THE MRINETWORK OPPORTUNITY€¦ · offers in 2011 but have seen an increase (~20%). Most candidates...

© 2012 Management Recruiters International, Inc., All Rights Reserved. An Equal Opportunity Employer. Each office is independently owned and operated. © 2012 Management Recruiters International, Inc., All Rights Reserved. An Equal Opportunity Employer. Each office is independently owned and operated.

MRINetwork.com/RecruiterSentiment

© 2012 Management Recruiters International, Inc., All Rights Reserved. An Equal Opportunity Employer. Each office is independently owned and operated.

As leaders in the search and recruitment industry, MRINetwork recruiters every day are conducting searches in virtually every industry at the executive, professional, and managerial level. From their vantage point, our recruiters have a keen awareness of the overall job market and the factors that affect it, we have once again conducted the MRINetwork Recruiter Sentiment Survey to evaluate the current employment landscape and to determine its direction in the months ahead. The survey results documented in this report indicate that our client companies have a need to both create new positions and to backfill positions that were opened earlier during the recession. Yet, caution is still holding some back from returning to their pre-recession hiring levels. With more than a third of our recruiters noting that despite rebounding sales, hiring managers are meeting resistance in getting authorization to hire, it seems clear that significant pent-up demand for hiring is still unmet.

Although the need to increase headcount was the number one reason for job openings, this was followed closely by vacancies from resignations as top performers are more willing to consider and accept other opportunities. Even though the competition is heating up, employers are not moving quickly to speed up their hiring process. Drawing out the interview process—more than half lasting over a month—opens the possibility of top candidates receiving and accepting other offers. As you navigate today’s changing landscape, it is our hope that the findings of this survey will help you develop the employment strategies that will move your company forward. We welcome your feedback, as well as the opportunity to work with you in finding the people who will truly make a difference in your organization. Rob Romaine President of MRINetwork


What is Causing Job Openings?

Q1: Of the job orders you are seeing today, what is the primary reason for the opening?

0%

10%

20%

30%

40%

50%

60%

Top grading

workforce

Newly

created

positions

Vacancies

from

resignation

Vacancies

from

retirement

Other

12%

53%

28%

4% 2%

14%

59%

21%

3% 3%

Jan-12

Jul-11


Comments on the causes of job openings today

• [Employers] cut so deeply over the past two years that productivity has suffered. Today, they are hiring out of necessity and a belief that the economy has begun to turn.

• Vacancies from the slowdown are finally being backfilled. This is a result of business picking up and the inability of the current workforce to keep up with demand.

• They have been too lean and some of their workforce has now retired.

• Many companies are experiencing an increase in their overall activity levels--sales and new contracts--or anticipating an increased demand for services.


Candidate or Employer Driven Market?

Open Comments:

- It's situational. In areas of technical skill, it's candidate driven. In areas of low skill, clients can be picky.

- Employers hire good candidates in ANY market!

- It's an employer-driven market, but that is certainly in flux. It's very likely that 2012 will end with the situation largely reversed in most fields.

- Though it's difficult to find qualified candidates, employers still have the mindset it's not and haven't adjusted from a salary or qualification standpoint.

Q2. Do you have any comments about this being a candidate or employer driven market? Has this recently changed?

54% 46%

Jul-11

56%

44% Jan-12

A candidate-driven market An employer-driven market


Has the Use of Counter Offers Increased?

Open Comments:

- Each time I have gotten to offer, there has been only one viable offer or the candidate was interviewing specifically because of the desirability of the role (not actively looking for a new job).

- In some cases, yes. Companies are realizing they are losing people, and the smart ones are starting to address the issue with salary increases and/or promotions.

- We didn’t lose any deals to counter offers in 2011 but have seen an increase (~20%). Most candidates we have talked to over the past 10 months have been engaged in interviews with multiple companies. All are getting multiple recruiter calls.

Yes

52%

No

48%

January 2012

Q3. In the last six months, have you seen an increase in the number and competitiveness of counter-offers?


What Would Cause Employers to Hire More?

Q4. What single factor - aside from a company’s revenue - would most help improve employer confidence in adding to their headcount?

