Leadership Jumping ShipAttracting and retaining the best performersat professional services firms

Summary

In September 2016, Russell Reynolds Associates surveyed 333 senior executives at professional services firms across the Americas, Europe and Asia-Pacific to explore:

ɳ the reasons they accept or decline offers of employment at other firms and

ɳ their perceptions of recruiting processes.

The respondents are employed by a wide range of professional services firms, public and private, large and small, which are focused on strategy consulting, technology advisory, operations and other services.

Key findings include:

ɳ Top performers are highly sought after: 80% of respondents receive four or more calls per year for external opportunities, and 19% receive more than 15 such calls per year.

ɳ Both women and men consider a more interesting or challenging role the most important factor by far when accepting a career move, outweighing 10 other factors, including compensation.

ɳ Women are interviewing for jobs and accepting offers at a higher rate than men.

ɳ Executives aged 40 and above place more emphasis on innovative culture than younger executives when evaluating a future role and employer.

ɳ Compensation is twice as critical to executives in the Americas as it is to those in Europe and the Asia-Pacific region.

We are pleased to share our findings and insights to help companies attract the best talent in the marketplace. The report first explores gender-based differences, followed by insights related to seniority and age. We conclude with geographical variances. We welcome the opportunity to share additional details regarding the report and to discuss strategies to help you navigate this competitive talent market.

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Recruiting top talent in professional services has become hypercompetitive

8 or more interviews

5 – 7 interviews

14% 9%

20% 20%

Accepted at least one offer

Received four or more offers

26%

60%

17%

48%

80% of all respondents (men and women) receive four or more calls per year for external opportunities, and 19% receive more than 15 calls per year.

None 3%

17%

23%

11%

19%

27%

1 – 3

4 – 6

7 – 10

11 – 15

More than 15

Female executives are in high demand and making moves

External job offers in the last five years

External job interviews in the last five years

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Percentage of respondents rating a factor as critical1

26%

21%

40%

31%

24%

62%

31%

39%

38%

25%

26%

36%

20%

13%

53%

29%

35%

41%

30%

32%

18%

18%

Candidates want to "step up" — new challenges and expanded opportunities drive career moves

Men and women differ when evaluating external offers

Brand or reputation of the hiring company

Better compensation or other financial reasons

More senior job title or increase in authority

More autonomy and control over my work

More challenging or interesting role

Better work-life balance

Better connection or rapport with manager

Clear career advancement opportunities beyond offered role

Greater growth prospect or potential of the hiring company

More innovative or entrepreneurial company culture

Affinity with or higher perceived quality of future colleagues

WomenMen

1 Survey response options were "not important," "somewhat important," "important," and "critical."

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Candidates highly value interviews and other interactions with prospective employers. More employers are investing in a highly personalized interview process to create deeper relationships with candidates.

Percentage of respondents rating a factor as important or critical in shaping their perception of a potential employer2

Gender matters: understanding differences in attitudes

Lower perceived quality or affinity with future colleagues is a significant factor in decisions to decline an offer, especially for women.

48%

Ease/convenience of scheduling interviews

Organization/execution of recruiting process

Length of recruiting process

Regular communications and updates

Interview and experience with prospective employer

Women

Women

Men

Important Critical Total

Men

A requirement to relocate or commute out of state/country regularly would significantly reduce a job's attractiveness to female executives.

Willing to relocate to most citites

Willing to relocate only to a major business city

Willing to commute out of state/country almost every week but not to move

Not willing to relocate or commute out of state/country almost every week

19%

19%

32%

31%

34%

11%

29%

26%

Women

Critical

Men

Important

26%

37%

2 Survey response options were "not important," "somewhat important," "important," and "critical."

47% 12%

49% 13%

54% 26%

54% 34%

31% 63%

14% 80%

37%

29%

9%

6%

46%

63%

66%

63%

94%94%

92%

80%

62%

59%

72%

72%

83%

88%

43%

5

25%6%

31%

38%20%

36%

Insights related to seniority and age

The more senior the candidate, the more critical the reputation of the search firm or consultant when deciding whether to respond to the consultant's calls.

To attract and retain top next-generation leaders, employers need to support work-life balance, offer clear advancement opportunities and promote positive relationships with managers and colleagues.

For senior partners, job title/scope/authority and innovative culture are among the most critical factors in evaluating a job offer compared to pre-partners.

