Social Networking Sites Are "In" with Those "In the Money"

A recent ExecuNet newsletter cites results from a Luxury Institute Wealth Survey revealing that "60 percent of wealthy Americans with an average income of $287,000/year and net worth of $2.1 million participate in online social networks, compared to just 27 percent a year ago." It was found that on average they had joined about 2.8 networks. Affluent individuals with $300,000 or more in annual income were even more avid participants, belonging to 3.4 social sites. If successful people are this enamored with online networking, it bears our attention.

There are 100 or more social networking sites, some purely for recreation and personal socializing, and others dedicated to professional or business interaction. (For a list of notable sites, visit Wikipedia.)

Computer World did an analysis recently comparing the features and advantages of the two most prominent sites, LinkedIn and Facebook. They formulated 6 business scenarios to solve, and assigned writers to compare results on Facebook and LinkedIn. As might be expected, each site excelled in different areas, and neither was the clear overall winner. Scenarios tested include Looking for a Job Without Your Boss Knowing, Finding Information about a Job You're Interviewing For (LinkedIn was the winner in both of these), Solicit Ideas and Discussion from Team Members (Facebook won this one hands-down), and Keeping Track of Former Associates (yielded a tie).

So which site is best, and should you join more than one? There are so many, but for professional and business purposes, LinkedIn seems to be winning the war for members right now. I encourage my executive clients to maintain a LinkedIn profile as part of their ongoing professional networking as well as for building a digital signature. A web presence is becoming increasingly important in job search, as candidates are commonly googled--often before a recruiter or hiring manager initiates the first contact.

In executive circles, it seems to be almost an assumption now that you maintain a profile on LinkedIn. Adding to its utility for career management and job search is its recent integration into the Simply Hired job search engine, as pointed out by Louise Fletcher in a recent Career Hub blog post. What could possibly be more convenient? You search for a job, and then click on a button to find out who in your LinkedIn network may have an "in" at that company. Although Facebook has recently moved from being strictly a social tool to a business tool as well, it seems to be the preferred platform for social interation with family and friends. Its wider range of services and third party applications concern employers as a likely distraction for their workers.

While online networking is an increasingly important part of an overall career management strategy, one thing to watch for is devoting too much time to joining every "hot" new site with a flashy interface, maintaining your profiles, building your contact lists, and interacting with your networks. As with most things in life, there is a danger of "too much of a good thing." The ExecuNet article highlighted a Global Secure Systems estimate that employers in the UK lose 3 weeks per year of work time on employees' social networking activities during business hours.

******

Are You Over the Job Market Hill?

A concern frequently expressed by my executive clients and prospects is regarding the age factor. Many fear that they are going to be subject to age discrimination as early as age 40, and either be let go by a current employer in favor of a younger hire or passed over by potential employers who want fresh, young talent that they can mold in the company’s approach and methods. Just this afternoon, I spoke with a dynamic young executive who was concerned that his age at 45 was going to close the doors to many opportunities.

A recent Herman Trend Alert explores the age issue, with news that I think should provide some encouragement to job seekers who fear they may be “over the hill.”

Approximately one million people reach age 60 each month, and as the baby boomer generation ages, it is estimated that the number of workers in the U.S. between the ages of 55 and 64 will increase by more than 50% by 2010. With life expectancy now at 77 and many enjoying better health during their increased longevity, many more people are staying in the workforce long past the traditional retirement age of 65. This is driven in good part by boomers’ realization of the potentially high health care costs they face as they age and the fact that many have insufficient savings to fund a lengthy retirement.

Both government and industry do appear to be waking up to this reality, with AARP observing that an increasing number of major employers and government agencies are actively seeking to hire candidates 50 years plus. The wealth of experience and skills that older workers can bring to a workplace are seen as increasingly valuable, as well as their maturity of judgment, stability, and turnover rates lower than typical of younger workers.

It would seem that employers' increasing interest in and appreciation of these older workers combined with the smaller pool of talent in the “baby bust” generation cannot help but benefit those workers in their 40s and 50s by altering perceptions of exactly when one makes that trek “over the hill.” According to an AARP-commissioned report from last year cited by Workforce Management, "Replacing an experienced worker of any age can cost 50 percent or more of the individual's annual salary in turnover-related costs, with increased costs for jobs requiring specialized skills, advanced training or extensive experience--qualifications often possessed by 50-plus workers." That’s a powerful financial incentive to keep aging workers on the payroll.

Free Career Networking E-Book

CareerHub, a group careers blog I co-author, has released a series of free eBooks featuring advice from some of the country's top career experts.

The latest is on networking--which is a valuable skill whether you are currently in the job market or happily employed. As one of several co-authors of this eBook, I know that it contains valuable information from the first page to the last.

If you'd like to grab your copy of this or one or more of the other free titles, just click below and download the PDF--no sign-up required.

LINK: http://careerhub.typepad.com/main/2007/04/free_job_search.html

Happy reading!

****

Is the Online Networking Craze All It's Cracked Up to Be?

All the buzz in career professional circles these days seems to be around the emergence of online or virtual networking through social and professional networking sites such as LinkedIn and Ryze. I've attended several seminars on the subject, and read new articles almost daily about the phenomenon.

Is online networking something that you as an executive need to be involved in as part of your career management strategy? All the statistics seem to show that career transition and advancement for the executive is most likely going to occur through networking or referral, so taking advantage of the ability to network in cyberspace seems like a "no brainer."