8%

3%

3%

10%

11%

13%

14%

15%

22%

0% 5% 10% 15% 20% 25%

Other

If government spending were to increase.

If the cost of oil were to decrease.

If the unemployment rate would fall further.

If government spending were to decrease.

If GDP would grow faster.

If there were reductions in taxes (payroll,

capital gains, corporate, etc.)

If corporate spending were to increase.

If consumer spending were to increase.

Jan-12

Jul-11


What is Holding Managers Back From Hiring?

Q5. What do you feel is most holding back the hiring managers you work with from returning to their pre-recession staffing levels?

6%

5%

12%

17%

26%

34%

0% 10% 20% 30% 40%

Other

They already have returned to or surpassed pre-

recession levels.

Sales have not rebounded and less staff is needed.

Sales have rebounded, but hiring managers are not

finding enough suitable candidates to fill open

positions.

Efficiencies found during the recession have

allowed them to do the same with fewer staff.

Sales have rebounded, but hiring managers meet

resistance to getting authorization to fill their open

positions.

Jan-12

Jul-11


What Is the Best Pedigree for a Candidate to Have?

Q6. Which of the following is the best pedigree for a candidate to have?

0%

11%

17%

7%

9%

45%

10%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Ivy league degree

An advanced degree in their field.

Having worked for name brand employers.

Having worked closely with well-known

people in the field.

A demonstrated history of creative thinking.

A demonstrated history of creating revenue.

A demonstrated history of cutting costs.


Open Comments Regarding Candidate Pedigrees

• Hiring authorities are looking for candidates with a positive attitude.

• Confidence and the ability to sell their personal value potential is critical. A lot of what needs to get done has not been done before (invention).

• It’s largely about a consistent track record of value creation, creativity, resilience, and innovation.

• It would have to be a combination of their academics and career choices; if they have had an opportunity for a fellowship, have been pursued by past managers for new opportunities, and have worked on a higher-profile project or two.


How Many Interviews to Get an Offer?

Q7. Thinking of your most recent placement … how many interviews were there before an offer was made?

4%

33%

41%

13%

9%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1 2 3 4 5 or more

Jan-12

Jul-11


How Long Does it Take to Get an Offer?

Q8. Thinking of your most recent placement … how much time was there between when the candidate was first interviewed and when an offer was made?

19%

36%

25%

14%

6%

0%

5%

10%

15%

20%

25%

30%

35%

40%

1 - 2 Wks. 3 - 4 Wks. 5 - 6 Wks. 7 - 8 Wks. > 9 Wks.

Jan-12

Jul-11


Additional Open Comments

• Candidates are more difficult to work with than 6 months ago. They feel they have the upper hand.

• Candidates are hesitant to make changes. They will be open to new opportunities but hesitant to make a career change unless all their expectations are met. Even if the potential employer is a stable and growing business, candidates seem reluctant.

• Companies are slow to accept that the market has turned to candidate-driven and their process is costing them quality candidates. The companies that move quickly are snapping up the talent.

• Clients want top tier candidates at tier 3 compensation. Many clients also believe there are so many people unemployed that they can have their pick or don’t need the services of a search firm.

• The single biggest factor affecting the search process is: can the candidate relocate? This issue has increased the recruiting effort required for a successful search by a factor of 10!


About the Study

The MRINetwork Recruiter Sentiment Study (2012 1st Half) is based on a survey conducted between December 19, 2011 and January 12, 2012 via a web-based questionnaire with a total of 163 recruiters responding. The survey has a 4.8 percent margin of error with an 80 percent confidence.

The survey was conducted by MRINetwork and compiled by Sean Muir (215.751.1762 | [email protected]), MRINetwork’s marketing and research manager. Additional assistance was provided by Kitchen Public Relations and the MRINetwork Marketing Committee.

This was the 2nd edition of the study, which is conducted on a bi-annual basis. Parties interested in receiving the most recent report should contact an MRINetwork affiliate, which can be found at MRINetwork.com or find more information at MRINetwork.com/RecruiterSentiment.

THE MRINETWORK OPPORTUNITY€¦ · offers in 2011 but have seen an increase (~20%). Most candidates...

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