Brief description

Industry of Executive Search Services is continuously showing the tendency for stable development:

20 % growth as compared to the II-nd quarter of the previous year

Annual increase in the amount of profit is the vivid example of stable development of global industry of Executive Search Services. During the II-nd quarter of the year 2007 the profit of global industry has increased by 20% as compared to the analogous period of the previous year, reports AESC. Average amount of profit per one consultant has also increased by 6.7% as compared to the II-nd quarter of the year 2006.

Peter Felix, AESC President, commented on this situation in the following way: «Executive Search, or search of top managers is the stable indicator of growth, changes and strategic development. During the last four years we identified this phenomenon, having proved that the major marketing forces jointly contribute to unprecedented demand for talented top managers all over the world. The organizations, that interested funds into hiring of the best top managers have understood, that global lack of specialists, caused by various factors, such as demographical changes, expansion of growing markets of India, China and Russia, changes in motivation and in the attitude of top management, make up ideal background for demand increase. Carrying out “battle in search of talents» the companies come to understanding that it is highly needed that the consultants of Executive Search should represent their interests on the market. Now busy time begins for professionals in Executive Search».

Annual comparison of statistical data shows the following: the tendency for 15% growth was identified in Asian-Pacific region judging by the amount of ordered searches as compared to the II quarter of the previous year. The growth rate of European countries (“the rest European countries”, thereby Great Britain, Germany and France are not included into this group) amounted to 10%. Peter Felix commented on this situation in the following way: «Steady development of Executive Search projects in Asian-Pacific countries and the rest of European countries is the evidence of the initiated economic growth, their response to increasing demand for professional managers and leaders in the sector of private entrepreneurship».

Financial tendencies

Average income

Average income has increased by 20.1% as compared to the II-nd quarter of the year 2006. Increase of income during the period since the I-st till the II-nd quarter of the year 2007 equaled 9%.

Average profit per each consultant

The average proceeds per one consultant during the II-nd quarter of the year 2007 increased by 6.7% as compared to the analogous period of the previous year. Increase of proceeds per one consultant during the period since the I-st till the II-nd quarter of the year 2007 equaled 8%.

Average cost of the project search

As compared to the IV-th quarter of the year 2006, when AESC carried out research within this category for the first time, the average cost of search project showed tendency for stable development and growth. Since the IV-th quarter of the year 2006 till the I-st quarter 2007 the average cost of project search increased by 4.8%. The latest data on the period since the I-st quarter of the year 2007 till the 2-nd quarter of the year 2007 demonstrates 5.6% growth.

Industrial tendencies

Tendencies in the amount of search projects estimated per industries

There was a certain decrease in industries by the II-nd quarter of the year 2007. The rates in “Technology” category decreased by 13.8%, and the rates in “Consumer goods” category decreased by 6.6%. Quarterly growth is observed in other industries, the most significant of which is observed in the category «Noncommercial organizations» (6.8%), «Industry» (+3.6%), «Medicine and health care» (+2.6%), «Financial sector» (+2.5%) and «Professional services» (+1.4%).

Market outline per industries

The rates of the II-nd quarter of the year 2007 remained unchanged as compared to the statistics of the previous quarter, when the major part of Financial sector took up the maximal amount of market shares (25.1%). The second in size are the sectors «Industry» (23%), «Consumer goods» (16.4%), «Technologies» (13.6%) «Medicine and health care» (12.4%), as well as «Professional services» (4%).

Regional tendencies: global aspect

Number of searches per regions

During the II-nd quarter of the year 2007 no significant changes have been introduced into the amount of searches. However in North America and Europe quarterly decrease in the number of Executive Search projects has been identified (thereby both regions demonstrated an increase equaling 15%, identified during the previous quarter). During the period since the I-st and the II-nd quarter of the year 2007 the growth in the amount of searches was identified in Asian-Pacific (8.1%) and Central/South-American regions (5.1%).

Market shares per regions

Almost all the regions are characterized by stable development during the II-nd quarter of the year 2007 as compared to the analogous period of the previous year including North America (42.4%), Europe (34.6%), Asian-Pacific region (16.1%), as well as Central and South Americas (7.1%). Comparative analysis of statistical data of the II-nd quarter of the years 2006 and 2007 demonstrates insignificant changes in the market shares per regions – some decrease is observed in North, Central and South Americas and comparatively bigger shares in Europe and Asian-Pacific regions.

Regional tendencies: Europe

Tendencies in the amount of Executive Search projects in Europe

The number of projects of search in Europe has increased by 7% as compared to the analogous period of the previous year. As compared to the I-st quarter of the year 2007 the increase of number of search projects in Europe has decreased by 3.1%

Market shares per European regions

During the II-nd quarter of the year 2007 Great Britain remained the country, in which the biggest in Europe number of search projects was carried out, which took up 28% of European market. Next in the ratings are Germany (13%) and France (11%). As compared to the I-st quarter of the year 2007, during the II-nd quarter some changes in the shares of European market took place – Great Britain lost 2%, Germany lost 1%, and the share of France increased by 1%.