For more on this topic, see my recent post on the CareerHub blog: Virtual Networking: Does It Live Up to the Hype?

*****

Executive Job Search Length Shrinking

According to ExecuNet, now may be the best time in the last 15 years for executives to launch a search for a new position. Their 1992 survey results showed that on average 13 months were required to land a new job, and the situation seemed to be approximately the same as of 2004. For quite some time it has been the conventional wisdom that an executive could expect to wait at minimum one month for every $10,000 of annual compensation, which of course for the $120K executive meant a long year of searching and for the $300K+ executive painted a pretty discouraging picture.

Executives can take heart, because the trend appears to be on a downswing. According to ExecuNet research, “it now takes under 10 months to find comparable positions” for high earners at director level and above. With a tightening employment market where the candidate seems to have taken the driver’s seat and companies seem to be losing their fascination with young hotshots and waking up to the value of baby boomers, your prospects appear brighter than they have in some time. Now may be the time to start working that network and circulating your executive resume.

*****

Recruiters Finding Candidates in Unlikely Place

I received some interesting intelligence through the Career Masters Institute in an e-newsletter on Friday. Recruiters are finding good talent in a place that most executives would probably not even think about: Craigs List.

Many of you are likely familiar with Craigs List as an online community site where classified ads for furniture and housing, personal ads, and discussion forums are to be found. There are also jobs listings, but the surprise is that recruiters are using it as a primary resource for candidates. According to a presenter at a Northwest Recruiting Association meeting where the best tools and sourcing strategies were under discussion, the following was revealed at a recent ERE recruiting conference:

"Craigs List - not Monster - is now the best place and most often used place to find good talent."

ERE should be "in the know" about this. Initially conceived as an email discussion list for recruiting professionals over 9 years ago, ERE.net is a popular source of information and networking opportunities for recruiters and HR professionals on the Web.

A fellow CMI member who is seeking a recruiting position validates this, as she has found her listing on Craigs List to draw far more interest than on any other venue, including Monster and Career Builder. Coincidentally, while interviewing one of my clients today who is a general management/operations executive, he mentioned that his company has used Craigs List extensively in its recruiting efforts.

So if you are leveraging the Internet in your employment search, you may want to consider perusing the listings and/or posting your resume on your local Craigs List, as well as those for other geographic locations of particular interest to you.

Craigs List's forums that span 450 cities worldwide draw more than 7 billion page views and 20 million users per month, placing it at #7 ranking, behind only Yahoo, AOL, Microsoft, Google, eBay, and Newscorp. More than one million new job listings are posted per month. If any doubt remains, I encourage you to view this page with statistics comparing Craigs List with Monster and Career Builder:

http://charlotte.craigslist.org/about/job.boards.html

******

Job Functions with Best Prospects for Executives in 2007

ExecuNet's projections for job functions that will be in most demand at the executive level for 2007 are out. According to their 15th annual Executive Job Market Intelligence Report, results from 121 employers indicate that demand will be high for executives with strong operations, business development, and finance experience and will most likely outstrip supply.

This is good news for executives with strengths in these areas and is a wake-up call to make sure your executive resume effectively highlights them. Functional expertise in sales, marketing, and general management is also expected to comprise a large share of management hires made in the coming year.

Here are the details regarding job functions that will drive the most growth in executive hiring this year, as cited by ExecuNet:

Operations: 16.4%
Business Development: 13.6%
Finance: 10.5%
Marketing: 9.8%
Sales: 9.4%
General Management: 9.1%
MIS/IT: 7.7%
Engineering Management: 6.3%
Research and Development: 5.9%
Consulting: 5.2%

*****

Executive Level Turnover Slowing a Bit

An article this month in eWeek indicates that this year shows a slowing of turnover at "C-Level" compared to 2006, based on statistics compiled by a New York-based management research firm called Liberum on February 6. Compared to 12 months ago, overall executive level turnover declined 16% in January of this year, and for CEO's the drop was 20%. Boards of directors experienced less churn as well, at a 14% decrease. However, The report maintains that overall change at the top levels is still high. This is believed to be due to domestic and international companies competing for a limited talent pool, Sarbanes-Oxley impacts, and shareholder activism. Overall, 2,240 C-level moves occurred in the first month of this year.

So, while turnover is down a bit, there certainly seems to be plenty of potential for top executives to make major career moves this year. This is corroborated by continued increases in overall payroll employment of 1.8 million in 2006 (Bureau of Labor Statistics) and the fact that employers are expected to become more competitive in both recruitment and retention this year according to statistics from a survey by Harris Interactive reported by Matt Ferguson, CEO of CareerBuilder.com.

I continue to advise my executive resume clients to keep their documents polished and ready to respond at a moment's notice. You never know when that phone call with once-in-a-lifetime opportunity may come in!

IT Executive Gender Gap Reversal

An article featured on eWeek.com for January 24 reports some interesting findings on salaries in the IT field, particularly with relation to Information Technology executives.

The long-standing gender gap favoring male workers in the IT field, similar to across-the-board differences in the work force, continues. However, it seems that the pendulum is swinging in the other direction among executive-level IT professionals, according to a results of survey conducted by DICE.com, a well-known IT and engineering careers website.

