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

There are lies, damn lies - and statistics. - Mark Twain

Some recent hiring news I came across shows some interesting and relevant data. The newsletter I read trumpeted it with a title of Employment Outlook Steady for First Quarter of 2007. It added that:

The most recent Manpower Employment Outlook Survey found that the New Year will begin with a steady hiring pace. The survey conducted quarterly by Manpower Inc., Milwaukee, reports that 23 percent of employers expect to add to their payrolls during the first quarter of 2007, while 11 percent expect to reduce staff levels. Sixty percent expect no change in the hiring pace, and 6 percent are undecided about their hiring plans.

There is a 23% increase versus 11% decrease and almost 2/3 of the companies with no change or still undecided. But downloading the actual report, I came across this:

For more than two years, U.S. employers have consistently reported steady hiring plans. Although the first quarter job forecast is similar to last quarter and last year at this time, a subtle downward shift has emerged. While it is too early to note if this is a trend, this marks two consecutive quarters of more cautious hiring plans.

This is not such good news. Last year was a year of up-and-down job growth, and a downward shift is not good news. Perhaps the answer lies in looking at more regional data. As HiProFile is headquartered in Boston, it seems logical to examine the Northeast data:

In the Northeast, 23% of employers intend to increase the hiring pace, while 10% expect to decrease staff levels, which results in a Net Employment Outlook of +13%. Seasonally adjusted data suggests that the hiring pace in the new year is expected to be healthy, as it was in the fourth quarter, and slightly improved from a year ago.

Interesting, but what is really telling us? The data is not giving enough data. Are these companies are burger-flipping jobs at McDonalds or VP positions at Fidelity? This warrants further investigation. Checking data from the Mass Department of Workforce Development, I came across their latest numbers:

Professional, scientific, and business services added 1,500 jobs in November, with strong gains recorded in computer systems design services and management, scientific, and technical consulting services

Trade, transportation, and utilities lost 1,200 jobs in November, reversing much of the 1,600 job gain from the previous month. Seasonal hiring in such industries as clothing and accessories stores, general merchandise stores, and sporting goods, hobby, and book stores was less robust than usual

Education and health services employment increased by 1,300 in November with gains concentrated in the health care component

Employment in the information super sector at 87,900 was essentially unchanged (+100) and has remained flat through most of 2006.

Financial activities jobs increased by 500 in November with most of the increase occurring in insurance.

Leisure and hospitality lost 700 jobs in November, following a 3,100 loss in October, the result of seasonal related declines

Construction employment was unchanged in November at 141,300. Employment trends since the beginning of the year show 800 fewer jobs from one year ago.

Manufacturing employment was off 800 in November, with fabricated metals and semiconductors each down 200. At 304,400, manufacturing employment is up from one year ago, despite jobs being off by 3,000 since July of this year.

To summarize, there are gains in Insurance, Health Care, computer systems design services and consulting, but with other industries losing jobs, it appears not to be steady growth but rather the continuing ebb and flow of gain and loss. With the recent news that EMC was planning to cut 1,250 jobs this year as well as Boston Scientific axing 600 jobs the news looks worse. However, companies like Eduventures Inc in Boston is looking to add 70 employees this year, Tyco Healthcare in Mansfield is planning massive hirings once they spin-off from the troubled parent company, and medical software firm Meditech looks to add almost 200 new faces over the course of the next year.

Hiring surveys and statistics make great copy for 20 second news snippets and headlines in the Business pages. Statistics can be massaged to suit the view of whoever is looking at them, but they are far from an absolute statement of where hiring in the Northeast is going to be and at what rate. Reviewing all the data and actually being involved in the process and working hands-on with hiring companies is what allows a clearer view of what is going on in the job market.

Since its inception in 2002, HiProFile has established selected relationships with organizations throughout New England needing to fill positions at the $80–300K base salary level. Unlike outplacement firms or “headhunters,” HiProFile establishes cost-effective on-going relationships and carefully recruits Member Companies to preserve its “boutique” status. In other words, the firm maintains a “by invitation only” policy regarding client companies based on strict non-compete and non-solicitation agreements.Additional questions or information requests should be directed to Hal Bent, Senior Director of Communications (hbent@hpfjobs.com).

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

JOB APPLICATION FRUSTRATION: Where did my resume just go?

By Hal Bent, Senior Director of Communications


Oftentimes, I tend to find myself with my nose buried in industry resources in an attempt to keep current in the marketplace, stay on top of trends, and dig up any nuggets of information that may be helpful to me and co-workers in our jobs. One columnist I was reading recently had a piece about the difficulties that internal recruiters in Human Resources departments face in filling key positions. In his article 7 Mistakes Internal Recruiters Make, Nick Corcodilos lists a myriad of reasons why these companies do not fill the jobs they have in a timely manner. In my opinion, I thought the article was of interest not only to target audience of recruiting firms or HR departments, but also to the executives who have been frustrated by applying for countless jobs and having them fall into the HR black hole. The article does a decent job of showing where the process falls apart in the HR department of these companies.

As an example: Mistake 3 - They know too much HR and too little about their industry: How many times has a job description appeared that looks like a perfect fit for your background and skills and never heard a peep back from the company? Too often, clerks and administrators in Human Resources are discounting eminently qualified candidates. Instead of your credentials getting to someone who could see how qualified you are to help this company, Human Resources dumps you in the not-acceptable bin due to some ticky-tacky qualifier in the job description that probably has no real role in the position. If you are lucky, you get a form letter informing you that “thanks, but no thanks” with no explanation and no chance to make your case to the person who would benefit most from having you at the company: the hiring decision maker.
Just a peek at the comments sections of job boards like Indeed.com and others show the bubbling-over frustration job-seekers have when trying to get through HR and get the interview process started. Sure, in some cases there are reasons why you are rejected by HR, but sometimes it is good to know: It’s not you—it’s them!

Since its inception in 2002, HiProFile has established selected relationships with organizations throughout New England needing to fill positions at the $80–300K base salary level. Unlike outplacement firms or “headhunters,” HiProFile establishes cost-effective on-going relationships and carefully recruits Member Companies to preserve its “boutique” status. In other words, the firm maintains a “by invitation only” policy regarding client companies based on strict non-compete and non-solicitation agreements.Additional questions or information requests should be directed to Hal Bent, Senior Director of Communications (hbent@hpfjobs.com).

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