Executive Search Recruiter Confidence Index - Stabilizing Trends
ExecuNet’s Recruiter Confidence Index (RCI), which had soared 29 points during the previous three months, remained near its recent high in June, as the executive search industry continues to see signs of an employment market recovery emerging in the second half of the year.
Introduced in May 2003, the Recruiter Confidence Index is based on a monthly survey of executive search firms conducted by ExecuNet. Designed to forecast job growth at the executive level, a reading above 50 percent indicates recruiters expect the number of search assignments in the next six months will increase. Independent analysis of the RCI has confirmed it is a leading indicator for the executive employment market.
According to June’s survey of 145 executive recruiters, 50 percent are confident or very confident the executive employment market will improve in the next six months - down from 57 percent last month, which had marked the RCI’s highest level since June 2008 - but well above a February 2009 reading of 28 percent. In the second half of 2009, these executive recruiters expect an 11 percent increase in search assignments received from corporate clients.
“Recruiters’ outlook for the executive employment market during the second half of the year suggests that the bottom of the recession is now in their rearview mirrors,” says Mark Anderson, President and Chief Economist of ExecuNet. “While recruiters are not expecting to see hiring rebound overnight, professionals seeking opportunities to take their career to the next level should have a plan in place to increase their visibility among search firms and their peers.”
Executive Search Firms Hiring Plans
The research revealed another leading indicator: executive search firms’ own hiring plans have stabilized in recent months following a precipitous drop in future staff-related growth plans dating back to last fall. In June, ExecuNet’s benchmark Search Firm Hiring Index revealed that 13.6 percent of 145 responding executive recruiters report their firms plan to hire additional professional staff in the next three months, down slightly from 14.3 percent in May.
Recruiters’ short-term confidence increased significantly in June, as 27 percent report being confident or very confident the executive employment market will improve during the next three months - up from 19 percent in May.
Our experience at M Squared Consulting is that full-time hiring trends tend to mirror demand for interim and consulting professionals. As we begin to emerge from the recession there will be many companies searching for the talent they need to grow. As a result there will be opportunities not only for highly skilled full-time knowledge workers but also a large number of interim and consulting positions.
