Continued Momentum and a Shortage of Talent Maintains Senior Executive Search Demand
Third quarter data just released by the Association of Executive Search Consultants (AESC) shows that despite economic turbulence and a quarter-on-quarter reduction in the number of new executive searches started (-8.1%), overall revenue levels have been sustained thereby continuing the momentum of the past two years which has returned the industry close to its all time revenue high of 2008.
The year-on-year trend - from Q3 2010 to Q3 2011 - revealed a 5% increase in the number of new search mandates and an 8.3% rise in revenues. The average value of executive search assignments was also on the rise, in this case both quarterly and annually, endorsing the conclusions of the AESC’s recent client survey. The findings confirmed that organizations increasingly employ retained executive search consulting at the highest end of the market where the shortage of executive talent is especially severe and where the proactive and confidential nature of retained executive search produces significant returns.
AESC President, Peter Felix, commented: “Given the extraordinary volatility in global economic confidence during the third quarter, due to the European debt crisis and uncertainty in the United States, it is no surprise that executive search activity has been affected. However, while search starts are down in most sectors and regions of the world, revenues have only been marginally affected due to the increased average fee per assignment.”
Felix continued: “Our concern is that a reduction in new search assignments in the third quarter may indicate a tremor in client demand with consequences which may be felt in the quarters to come. We can only hope, however, that economic and political leadership will begin to provide the certainty that is so much needed as a basis for key hiring decisions at the top of organizations.”
Searches Started This Quarter by Industry, as Percentage of Total
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