2015 Global Survery Report

JUNE 2015

SENIOR MANAGEMENT GLOBAL SURVEY REPORT

0

CAN WE PLEASE MOVE ON? It seems we have to start every survey report with an economic lament.

It’s been eight years now and we are still dealing with a curate’s egg of an economy – good in parts.

EU disarray, a restless Russia, trading sanctions, emerging market slowdown, oil price collapse are all playing their part in making sure that only some of us sleep at night while others lie awake.

Believe leadership pipeline is healthy

Will add to their workforce this year

43% 33% 34% 39% 48% 50%

2015 2014

Believe the global recession is over

32% 30% 34%

2013

66%

See continued strong revenue growth

60% 51%

1

THE DATA BUSINESS EXPECTATIONS Growth Nothing like the bite of reality to temper forecasts, evidently. Respondents sharply modified the 2015 expectations that they gave a year ago, in keeping with a generally poorer view now of their immediate market outlook (see “Economic Recession”) However, when they looked forward to 2016, the optimism returned. That’s the great thing about tomorrows.

In the table below, the data in 2015-1 shows expectations one year ago; the data in 2015-2 shows expectations in May of this year.

24%

< 8% 8%-14%

18%

15% and over

18% 17%

Revenue decline

1% 2%

28%

31%

25%

2016 38%

2015-2 (revised) 2015-1 (original)

29%

6%

Workforce For the third straight year, the number of respondents intending to hire has declined. Not long ago, this would be associated strongly with economic forecasting, but the duration of the downturn has given birth to new management strategies. These plan on increased per capita productivity enabled by technology, training and more inclusive employee management.

NO/UNSURE 2015

39%

61%

2014

48%

52%

2013

50%

50%

2012

44%

56%

2011

63%

37%

2010

66%

34%

2009 2008

YES

66% 28%

34% 72%

2

Economic Recession This yearâ&#x20AC;&#x2122;s survey presents a remarkable change in attitude regarding local and global market conditions.

Historically, we have seen much greater faith in local conditions countering a general scepticism over the global economic picture. This year we have the opposite.

Although slightly more participants feel the global recession is over, almost twice as many as last year feel their local recession is not.

47% 48% 31% 21%

2011

46%

41%

39%

30%

36%

34%

25%

25%

2012

2013

32% IS OVER IS NOT OVER

23%

22%

2014

2015

UNSURE

63% 50%

48%

34% 27%

25% 12%

2012

45%

30%

IS OVER IS NOT OVER UNSURE

16%

25%

25%

2013

2014

2015

3

TALENT DEVELOPMENT Development Over two-thirds feel employees at their firm are engaged and motivated, which is supported by the emergence of more inclusive human capital strategies.

Firms with people management goals embedded in the corporate strategy grew from 50% a year ago to 63%.

Likewise, more firms offer opportunities for advancement as well as feel their leadership pipelines are being well managed.

63%

Our People strategy is embedded

50%

Our leadership pipeline is healthy

2015

52%

We offer opportunity for advancement

39%

2014

42% 33%

Performance Measurement Although the 2015 survey report shows a decline in the numbers claiming a â&#x20AC;&#x153;sound talent review and measurementâ&#x20AC;?, those who do are recognizing the importance of fully integrating such a program across the organization.

The number with review programs restricted to departments has fallen significantly while the integrated programs increase. This may be recognition of the need to have universal human capital strategies that offer a leadership path regardless of skillset.

55%

We have sound talent review & measurement

Our program is integrated throughout the company

47% 32%

Our program is by department only

We have no measurement program

10%

62%

54% 2015 2014

43%

25%

4

Coaching More participating firms who employ coaching are recognizing its value on an ongoing basis. The popular use of coaching to date has been subject or situation specific.

Applying coaching to resolve issues and weaknesses remains the biggest single reason for coaching but ongoing development, or continuous career coaching, now is implemented by one third of respondents, up from 24%.

33% 35%

New hire (onboarding)

New position

23%

40% 48% 50%

Resolve issues/weakness

Ongoing development

No program

24%

2015 2014

33%

34%

40%

5

SEARCH & RECRUITMENT Recruiting Trends Most respondents feel that quality candidates are both harder to find and harder to hire than in the past.

This reflects a growing scarcity of high-value candidates, especially with niche skills. This contributes to the empowerment of candidates who enter the review process with very specific expectations in both business and quality of life terms.

Easier to find, easier to hire Easier to find, but harder to hire

5% 18%

Harder to find, but easier to hire

33%

Harder to find and harder to hire

44%

The “Employer Brand” The new sophistication of recruiting has seen the emergence of the “Employer Brand”, an amalgam of the values that the hiring company wishes to project.

A majority of those surveyed perceive a strong influence on candidate attitudes from the employer brand, which is in line with the increased focus of candidates to select the company that best fits their work expectations.

Negative influence, 2%

No discernable influence, 38%

Strong influence upon candidates, 59%

6

GOVERNANCE Management Diversity One of the more interesting progressions revealed by these surveys has been the increasing involvement of women and ethnic minorities in the management and guidance of companies.

Boards of Directors have been slower to accept either group but we have reached 50% of respondents having women directors while ethnic minority directors are on only 20% of Boards. These figures are lower than the previous year, suggesting a different mix of companies in the responses.

Women occupy C-Level management positions in 80% of the firms surveyed, compared with 51% for minorities.

Firms with the following representation: C-level Women

80%

Minorities

51%

Manager/director Women

83%

Minorities

43%

32% 38%

We have an independent chairman N/A

69% 70% 72%

We have independent Directors

2015 2014

50% 55% 44%

We have women Directors

We have ethnic minority Directors

2013

20% 23% 32%

7

ABOUT THE SURVEY The Annual Survey of Senior Management reflects opinions of business leaders around the world drawn from their current experience which, of course, varies widely by region, market health and industry sector.

Invitations to complete the questionnaire are issued to executives at small, medium and large employers around the world.

Here is the composition of respondents to the 2015 survey.

EMEA

13%

Asia and South Pacific

20%

Latin America

49%

United States & Canada

18%

Senior Executive (CEO, COO etc)

43%

Senior Financial Executive

9%

Senior Sales/Marketing executive

14%

Senior Human Resources Executive

18%

Other

18%

Under $50 million

31%

$50-$500 million $500 million to $1 billion over $1 billion

33% 8% 28%

8

ABOUT CORNERSTONE INTERNATIONAL GROUP Our mission is to accelerate the success of our clients by providing top-quality consulting services in the field of talent recruitment and development.

Cornerstone International Group is an organization of owner-managed firms and combines global reach and networked resources with the personal service and undivided attention delivered by each of more than 60 local offices.

The diversification of our services and depth of experience is behind our claim: “Achieve More with Cornerstone” Our clients include organizations in almost every industry and every major geographical region.

Each of our offices commands a leading position in its local market for repeat and referral business, be it executive search, executive coaching, or CEO and Board Advisory services.

Not The Biggest, The Best We are a member of the Association of Executive Search Consultants. The AESC is the official body representing retained executive search consulting firms worldwide with regional councils in the Americas, Europe and Asia/Pacific and an International Board of Directors. Its Code of Ethics and Professional Practice Guidelines are recognized as representing the highest level of service in our industry.

Our goal is not to be the biggest, but the best. That means the best service, the best value, and the best results – so our clients can attract and develop the very best senior management and the very best Boards in the world.

To Know More To find out more, we invite you to visit www.cornerstone-group.com.

9