Bluesteps Executive outlook report by Exxecta

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The 2014

BlueSteps

Global Executive Outlook

About BlueSteps.com BlueSteps.com is an online career management service for global senior executives. As an exclusive service of the Association of Executive Search Consultants (AESC), BlueSteps enables senior executives to make their career profile accessible to over 8,000 retained executive search professionals in more than 75 countries who are members of the AESC, and use the database as an additional resource in their candidate and source identification process. BlueSteps members can stay informed of executive job market trends and news via the BlueSteps Career Library and Blog, and use a variety of tools and resources to facilitate the successful management of their executive career path. Click here for more information or visit: BlueSteps.com.

About The Association of Executive Search Consultants The Association of Executive Search Consultants (AESC) is the worldwide professional association for the retained executive search sector. The AESC promotes the highest professional standards in retained executive search consulting, broadens public understanding of the executive search process, and serves as an advocate for the interests of its member firms. For more information, or to download the AESC Code of Ethics and Professional Practice Guidelines, please visit www.aesc.org.

About Executive Search Connect

The AESC also offers www.ExecutiveSearchConnect.com, a service for the HR community offering sector information and tools to assist with senior executive recruiting, including access to the AESC membership directory. 425 Fifth Avenue, 4th Floor New York, NY 10016 Phone: 1 (800) 363-1207 Email: info@bluesteps.com Web: www.bluesteps.com

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The 2014 BlueSteps Global Executive Outlook Report Contents: Page 4-5: Executive Summary Page 6: About Our Study Page 7-9: Survey Demographics Page 10-11: 2014 Global Executive Outlook Page 12: Executive Concerns Page 13-15: 2014 Executive Mobility Page 16-18: 2014 Executive Compensation Page 19-20: 2014 Executive Opportunities Page 21-22: The Global War for Talent Page 23: Executive Search Industry vs. Executive Job Market

2014 BlueSteps Global Executive Outlook Report

Executive Summary The BlueSteps Global Executive Outlook Survey was conducted in December 2013 and received 508 responses from BlueSteps member executives worldwide, including 50% from the Americas, 37% from EMEA and 13% from Asia Pacific.

2014 Executive Job Market Outlook The 2014 BlueSteps Executive Outlook shows that the majority (51%) of global senior executives share a positive outlook regarding the global executive job market in 2014—up 15% compared to the 2013 outlook. Only 13% of executives surveyed harbor a negative view of the executive job market for 2014. Peter Felix, AESC President commented: The results of our Outlook survey suggest that many executives are of a mindset to consider a career change and are increasingly optimistic that the environment will be conducive for this to happen. A number of forces are at work to stimulate this not least being the strategic forces such as globalization, digital transformation and industry restructuring that are changing the corporate landscape and are presenting new challenges on a continuing basis. In spite of continuing volatility in some regions and sectors, there is real evidence of organizations thinking more strategically and looking ahead with a positive mindset. Senior management appointments are one of the key focal points as Boards and top management evaluate the future and consider whether they have the right people in the right jobs. After 5 years of moribund compensation growth and cost cutting pressures, many executives will consider themselves to be “mobile” once again and interested in a change of environment and opportunity. Greater economic certainty will encourage them to take career risk and this mobility factor may well usher in a new phase in a War for Talent which has been less visible during the financial crisis. Added factors will be the megatrends of the demand from new markets around the world, the major demographic shifts now biting to an unprecedented extent as the baby boomers finally want, and can afford, to retire and the desire by many corporations to feed their succession pipelines. For talented executives this new and more positive environment may well offer unprecedented opportunity. 2014 Business Outlook Sixty percent of global executives share a positive impression of the general business climate for 2014—up 18% over 2013. Only 9% of executives surveyed harbor a negative view of the general business climate for 2014. 2014 Outlook by Region In numerous markets, including Canada (92%), China (78%) and Germany (70%), executives are reporting an extremely positive outlook on the executive job market for 2014. These results show a dramatic regional shift in many executives’ attitudes about the executive job market from 2013 to 2014. In 2013, executives in India had the most positive regional outlook (73%). Though executives in India still have a very positive outlook for 2014 (63%), it does not rank in the top three markets. Executives in some markets harbored a more negative outlook than most. In Australia/New Zealand, 50% of senior-level executives stated that they have a negative outlook on the executive job market. Executives in