While women IT workers on average earned 9.7% less than men in 2006, female IT executives including CEOs, CIOs, CTOs, vice presidents, and directors earned on average 1.4% more than their male counterparts, at an average salary of $109,912. In particular demand (based on the higher salaries reported) seem to be those with expert knowledge in ERP (enterprise resource planning), Sarbanes-Oxley compliance, and CRM (customer relationship management).

The highest salaries for IT professionals from entry level to executive (male or female) were reported in Silicon Valley, Boston, New York, and Baltimore/Washington, D.C., with San Diego, Los Angeles, and Seattle also showing strength.

Employers Competing for Executive Talent and Compensation is Rising

Leading Indicators of National Employment (LINE) is an economic indicator that looks at job expectations, vacancies, compensation of new hires, and competition for recruits. Featured recently on the SHRM.org site and quoted by ExecuNet in its latest executive compensation survey, the latest figures seem to bode well for executives in career transition.

As the supply for talent tightens and demand increases, more and more organizations are using employment contracts, guaranteed bonuses and severance, and stock options to recruit candidates. Forty-five percent of packages offered in 2006 included a guaranteed first-year bonus, versus 27% in 2005. Thirty-nine percent included signing bonuses in 2006, versus 34% in the previous year. Stock options and equity were included in 50% of offers for 2006, in contrast to 42% in 2005.

Clearly companies are finding that they must raise the stakes in order to attract talent in an increasingly hot executive job market in which recruiter activity has increased for ExecuNet's network by more than 20% this past year. During 2006, most executives held expectations of a 15% or more increase in compensation should they change jobs.

Worker Exodus in Progress

The Society for Human Resource Management (SHRM) and the Wall Street Journal's CareerJournal.com recently published results of a poll indicating that in excess of 75% of employees are currently actively engaged in job search. HR professionals responding to the survey indicated that on average 12% of their work forces had voluntarily resigned during 2006. It appears that employees sense that the employment market is now healthy enough that they need not remain resigned to indefinite employment that is not to their liking.

Reasons cited by employees for wanting to move on included salary/compensation (30%), better opportunity elsewhere (27%), dissatisfaction with the career development potential at their current job (21%). Is it time to polish up your executive resume and test the waters?

*********************************************************
Click here if you would like to Permalink to this post.
*********************************************************

Are Executives Suffering from Job Search Reality Disconnect?

These fascinating statistics were passed on to me through a recent Career Masters Institute member newletter:

WEDDLE's continuously conducts both primary and secondary research on Best Practices in employment excellence and HR leadership. They recently asked the visitors to the WEDDLE's Web site to tell where they expect to find their next job. A total of 1,270 people participated in the survey. Here's how they think they'll be successful in future job search campaigns:

57.6% Responding to an ad posted on an Internet job board
16.8% Networking at business and social events
7.2% Responding to an ad posted on an employer's Web-site
7.6% Sending a resume to an employer by mail
3.9% Receiving a call from a headhunter
1.9% Receiving a call from a staffing firm
1.9% Attending a career fair
1.6% Responding to a newspaper ad
0.7% Joining a social networking site

You can learn more about this survey at the Weddles site.

Since it is accepted wisdom that most executive level jobs are found via some form of networking, this points to a major disconnect in the minds of employment seekers and the real world. Most statistics point to networking as the most lucrative source of job leads! While Web posting of your executive resume and job board/recruiter site searching are worthwhile activities, one would certainly want to use them only to supplement rigorous pursuit of networking (which, by the way, can also be done to great effect via the Web).

Why Do CEO's Get Fired?

Top executives will want to know the reasons why CEO's get fired, and employ best practices for CEO and board survival. A recent Career Masters Institute E-Bridge (internal association newsletter) cited an article that discusses this question and revealed a primary reason: because their relationship with their boss sours. When your relationship with the Board becomes unhealthy, you are in the danger zone. If this describes your situation, the good news is that there are specific steps you can take to help ensure the safety of your position.

I encourage my CEO clients to download Mark Murphy's article that was published recently in Directorship Magazine (magazine catering to Fortune 500 Boards and CEOs). Mr. Murphy is CEO of Leadership IQ and has conducted research and worked with hundreds of CEOs and Boards. In this article, he provides critical survival tips for maintaining a healthy CEO-Board relationship.

Download the article:

http://www.leadershipiq.com/LeadershipIQ-DirectorshipArticle.pdf

Tech Execs: Wondering Where the Next Technology Hub Will Be?

A recent article in eWeek discussed the lively debate going on in the corporate world and in major business, technology, and local government publications regarding where the nation's next major technology hub will emerge. Google and Microsoft have both bought massive properties in the Midwest, but there are a number of cities that show strong potential to be the place where you technology execs may next hang your hat.

Silicon Valley has a long way to go before it fades from prominence, but it has unfortunately become a victim of its own success, driving the cost of living to almost unimaginable levels in the region and the cost base for companies located there through the roof. With the employment market shifting more in favor of the candidate, employee retention and quality of life are becoming primary factors in locating technology enterprises.

So where will the next hub be? No one can say for sure, but eWeek analyzed the information out there to come up with a top ten list:

1. Seattle
2. Atlanta
3. Boston
4. Washington, D.C.
5. Dallas
6. Philadelphia
7. Chicago
8. Orlando
9. Los Angeles
10. Charlotte

Some areas in Florida, Central New Jersey, the Maryland suburbs, and even Las Vegas and Reno show potential. But the bottom line as the article points out is that "In the end, the skills are going to be where the people want to relocate because there's a good quality of life."

