january 2009 executive hiring update: what we've seen since september

The economic meltdown has had a profound effect on executive hiring.  Below is a brief summary of what we’ve seen in the last few months, what we see now, and what we think is coming. 

The first eight months of 2008 were strong ones for executive search and for our business.  That changed in September with the cascade of bad news from Wall Street.  As it became apparent that the economy was in uncharted waters, companies were unable to forecast or formulate long-term plans, and that led to paralysis.  Companies stopped spending on anything that increased overhead, including hiring based on expectations of growth. 

Recently, we have experienced a notable thawing, with more activity in the last month than in the prior three.  Why?  Certainly there is no good economic news that accounts for the uptick. Rather, we believe companies are moving again because the fog has cleared.  Although most people expect this to be a terrible year for the economy, knowing the landscape enables business leaders to make plans.  They know staying in a holding pattern is not a strategy.

What about the ease of hiring? Certainly there is more talent on the job market, but it is still difficult to attract the best people.  Most of them remain employed, and the economic climate has made them more risk averse.  It takes a strong effort to get them to consider new opportunities.  And some functions, notably regulatory affairs and clinical affairs, are as difficult to recruit as ever because supply and demand remain out of balance.

In the coming months we expect executive hiring to continue at a modest pace.  The need for new hires will be scrutinized, and only critical positions will be added.