centers and companies involved with SAAS (Software as a Service). European clients increasingly conduct global searches to occupy senior management roles for Senior Vice President and Sales Director positions, according to Mr. Soden.
Risk assessment is a top priority for boards today. “Many boards are making time to discuss inherent risk at every board and committee meeting,” says Sarah Stewart, a Principal at Boyden Pittsburgh and a board expert. However, identifying potential risk is only part of the job. “Boards also need to make sure the company has a well-constructed and rehearsed disaster response plan in place. The planning includes deciding who are the members of the disaster response team, how the board will be kept informed and what external resources will be used,” she added.
“As boards place new emphasis on the issue of risk, many may want to add a familiarity with crisis management to the attributes they seek in new directors. This has as much to do with tapping director candidates whose expertise comes from first-hand experience as it does their personal leadership skills,” according to Thomas Flannery, Leader of Boyden’s Board Services Practice in North America and Managing Director at Boyden Pittsburgh. “Every board member needs at least one director (preferably more) whose wisdom and composure help keep the panic at bay.”
In the UK, compensation for Non-Executive Directors continues to rise, to ensure attracting the right board members, according to John Ellis, Managing Partner of Boyden UK.
Mr. Ellis added the renewed push to increase placement of women directors in FTSE 100 companies in the UK follows the recent report released, led by Lord Davies, which emphasizes that more women on boards will result in better diversity and ultimately better governance. In Switzerland, there is also a drive for more female board members in publicly traded companies. The goal is to implement diversity without having formal quotas, according to Mr. Meier of Boyden Switzerland.
“In the oil and gas sector, there’s a demand for managers who are able to facilitate and close deals,” said Andy Baggus, a Partner of Boyden UK. “Position recruitment is picking up for Regional VPs, Commercial Planners and Business Developers.”
Leadership talent is also being aggressively pursued to develop in the Middle East and other challenging regions, Mr. Baggus added.
In South America, high commodity prices are driving growth and recruitment of management in Engineering, Construction and Infrastructure, throughout Brazil, Chile, Peru and other markets, according to John Byrne, Managing Director of Boyden Chile.
In South Africa, an influx of foreign multinational companies continues as the country is perceived as an excellent springboard for growth in Sub Saharan Africa and a location that’s relatively lower risk. Talent recruitment remains steady for roles including Managing Director, Country Manager, Chief Financial Officer and Chief Technology Officer, according to Jules Kieser, Managing Director of Boyden South Africa.
In the Aerospace and Defense sector, the effect of the pressure in the U.S. and other “allied” nations’ governments to cut defense spending will mean large scale programs are being reviewed and trimmed,” according to Tim McNamara, an aerospace/defense industry expert and Managing Director of Boyden Washington DC.
“This cut in defense spending has a carryover effect of less aggressive talent recruitment by defense contractors and management consulting firms, which have in recent years been the beneficiary of huge defense spending,” explained Mr. McNamara. “However, programs dealing with cyber security and C4ISR issues continue to expand.”
In the Human Resources sector in Europe, companies are currently appointing fewer new senior executives in HR.
“There’s a dearth of qualified candidates and companies are reluctant to take risks,” said Lisa Gerhardt, Leader of Boyden’s Global HR Practice and Partner of Boyden UK. “Thus, at the moment, we are seeing more business people from other sectors and more internal candidates who are being considered for HR roles.”
In the US, executives are being recruited for roles including HR Business Partner, Internal Management Development and Talent Acquisition & Retention. These executives will be able to drive revenue results and create effective development programs, according to Greg Coleman, a Managing Director of Boyden New York with extensive experience placing global HR executives.
“We are seeing strong demand for HR executives who are able to build trust and morale again among employees who became angry and frustrated during the downturn,” said Mr. Coleman. “Most important, companies are looking for executives in HR with a strong commercial orientation.”
In the Life Sciences and Healthcare sectors, companies have a strong need for executives with both international management skills and regional understanding of Central and Eastern Europe, according to Kerstin Roubin, Director of Boyden’s CEE Life Sciences Practice.
“The number of expatriates being hired is shrinking as tax systems make it more attractive to hire local experts,” said Mrs. Roubin.
Demand for talent in professional services is building especially for specialists focusing in financial services, energy and infrastructure. Professional services tends to staff up six to 12 months ahead of other industries and currently organizations are reinforcing teams to be ready for economic growth and new projects, according to Miguel Zuil, Managing Director of Boyden Spain.
“Companies and their professional services providers are needing global teams to work in more complex situations and experience in South America, Africa and other growing markets is highly coveted,” said Mr. Zuil.
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.