Insights
Q1 2007 State of the Industry Report
NEW GLOBAL EXECUTIVE SEARCHES UP 10% FROM Q4 '06 TO Q1 '07
Executive Search Industry Revenues Continue to Rise in Q1 '07, Up 25.8% Year over Year, Reflecting Strong Global Economy
New global executive searches increased 10 percent from Q4 '06 to Q1 '07, according to the latest quarterly Association of Executive Search Consultants (AESC) State of the Executive Search Industry report. The executive search industry remains robust with an 11 percent quarterly increase in global revenues, and a yearly increase of 25.8 percent (from Q1 '06 to Q1 '07) according to the report.
“Retained executive search is a significant barometer of the strength of the global economy, and it is reassuring to know that industry revenues and search activity continue to grow “, noted Peter Felix, AESC President. “Judging from the volume of activity in senior executive recruitment, we anticipate another excellent year in retained search.”
Regional Trends
North America experienced a significant quarterly increase of 16.8 percent in the number of searches started, European firms witnessed an increase of 17.8 percent, and Asia-Pacific was up 16.2 percent from Q1 '06 to Q1 '07. Central/South America was the only region experiencing a decline in searches, down 3.2 percent from the previous quarter.
Yearly comparisons revealed a 14.1 percent rise in European executive searches. The UK accounted for the greatest number of European searches with 29 percent of the total market share in Q1 ‘07. Germany followed with 14 percent and France came in third with a 10 percent market share. The annual review of European searches (from Q1 ‘06 to Q1 ‘07) showed a 3 percent drop in UK searches, no change for Germany, and France experiencing a minor increase (+1%).
Industry Trends
Searches started in Q1 ‘07 rose 10 percent against the previous quarter, with all industries experiencing a quarterly increase. Up 33.2 percent, Non-Profit accounted for the greatest increase in searches, followed by Professional Services (+30.4%), Financial (+20.3%), Technology (+19%), Industrial (+15%), Consumer (+12%), and Life Sciences/Healthcare (+10.3%).
Consistent with previous quarterly and annual trends, the Financial sector captured the largest share in number of searches in Q1 ‘07, totaling 24 percent of the market. The Industrial sector followed with 22 percent, followed by Consumer Products (17.4%), Technology (15.6%), Life Sciences/Healthcare (12%), Non-Profit (4%), and Professional Services (4%).
The data was collected from a sample of AESC member search firms representing the activity of over 1,200 executive search consultants in 42 countries worldwide. AESC access to job search data positions this report as a leading indicator of the future worldwide job market and a barometer of hiring trends in key market sectors.