As an executive search network, we try to stay current with what is changing in the global recruitment profession. During a recent research project, I came across an informative white paper by a group called ScoutRock (www.scoutrock.com). The title of the white paper is Changes in the Executive Search Industry.

One of several observations and projections this white paper identifies is a clear direction toward a greater focus on international experience, global labor mobility, global talent management, virtual global teams and cross-border business practices.

Here are some interesting numbers collected and discussed in the ScoutRock paper:

• 75% of senior executives expect to grow or enter international markets in the next 10 years.
• 54% expect management to be more international by the end of the decade.
• 92% of SHRM respondents expect to contend with global labor mobility issues.
• 85% forecast an increase in virtual global teams.

The impact of these trends and directions on the global recruitment profession is complicated. For larger, multinationals and Fortune 500 businesses, this means an increasing focus and dependence on internal global recruiters. Search assignments that may have gone to independent global recruiters may move in-house to best manage expectations and outcomes for large organizations with many global recruitment needs and a constant supply of position openings. Social networks and social recruiting have increased the ability for companies to build employment brands and a talent pipeline to match their needs. For smaller organizations and infrequent players in the global recruitment space, there will be perhaps a trend toward the use of boutique and niche firms either directly or through a search network relationship.

The quantity of executive searches engaging independent recruiters may decrease and those assignments reaching the independents will be complex and difficult. Employers will place value on things like:

• A global network of partners offering localized expertise
• Decreased cycle times
• Rapid access to global talent pools

The ScoutRock white paper is a good and interesting read for any recruiter working in a global recruitment space. A summary statement quoting from the paper:

“…to be successful, firms must develop capabilities and cultures of shared mindset, talent, collaboration, speed, accountability, learning, and leadership…”

Today’s post is courtesy of Joshua Ro with People Consulting Group in Seoul, Korea. People Consulting Group places senior executives in manufacturing, information technology, consumer products, banking and finance, telecommunications, logistics and distribution, professional services, entertainment, and fashion. Joshua serves as a member of the NPA Board of Directors.

I recently read an interesting article about increasing productivity where different qualities are needed in the workplace. The same traits can help build a high-performing recruitment team.

According to the article, it is human nature to hire someone who has abilities and skill sets similar to your own; however, it is believed that hiring someone totally opposite could increase the productivity. It described three different (and diversified) elements and areas that a productive team should possess such as different gender, different thinking styles and personalities (intro and extroversion).

The first point was that the best teams have both men and women. A survey done by Credit Suisse over 2,400 global companies recalls that any company with more than one female board of director has performed better than those without. Companies with diversified gender roles in leadership positions resulted in better performance and were well balanced.

Another survey in 2011 showed venture corporations with 5:5 gender ratio resulted in the highest performance compared to others, possibly through monitoring and checking upon each other’s performance. What does the gender balance look like on your recruitment team?

Secondly, you need introverts and extroverts in your team to create better performance. Those with the loudest voices aren’t necessarily the ones with the brilliant ideas. UCLA researchers came up with similar results. For 10 weeks, they put together a team of staffs containing a mixture of introverts and extroverts. As many anticipated in the beginning, extroverts, who voiced their ideas louder and more aggressively, seemed to gain respect by constantly inputting ideas. However, toward the 10^th week of the project, introverts earned higher respect and eventually the status of both was well balanced. How can you help the introverts on your recruitment team be heard?

Finally, you need one analytical thinker (maybe more) on your recruitment team. Many of us are familiar with open-minded business approaches like ‘brainstorming;’ however, some scientists suggested there should be at least one analytic thinker on the team. The Tepper School of Business researched that a team with at least one analytical thinker performed better in executing a given task than those without. Focusing more on small details in a process aroused creative conflict amongst teams with both ‘big picture’ and analytical thinkers.

If you are running a search firm and want to put a recruitment team together for a given task or even running your own firm with a small number of consultants and researchers, it isn’t necessarily a good idea to select only those who seem to have the same qualities as your own in terms of skill sets, experience, attitude or characteristics, etc. Diversify your choices to bring a broad spectrum of different thinkers to create better performance and provide opportunities for everyone to participate. Have them get involved to make contributions with well-deserved benefits. This will build a better performing recruitment team or firm of your own.

