ExecuNet's Recruiter Confidence Index Surges

One indicator of economic conditions is to gauge the sentiments in the C-suite. Where do executives think the market is headed? What is their average level of optimism. The answers to these and similar questions can give us a sense of our collective future in talent management. And the answers right now are looking good.

The executive search industry’s outlook for the employment market improved for the third consecutive month amid signs that economic conditions are stabilizing, according to ExecuNet’s Recruiter Confidence Index (RCI), which has surged 16 points higher and now stands at its highest level since June of 2008. Fifty-seven percent of the 143 executive recruiters surveyed are confident or very confident the executive employment market will improve in the next six months. This number is up from 41% in the previous month, and 67% of all executive recruiters expect at least a 10% increase in search assignments received from corporate clients.

"Conditions have clearly changed," says Mark Anderson, ExecuNet president and chief economist. "We can now see the first clear signs of a recovery indicated by responses that are similar to what we saw coming out of the last recession in the second quarter of 2003. Executive recruiters expect hiring to increase as we move toward the end of the year. For executives interested in making a change, now is the time to come off of the sidelines."

Recruiters’ short-term confidence remains virtually unchanged, as 19% report being confident or very confident the executive employment market will improve during the next three months—up from 18% in the previous month. "Recruiters who earlier this spring had a much more negative outlook, are now clearly seeing signs of new hiring from their client companies," says Anderson. "However, it is going to take a few months for those business plans to affect the demand for talent."

Independent analysis of the RCI, introduced in May of 2003, has confirmed it is a leading indicator for the executive employment market, and any RCI reading greater than 50% indicates recruiters expect the number of search assignments in the next six months will increase.