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Executive Hiring Doubled from Q2 to Q4 Based on Lead5 Member Analysis

Lead5 analysis of executive members who indicated they landed a new position has increased 98% from Q2 to Q4 in 2020. The increase from Q2 to Q3 was 40%. This is consistent with the pent-up demand from the predominate lockdown months of April through June and is a good signal for a continued uptick in executive hiring to carry through Q1 2021 and beyond. We will continue to monitor these leading indicators from Lead5 data.

Lead5 is the fastest growing executive community for exchanging hidden opportunities, intel, and career advice.

See what Lead5 members are saying about the market and join the conversation:

https://lead5.com/community/forums/posts/241182

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How to Best Approach Executive Recruiters

One of the most frequently asked questions from members of Lead5 is how to approach executive recruiters. We have put together a sample email at the end of this blog that we hope is helpful, but let’s also highlight five key points to remember when connecting with search firms:

1. Understand the retained search business model. Lack of understanding of how retained executive search firms operate is the first clue you are not an experienced executive. Retained firms only work for companies – the hiring company is the client. The candidates are a commodity. We as search professionals try not to treat the candidates like a commodity, but the business model is structured in a way that, more often than not, leaves the candidate sensing this dynamic

2. You have a green light to send your resume directly to executive search firm consultants, but make sure you are doing your research. Every firm has partners and principals who recruit for specific industry sectors and functional roles. Determine the best contact by reviewing bios to ensure there is a match between your experience and the partner’s coverage area. The Lead5 recruiter database is a go-to resource for this research. There, you can quickly pinpoint the right targets using your My5 filters.

3. Most executives conducting an active job search connect with 5 to 7 retained search firms, typically with recruiters that have approached them in the past. This is fruitful, but candidates should send their resume to 25 to 30 plus search firms, given the executive search industry is highly fragmented beyond the top 4 to 5 firms. Take the time to complete the research necessary to make sure you are in the “flow” of available opportunities for your industry/function.

4. If you do not hear back from a retained executive recruiter to whom you have sent your resume, do not worry. The first priority is having your resume updated and marked in the proprietary database of the search firm as interested in opportunities. All search firms have a process to update resumes in the database and mark you interested for a 6-to-12-month time frame. In some cases your name is actually highlighted within the system. The baseline is to market yourself to 25 to 30 search firms by having your profile activated in the database. If the particular search consultant you reach out to has an active search that is a fit, they will reach out to you. Otherwise, you are a “seeker candidate” and the best path for a seeker candidate is to get tagged in the system so the entire firm can query and have access to your resume.

5. Personalization is key. If I recruit Chief Marketing Officers and a Chief Technology Officer reaches out, it is not a good look. Do your homework, as 15 to 25 highly targeted, thoughtful notes to search consultants who cover your areas of expertise by industry and function is much more effective than the spam blanket email sent to 100 recruiters. Start with the recruiters/firms you know and expand out with direct outreach to the firms who need to know you.

 

Sample Email to Retained Executive Recruiters

Hi Susan,

Good afternoon. I am a senior HR executive with over 20 years of experience in the consumer products and industrial services sectors. I am aware that you specialize in the HR center of expertise for SmithThompson Search and I’m currently actively seeking out my next role. I would welcome the opportunity to discuss my background further at your convenience and I would also appreciate getting marked as active/interested in your firm’s database.

I’ve attached my resume, but my work experience includes the last four years as CHRO of Virtue Products, a PE backed, middle market global consumer company based in Phoenix, AZ.  I previously spent 8 years with Danson Corp, the publicly traded large cap environmental services firm where I served in a variety of divisional and corporate HR leadership positions. I have an undergrad in management from the University of Wisconsin, and an MBA from Notre Dame. Given the right opportunity and location, we would be open to relocation from our current home base in Arizona.

Please let me know if there is any additional information I can provide and thanks in advance for your time.

Best Regards,

Joe Sample

 

 

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Executive Outlook – October 2020

With analysis of Lead5 data through Q3, the executive hiring market has stabilized in September with a slight uptick in executive opportunities tracked by Lead5 of +6% MOM from August to September. Moreover, executive appointments are up +31% MOM August to September.

At Lead5, we track appointment and departures of executive teams for leading US based companies and we have been monitoring the data closely to determine if the overall executive hiring market is stabilizing and trending upward.

The September gains match discussions we’ve had with corporate executive recruiters and PE firm talent partners that, after a lull in August, activity is starting to pick up. The prevailing sentiment is that the normal Labor Day through Thanksgiving cycle will likely be replaced by an election day through Q1 2021 activity cycle.

Lead5 will continue to monitor and report on executive hiring data trends.

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Executive Outlook – September 2020

On September 4, the U.S. Bureau of Labor Statistics reported that unemployment has continually declined since the jobless peak spurred by the covid-19 lock down measures in March.  Lead5’s recent analysis of executive appointments shows a gradual improvement in the c-level job market, and we will continue to monitor and report on these trends as executive hiring is historically an early indicator of overall employment.

A discussion point in the Lead5 Executive Community is what executives should be doing now to increase their marketability.   The good news is that there are proactive measures that executives can deploy that are proven to be effective in any market.   The key is developing an action plan and sticking to it.

Executives: Be Proactive and Discover New Opportunities

See what Lead5 members are saying about the market and join the conversation:

https://lead5.com/community/forums/posts/241182

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Executive Outlook – August 2020

Executive hiring is historically a significant leading indicator of the overall health of the US economy.

