The 2014 BlueSteps · 2014-01-30 · The 2014 BlueSteps Executive Outlook shows that the majority...

The 2014

BlueStepsGlobal Executive Outlook

Share the Report

http://bluesteps.com/se/partners/n2216.asp

http://hrefshare.com/b159

http://hrefshare.com/418a

http://hrefshare.com/17d2

http://hrefshare.com/b0ef

Share the Report

About BlueSteps.com BlueSteps.com is an online career management service for global senior executives. As an exclusive service of the Association of Executive Search Consultants (AESC), BlueSteps enables senior executives to make their career profile accessible to over 8,000 retained executive search professionals in more than 75 countries who are members of the AESC, and use the database as an additional resource in their candidate and source identification process. BlueSteps members can stay informed of executive job market trends and news via the BlueSteps Career Library and Blog, and use a variety of tools and resources to facilitate the successful management of their executive career path.

Click here for more information or visit: BlueSteps.com.

About The Association of ExecutiveSearch Consultants The Association of Executive Search Consultants (AESC) is the worldwide professional association for the retained executive search sector. The AESC promotes the highest professional standards in retained executive search consulting, broadens public understanding of the executive search process, and serves as an advocate for the interests of its member firms. For more information, or to download the AESC Code of Ethics and Professional Practice Guidelines, please visit www.aesc.org.

About Executive Search Connect The AESC also offers www.ExecutiveSearchConnect.com, a service for the HR community offering sector information and tools to assist with senior executive recruiting, including access to the AESC membership directory.

425 Fifth Avenue, 4th FloorNew York, NY 10016Phone: 1 (800) 363-1207Email: [email protected]: www.bluesteps.com









The 2014BlueStepsGlobal ExecutiveOutlook ReportContents:

Page 4-5: Executive Summary

Page 6: About Our Study

Page 7-9: Survey Demographics

Page 10-11: 2014 Global Executive Outlook

Page 12: Executive Concerns

Page 13-15: 2014 Executive Mobility

Page 16-18: 2014 Executive Compensation

Page 19-20: 2014 Executive Opportunities

Page 21-22: The Global War for Talent

Page 23: Executive Search Industry vs. Executive Job Market

4 2014 BlueSteps Global Executive Outlook Report

2014 Executive Job Market OutlookThe 2014 BlueSteps Executive Outlook shows that the majority (51%) of global senior executives share a positive outlook regarding the global executive job market in 2014—up 15% compared to the 2013 outlook. Only 13% of executives surveyed harbor a negative view of the executive job market for 2014.

Peter Felix, AESC President commented: The results of our Outlook survey suggest that many executives are of a mindset to consider a career change and are increasingly optimistic that the environment will be conducive for this to happen. A number of forces are at work to stimulate this not least being the strategic forces such as globalization, digital transformation and industry restructuring that are changing the corporate landscape and are presenting new challenges on a continuing basis.

In spite of continuing volatility in some regions and sectors, there is real evidence of organizations thinking more strategically and looking ahead with a positive mindset. Senior management appointments are one of the key focal points as Boards and top management evaluate the future and consider whether they have the right people in the right jobs.

After 5 years of moribund compensation growth and cost cutting pressures, many executives will consider themselves to be “mobile” once again and interested in a change of environment and opportunity. Greater economic certainty will encourage them to take career risk and this mobility factor may well usher in a new phase in a War for Talent which has been less visible during the financial crisis. Added factors will be the megatrends of the demand from new markets around the world, the major demographic shifts now biting to an unprecedented extent as the baby boomers finally want, and can afford, to retire and the desire by many corporations to feed their succession pipelines.

For talented executives this new and more positive environment may well offer unprecedented opportunity.

2014 Business OutlookSixty percent of global executives share a positive impression of the general business climate for 2014—up 18% over 2013. Only 9% of executives surveyed harbor a negative view of the general business climate for 2014.

2014 Outlook by RegionIn numerous markets, including Canada (92%), China (78%) and Germany (70%), executives are reporting an extremely positive outlook on the executive job market for 2014. These results show a dramatic regional shift in many executives’ attitudes about the executive job market from 2013 to 2014. In 2013, executives in India had the most positive regional outlook (73%). Though executives in India still have a very positive outlook for 2014 (63%), it does not rank in the top three markets. Executives in some markets harbored a more negative outlook than most. In Australia/New Zealand, 50% of senior-level executives stated that they have a negative outlook on the executive job market. Executives in

Executive Summary

The BlueSteps Global Executive Outlook Survey was conducted in December 2013 and received 508 responses from BlueSteps member executives worldwide, including 50% from the Americas, 37% from EMEA and 13% from Asia Pacific.

