2006 CEO Turnover Rate

By Nick Olds, Director of Communications

According to a recent survey, as of November 2006, the number of departed senior-level executives was up to 1,347 this year (11.75 per business day), making 2006 officially the largest senior executive turnover year on record. Another survey, conducted by Booz Allen Hamilton, shows that North America alone is currently at a 16.2% turnover rate of senior level executives, almost a full percentage point higher than the global average (15.3%). In fact, since 2005, North America has experienced a record level of performance-related turnover, with 35% of all its departing CEOs leaving involuntarily, 28% of whom were on the job fewer than 3 years. And with salaries and severance packages for senior level executives increasing every year, their departures are costing businesses millions.

As a possible solution to these trends, more and more companies are being encouraged to conduct networking practices. As research shows, 80% of senior executives ($90K to $400K+) get jobs primarily through networking. The reasons for that are simple: on a confidential basis, a company’s VP or hiring manager can talk to professional colleagues and associates to obtain recommendations. They will then get referrals and interview candidates, and when they find a good match, they’ll hire him/her. Remember: good executives do not advertise their problems, they solve them.

That’s why senior executive search firms and contingency agents are a valuable asset in enhancing career opportunities. Specifically designed to find top talent, these firms and agents also extends a candidate’s networking ability to corporate decision-makers. Firms and agents typically use their own resume databases, networks, and proprietary methods to identify, interview, and evaluate quality candidates to meet desired profiles for selected companies. In addition, personality assessments are performed, biographical summaries are developed, and candidates are prepared to effectively interview before meeting with a hiring manager. These methods, combined with the candidate’s own efforts, provide the crucial edge one needs to secure the ideal job.

Since beginning in 2002, HiProFile has established relationships with organizations throughout New England needing to fill positions at the $100–400K base salary level. Unlike outplacement firms or “headhunters,” HiProFile carefully selects its member companies and the executive candidates provided to them. In other words, the firm maintains a “by invitation only” policy regarding member companies and executive talent and does not advertise to solicit either. Additional questions or information should be directed to Nick Olds, Director of Communications (nolds@hiprofilellc.com).


HiProFile LLC ● 125 Summer Street ● Boston, MA 02110 ● 617-345-0007 ● www.hiprofilellc.com