Lead5 analysis of the start of Q3 data (July through mid-August) shows a continued downward trend in executive appointments (see chart below).  This trend is troubling, but Lead5 forecasts that the decline from Q2 to Q3 will be slightly less severe than the decline from Q1 to Q2.

Executive opportunities tracked by Lead5 are also trending downward by 45% from Q1 to Mid-August.

Here at Lead5 we have been in constant discussions with executives through our member consults along with corporate talent partners and PE investors. The general view is June started with good momentum, but July and August from an executive hiring/decision making standpoint has stalled out. Our data supports this view. The historical “check with me after Labor Day” mantra seems to be more heightened this year with the effects of the pandemic and social unrest.

Lead5 will continue to monitor the full Q3 data through September with an eye on a possible uptick after Labor Day to finish Q3 on stronger footing.

See what Lead5 members are saying about the market and join the conversation:

https://lead5.com/community/forums/posts/241182

 

 

 

 

 

 

 

 

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Executive Job Outlook – July 2020

Executive hiring has long foretold the overall health of the U.S. economy which has been severely impacted by covid-19 and global socio-political factors.

Analysis of Lead5 data from Q1 to Q2 for 2020 shows a quarter over quarter 30% decrease in executive opportunities, a 35% decrease in PE deals, and a 43% decrease in executive appointments.  This decline was expected as executive searches which typically take 90 to 120 days were canceled or put on hold during the lockdown.  Industries with the largest decrease in executive appointments from Q1 to Q2 were consumer followed by business services and industrial. Technology, healthcare and financial services also had declines, but not to the extent of the other sectors.

For executive opportunities, July is trending above June through July 10.  Some economists predict that the economy will begin a resurgence in Q3 and if that occurs, US companies will respond by appointing new executive leadership teams.  Lead5 will continue to monitor these data trends going forward.

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Leading During Crisis

Members of the Lead5 Executive Community are tasked with leading their organizations during unprecedented crisis involving every aspect of society.  In this video, Peter Thies from the River Group has joined Lead5 CEO, Josh Wimberley, to discuss key character traits that are helping successful leaders connect with and empower the employees whom they serve.

The video can be also be viewed in the Lead5 Executive Community forum section where you can ask questions about leadership, or anything else career-related.

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Executive Assessments

Members of the Lead5 Executive Community have frequently asked us about executive assessments, which have become standard in the executive recruiting process. In this video, Peter Thies from the River Group has joined Lead5 CEO, Josh Wimberley, to discuss assessments, including the best way for executives to approach them. The extended video can be viewed in the Lead5 Executive Community forum section where you can ask questions about assessments, or anything else career-related.

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Lead5 Analysis of Public Company Executive Salary Reductions

Lead5 Analysis of Public Company Executive Salary Reductions

As we have now entered week four of the economic lock-down caused by the global Covid-19 pandemic, the economy is approaching record levels in unemployment as U.S. companies scramble to navigate the crisis. Lead5, the Executive Career Platform, has analyzed public company filings to produce a detailed view of how executive management teams are handling executive compensation in response to the economic crisis.

The first red flag and the turbulent weeks that followed

On March 16, Lead5 observed that Ashford Inc. announced salary reductions for its leadership team.  Ashford Inc. is a small cap company based in Dallas, Texas that provides asset management services to the hospitality industry, so it is no surprise that they took swift action ahead of the brutal hit to their industry sector. Three days later, two more public companies made salary reduction announcements, Darden Restaurants and Hersha Hospitality. Darden is the large cap holding company for familiar consumer brands such as Olive Garden & Longhorn Steakhouse, and Hersha is a small cap hospitality REIT.

What followed over the next three weeks is a cascade of salary reduction announcements from over 150 public companies across all industry sectors with more being added on a daily basis. Below are summaries of the average reductions of executive salary by management teams and market cap, along with data broken out by industry sector and region.

Average Executive Salary Reduction by Company Size for Senior Management Teams

  • All Companies, All Market Caps = 30%
  • Large Cap Only = 39%
  • Mid Cap Only = 29%
  • Small Cap Only = 26%

Average CEO Salary Reduction by Company Size

  • All Companies, All Market Caps = 50%
  • Large Cap Only = 71%
  • Mid Cap Only = 45%
  • Small Cap Only = 41%

Average Executive Salary Reduction by Industry Sectors

  • Consumer 48%
  • Industrial 24%
  • Healthcare 12%
  • Technology 10%
  • Financial 6%

Average Executive Salary Reduction by Headquarters Regions

  • Southeast 23%
  • Midwest 20%
  • West 18%
  • Southwest 17%
  • Mid-Atlantic 16%
  • New England 6%   

How long will these reductions continue? 

The most common reported durations for these salary reductions are until June 30th, 2020 followed by September 30th, 2020. A number of companies stated the executive team salary reductions will remain in place until the board determines the Covid-19 crisis is over. Several companies included a reduction or elimination of board retainer fees for the duration of the crisis.  Notably, of roughly half of the large cap announcements, CEOs have forgone 100% of their respective salaries. These overall findings represent just a fraction of the total public companies in the U.S., so we anticipate continued ongoing announcements.

This Lead5 analysis is based on 153 public company filings between March 16 and April 9, 2020. Lead5 will continue to analyze and report as new filings occur.

 

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