Leadership Jumping Ship. Attracting and retaining the best performers at professional services firms

Transcription

1 Leadership Jumping Ship Attracting and retaining the best performers at professional services firms

2 2 Summary In September 2016, Russell Reynolds Associates surveyed 333 senior executives at professional services firms across the Americas, Europe and Asia-Pacific to explore: the reasons they accept or decline offers of employment at other firms and their perceptions of recruiting processes. The respondents are employed by a wide range of professional services firms, public and private, large and small, which are focused on strategy consulting, technology advisory, operations and other services. Key findings include: Top performers are highly sought after: 80% of respondents receive four or more calls per year for external opportunities, and 19% receive more than 15 such calls per year. Both women and men consider a more interesting or challenging role the most important factor by far when accepting a career move, outweighing 10 other factors, including compensation. Women are interviewing for jobs and accepting offers at a higher rate than men. Executives aged 40 and above place more emphasis on innovative culture than younger executives when evaluating a future role and employer. Compensation is twice as critical to executives in the Americas as it is to those in Europe and the Asia-Pacific region. We are pleased to share our findings and insights to help companies attract the best talent in the marketplace. The report first explores gender-based differences, followed by insights related to seniority and age. We conclude with geographical variances. We welcome the opportunity to share additional details regarding the report and to discuss strategies to help you navigate this competitive talent market.

3 3 Recruiting top talent in professional services has become hypercompetitive Female executives are in high demand and making moves 80% of all respondents (men and women) receive four or more calls per year for external opportunities, and 19% receive more than 15 calls per year. More than % 19% External job offers in the last five years Received four or more offers 17% % % Accepted at least one offer 60% 48% 1 3 None 3% 17% External job interviews in the last five years 8 or more interviews 14% 9% 5 7 interviews 20% 20%

4 4 Candidates want to "step up" new challenges and expanded opportunities drive career moves Men and women differ when evaluating external offers Percentage of respondents rating a factor as critical 1 More challenging or interesting role 53% 62% Clear career advancement opportunities beyond offered role More senior job title or increase in authority Greater growth prospect or potential of the hiring company More autonomy and control over my work Better connection or rapport with manager 20% 40% 36% 39% 35% 38% 41% 31% 29% 31% Affinity with or higher perceived quality of future colleagues Better work-life balance More innovative or entrepreneurial company culture 13% 25% 24% 21% Brand or reputation of the hiring company Better compensation or other financial reasons 18% 18% 32% 30% Women Men 1 Survey response options were "not important," "somewhat important," "important," and "critical."

5 5 Gender matters: understanding differences in attitudes Candidates highly value interviews and other interactions with prospective employers. More employers are investing in a highly personalized interview process to create deeper relationships with candidates. Percentage of respondents rating a factor as important or critical in shaping their perception of a potential employer 2 Important Critical Total Interview and experience with prospective employer 14% 80% 31% 63% 94% 94% Regular communications and updates 46% 37% 83% 54% 34% 88% Organization/execution of recruiting process 63% 54% 29% 80% 92% Length of recruiting process 66% 49% 13% 6% 62% 72% Ease/convenience of scheduling interviews 63% 9% 47% 12% 59% 72% Women Men Lower perceived quality or affinity with future colleagues is a significant factor in decisions to decline an offer, especially for women. Women Men 48% 37% 43% Important Critical A requirement to relocate or commute out of state/country regularly would significantly reduce a job's attractiveness to female executives. 19% 31% 32% 19% Men 11% 29% 34% Women Willing to relocate to most citites Willing to relocate only to a major business city Willing to commute out of state/country almost every week but not to move Not willing to relocate or commute out of state/country almost every week 2 Survey response options were "not important," "somewhat important," "important," and "critical."

