Monday, March 08, 2010

Intent To Hire

Many readers here are aware that since 2003, ExecuNet has been tracking how the search community feels about the market. We publish it on our website under what we call the Recruiter Confidence Index. We have seen that index climbing steadily the summer of last year. All good news.

As we all saw recently, the US economy lost 36,000 additional jobs in February which was a smaller loss than expected and buoyed hope that job creation would soon turn upward.

But getting data from recruiters is only one channel and so for the past year or so, we have been working on a new index which our President & Chief Economist Mark Anderson now feels is showing data worthy of sharing so I thought I would do so here.

Our Executive Job Creation Index, which we believe is a leading indicator of intent to hire by companies in the next 6 months, currently shows that this hope seems warranted.

It turned positive in January (+15) and continued at positive levels in February (+11) saying that more companies will be hiring over the next 6 months than eliminating jobs or holding back on their hiring plans. Last year at this time at the bottom of the recession, this index was at significantly negative levels (-48).

Point being this: When companies are starting to hire at the executive level, that often leads to more broad-based employment and this is good news for sure.

1 comment:

Sheryl Spanier said...

Great and hopeful news, indeed! And as organizations hire more at the top, there is always the delay between on-boarding and change. That time warp, when the executive is evaluating the terrain and talent, provides the basis for fruitful exploratory meetings. Often opportunity precedes openings. So, if you know a newly appointed leaders, reach out to them with congratulations, curiosity... and even some ideas or people they might benefit from meeting.