Integré Partners Press Release:

March 25, 2010

 

 

 

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.

 

- 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

 

 

 

 

 

Achievement Orientation 

 

68%

 

56%

Activator of Others

 

30%

 

 

Adaptability

 

26%

 

29%

Analytical Skill

 

28%

32%

 

Arranger/Orchestrator

CRITICAL

 

 

 

Communications

 

40%

28%

32%

Command Presence

CRITICAL

 

 

 

Competitive Nature

CRITICAL

 

 

 

Developer of Others

CRITICAL

34%

 

35%

Focus

 

 

28%

 

Futuristic Orientation

 

 

32%

 

Intellectual Ability  

 

28%

44%

38%

Maximizer

CRITICAL

 

 

 

Positive Outlook

 

 

 

32%

Relates to All

 

 

32%

 

Responsible

CRITICAL

 

 

32%

Self-assurance

CRITICAL

 

 

 

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

 

> $1 Billion

 

10%

Distribution/Transportation

20%

Human Resources

 

$100 Million - $1 Billion

 

24%

Financial Services

25%

Other Staff Management

 

< $100 Million

 

10%

Healthcare

 

 

 

 

 

17%

Manufacturing

 

 

 

 

 

1%

Natural Resources

 

 

 

 

 

1%

Personal Services

 

 

 

 

 

23%

Professional Services

 

 

 

 

 

2%

Real Estate

 

 

 

 

 

3%

Retail

 

 

 

 

 

9%

Technology

 

 

 

 

 

3%

Utilities

 


 

 

 

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