2014 BlueSteps Global Executive Outlook Report

Africa (33%) and ASEAN (31%) also have a less positive outlook than the majority of respondents. Executive Mobility - Making a Career Move in 2014 With such a big change in the global senior executive outlook, it’s not surprising that 74% of executives report being more willing to make a career move in 2014 than in 2013, while 87% plan to at least look for a new executive opportunity this year. When asked to choose the top two elements that might hinder them from making a career move in 2014, the majority (86%) cited “the inability to find opportunities that match their career goals,” followed by “declines in compensation” (43%). When asked to report the top two benefits that would most entice them to consider a career move in 2014, 64% of executives reported “a move to a better role with increased responsibility,” followed by 60% who reported “an increase in total compensation” as a primary motive for making a career move. Consistent with data from the last two years, 45% of executives expect it to take them on average 6-12 months to secure their next executive opportunity. Executive Compensation in 2014 Regarding executive pay, 53% of executives expected their compensation to increase in 2014, while 39% expected their compensation to stay the same in 2014 as in 2013. Only 8% of global executives expected their total compensation to decrease in 2014. The Global War for Talent Global executives predict the greatest executive talent shortages to occur in the United States, China and the Middle East during 2014. Executives also predict the greatest talent shortage to occur in the technology/ telecoms sector, followed by healthcare/life sciences and energy/natural resources.

2014 BlueSteps Global Executive Outlook Report

About Our Study

Participants

508

508 executives from around the world participated in the study.

Gender

355 men 65 women

88 did not identify gender

Career Level

2014 BlueSteps Global Executive Outlook Report

Survey Demographics Regions of the World Represented by Survey Participants

40%

Continental Europe

18%

Middle East

ASEAN

India

CEEC

Brazil

Central/South America

Canada

Other

Australia/New Zealand

China

Germany

Africa

2014 BlueSteps Global Executive Outlook Report

Survey Demographics Sectors Represented by Survey Participants

Manufacturing/Industrial

27%

Technology/Telecoms

20%

Professional Services

11%

Financial Services

10%

Healthcare/Life Sciences

Other

Energy/Natural Resources

Not for Profit/Public Sector/Education

Media/Entertainment/Advertising/PR

Hospitality/Tourism

2014 BlueSteps Global Executive Outlook Report

Survey Demographics Functions Represented by Survey Participants

CEO/President/GM

26%

COO/Operations/Production

15%

Business Development & Sales

12%

CFO/Finance & Accounting

11%

Consulting

Other

CMO/Marketing/PR

CTO/CIO/Technology

Board Director

R&D/Product Development

HR & Training

2014 BlueSteps Global Executive Outlook Report

Executive Outlook 2014 Outlook - Executive Job Market

36%

Positive 51%

Negative Neutral

13%

The majority of global senior executives share a neutral to positive outlook regarding the global executive job market in 2014, with 51% of executives feeling positive and 36% feeling neutral. Thirteen percent of global executives share a negative attitude about the global executive job market in 2014. This represents a significant change (+15%) compared to this time last year when only 36% of executives felt positive about the executive job market for 2013.

2014 Outlook - General Business Climate

31%

Positive Negative

60%

Neutral

The majority of global senior executives share a positive outlook regarding the global business climate in 2014, with 60% of executives feeling positive and 31% feeling neutral. Only 9% of global executives share a negative attitude about the global business climate in 2014. Executives with a positive business climate outlook has also increased significantly (+18%) since this time last year when 42% of executives felt positive about the business outlook for 2013.