5

Africa (33%) and ASEAN (31%) also have a less positive outlook than the majority of respondents.

Executive Mobility - Making a Career Move in 2014With such a big change in the global senior executive outlook, it’s not surprising that 74% of executives report being more willing to make a career move in 2014 than in 2013, while 87% plan to at least look for a new executive opportunity this year.

When asked to choose the top two elements that might hinder them from making a career move in 2014, the majority (86%) cited “the inability to find opportunities that match their career goals,” followed by “declines in compensation” (43%). When asked to report the top two benefits that would most entice them to consider a career move in 2014, 64% of executives reported “a move to a better role with increased responsibility,” followed by 60% who reported “an increase in total compensation” as a primary motive for making a career move. Consistent with data from the last two years, 45% of executives expect it to take them on average 6-12 months to secure their next executive opportunity.

Executive Compensation in 2014Regarding executive pay, 53% of executives expected their compensation to increase in 2014, while 39% expected their compensation to stay the same in 2014 as in 2013. Only 8% of global executives expected their total compensation to decrease in 2014.

The Global War for TalentGlobal executives predict the greatest executive talent shortages to occur in the United States, China and the Middle East during 2014. Executives also predict the greatest talent shortage to occur in the technology/telecoms sector, followed by healthcare/life sciences and energy/natural resources.

2014 BlueSteps Global Executive Outlook Report

6About Our Study

Participants

355 men65 women88 did not identify gender

Gender

Career Level

508508 executives from around the world participated in the study.


7

Regions of the World Represented by Survey Participants

Survey Demographics


1%

2%

2%

2%

2%

3%

3%

4%

4%

4%

4%

5%

6%

18%

40%

Africa

Germany

China

Australia/New Zealand

Other

Canada

Central/South America

Brazil

CEEC

India

ASEAN

Middle East

UK

Continental Europe

US

2%

2%

4%

7%

7%

9%

10%

11%

20%

27%

Hospitality/Tourism

Media/Entertainment/Advertising/PR

Not for Profit/Public Sector/Education

Energy/Natural Resources

Other

Healthcare/Life Sciences

Financial Services

Professional Services

Technology/Telecoms

Manufacturing/Industrial

8

Sectors Represented by Survey Participants

Survey Demographics


9

Functions Represented by Survey Participants


2%

3%

4%

6%

7%

7%

8%

11%

12%

15%

26%

HR & Training

R&D/Product Development

Board Director

CTO/CIO/Technology

CMO/Marketing/PR

Other

Consulting

CFO/Finance & Accounting

Business Development & Sales

COO/Operations/Production

CEO/President/GM

Survey Demographics

10

2014 Outlook - Executive Job Market

2014 Outlook - General Business Climate

Executive Outlook

The majority of global senior executives share a neutral to positive outlook regarding the global executive job market in 2014, with 51% of executives feeling positive and 36% feeling neutral. Thirteen percent of global executives share a negative attitude about the global executive job market in 2014. This represents a significant change (+15%) compared to this time last year when only 36% of executives felt positive about the executive job market for 2013.

The majority of global senior executives share a positive outlook regarding the global business climate in 2014, with 60% of executives feeling positive and 31% feeling neutral. Only 9% of global executives share a negative attitude about the global business climate in 2014. Executives with a positive business climate outlook has also increased significantly (+18%) since this time last year when 42% of executives felt positive about the business outlook for 2013.


51%

13%

36% PositiveNegativeNeutral

60%9%

31%PositiveNegativeNeutral

11Executive Outlook - Comparisons

Region Positive Negative NeutralAfrica 33% 33% 33%ASEAN 50% 31% 19%Australia/New Zealand 20% 50% 30%Brazil 61% 6% 33%Canada 92% 0% 8%CEEC 31% 19% 50%Central/South America 38% 15% 46%China 78% 0% 22%Continental Europe 41% 11% 48%Germany 70% 10% 20%India 63% 6% 31%Middle East 41% 18% 41%Russia 50% 0% 50%UK 63% 8% 29%US 52% 14% 34%