Work-life balance

Innovative or entrepreneurial company culture

Pre-Partner5

30-39

Partner4

40-49AGE

Senior Partner

50-59

9%57%23%55%30%50%

Reputation of hiring company

67%

63%

62%

79%

43%

83%

Important Critical

Clear career advancement opportunities 96% 84% 76%

Better connection, rapport or affinity with new direct manager 67% 72% 74%

Partner

29%

Pre-Partner

11%

Senior Partner

18%

41%37%

26%

Executives aged 40 and above place more value on an innovative or entrepreneurial company culture than younger executives.

3 Survey response options were "not important," "somewhat important," "important," and "critical." 4 The term "partner" refers to a leader in professional services firms and includes partners, managing directors, vice presidents, etc. 5 "Pre-partner" includes managers, senior managers, directors, principals, consultants, etc., who are below partner level.

Percentage of respondents rating a factor as important or critical3

Percentage of respondents rating a factor as critical

Percentage of respondents indicating a factor as important or critical

Rapport with new manager

Innovative culture

Job title, scope or authority

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A more challenging role is universally most important for executives considering a job change

AMERICAS

Compensation is more critical to Americas-based executives considering a job offer compared to those in Europe or the Asia-Pacific region.

Almost all executives globally are interested in a more challenging role to build something new.

41%

Important Critical

ASIA-PACIFIC

57%

33%

EUROPE

55%

42%

Europe-based executives are less concerned with seniority of a job title when accepting a job offer than those in the Americas and the Asia-Pacific region.

34% 43%34%

Executives in the Asia-Pacific region place more emphasis on work-life balance when accepting an offer than those in the Americas or Europe.

35% 41%45%

39% 20%

63%

18%

50%

16% 17%10%

43% 39%25%

Geographic location is a key driver of decisions around compensation, work-life balance and new job title/scope

35%57%

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Our Business and Professional Services consultants work with leading professional services firms globally to help them recruit and retain successful leaders and navigate complex leadership and talent issues, CEO succession planning and board effectiveness. Learn more at www.russellreynolds.com/industries/business-and-professional-services.

CONTRIBUTORS

ANTONIO MACHADO helps clients build successful leadership teams by advising them on talent decisions and by identifying, attracting and assessing senior executives. He is a member of the firm’s Business and Professional Services practice and Technology practice. He serves public, private and private-equity backed clients ranging from start-ups to Fortune 50 companies. He is based in Atlanta.

LAWRENCE KENNY co-leads the firm's Business and Professional Services practice and focuses on senior executive search and leadership and assessment assignments in the Technology sector. Lawrence recruits CEOs, CFOs, and board members for public companies and works with clients in the consulting, systems integration, and BPO and outsourcing industries. He is based in Atlanta.

ADRIAN FISCHER helps European and German clients recruit and retain top-tier business leaders. As a former strategy consultant working exclusively in the digital technology sector, he focuses on three areas: business and professional services, e.g., strategy consulting, Big Four and IT services firms (including CIO-related work), technology companies including telecommunications and high-tech, and digital including pure Internet players and digital transformations of major companies in financial services, retail and automotive. He is based in Munich.

HANS REUS helps global, European and Dutch clients identify, assess, appoint and retain top-tier business leaders. He focuses on two markets, in line with his previous experience and education: business and professional services, e.g., consulting, accountancy, law firms, temporary staffing and business process outsourcing, which he co-leads globally, and technology, e.g., digital, information security, Internet of Things, cloud, media, mobility, outsourcing, chief information officers, semiconductors and clean tech. He is based in Amsterdam.

PUNEET KALRA leads the firm's Technology sector in India and drives its strategy across the Asia-Pacific region. He also co-leads the Business and Professional Services practice globally. Puneet has led various technology CEO- and CXO-level searches searches as well as leadership assessment and CEO succession engagements in India and globally with both multinational and Indian heritage companies. He is based in New Delhi.

MIKI CARLTON is the firm’s global knowledge leader for the technology sector. She is based in Palo Alto.

KATIE DEWEY is a knowledge analyst in the technology sector. She is based in Palo Alto.

GEORGE HEAD is a knowledge analyst in the technology sector. He is based in London.

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Russell Reynolds Associates is a global leader in assessment, recruitment and succession planning for boards of directors, chief executive officers and key roles within the C-suite. With more than 370 consultants in 47 offices around the world, we work closely with public, private and nonprofit organizations across all industries and regions. We help our clients build teams of transformational leaders who can meet today’s challenges and anticipate the digital, economic, environmental and political trends that are reshaping the global business environment. Find out more at www.russellreynolds.com. Follow us on Twitter: @RRAonLeadership

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