New Federal Regulations Affect Your Online Job Hunt

Federal regulations regarding diversity that went into effect this Spring will have an effect on your job search when using a job board or other online channel such as corporate websites. The regulations are designed to standardize tracking of diversity in the candidate pool. They currently apply to federal contractors but later this year will kick in to cover all employers with more than 50 employees.

The trick is in the new definition of "applicant." You must directly express interest in the job while showing that you have ALL of the requirements listed in the job description (using the exact words they use), must not remove yourself from consideration by specifying a particular location (other than the location of the job currently advertised), and must follow the company's instructions for submitting your resume or application to the letter - whether that be via their website, email, etc. (The day is looming when it may actually be necessary to create a new resume for each application.)

The new rules allow a company to search the job boards for recent qualified applicants, which in many cases means they will not look at your resume if it has not been updated in the past 2 or 3 weeks!

The net result of all of this is that employers will want to limit as much as possible the number of resumes gathered so they can maintain a relatively small, random pool of applicants to help ensure the diversity the regulations require. As often is the case, it is likely that all these regulations will do is make more work for everyone, without actually impacting diversity. But in any case, these new regulations are something executive candidates cannot afford to ignore.

Honeymoon Over with Outsourcing?

eWeek recently published a study proclaiming that the outsourcing boom is over, as companies grow more savvy about working with outsourcing providers and look beyond the cost savings to the quality and timeliness of service they are receiving. This applies to both offshore and onshore outsourcing, as there is a growing wave of disappointment in performance and a flood of premature contract terminations.

There also seems to be a definite shift in outsourcing in favor of offshore versus onshore, as offshore providers increasingly pair high level certifications such as CMMI with their lower cost structures. Favorite offshore destinations seem to be Canada, China, and Eastern Europe.

At the same time, outsourcing seems to be morphing from a contracting strategy for distinct IT tasks to a corporate-wide strategy. U.S.-based outsourcing companies would do well to take heed of these facts and adjust strategy to ensure a strong focus on "underpromising and overdelivering."

How Many Employers Acknowledge Resumes They Receive?

Workforce Week Newsletter recently published the results of a survey of employers regarding their practices in responding to resumes they receive. Regarding the question, "What is your company's practice for acknowledging resumes?" these were the responses:

35%: We acknowledge all the resumes that we receive

13%: We acknowledge resumes that we believe come from serious applicants

39%: We can't possibly acknowledge all the resumes we receive--we are inundated with resumes

14%: None of the above

Total respondents: 672

So now you know that all other things being equal, a candidate's chances are far less than 50/50 that they will receive any kind of response at all when they submit a resume to a potential employer. Of course, "all other things being equal" is the operative phrase here. What if you have researched and determined that this opening is a great match for your capabilities and/or that you have expertise and insights that the company badly needs? What if you have developed a powerful executive resume and cover letter that so strongly make your case that they virtually compel your recipient to contact you? Odds are high that you will be one of the lucky few who DO receive that acknowledgment as well as an interview.

Angel Investing Dollars on the Rise

If you have a great business idea or are looking for additional funds for an existing business, you will be glad to hear that the Puget Sound Business Examiner Daily reported on March 29 that the angel investor market grew moderately in 2005. Investments totaled $23.1 billion, an increase of 2.7 percent over 2004, according to a report released by the Center for Venture Research at the University of New Hampshire Whittemore School of Business and Economics.

A total of 49,500 entrepreneurial ventures received angel funding in 2005, a 3.1 percent increase from 2004. The number of active investors in 2005 was 227,000 individuals.
Healthcare and medical devices garnered 20 percent of total angel investments in 2005, followed by software at 18 percent and biotech at 12 percent.

Angel investments created an average of four jobs per investment in the United States in 2005.

Wary of Age-ism in the Executive Job Market?

Manyof my executive clients express concern about their longevity in the workplace as is generally apparent at least to a degree in their executive resume. A recent article on Weddles.com discusses how to best work around the issue of age discrimination. It would seem that the trend is favorable for older workers, in that the U.S. Bureau of Labor Statistics observes that the participation of older workers in the workforce is increasing (unemployment among those 55 and older decreased to 3.4% in 2005, from 4.1% in 1985). However, many still find themselves passed over when the final cut is made. This is because, as we all know, statistics can be deceiving. While the strict percentage unemployed went down, the number of candidates looking for work in that age category went up, way up: by nearly 40%!

It's not a lack of jobs that is the source of the problem. There's a virtual war for talent going on out there. So what gives? It would seem that age discrimination is alive and well, despite legislation outlawing it and the fact that many enlightened employers have come to realize the true value of seasoning and experience in employees, especially those at higher level, strategic positions. Yet research shows that age bias often begins as early as 45 years of age!

The article suggests 4 excellent strategies to position yourself as strongly as possible to combat age bias. To paraphrase their suggestions in brief:

1) Keep your skills at the forefront of your profession. Dedicate yourself to state-of-the-art knowledge acquisition as a way of life.

2) Market yourself based on the ROI you can offer the employer, results you can deliver, not "X" number of years of experience. Make sure your executive resume writer forcefully describes the contributions you have made and can make going forward.

3) Position yourself as invaluable by working above and beyond the call of duty... step outside the parameters of your job description.

4) Keep physically fit and look as youthful as you can. Exude vitality, stamina, and a "can-do" attitude.