Regional Attitudes About the Executive Job Market in 2014Based on the percentage of executives reporting that specific outlook

Sector Positive Negative NeutralEnergy/Natural Resources 66% 3% 31%Financial Services 60% 20% 20%Healthcare/Life Sciences 54% 13% 33%Hospitality/Tourism 38% 13% 50%Insurance 75% 0% 25%Manufacturing/Industrial 50% 9% 41%Media/Entertainment/Ad-vertising/PR

60% 20% 20%

Not-for-Profit/Public Sector/Education

53% 6% 41%

Professional Services 57% 13% 30%Technology/Telecoms 40% 21% 39%

Sector Attitudes About the Executive Job Market in 2014Based on the percentage of executives reporting that specific outlook


12 2014 BlueSteps Executive Compensation Report

Career-Related Concerns

Executive Concerns

Amongst the 13% of executives who viewed the executive job outlook as negative for 2014, finding a new executive opportunity was the primary concern of most executives, followed by ongoing concerns regarding increased competition for executive jobs, ageism’s impact on the ability to obtain a new job, and the volatile economic and political conditions. Specific comments included:

“Business is down and many of the larger companies are downsizing, I expect it to be difficult to find a position at the right level in 2014.”

“Executive candidates are widely available and seeking jobs. For example, a senior general counsel position received over 700 applicants through a direct solicitation by the employer.”

“The finance industry is shrinking, with more regulation and risk-aversion, while the pool of highly qualified executive job seekers is expanding rapidly.”

Amongst the 9% of executives who viewed the business outlook as negative for 2014, the main concerns continue to be related to global economic volatility, with many pointing to the ongoing financial crisis in Europe, political gridlock and a perceived lack of fiscal responsibility by the US government and a slowdown in Asia Pacific.

“India is going through political instability and therefore economic turmoil. Investor sentiment is poor due to poor policies and the weak rupee. This is has a multi-level impact on the ability for industries and businesses to grow.”

“Slowdown in global growth, flat growth of Western economies and the slow down of the BRIC economies could portend slower global economic growth.”

“I am concerned about the continued gridlock in Washington, which I believe will continue well into 2014. As the economy continues to recover, I expect the manufacturing sector to remain strong as companies invest in new products and repatriate products from offshore facilities.”

Business-Related Concerns

13

The Search for New Opportunities

Executive Mobility

Despite a challenging global economy, 87% of global executives plan to look for new opportunities in 2014 compared to the only 13% of executives who do not plan to look for a new executive opportunity in 2014.

2014 Global Executive Mobility

The greatest percentage (74%) of global executives are more willing to make a career move in 2014 than they were in 2013. Only 7% of executives feel less willing to make a career move in 2014, while 19% of executives report they are as willing to make a career move in 2014 as they were last year.


74%

7%

19%

I am more willingto make a careermove in 2014 thanI was in 2013

I am less willing tomake a careermove in 2014 thanI was in 2013

I am as willing tomake a careermove in 2014 as Iwas in 2013

87%

13%

Yes

No

14

Making a Career Move in 2014 - The Negatives

Making a Career Move in 2014 - The Positives

Global executives report concerns about inability to find opportunities that match their career goals (86%), as well as declines in compensation (43%), as the top two concerns that would most hinder them from making a career move in 2014.

64% of global executives would be most enticed by a career move in 2014 if it meant a move to a better role and/or increased responsibility. 60% of executives report that increased total compensation would most entice them to make a career move in 2014.


8%

8%

35%

43%

86%

General aversion to risk

Inability to relocate due to real estatemarket

Concerns about marketinstability/state of economy

Declines in compensation offered(including non-cash comp.)

Inability to find an opportunity thatmatches my career goals

13%

16%

21%

23%

60%

64%

Change to a more stable industry

Opportunity for overseas relocation

Better work-life balance

Better work environment

Increased total compensation(including non-cash comp.)

