Heidrick & Struggles CEO Kevin Kelly made his name
raiding corporate America ’s
ranks on behalf of his clients. According to Businessweek/Bloomberg tTese days a lot of them are turning the tables
and hiring his employees to do the work themselves. Companies such as General
Electric, Coca-Cola, Pfizer, Microsoft, and Nike are increasingly using their
own execs—many lured from outfits like Heidrick—to recruit talent and avoid
fees that can run as high as 40 percent of a new hire’s first-year
compensation. Heidrick is “seeing a trend of individuals going to work at
clients” to do in-house recruiting, Kelly told analysts on a July 31 conference
call. “That’s something new that we’ve seen over the last 12 to 18 months.”
Three months later he told the same analysts that the talent drain to clients
was continuing.
Heidrick, Korn/Ferry International , Spencer Stuart, and
other executive search firms still dominate the work of replacing CEOs and
board members. Yet they face increasing competition for searches in the lower
senior- and middle-management ranks, where candidates are plentiful and
technology and social networking sites make it easier to find talent…..
New searches undertaken by the $9 billion search industry
fell 7.6 percent in last year’s third quarter, according to the Association of
Executive Search Consultants, which tracks 1,430 senior executive recruiters in
46 countries. Third-quarter revenue in the industry fell 9.7 percent, following
declines of 6 percent and 7 percent in the second and first quarters,
respectively…..
No comments:
Post a Comment