When you think about it, these should be steps EVERY employment candidate should take, not only those fearing potential age discrimination!

New College Grad in Your Family? Good News...

According to an article in the May 1st Christian Science Monitor, "The lean job market college graduates faced in the first half of the decade is gone, and companies are upping the ante to obtain the best talent." Some of my executive clients in recent years have been rather appalled at the apparent ROI obtained on the many thousands of dollars they had invested in their sons' and daughters' educations. Many were graduating only to find it nearly impossible to find a job using their new degree, and some would end up flipping burgers.

Apparently that situation is now changing. It's now a buyer's market for graduates seeking jobs, with hiring growth in many sectors of the economy and employers expecting to hire 13.8% more new graduates overall this year than last. This is particularly true for graduates who have been savvy enough to gain some experience through internships, with engineering and financial services being especially "hot" categories this year.

Starting salaries are on the rise, too.

NACE reports these majors with the highest average starting salary and these fastest growing occupations:

Majors with highest average starting salary:
Chemical engineering: $55,900
Computer engineering: $54,877
Electrical engineering and communications engineering: $52,899
Mechanical engineering: $50,672
Computer science: $50,046

Fastest growing occupations:
Home health aides: $8.81 per hour
Network systems and data communications analysts: $60,000
Medical assistants: $24,610
Physician assistants: $69,410
Computer applications software engineers: $74,980

Source: National Association of Colleges and Employers (NACE)

Of course, none of this means that grads can afford to be lazy in their job search. Make sure your new grad leverages all of the online and traditional job search methods, with particular attention to networking. As Pat Garrott, Associate Director of Purdue University's career center says, "In order to actually get the job, you have to use your network."

A Downside to IT Certification?

eWeek.com published an astounding article today that flies in the face of conventional wisdom that the more certifications an IT professional can accumulate, the greater will be their career prospects and potential salary. The article leads off with this statement, "Long seen as a method to maximize employment opportunities and salaries in the post-dot-com-bust era, a study released today finds that pay for certified IT skills falls short of the pay for non-certified skills."

The statement is backed up by extensive statistics gathered for the Q1 2006 Hot Technical Skills and Certifications Pay Index, released April 25 by Foote Partners, a New Canaan, Conn., IT compensation and workforce management firm. Premium pay grew 300% faster for "non-certified" IT skills than for certified skills over a 6-month period. This suggests a shift in valuation by potential employers of the two types of skills reflected in competitive pay levels.

David Foote, President and Chief Research Officer for the firm stated, "This is the first time skills have trumped certifications since our firm began surveying tech skills pay in 2000." While emerging from the economic recession and precipitous crash of the IT job market, those engaged in job search found success to be all about IT certifications. Employers are now shifting their focus to qualities in potential hires that will help to move their businesses ahead, particularly skills in Applications Development/Programming Languages, Project Management, Training, Webmaster and Security.

One certification that is not specifically mentioned is the "PMP" or Project Management Professional certification, which I would guess is still advantageous in view of the fact that project management skills are highly valued at present. See the complete article for a detailed listing of certifications that have decreased or increased in value, and those that remain "hottest."

Recruiters Optimistic About Executive Employment Market

“After a two month lull that followed the hurricanes and soaring energy prices, confidence in the executive employment market is once again approaching all time highs,” says Mark Anderson, President of ExecuNet. Execunet has seen an increasing demand for executive talent over the past 6 months, so much so that it has made it necessary for 56% of all search firms to make plans for recruitment of additional staff over the next 3 months.

Assignments seem to be literally pouring in, creating a "bullish" market stance for executive recruiters. Expectations are for a near-record level surge in hiring at executive level as we begin 2006. What a great Christmas gift and jump-start to the New Year! It may be time to polish up that executive resume and test the waters.

Dwindling Perks and Benefits to Return?

The November 22 edition of the Herman Trend Alert indicates that a reversal of the recent trend toward elimination of benefits is underway.

With an increasingly competitive employment market developing that requires employers to vie for the best talent, some of those perks have already begun to return. Even unusual benefits such as concierge services and pet care programs have begun a resurgence.

With many executives ready to jump ship as reported by ExecuNet, the threat of rising attrition rates will drive employers to sweeten their compensation and benefits packages in order to retain key executives and avoid the exorbitant costs of replacement. This attrition threat is not to be taken lightly, as according to ExecuNet's recent survey of 147 employed executives, 67% are not satisfied with their jobs and of those 78% plan to change companies in the next 6 months.

Dave Opton, CEO and founder of ExecuNet phased it well: "“Companies have neglected retention for too long and now that the competition for talent is heating up, many are responding with too little, too late. When you consider the costs of recruiting, hiring, and training a new executive, it’s no surprise that the most successful companies never lose sight of the importance of rewarding their top talent with more than just compensation.”

Executive Salaries Moving Up

Just a quick news flash:

After an extended period of decreases and stagnation in executive compensation, salaries appear to be on the rise!

ExecuNet's Director of Recruiting Services Jeff Peduto recently reviewed September's job statistics, and observed that salaries have suddenly taken a major leap forward. He noted specifically that those jobs in the $100K-$150K range are up 53% from the same time last year, and those between $250K and $300K are up a whopping 54% from last year.

In addition, job posts overall are up 27%, with leading categories being Finance (+57%), Marketing (+39%), and Information Technology (66%). Other industries with major increases include Healthcare +55%, High Tech +49%, Financial Services +46% and Manufacturing +13%.

