Demand For High-Level Executives Reaching 5-Year High
By Andrew Blazier© Pasadena Star-News
The Southland's economic outlook may be shaky, but the region's employment outlook is on much firmer ground.
After four years of sluggish wage growth and job creation in entry-level positions, the outlook for new employees is finally brightening.
In fact, the demand for the services of high-level executives in a variety of industries is reaching a five-year high, according to executive recruiters and human resources professionals within Southern California.
"Most recruiters right now, the overwhelming majority, are about as busy as they've been since the end of 2000,' said Gary Kaplan, president of Pasadena-based Gary Kaplan & Associates, an executive search firm. "The resurgence we've seen to date is the best we've seen in a long time.'
Kaplan's firm specializes in recruiting managers and high- level executives across the nation and internationally in industries including entertainment, health care, higher education, information technology and manufacturing. Last year was the company's first significant improvement in revenues since the dot-com implosion in March 2000. But so far this year, sales have soared by 77 percent from the same period in 2004.
"We're seeing it up across the board,' said Kaplan, whose firm has 14 employees. "We are busy. We are operating at capacity most of the time.'
Kaplan's experience is not uncommon. An Orange County executive coaching firm is forecasting continued job growth among the working elite, which means new opportunities for unemployed executives still reeling from years of lackluster demand.
"The executives who are truly aggressively pursuing their future are really moving through the marketplace pretty quickly,' said Peter Leets, president of Newport Beach-based The Leets Consortium Inc., which recently released its second-quarter employment forecast. "If you take the combined two years against the year before that, the growth is phenomenal.'
Leets attributes the growth primarily to the pent-up demand for new leaders after years of corporate downsizing. Meanwhile, high-level employees unhappy with their job situations were reluctant to look elsewhere for fear a new employer might not be any more supportive than their existing one.
"There are a lot of people who might have wanted to get out but weren't sure where to go and were afraid the other side was going to be worse,' Leets said.
The resulting increase in demand is putting new pressure on corporations to retain their best talent, who threaten to be lured away by more attractive options elsewhere.
Companies that a few months ago were slow to increase compensation are now finding new ways to make executives more comfortable, Leets said.
"They're giving more stock, significantly more leverage, and they have specific (retention) programs in place,' he said.
Kaplan cautions his staff against becoming overconfident, however, despite the appearance of an inordinately rosy economy. He is quick to remember the global uncertainties that loom, such as volatile oil prices, the Middle East conflict and a potential international slowdown.
"Don't let self-confidence get the best of you right now. Don't become arrogant right now,' he said. "This is the time right now where you don't want to just assume it's going to keep coming our direction.'
Andrew Blazier can be reached at (626) 962-8811, Ext. 2477, or by e-mail at andrew.blazier@sgvn.com .