Better role/increased responsibility

Executive Mobility

15

Executive Mobility

Regional Outlook for Executive Mobility in 2014Based on the percentage of executives reporting their willingness to make a career move in 2014

Sector Outlook for Executive Mobility in 2014Based on the percentage of executives reporting their willingness to make a career move in 2014


Region More Willing Less Willing No ChangeASEAN 64% 36% 0%Australia/New Zealand 83% 0% 17%Brazil 92% 8% 0%Canada 80% 10% 10%CEEC 79% 7% 14%Central/South America 67% 11% 22%China 86% 14% 0%Continental Europe 72% 2% 26%Germany 75% 13% 13%India 85% 8% 8%Middle East 16% 2% 3%UK 55% 0% 45%US 71% 5% 24%

Sector More Willing Less Willing No ChangeEnergy/Natural Resources 91% 4% 4%Financial Services 68% 12% 20%Healthcare/Life Sciences 57% 11% 32%Hospitality/Tourism 86% 14% 0%Insurance 75% 0% 25%Manufacturing/Industrial 77% 5% 18%Media/Entertainment/Ad-vertising/PR

50% 17% 33%


73% 13% 13%


2014 Expected Total Compensation Among Global Executives

16

Executive Compensation

53% of global executives expect their total compensation to increase in 2014, while 39% expect no change in total compensation this year. Only 8% of global executives expect a decrease in their total compensation in 2014.

Executives’ overall compensation outlook for 2014 is 6% more positive than it was for 2013. Last year, 47% of global executives expected their total compensation to increase, while 42% expected no change in total compensation this year. Only 11% of global executives expected a decrease in their total compensation in 2013.


53%

8%

39%IncreaseDecreaseStay the same

17

2014 Expected Total Compensation - Increases

Executive Compensation

Of those global executives expecting an increase in their total compensation in 2014, the greatest percentage (32%) expect to see a 6-10% increase.

At this time last year, most respondents (29%) were expecting a 1-5% increase in total compensation in 2013.

2014 Expected Total Compensation - DecreasesOf those global executives expecting a decrease in their total compensation in 2014, the greatest percentage (25%) expect to see a 16-20% decrease.


19%

32%

21%

12%

6%

3%

2%

5%

+ 1-5%

+ 6-10%

+ 11-15%

+ 16-20%

+ 21-25%

+ 26-35%

+ 36-45%

+ 46% or higher

13%

21%

13%

25%

13%

0%

0%

17%

- 1-5%

- 6-10%

- 11-15%

- 16-20%

- 21-25%

- 26-35%

- 36-45%

- 46% or higher

18

Regional Outlook for Executive Compensation in 2014Based on the percentage of executives reporting expected changes to their total compensation in 2014

Sector Outlook for Executive Compensation in 2014Based on the percentage of executives reporting expected changes to their total compensation in 2014


Region Increase Decrease Stay the sameASEAN 64% 0% 36%Australia/New Zealand 17% 33% 50%Brazil 69% 0% 31%Canada 70% 0% 30%CEEC 64% 7% 29%Central/South America 44% 11% 44%China 100% 0% 0%Continental Europe 31% 11% 57%Germany 63% 0% 38%India 69% 8% 23%Middle East 52% 14% 33%UK 64% 0% 36%US 52% 8% 40%

Sector Increase Decrease Stay the sameEnergy/Natural Resources 65% 0% 35%Financial Services 40% 16% 44%Healthcare/Life Sciences 54% 11% 25%Hospitality/Tourism 71% 0% 29%Insurance 50% 0% 50%Manufacturing/Industrial 46% 2% 40%Media/Entertainment/ Advertising/PR

33% 0% 67%


33% 0% 67%


19

Finding a New Executive Opportunity

Executive Opportunities

The greatest percentage of global executives (54%) expect 2014 to be as difficult as 2013 for finding new executive opportunities. 39% of global executives expect it to be more difficult to find an executive opportunity in 2014 than it was in 2013, while only 7% expect 2014 to be an easier year than 2013 for finding a new executive position.

Comments about finding new executive opportunities included:“Even though there currently appears to be an abundance of career opportunities, there are still a large number of qualified candidates. Competition remains stiff.”

“Being based in the Middle East, one sees a major skills shortage. To meet the demands of most sectors in the market, particularly with regional governments, spending is dramatically accelerating in the coming five years.”


8%

31%

54%

6%

1%

Very difficultDifficultNeutralEasyVery easy

20

Timeline for Finding a New Executive Opportunity in 2014

The greatest percentage of global executives (45%) expect the average timeline for finding a new executive opportunity in 2014 to be 6-12 months.

This is the same as executives’ estimate from last year when 41% expected the same average timeline for 2013.