2014 BlueSteps Global Executive Outlook Report

Executive Outlook - Comparisons Regional Attitudes About the Executive Job Market in 2014 Based on the percentage of executives reporting that specific outlook

Region Africa ASEAN Australia/New Zealand Brazil Canada CEEC Central/South America China Continental Europe Germany India Middle East Russia UK US

Positive 33% 50% 20% 61% 92% 31% 38% 78% 41% 70% 63% 41% 50% 63% 52%

Negative 33% 31% 50% 6% 0% 19% 15% 0% 11% 10% 6% 18% 0% 8% 14%

Neutral 33% 19% 30% 33% 8% 50% 46% 22% 48% 20% 31% 41% 50% 29% 34%

Sector Attitudes About the Executive Job Market in 2014 Based on the percentage of executives reporting that specific outlook

Sector Energy/Natural Resources Financial Services Healthcare/Life Sciences Hospitality/Tourism Insurance Manufacturing/Industrial Media/Entertainment/Advertising/PR Not-for-Profit/ Public Sector/Education Professional Services Technology/Telecoms

Positive 66% 60% 54% 38% 75% 50% 60%

Negative 3% 20% 13% 13% 0% 9% 20%

Neutral 31% 20% 33% 50% 25% 41% 20%

53%

41%

57% 40%

13% 21%

30% 39%

2014 BlueSteps Executive Compensation Report

Executive Concerns Career-Related Concerns Amongst the 13% of executives who viewed the executive job outlook as negative for 2014, finding a new executive opportunity was the primary concern of most executives, followed by ongoing concerns regarding increased competition for executive jobs, ageism’s impact on the ability to obtain a new job, and the volatile economic and political conditions. Specific comments included: “Business is down and many of the larger companies are downsizing, I expect it to be difficult to find a position at the right level in 2014.” “Executive candidates are widely available and seeking jobs. For example, a senior general counsel position received over 700 applicants through a direct solicitation by the employer.” “The finance industry is shrinking, with more regulation and risk-aversion, while the pool of highly qualified executive job seekers is expanding rapidly.”

Business-Related Concerns Amongst the 9% of executives who viewed the business outlook as negative for 2014, the main concerns continue to be related to global economic volatility, with many pointing to the ongoing financial crisis in Europe, political gridlock and a perceived lack of fiscal responsibility by the US government and a slowdown in Asia Pacific. “India is going through political instability and therefore economic turmoil. Investor sentiment is poor due to poor policies and the weak rupee.This is has a multi-level impact on the ability for industries and businesses to grow.” “Slowdown in global growth, flat growth of Western economies and the slow down of the BRIC economies could portend slower global economic growth.” “I am concerned about the continued gridlock in Washington, which I believe will continue well into 2014. As the economy continues to recover, I expect the manufacturing sector to remain strong as companies invest in new products and repatriate products from offshore facilities.”

2014 BlueSteps Global Executive Outlook Report

Executive Mobility 2014 Global Executive Mobility The greatest percentage (74%) of global executives are more willing to make a career move in 2014 than they were in 2013. Only 7% of executives feel less willing to make a career move in 2014, while 19% of executives report they are as willing to make a career move in 2014 as they were last year.

I am more willing to make a career move in 2014 than I was in 2013

19%

I am less willing to make a career move in 2014 than I was in 2013

7% 74%

I am as willing to make a career move in 2014 as I was in 2013

The Search for New Opportunities Despite a challenging global economy, 87% of global executives plan to look for new opportunities in 2014 compared to the only 13% of executives who do not plan to look for a new executive opportunity in 2014.

13% Yes No

87%

2014 BlueSteps Global Executive Outlook Report

Executive Mobility Making a Career Move in 2014 - The Negatives Inability to find an opportunity that matches my career goals

86%

Declines in compensation offered (including non-cash comp.)

43%

Concerns about market instability/state of economy

35%

Inability to relocate due to real estate market

General aversion to risk

Global executives report concerns about inability to find opportunities that match their career goals (86%), as well as declines in compensation (43%), as the top two concerns that would most hinder them from making a career move in 2014.