6 6 Insights related to seniority and age The more senior the candidate, the more critical the reputation of the search firm or consultant when deciding whether to respond to the consultant's calls. Percentage of respondents rating a factor as important or critical 3 Senior Partner Partner 4 Pre-Partner 5 Important 50% 55% 57% Critical 30% 23% 9% For senior partners, job title/scope/authority and innovative culture are among the most critical factors in evaluating a job offer compared to pre-partners. Percentage of respondents rating a factor as critical Job title, scope or authority 18% 37% 41% Innovative culture 6% 25% 31% Senior Partner Partner Pre-Partner Rapport with new manager 20% 36% 38% Reputation of hiring company 11% 29% To attract and retain top next-generation leaders, employers need to support work-life balance, offer clear advancement opportunities and promote positive relationships with managers and colleagues. Percentage of respondents indicating a factor as important or critical AGE Clear career advancement opportunities 96% 84% 76% Better connection, rapport or affinity with new direct manager 67% 72% 74% Work-life balance 67% 62% 43% Executives aged 40 and above place more value on an innovative or entrepreneurial company culture than younger executives. Innovative or entrepreneurial company culture 63% 79% 83% 3 Survey response options were "not important," "somewhat important," "important," and "critical." 4 The term "partner" refers to a leader in professional services firms and includes partners, managing directors, vice presidents, etc. 5 "Pre-partner" includes managers, senior managers, directors, principals, consultants, etc., who are below partner level.

7 7 A more challenging role is universally most important for executives considering a job change Geographic location is a key driver of decisions around compensation, work-life balance and new job title/scope AMERICAS EUROPE ASIA-PACIFIC Almost all executives globally are interested in a more challenging role to build something new. 57% 35% 50% 42% 63% 33% Compensation is more critical to Americas-based executives considering a job offer compared to those in Europe or the Asia- Pacific region. 39% 18% 20% 41% 55% 57% Europe-based executives are less concerned with seniority of a job title when accepting a job offer than those in the Americas and the Asia-Pacific region. 43% 25% 39% 35% 45% 41% Executives in the Asia- Pacific region place more emphasis on work-life balance when accepting an offer than those in the Americas or Europe. 16% 10% 17% 34% 34% 43% Important Critical

8 8 CONTRIBUTORS ANTONIO MACHADO helps clients build successful leadership teams by advising them on talent decisions and by identifying, attracting and assessing senior executives. He is a member of the firm s Business and Professional Services practice and Technology practice. He serves public, private and private-equity backed clients ranging from start-ups to Fortune 50 companies. He is based in Atlanta. LAWRENCE KENNY co-leads the firm's Business and Professional Services practice and focuses on senior executive search and leadership and assessment assignments in the Technology sector. Lawrence recruits CEOs, CFOs, and board members for public companies and works with clients in the consulting, systems integration, and BPO and outsourcing industries. He is based in Atlanta. ADRIAN FISCHER helps European and German clients recruit and retain top-tier business leaders. As a former strategy consultant working exclusively in the digital technology sector, he focuses on three areas: business and professional services, e.g., strategy consulting, Big Four and IT services firms (including CIO-related work), technology companies including telecommunications and high-tech, and digital including pure Internet players and digital transformations of major companies in financial services, retail and automotive. He is based in Munich. HANS REUS helps global, European and Dutch clients identify, assess, appoint and retain top-tier business leaders. He focuses on two markets, in line with his previous experience and education: business and professional services, e.g., consulting, accountancy, law firms, temporary staffing and business process outsourcing, which he co-leads globally, and technology, e.g., digital, information security, Internet of Things, cloud, media, mobility, outsourcing, chief information officers, semiconductors and clean tech. He is based in Amsterdam. PUNEET KALRA leads the firm's Technology sector in India and drives its strategy across the Asia-Pacific region. He also co-leads the Business and Professional Services practice globally. Puneet has led various technology CEO- and CXO-level searches searches as well as leadership assessment and CEO succession engagements in India and globally with both multinational and Indian heritage companies. He is based in New Delhi. MIKI CARLTON is the firm s global knowledge leader for the technology sector. She is based in Palo Alto. KATIE DEWEY is a knowledge analyst in the technology sector. She is based in Palo Alto. GEORGE HEAD is a knowledge analyst in the technology sector. He is based in London. Our Business and Professional Services consultants work with leading professional services firms globally to help them recruit and retain successful leaders and navigate complex leadership and talent issues, CEO succession planning and board effectiveness. Learn more at

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