The downturn has been tough on job hunters at all levels, including the most senior positions. But no matter which way the economy goes, employers who have been reluctant to commit are about to open the door to more executive hires, predicts Tom Long, managing director of Russell Reynolds Associates in Toronto, which specializes in senior-level executive recruiting.
Mr. Long has 16 years of experience in executive search. Prior to his current position, he was a managing partner with Egon Zehnder International. He spoke with Wallace Immen. Here are excerpts of their conversation:
Organizations have been reluctant to fill vacant senior roles until they get a clearer picture of what's happening in the economy. Are you seeing signs that optimism is rising?
I've seen this happen in two previous recessions. We have clients who opened searches early in the year for positions they want to fill and have vetted candidates but are hesitating about whether to go ahead and hire them.
What is still working against making hiring commitments is that very few people have confidence about which way the economy is going. But regardless of whether the economy is recovering or not, I think you're going to see the logjam start to clear, if not over the summer then in the early fall, because it's becoming demonstrably clear that they are going to need these people.
Companies are going to be taking on talent because they have been sitting out filling roles that are mission-critical. And because they have taken time to consider their needs, they have a want list of the types of candidates they need, and the positions they need to have strength in, heading into a recovery.
How much effect has the downturn had on the length of the average senior job search?
All this caution is rational, but it means that the cycle between an organization commissioning a search and making a hire is longer, in many cases several months longer.
Where it might have taken just one meeting with senior management to lay out the criteria for a search, it can now take several meetings to establish what they want to see in a candidate for an executive role. Then, it takes longer to come up with a short list of potential candidates because those who have the security of a job are far more cautious. They are willing to come in and talk about a change, but if they are in a good position now, they are far less likely to want to make a move.
And in the interview stage, the candidates we recommend are facing more scrutiny, with repeated interviews with the board of directors and members of the senior executive team. Even when they have a candidate in mind, they hesitate before making an offer.
How are executives in the job hunt keeping up spirits when everything seems to be on an indefinite hold?
I don't see people getting frustrated. My sense is that people have gotten accustomed to the idea that they have to be patient. And patience is actually easier in a bad economy than it is in a more normal economy because we all know we are in the same boat together. This is a global and pervasive downturn.
I think by necessity people are becoming more creative. They are thinking about opportunities that maybe a few years ago they might not have pursued, like advising startups and consulting. These are ways for them to remain engaged in their industry and also a way for them to potentially segue into a full-time executive role.
What are you advising organizations?