Making a Career Move in 2014 - The Positives Better role/increased responsibility Increased total compensation (including non-cash comp.) Better work environment

23%

Better work-life balance Opportunity for overseas relocation Change to a more stable industry

21% 16% 13%

64% of global executives 64% would be most enticed by a career move in 2014 if it meant a move to a better role and/or 60% increased responsibility. 60% of executives report that increased total compensation would most entice them to make a career move in 2014.

2014 BlueSteps Global Executive Outlook Report

Executive Mobility Regional Outlook for Executive Mobility in 2014

Based on the percentage of executives reporting their willingness to make a career move in 2014

Region ASEAN Australia/New Zealand Brazil Canada CEEC Central/South America China Continental Europe Germany India Middle East UK US

More Willing 64% 83% 92% 80% 79% 67% 86% 72% 75% 85% 16% 55% 71%

Less Willing 36% 0% 8% 10% 7% 11% 14% 2% 13% 8% 2% 0% 5%

No Change 0% 17% 0% 10% 14% 22% 0% 26% 13% 8% 3% 45% 24%

Sector Outlook for Executive Mobility in 2014

Based on the percentage of executives reporting their willingness to make a career move in 2014

More Willing 91% 68% 57% 86% 75% 77% 50%

Less Willing 4% 12% 11% 14% 0% 5% 17%

No Change 4% 20% 32% 0% 25% 18% 33%

73%

13%

67% 75%

8% 4%

25% 21%

2014 BlueSteps Global Executive Outlook Report

Executive Compensation 2014 Expected Total Compensation Among Global Executives

39%

Increase 53%

Decrease Stay the same

53% of global executives expect their total compensation to increase in 2014, while 39% expect no change in total compensation this year. Only 8% of global executives expect a decrease in their total compensation in 2014. Executivesâ&#x20AC;&#x2122; overall compensation outlook for 2014 is 6% more positive than it was for 2013. Last year, 47% of global executives expected their total compensation to increase, while 42% expected no change in total compensation this year. Only 11% of global executives expected a decrease in their total compensation in 2013.

2014 BlueSteps Global Executive Outlook Report

Executive Compensation 2014 Expected Total Compensation - Increases

+ 46% or higher

Of those global executives expecting an increase in their total compensation in 2014, the greatest percentage (32%) expect to see a 6-10% increase.

+ 36-45%

+ 26-35%

+ 21-25%

+ 16-20%

12%

+ 11-15%

21%

+ 6-10%

32%

+ 1-5%

At this time last year, most respondents (29%) were expecting a 1-5% increase in total compensation in 2013.

19%

2014 Expected Total Compensation - Decreases

- 46% or higher

17%

- 36-45%

- 26-35%

- 21-25%

Of those global executives expecting a decrease in their total compensation in 2014, the greatest percentage (25%) expect to see a 16-20% decrease.

13%

- 16-20% - 11-15%

25% 13%

- 6-10% - 1-5%

21% 13%

2014 BlueSteps Global Executive Outlook Report

Regional Outlook for Executive Compensation in 2014

Based on the percentage of executives reporting expected changes to their total compensation in 2014

Region ASEAN Australia/New Zealand Brazil Canada CEEC Central/South America China Continental Europe Germany India Middle East UK US

Increase 64% 17% 69% 70% 64% 44% 100% 31% 63% 69% 52% 64% 52%

Decrease 0% 33% 0% 0% 7% 11% 0% 11% 0% 8% 14% 0% 8%

Stay the same 36% 50% 31% 30% 29% 44% 0% 57% 38% 23% 33% 36% 40%

Sector Outlook for Executive Compensation in 2014

Based on the percentage of executives reporting expected changes to their total compensation in 2014

Sector Energy/Natural Resources Financial Services Healthcare/Life Sciences Hospitality/Tourism Insurance Manufacturing/Industrial Media/Entertainment/ Advertising/PR Not-for-Profit/ Public Sector/Education Professional Services Technology/Telecoms

