The New Depression - What Does it Mean for Executive Recruitment?

Like me, you may have parents and/or grandparents who remember ‘The Depression’, or at least remember its consequences. When I was a young girl I went with my grandmother to ‘the bank’. Going to the bank was an all day affair – she had bank accounts all over town – each with a modest balance. Her family had lost a lot of money in the crash of 1929 and 40 years later was still cautious about the banking system.

Little did I know that I would end up doing exactly the same – spreading my risk 70 years after the famous crash – unable to decipher who would be the winners and losers. And I have to keep a chart to hand of who owns whom to ensure I don’t put too many eggs in one basket.

Of course, inevitably the discussion comes around to jobs and recruitment. Headlines like ‘3 million unemployed’, ‘7% unemployment’, ‘British jobs for British workers’ are spreading gloom and doom throughout the global employment scene.

I have written many articles about how to put your best self forward to find the right role. And I have recently also written about finding a job in a downturn. (see my blog entry for 9 December 2008)

Roland Gribben, writing in the Daily Telegraph on 12 February, says ‘More companies are lining up to freeze pay or delay settlements as management prepares for the survival game. They are playing safety first in anticipation that the fast deteriorating business outlook means they will be either unable to afford an increase or be forced into making staff redundant.’

Companies and employees are scrambling to find survival strategies that enable them to not only continue trading for the short run but not strangle their future prospects at the same time.

The reality is that all companies need senior management to run the enterprise. So while there is not a standstill in executive recruitment, there is a serious slowdown as employees stick to their seat and only move for extraordinary opportunities. But companies are also looking at the talent sitting at the board table and asking the question – are these people fit for the purpose which faces us today?

A good example is the appointment of Ian Smith to Reed Elsevier. The Financial Times reports, ‘The appointment of Ian Smith to head Reed Elsevier has echoes of how the outgoing chief executive was selected almost a decade ago. Back in 1999, Sir Crispin Davis was seen as “a little untried and untested”, according to one analyst at the time, by virtue of an esoteric career that encompassed consumer goods and distilling. With his career spanning the oil, consultancy, healthcare and construction sectors, the hiring of Mr Smith, who lacks media experience, surprised some commentators. But his record as a dealmaker - he merged Taylor Woodrow with rival George Wimpey and sold General Healthcare to South Africa's Netcare in 2006 - has fuelled talk that he may forge ahead with the long-rumoured merger between Reed and Dutch rival Wolters Kluwer.’

A non-traditional candidate brought in to do different things.

Another point to consider is your own financial health. Back in the early 1990s when the economy was in dire straights I was interviewing in the UK in the management consultancy industry after 10 years with Price Waterhouse in the US. In almost every interview there was subtle questioning about my personal financial position – the firms only wanted to hire people who were not at risk of a) going bankrupt; b) causing embarrassment to the firm through expense misuse; or c) having difficulties in their work performance because of financial issues. Ensuring that your financial position is reasonably sound also demonstrates good judgement that will enhance your professional position in any case.

Finding an excellent executive role today is not easy. Think of yourself as a ‘non-traditional’ candidate. Where would your skills be of particular use? What industries could learn from what you know? How can you demonstrate your value?

Good questions to be asking as you spread your net wider.

© Betty Thayer, 2009

Doing Business in a Downturn

What are your recruitment and advertising agency clients worried about?

1 Maintaining cash flows
2 Curbing costs

How can you change this to a strategic advantage?

Want to survive the downturn? Here are my top tips for ensuring that your recruitment/advertising business continues to thrive:

• Talk to your clients - it is too easy to rely on email - your clients are lonely...let them know you are out there!

• Talk to your ‘stars’ - your top performers can always get another job elsewhere, even in a downturn. Make sure they know you value their contribution.

• Swing towards consultative ‘help’
–Mini outplacement assistance
–Flexible working / reduced hours

• Offer interim candidates - this may seem a safer bet in uncertain times

• Get into new functions or sectors - the power of the internet means you can easily attract new candidates - you just have to find out where they are!

• Reach into Europe / E Europe / Middle East - not all sectors and geographies are affected. Research new areas where your skills are transferable. Again the internet is a good way to find both new clients and candidates.

