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Integré Partners Press
Release:
March 25,
2010
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THE RESULTS
Integré Partners recently conducted a survey, asking
thousands of executives to share their thoughts regarding hiring
practices in a recessionary period.
SUMMARY
-
Recessions do not appear to impact leadership changes, but do
precipitate more changing out of other management.
- Almost half of respondent's companies have invoked hiring freezes.
- 65% of respondents felt hiring restrictions would persist into 2010.
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Most respondents are still making executive hiring decisions based on a
static functional basis rather than using a dynamic leadership model.
THE SPECIFIC RESULTS
43% of respondents felt they would be MORE likely to make a leadership
change in a recession, with 57% LESS apt to make such a change. Smaller
companies were more prone to a change. However, 64% felt they would be
MORE likely to replace other management personnel during a downturn,
again with smaller companies more apt to make changes. No significant
differences were apparent when the data was analyzed by industry.
For those who felt more inclined to a change, cost issues came to the
top when looking at average rank ordering possible reasons:
1.7 - Cost Savings
2.2 - Need for Different Skills
2.8 - Drive Change in Culture
3.0 - Board Pressure
Those who were disinclined to make changes, there were no strong
differentials as seen in the following:
2.4 - Send a Strong Cost Control Message
2.6 - Postpone Leadership Change Disruptions
2.8 - Save Recruiting Expense
46% of the respondents had total hiring freezes in place, with 64%
feeling they would not be lifted until sometime in 2010. Companies with
sales over $1 billion had the highest incidence of hiring freezes: 62%.
The healthcare and professional services sectors did not employ hiring
freezes as aggressively as the norm, while real estate and technology
had higher incidences than average.
Survey participants were asked to choose the top factors they would look
for when hiring a leader in a recession from a list of thirty-four
factors studied over many years by Marcus Buckingham and Donald Clifton
as published in Now, Discover Your Strengths, which we at Integré
Partners use as a selection aid. The eight strengths continuously
correlated with executive success (regardless of the business cycle)
are listed below along with the top eight chosen by three major groups
in the survey:
|
Factor |
Buckingham/
Clifton |
Line Mgmt |
Human Resources |
Other Staff |
|
|
|
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|
|
|
Achievement Orientation |
|
68% |
|
56% |
|
Activator of Others |
|
30% |
|
|
|
Adaptability |
|
26% |
|
29% |
|
Analytical Skill |
|
28% |
32% |
|
|
Arranger/Orchestrator |
CRITICAL |
|
|
|
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Communications |
|
40% |
28% |
32% |
|
Command Presence |
CRITICAL |
|
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Competitive Nature |
CRITICAL |
|
|
|
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Developer of Others |
CRITICAL |
34% |
|
35% |
|
Focus |
|
|
28% |
|
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Futuristic Orientation |
|
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32% |
|
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Intellectual Ability |
|
28% |
44% |
38% |
|
Maximizer |
CRITICAL |
|
|
|
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Positive Outlook |
|
|
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32% |
|
Relates to All |
|
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32% |
|
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Responsible |
CRITICAL |
|
|
32% |
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Self-assurance |
CRITICAL |
|
|
|
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Strategic Nature |
CRITICAL |
45% |
48% |
41% |
Of those strengths favored by the respondents, the majority (aside from
strategic nature and developer) are primarily skills that are applied to
the execution of management functions. Research has shown that
leadership is dynamic and requires a person of strong ego
(self-assurance) who wants to win passionately (competitive nature), is
totally committed to excellence (responsibility) and has the personality
that creates followership (command presence). The most effective
leaders are almost always those who consistently develop the people
around them, maximizing their ability to contribute, while
simultaneously enhancing the effectiveness of the organization by
balancing a host of strategic and tactical elements (arranger/orchestrator).
THE SAMPLE
|
Function |
|
Company Size |
|
Sector |
|
55% |
Line
Management |
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> $1 Billion |
|
10% |
Distribution/Transportation |
|
20% |
Human
Resources |
|
$100 Million -
$1 Billion |
|
24% |
Financial
Services |
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25% |
Other Staff
Management |
|
< $100 Million |
|
10% |
Healthcare |
|
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17% |
Manufacturing |
|
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1% |
Natural
Resources |
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1% |
Personal
Services |
|
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23% |
Professional
Services |
|
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|
|
|
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2% |
Real Estate |
|
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3% |
Retail |
|
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9% |
Technology |
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3% |
Utilities |
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