Regionally, New York fared best with a 46% increase, but the Southwest did well at 42%. The MidAtlantic posted a substantial 37% increase.

I don't know about you, but those stats made my day! If you've been hunkered down in a less-than-ideal employment situation for fear there was nothing else out there, maybe it's time for you to polish up that executive resume and test the market?

Executive Recruiter Optimism Grows

Recent surveys of executive recruiter outlook on the executive job market indicate near-record highs in confidence. ExecuNet's August survey reveals a generally bullish attitude regarding ongoing market growth, with 71% being confident or very confident of improvement in the next 6 months. Expectations are for a 17% increase in assignment volume from corporate clients over the next 6 months.

With continuing good news of profit growth and solid economic indicators, businesses have felt the confidence to expand payrolls, leading to plans by 48% of search firms to hire additional professional staff in the near term.

With regard to the industry-specific job picture, recruiters expect the greatest growth in Pharmaceutical/Biotech, Healthcare, Financial Services, High Tech, and Business Services. However, there appears to be solid growth in virtually all market segments, raising the specter of high executive turnover as a concern for employers.

Job Search for the CEO

Once you have reached the top of the heap, the dynamics of employment search do undergo some changes. While you will still want to circulate your resume among a select group of retained recruiters and monitor online resources for opportunities, the opportunities are fewer and parties on both sides of the table are necessarily more selective than for lower level executives. At this level, "Who You Know" becomes not simply an important factor, but a critical one.

An interesting fact about working with headhunters, especially at this level, is that oftentimes they already have a short list of potential candidates that their client has indicated interest in - they already know about these candidates but want the headhunter to handle the transaction. This makes the strategy outlined below even more important, because it will go a long way to making sure you are on the radar screens of both recruiters and the clients they serve.

You certainly cannot contact the CEO of a company that has captured your interest and inform him that you'd like to take his job away! The people you really want to talk to are the Board, but it can be difficult to get contact information for these individuals, who understandably do not want to be bothered with many inquiries. So what do you do?

Your approach must be made in a roundabout way. You will want to zero in on individuals who have influence with and work with or service that Board. This includes bankers, accounting firms, venture capitalists, attorneys, and others. Developing these insider contacts is critical to your strategy.

The time you invest in developing these contacts is well worth it and may pay dividends in unexpected ways. Both the board members themselves and those who work with and serve them have inside knowledge of and access to a variety of companies. They may very well put you in the running for an opportunity of which you were unaware and with a great company you had not even considered.

As always in networking, leverage the contacts you do have to establish communications, and avoid where at all possible "cold call" contacts. You want to be able to say "so and so suggested that I contact you" when you are writing that letter, sending that e-mail, or making that phone call.

Another good resource are venture capitalists, especially for candidates who thrive in start-up, entrepreneurial, or turnaround environments. You can develop contacts with them through the network you are building. A selective direct mail campaign to this audience can also yield results. You'll also want to find out where and when events that attract venture capitalists will be held in your area, and be there to meet and greet.

Are the Natives Growing Restless in the Executive Job Search Jungle?

This week's Herman Group Trend Alert warns employers that a candidate uprising is waiting to happen and that employers' rampant lack of sensitivity in the hiring process is going to come back to haunt them, and soon.

In the late 1990's when a shortage of qualified workers created a seller's market for employment seekers, executives and managers could pretty much pick and choose the right opportunity and incentives were high — often including signing bonuses, great perks and benefits. Since the atmosphere was very much one of courtship, hiring managers and human resource departments would go the extra mile to be courteous and communicative with candidates. Companies with bad reputations for treatment of applicants found them staying away in droves.

Then came the new millennium and a buyer's market, and employers quickly forgot the common courtesies. Many routinely failed to acknowledge receipt of resumes, thank candidates for interviewing with them, or even bother to let them know when a decision has been made to hire someone else.

With recruiters recently complaining about serious difficulties in finding qualified candidates, critical shortages in many skill areas, and employee turnover rising, the tables are clearly turning. In the executive office, concern is high about recruiting and keeping qualified talent. Boorish employers will soon find themselves watching their more courteous competitors snatching away the plum candidates, from entry level through the executive suite. It seems that a little brush-up on Emily Post would be prudent for recruitiers, hiring managers, and others competing for today's candidates.

Could the Tide Be Turning on IT Outsourcing to India?

In a recent ZDNet article, Michael Kannelos points out that India is now facing U.S.-style labor pains. He outlines a number of trends in the IT business in India that indicate the honeymoon may be winding down a bit with U.S. corporations who have been sending thousands of IT jobs - techie to Director-level - to the Indian subcontinent.

India has 250,000 students entering college programs in computer science and electrical engineering annually, and graduates flood the market each year. Infosys, for instance, receives a million applicants annually, of which only 1% or 10,000 are actually hired. However, those who do land positions soon find themselves in tremendous demand with unsolicited and very attractive offers flowing in. Salaries for IT professionals in India are growing at 18 to 20 percent annually.

The fact that workers at Indian companies are plentiful and cheap to employ in comparison to U.S. workers has ironically led to explosive growth and fierce competition for qualified employees, driving the double-digit salary inflation mentioned above. And the trend applies to managers and executives, too. Director-level managers earn between $30,000 and $51,000 per year, and Division Managers can command $76,000. While these salaries are half the going rate in the U.S., the trend is rapidly upward and the gap is closing.