A few more points:
• The downturn is here – creative tactics can help ride the wave
• Executives do use the internet to find jobs – and even more are registering for job boards every day
• The UK is ahead in online executive recruitment but the world is shrinking
• There is a role for traditional media coupled with online
• The fastest growing executive market is India but the largest in Europe is Germany
• Candidates want the same experience online as in the newspaper – high quality and integrity - make sure your ads reflect the high standards you want to attract.


For more articles and information visit www.bettythayer.com.
Copyright Betty Thayer, 2008

Executive Grapevine Articles

Over the past few years I have contributed a column to Executive Grapevine, a leading recruitment magazine. Click on the links below to read back issues.

Is online part of your recruitment strategy for executives? Or are you only using online for more junior roles? Click here

Why do HR and recruitment professionals increasingly view online recruitment as an indispensable activity? Click here

Can you trust what job boards tell you about traffic and users? Click here

Is your recruitment horizon global rather than local? Click here

Online recruitment advertising increased 50% between 2003 and 2004. The UK market is now worth over £100m - no wonder it has the attention of the large community-based internet players. Click here

Consolidation within the online market is accelerating with both vertical and horizontal transactions. Click here

The online ad - a new media phenomenon. Click here

Recruiting Non-Executive Directors on the web - replacing the 'old boy' network. Click here

More executives are opting for a portfolio career - and using the internet to create a new life of work. Click here

Where has all the talent gone? Are we back in a seller's market? Click here

Talent management top of the agenda for FTSE Non-Executives.

Is the internet working for you...or against you? Click here

The candidate experience - does your online application process attract or repel experienced candidates? Click here

Top MBA candidates are in serious demand - do you get the best out of your MBA recruitment efforts? Click here

What's Hot and What's Not? Click here

The demand for Non-Executive Directors has never been higher - are you making the most of this growing market? Click here

London is the world's largest financial centre. When will Dubai be #2? What are you doing about it? Click here

Ten Tips for Online Executive Resourcing

20 October 2008





Search Consult Global Conference, Frankfurt, Germany



Joining over 250 search professionals from around the world, my presentation provides the top 10 secrets for online recruiting success.

The UK Non-Executive Director 2008 Networking Seminars


We are pleased to announce the launch of the 2008 networking events.

There are two different types of events this year.

Our main networking events follow the popular format of three expert speakers, a panel session and informal drinks and networking. There are specific themes for each of these events:

London events (16.00 – 19.30)

Tuesday 29 April NEDs in a Family Business
Tuesday 13 May Being a Charity Trustee
Wednesday 21 May NEDs in the Public Sector
Wednesday 11 June Diversity on Boards with a particular focus on women on boards
Tuesday 23 September Getting Value from NEDs

Leeds event

Wednesday 8 October General seminar for current and aspiring NEDs

In addition we have introduced two half-day workshops specifically designed for those interested in their first Non-Executive role. These intensive and interactive events will help you to discover more about the role and how to go about finding your first position. These events also finish with informal drinks and networking. Both will be held in London.

Wednesday 7 May 13.45 – 18.30
Wednesday 15 October

Places at all of these events are limited so register today. Members of the Non-Executive Director benefit from special rates.

To find out more about these events visit www.non-execs.com.

Exec-Appointments acquired by the Financial Times

The Financial Times has acquired senior management job-board exec-appointments.com as an ideal vehicle for developing its non-print recruitment business.

There are clear synergies between the two businesses. The FT's global presence, brand profile and financial recruitment capability is complemented by exec-appointments.com's strength in senior non-financial jobs. In addition, the acquisition also provides the FT with an established technology platform for further developments.

FT CEO John Riddings commented: “Online recruitment is a key growth area and while the Financial Times is highly successful in print-based recruitment, this acquisition will allow us to crack the burgeoning web-based sector. We can extend the business into Asia and the US and seriously upgrade our recruitment and training offering to both customers and advertisers.
“We've been aware that we needed to upgrade our general online recruitment offering,” he continued. “With no clear leader in the sector, we believe that exec-appointments will rapidly step into the breach.”

exec-appointments' CEO Betty Thayer believes the move will increase the site's appeal to larger corporate clients, as well as providing the opportunity to develop new products for both FT audiences and existing customers.

MBA-Direct and MBA Jobs

Each quarter I write an article for the Association of MBAs' newsletter, Ambition. If you have an MBA, whether a new graduate or an experienced alumni, why not take a look at http://www.mbaworld.com/ and read about enhancing your MBA career.

If you are interested in seeing the best jobs for MBAs why not visit http://www.mba-direct.com/?