Global Executives on the 2014 Hiring Plans for Their Companies


8%

31%

45%

10%

2%

Less than 3 months

3-6 months

6-12 months

1-2 years

More than 2 years

8%

24%

31%

37%

I don't know

We plan to decrease the number ofemployees

We plan to maintain the same number ofemployees

We plan to increase the number ofemployees

Executive Opportunities

1%

2%

7%

7%

9%

10%

11%

12%

18%

19%

19%

20%

20%

21%

37%

49%

Japan

Other

Russia

Australia/New Zealand

UK

Canada

Continental Europe

CEEC

Africa

India

ASEAN

Latin America

Brazil

Middle East

China

US

21

Top Markets Expected to Experience a Talent Shortage in 2014Based on the percentage of executives reporting a specific market as one that will experience a talent shortage in 2014

The Global War for Talent

Global senior executives rank the US, followed by China and the Middle East as the top three markets that will experience a talent shortage in 2014.


3%

4%

6%

7%

8%

21%

26%

36%

44%

45%

62%

Other

Insurance

Media/Entertainment/Advertising/PR

Hospitality/Tourism

Not for Profit/Public Sector/Education

Financial Services

Professional Services

Manufacturing/Industrial

Energy/Natural Resources

Healthcare/Life Sciences

Technology/Telecoms

22Top Sectors Expected to Experience a Talent Shortage in 2014Based on the percentage of executives reporting a specific sector as one that will experience a talent shortage in 2014

Global senior executives rank technology/telecoms, followed by healthcare/life sciences and energy/natural resources as the top three sectors that will experience a talent shortage in 2014.


23 2014 BlueSteps Executive Compensation Report

Outlook

Executive Search Industry vs. Executive Job Market

By comparing the AESC Executive Search Industry Outlook Report (169 responses from AESC executive search consultants in December 2013) to the BlueSteps Executive Outlook Report, it is apparent that the majority of both executive search consultants and senior-level executives have a positive outlook for 2014. Similar to the results of this BlueSteps Outlook Report, executive search consultants’ outlook for 2014 is much more positive (+29%) than for 2013.

Mobility

51%

13%

36%

64%

3%

33%

Positive Negative Neutral

Executive Outlook Executive Search Outlook

When comparing the results from both the AESC Executive Search Industry Report and the BlueSteps Executive Outlook Report, the findings show that the outlook of search consultants and senior executives is closely aligned, although there may be a greater number of executives willing to consider a move than search consultants believe. While these results indicate that a large number of executives would consider a move, there are of course many factors that contribute towards an individual changing his or her role.

*For AESC member data we combined the two data sets of ‘Candidates will be more willing to make a career move’ (35%) and ‘Candidates will only consider a

career move if there is exceptional financial and employment security offered at the new position’ (31%) to create the total percentage shown in this chart.

74%

19%

7%

66%

31%

2%

More willing tomake a move in

2014

No changeexpected

Less willing tomake a move

Executive Outlook Executive Search Outlook

Share the Report

About BlueSteps.com BlueSteps.com is an online career management service for global senior executives. As an exclusive service of the Association of Executive Search Consultants (AESC), BlueSteps enables senior executives to make their career profile accessible to over 8,000 retained executive search professionals in more than 75 countries who are members of the AESC, and use the database as an additional resource in their candidate and source identification process. BlueSteps members can stay informed of executive job market trends and news via the BlueSteps Career Library and Blog, and use a variety of tools and resources to facilitate the successful management of their executive career path.

Click here for more information or visit: BlueSteps.com.

About The Association of ExecutiveSearch Consultants The Association of Executive Search Consultants (AESC) is the worldwide professional association for the retained executive search sector. The AESC promotes the highest professional standards in retained executive search consulting, broadens public understanding of the executive search process, and serves as an advocate for the interests of its member firms. For more information, or to download the AESC Code of Ethics and Professional Practice Guidelines, please visit www.aesc.org.

About Executive Search Connect The AESC also offers www.ExecutiveSearchConnect.com, a service for the HR community offering sector information and tools to assist with senior executive recruiting, including access to the AESC membership directory.

425 Fifth Avenue, 4th FloorNew York, NY 10016Phone: 1 (800) 363-1207Email: [email protected]: www.bluesteps.com









The 2014 BlueSteps · 2014-01-30 · The 2014 BlueSteps Executive Outlook shows that the majority...

Documents

Transcript of The 2014 BlueSteps · 2014-01-30 · The 2014 BlueSteps Executive Outlook shows that the majority...