German executives adapt to tough market conditions
Candidates compromise – more than ever – on compensation, hierarchy and business location.
The Germany economy is still seeking long-term recovery and many companies, especially in the high-tech markets, are still quite hesitant about making recruitment decisions. The political rulers in Berlin are fighting for reforms to strengthen the German market through modern tax systems and by restructuring the economic framework.
German executive search firms have suffered during the past 2 years and many of them have reduced staff notably or even closed down offices and sometimes entire firms.
The first signs of a recovery are visible. Advisory boards are taking action by replacing board members to take the necessary steps for the future. Others are hiring new heads of Sales and Marketing to be prepared for the global environment and to regain market shares.
Automobiles, machinery and energy are still the drivers of German industry but others are also coming back onto the scene and taking new approaches. Even in IT and high tech, first glimpses of light are appearing on the horizon.
How does this development influence management's attitude in regard to changing jobs? Surveys in the German market find that two thirds of German executives show greater readiness to change jobs, while at the same time only a fifth of employers confirmed this tendency. Candidates applying for executive roles undergo more compromises in order to pursue a new opportunity - especially regarding hierarchy or titles and business location . Only a quarter of respondents regard remuneration as being very important when considering a new job.
Company heads were asked about their impressions. The employers stated that candidates compromise less in terms of perspectives, job security and internationality. This may be the reason why employers claimed that candidates were less prepared to move since very few of the companies can promise true security nowadays.
In other words: candidates are no longer looking for the quick step up into the next echelon or purely for more money, but tend to seek stability and to avoid risks.
What does this mean for consultants? Times are over when the simple call “got an interesting job, 6-digit fix, thousands of options and a brilliant story” kicked managers to consider a job move. More than ever, candidates expect consultants with a profound knowledge of the relevant market segments and proven to have an excellent track record themselves, so they would like to use them as their job coach. Good times for the “grizzlies”.
The employers' statement recognising less readiness to move may be interpreted to mean that the war for talent is still not over and indeed it is no easier to find highly qualified executives for the relevant positions. This may come as a surprise in view of the high unemployment figures in Germany, but it is the reality. In this we see another challenge for the consultants, since only those with long-term relationships in the relevant markets and firms seem able to find these talents within an acceptable time frame. Hard times for rookies.
Some last words on internationality. It is still a valid statement that most German boards do not have many executives with international business experience on them, nor Germans on boards outside Germany. On the other hand we have over the last 12-15 months been seeing non-German executives in CEO positions in Germany, e.g. the Swiss Josef Ackermann at Deutsche Bank coming from Credit Suisse or the Dutch Harry Roels, formerly Shell now at the head of the RWE AG, to take two prominent examples. This might be an interesting subject for another survey.