According to the latest edition of the Boyden Executive Outlook, companies are ready to hire. The improved outlook is due to better economic stability in developed markets along with increasing competition across multiple industries globally. Among the findings, grouped by sector, I found the following points particularly interesting:

Energy

There is a VERY limited candidate pool in the US for clients in the oil production arena. With Baby Boomers retiring in large numbers, there is a considerable lack of experienced managers to fill the pipeline. Leadership demands across Europe, the Middle East and Africa have remained strong as well.

Industrial

With the conclusion of the recent elections in Australia, hiring strengthened almost immediately and looks to improve even more throughout the fourth quarter. European companies are investing in regional development throughout Singapore and Southeast Asia. Executive recruiters can expect strong demand for CFOs, supply chain, business development, and sales professionals. Hiring is vigorous in India as well, particularly in manufacturing, mining and construction, finance, insurance, and real estate.

Healthcare

Growth in Central and Eastern Europe is outpacing Western Europe, particularly for experienced sales, marketing, and regulatory professionals. In the US, growth remains strong in both the biotechnology and pharmaceutical markets. Executive recruiters in the UK note that the healthcare sector is beginning to see room for expansion, particularly in the private sector.

Consumer/Retail

Growth projections are huge for e-commerce and mobile businesses and will continue into 2014. There is an emerging trend for technology and marketing roles to become intertwined; executive recruiters would do well to cultivate a pipeline of talent in this area. Expansion from South Africa into Africa will require professionals with deep understanding of the vastly diverse consumer base throughout Africa. High-level supply chain, manufacturing, and operations skills are also in demand. In Latin America, there is increased demand for chief operating officers, country managers, and regional VPs. China has seen a recent increase in senior-level roles in both the consumer goods and retail sectors.

Financial Services

Most of the financial services industry is forecasting growth into 2014 as companies seek to hire compliance, regulatory, and risk professionals. Salary increases in some areas have risen 35-40% recently as a direct result of the “talent war” in this space. A new free trade zone in Shanghai is expected to impact the financial services sector as well as the broader economy. Regional banks in the Middle East report plans to strengthen their senior management teams.

Human Resources

CEOs across all industry sectors are looking for experienced and highly strategic HR leaders to help transition large companies into flexible global businesses. HR professionals with global experience are particularly in demand to help manage the huge workforce changes that are predicted. Executive recruiters should be on the lookout for HR leaders who can help implement enterprise-wide technology shifts.

Technology

Technology is no longer just a cost-saving tool; it’s also a way to create a competitive market edge. IT professionals with strong ‘soft’ skills are becoming highly-sought, and are difficult to find. Enterprise sales is a strong sector in Singapore. Executive recruiters in Central and Eastern Europe should see an uptick in hiring of senior supply chain and logistics professionals among distribution companies.

The optimism that executive recruiters shared in the Boyden report aligns closely with a business barometer survey that NPA recently conducted among member firms. More than 86% of NPA members expect improved business conditions over the next 180 days. Is your recruitment firm ready to take advantage of the coming hiring boom?

The June 2013 Staffing Industry Review survey asked what the top priorities were in staffing firms. The top 3 were:

• 53%  – Grow Recruitment Revenue
• 40%  – Expand/Diversify Clients
• 35%  – Grow Recruitment Market Share

Since it seems to be all about sales, let’s take a look at how buyers became aware of suppliers. When buyers were asked how they typically heard about new suppliers/recruitment agencies, the survey showed that 74% of all introductions were a result of referrals. If you do not have a referral plan in place, evidence says that having a plan would help your international recruitment agency grow.

The second most common way buyers learned of new recruitment agencies was more surprising to me. Hold on, because your sales and marketing team may not like the results of this one. The “cold call” was cited by 63% of all buyers! The cold call…a salesperson called or dropped by. Today’s marketers and sales leaders may not see cold calling as a viable strategy. We all dream of “inbound marketing campaigns” that drive buyers to our door. Guess what? The evidence shows that the cold call still works.

The complete list looked like this:

1. Referral – 74%
2. Cold call – 63%
3. Conference – 44%
4. Published List – 27%
5. Through VMS – 25%
6. Internet Search – 24%
7. Email Ad/Newsletter – 20%

What is working for your recruitment business? If you run an international recruitment agency, I would like to hear your experience. Do the results detailed here match what happens in your international recruitment agency?