Increase 65% 40% 54% 71% 50% 46% 33%

Decrease 0% 16% 11% 0% 0% 2% 0%

Stay the same 35% 44% 25% 29% 50% 40% 67%

33%

67%

60% 50%

14% 13%

26% 37%

2014 BlueSteps Global Executive Outlook Report

Executive Opportunities Finding a New Executive Opportunity

1% 6%

Very difficult 31%

Difficult Neutral Easy Very easy

54%

The greatest percentage of global executives (54%) expect 2014 to be as difficult as 2013 for finding new executive opportunities. 39% of global executives expect it to be more difficult to find an executive opportunity in 2014 than it was in 2013, while only 7% expect 2014 to be an easier year than 2013 for finding a new executive position. Comments about finding new executive opportunities included: “Even though there currently appears to be an abundance of career opportunities, there are still a large number of qualified candidates. Competition remains stiff.” “Being based in the Middle East, one sees a major skills shortage. To meet the demands of most sectors in the market, particularly with regional governments, spending is dramatically accelerating in the coming five years.”

2014 BlueSteps Global Executive Outlook Report

Executive Opportunities Timeline for Finding a New Executive Opportunity in 2014 More than 2 years

1-2 years

The greatest percentage of global executives (45%) expect the average timeline for finding a new executive opportunity in 2014 to be 6-12 months.

10%

This is the same as 45% executivesâ&#x20AC;&#x2122; estimate from last year when 41% expected the same average timeline for 2013.

6-12 months

3-6 months

Less than 3 months

31%

Global Executives on the 2014 Hiring Plans for Their Companies We plan to increase the number of employees

37%

We plan to maintain the same number of employees

31%

We plan to decrease the number of employees

I don't know

24%

2014 BlueSteps Global Executive Outlook Report

The Global War for Talent Top Markets Expected to Experience a Talent Shortage in 2014

Based on the percentage of executives reporting a specific market as one that will experience a talent shortage in 2014

49%

China

37%

Middle East

21%

Brazil

20%

Latin America

20%

ASEAN

19%

India

19%

Africa

18%

CEEC

12%

Continental Europe

11%

Canada

10%

Australia/New Zealand

Russia

Other Japan

2% 1%

Global senior executives rank the US, followed by China and the Middle East as the top three markets that will experience a talent shortage in 2014.

2014 BlueSteps Global Executive Outlook Report

Top Sectors Expected to Experience a Talent Shortage in 2014

Based on the percentage of executives reporting a specific sector as one that will experience a talent shortage in 2014

Technology/Telecoms

62%

Healthcare/Life Sciences

45%

Energy/Natural Resources

44%

Manufacturing/Industrial

36%

Professional Services

26%

Financial Services

21%

Not for Profit/Public Sector/Education

Hospitality/Tourism

Media/Entertainment/Advertising/PR

Insurance

Other

Global senior executives rank technology/telecoms, followed by healthcare/life sciences and energy/natural resources as the top three sectors that will experience a talent shortage in 2014.

2014 BlueSteps Executive Compensation Report

Executive Search Industry vs. Executive Job Market Outlook Executive Outlook

Executive Search Outlook

64% 51% 36%

33%

13%

By comparing the AESC Executive Search Industry Outlook Report (169 responses from AESC executive search consultants in December 2013) to the BlueSteps Executive Outlook Report, it is apparent that the majority of both executive search consultants and senior-level executives have a positive outlook for 2014. Similar to the results of this BlueSteps Outlook Report, executive search consultants’ outlook for 2014 is much more positive (+29%) than for 2013.

3% Positive

Negative

Neutral

Mobility Executive Outlook

Executive Search Outlook

74% 66%

31% 19% 7% More willing to make a move in 2014

No change expected

Less willing to make a move

When comparing the results from both the AESC Executive Search Industry Report and the BlueSteps Executive Outlook Report, the findings show that the outlook of search consultants and senior executives is closely aligned, although there may be a greater number of executives willing to consider a move than search consultants believe. While these results indicate that a large number of executives would consider a move, there are of course many factors that contribute towards an individual changing his or her role.

*For AESC member data we combined the two data sets of ‘Candidates will be more willing to make a career move’ (35%) and ‘Candidates will only consider a career move if there is exceptional financial and employment security offered at the new position’ (31%) to create the total percentage shown in this chart.

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