As the gap between U.S. and Indian salaries grows ever smaller, issues of distance, culture differences, communications, time zone logistics, etc. may begin to outweigh historically strong financial incentives for corporations to send jobs to India.

Of course, it can be argued that other countries will simply step in to fill the gap. But this is a phenomenon that executives will want to monitor closely.

Revolving Doors in the Executive Suite

Every source of executive career intelligence that I currently monitor seems to be chanting the same thing: Executive tenure is on a downward slope and job security is a thing of the past, especially for CEOs. With increased demand for accountability coming from shareholders and scrutiny into business minutiae required by recent legislation, "the revolving door at the top of corporations is spinning fast" (Execunet).

Chiefexecutive.net as early as 2003 noted that "The zeitgeist surrounding corporate America is shifting, too. CEOs once feted on the cover of national magazines are fighting criminal charges of fraud. Public opinion has declared open season on corporate chieftains in general.... Meanwhile, inside corporate conference rooms, activist shareholders and independent boards of directors are showing less tolerance than ever for mediocre performance and no tolerance at all for poor results."

Dave Opton at Execunet observes that "Long gone are the days of gold watches and lifetime employment." He states that a recent survey of 233 executive recruiters showed that 18% of executives do not survive their first year in a new job! There are no "honeymoons" anymore, and executives, particularly CEOs, must hit the ground running.

An Execunet survey of nearly 1,500 executives revealed that they are changing companies every 3.6 years. However the outlook of many executives appears disjointed from this reality, as many expect to remain in their next position 5.4 years.

According to Chiefexecutive.net, time to move up the ranks and overall career length with a single corporation are also declining: "In 1980, the average Fortune 100 CEO spent 26 years with one company. Today, the median tenure of Fortune 100 CEOs is 19 years; for the rest of their Fortune 700 counterparts, it’s barely 16 years—just enough time to join a company after getting an MBA and make the inner circle by one’s early 40s."

Yet as bad as it may be for U.S. executives, as a group they seem to be better off than those in other countries. Business law professor J. Gilbert Reese in his blog points out that " A study by Charles E. Lucien, a consultant for Booz Allen Hamilton, on executive tenure showed some surpising results for United States companies. American executives of underperforming companies have longer tenures than executives of underperforming companies in other parts of the developed world." Apparently the greater minority shareholder voting power and litigation rights in the U.S. provides some protection for executives whose companies are underperforming.

Industry Outlook for 2005

BusinessWeek Online's Annual Industry Outlook

"Last year was a great time to be an oil company: Crude briefly shot past $55 a barrel, the highest ever. It was good to be a bank, too -- expansionary monetary policy kept banks' cost of money super-low. For retailers, strong consumer spending made 2004 a year to remember.

In 2005, a lot could change -- for better and for worse. Although overall economic growth will be about the same, the ranks of winners and losers are in for a shakeup."

Laurie's Comments:

Business Week's Industry Outlook for 2005 contains valuable market intelligence and projections that can help executives with informed decision making. Whether you are in Manufacturing, Information Technology, Life Sciences, Services, or Finance, you will likely find information about your specific niche.

Among the headlines:
Oil - no gusher but a steady flow.
More Good Vibes for Heavy Metal.
Aerospace: Preparing for a Descent.
Construction Still Building.
Telecom: The Merger is the Message.
Software: Expect the Giants to Stay Sluggish.
Tightwad IT Buyers Loosen Up.
More Bitter Pills for Big Pharma.
BioTech One Sector with Strong Vital Signs.
Retail: There Goes the Gravy Train.
Banking: Bracing for the Squeeze.

Be sure to view the photo essay.

Beware of Predators in the Online Job Search Jungle

Five Tips for a Safe Online Job-Search
A CEO Refresher article by Teena Rose

"Conducting a job search using the Internet has definitely transformed how jobseekers contact hiring companies... With the Internet's convenience, a breeding ground for scam artists continues to grow each year as well. Identity thefts have increased to an overwhelming 10 million cases per year, and many of them are the result of phishing - not surprisingly, the employment industry is under attack as well. "

Laurie's Comments

This article reminds us that it is indeed a jungle out there. Online resources such as executive-level job boards and recruiter sites are undeniably a valuable tool in today's executive employment search. While it remains true that networking is by far the most productive search method for executives in career transition, you are missing potential opportunities if you do not post your executive resume to job board and executive career transition sites such as CareerJournal, ChiefMonster, ExecuNet, ExecutiveRegistry, Netshare, RiteSite, SixFigureJobs, and TheLadders. It is also advantageous to submit your resume online to the major elite recruiting firm sites such as Korn Ferry, Christian & Timbers, Heidrick & Struggles, A. T. Kearney, Blue Steps, Spencer Stuart, Brilliant People, Top Echelon, etc.

However, with the prevalance of scam artists, identity thieves, and phishing schemes on the Internet, searching online does entail some dangers. For example, with "phishing," you may receive inquiries that look as if they have come from a legitimate recruiter but are actually invitations to become a victim of fraud. You may receive solicitations from "career marketing firms" who will represent themselves as recruiters who have an opportunity for you but need you to pay them for access to their "exclusive" contacts. Be very wary of these, as there are numerous scam companies ready and eager to take your money.

