Replacing Executives When They Leave…

05/17/2011 10.54 EST

...

Where are the reinforcements? I was looking at some data this week about searches performed in our firm over the past five years.  What I saw supported something we have been seeing in the retained executive search business since the start of the Great Recession. Five years ago, about 80% of our search assignments were initiated to replace executives who had left their jobs for some reason.  It might be retirement, relocation, promotion.  Some were lured away for better jobs in different companies.  But whatever the reason, the job was open and the company needed to fill it.  Some years, 90% of our assignments were to fill vacated jobs. Last year, 60% of our work was done to fill a vacant role, while 40% was for newly created positions.  So far this year the trend is continuing, with assignments for new roles outpacing replacement roles. So what does it mean? During the recession, many companies froze their hiring, people did not retire and “stars” were not answering recruiter’s calls.  When a job did open up, the company often divvied up the position’s responsibilities between other executives or let the number two person take over or just made due.  Whatever the strategy, the result was the same – fewer people were doing more work.  Still, with all the depressing economic news, no one was about to complain.  Employers didn’t have to tell people “You’re lucky to have a job”.  Employees were saying that to themselves. Now we are...