So what can you do? Firstly, do not take any e-mail inquiry at face value, and avoid clicking on links embedded in e-mails. And if you do click on a link in an e-mail, NEVER provide personal information such as social security number or credit card number, no matter how legitimate the web page looks. To visit a website to which you are invited via e-mail, do a quick search on Google for the firm name to identify the correct URL, and copy/paste or type it into the Address line of your browser. Only when you are sure you have reached a legitimate site should you submit any personal information.

When filling out forms on various sites, read and understand their privacy policies. Specify that you do NOT give permission for your information to be sold or given to others without your approval.

Job Growth News Good for April

Economic Policy Institute: Jobs Picture, May 6, 2005:

"Strong, broad-based job growth surpasses expectations... In contrast to the recent spate of disappointing reports on the economy, last month's job market performance was surprisingly upbeat. According to the report from the Bureau of Labor Statistics, employment grew by 274,000, easily beating forecasters' expectations of gains of around 170,000. Furthermore, job gains for February and March were revised up by a combined amount of 93,000. "

Laurie's Comments:

Positive signs outlined in the above report include:

* Widespread job growth across all industries, excepting factories.

* Information Services had its best month since the tech bubble burst back in 2000, with 12,000 new jobs added.

* Construction sector growth continued to outpace other sectors.

* The labor force has grown at an annual rate of 1.1%, compared to 0.4% over the comparable period last year.

Unfortunately, long-term unemployment remains an ongoing problem, with the number of jobseekers looking for work for at least 6 months at above 20% since October of 2002. The article cites a possible reason for this is "that the long-term unemployed are older and more highly educated than in the past, and it takes longer for these more experienced job seekers to find acceptable employment opportunities."

With average monthly payroll growth of 181,000 over the past year that could hardly be called robust, growth has at least been strong enough to sustain economic expansion. Experts conclude that while the recovery has not proceeded at or near the pace desired, it does appear to be solid and continuing. This is good news for executives in career transition and indicates that it may be worthwhile to circulate your executive resume, actively keep up with your network, and monitor all resources for opportunities.

Annual Sources of Hire Survey

Where Corporations Find & Hire Their Employees

"CareerXroads’ (CXR) fourth annual "Sources of Hire" whitepaper attempts to open a window on how some of America’s most competitive corporations fill their positions."

Laurie's Comments:

Want to know where to invest your time and energy in your employment search? This annual survey reveals interesting statistics regarding where companies actually find candidates who are hired. Notice that we are not referring to the locations from which the bulk of the resumes received originate, but rather to how contact was initially made with those who ultimately landed a position with the company.

Important findings of the 2004 study include:

- 38% of all open positions were filled by Internal Transfers and Promotion.

- 61% of all External Hires originated from just two ‘Channels’- Employee Referrals & the Internet. (31.7% Employee Referrals; 29.6% Internet)

- Traditional forms of recruiting are under pressure from the Internet and expanding use of referral networks.

- 3 online job boards (Monster.com, CareerBuilder and HotJobs) accounted for 22.8% of all hires attributed to the Internet, 53.3% were from the company's website, and 16.9% were from niche sites.

These data confirm that networking remains a key component of successful employment search. This fact is corroborated specifically for the executive candidate by an ExecuNet survey of 952 executives conducted at approximately the same time as the above survey. ExecuNet's survey found that "networking is the largest single source of their interviews, with 31 percent of interviews in their job searches attributed to networking."

The data in CareerXRoads' study also confirm that the Internet's role as an employment resource is growing. Clearly, posting your executive resume online and monitoring job postings (particularly corporate websites) are valuable tools in your employment search arsenal.

Note, however, from the ExecuNet survey mentioned above, that "twenty percent of their interviews came from responding to Internet job postings, although only 9 percent of their jobs came from Internet postings." (This bears further analysis.) Note also that for the executive, niche boards and membership sites such as ExecuNet seem to account for a larger proportion of good leads than do the mega job boards.

I will be watching for 2005 study statistics as soon as they are available and will keep my readers informed on emerging trends. Meanwhile, work that network aggressively, post your executive resume judiciously, and mine those job boards and corporate sites!

Executive Employment Market Trends - 2005

ExecuNet's 2005 Executive Job Market Intelligence Report

"Our 13th annual intelligence report captures the latest trends and developments in the senior level job market, and in the practices of candidate search. It gives you the detailed intelligence executives need to make informed career decisions."

Laurie's Comments:

If you are an executive considering making a career move in the near future, you'll find some interesting intelligence in this report. (There is a good chance that you are. A recent ExecuNet survey revealed that of 505 currently employed executives surveyed, an astounding 77% plan to change jobs in the next 6 months!)

Among the numerous statistics and trends covered in the report are:

1) Healthcare and pharmaceutical/medical/biotech are expected to see growing demand for executives, even stronger than the healthy (no pun intended) demand maintained throughout the recession.

2) Financial services, business services, and high-tech are also expected to see growing demand.

3) Medium-sized companies ($51M to $200M in sales) are expected to see the greatest growth in hiring.

4) Business development and sales/marketing positions are expected to lead the way.

5) Frequent job and company changes have become the norm for today's executive: Executives surveyed indicated that they on average change jobs every 2.8 years, companies every 3.6 years, and industries every 5 years.

The information cited above represents the tip of the iceberg of information to be gleaned from this report. You can download an executive summary of the report at no cost via the link at the top of this post. A full copy of the report is available to those who join ExecuNet's CareerSmart network. I have consistently received good feedback from my executive resume writing clients who joined this network.