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Editor in Chief:
Joan Caruso
Writer:
Catherine Carlozzi
Designer:
Roberta Martin
If you have questions or
comments on this
month's issue, send your
feedback to: roberta.martin@ayers.com
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President's Letter
HR ISSUES HEATING UP FOR 2005
 I want to use my first letter of 2005 to open discussion on several issues my colleagues and I believe will be front-burner concerns for the HR community as the year rolls out.
Against a backdrop of steady economic improvement, our Staffing Services Group is seeing the most active recruiting market since 1999. So active, in fact, we find ourselves in hiring mode. At the same time, things are busy on the Career Transition side of our house. While some organizations are actively staffing up, others in the same industry are wielding the ax.
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CEO Departures Provide Important OD Lessons
These are particularly tough times for CEOs. According to recent reports, FORTUNE 1000 companies recorded a five-year high for chief-executive turnover in 2004. Of the 97 exits from the corner office, 37 occurred during the fourth quarter. Overall CEO turnover in corporate America reached a record 56 in December—a one-month increase of 22 percent. Just over half of those were voluntary resignations—another record for 2004. The primary driver behind the year-end exodus is failure to meet annual earnings expectations. Given the growth of M&A activity, the trend will likely continue in 2005.
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Staffing Services Recruits for the Home Team
Steady economic improvement and an optimistic business outlook have added steam to the job market—particularly in the service sector. “It’s as active a recruiting market as I’ve seen in five years,” says Bob Deissig, who heads Ayers’ Staffing Services Group.
“So many companies have been underinvested in technology for the past two or three years and now they’ve been given the green light to initiate projects in this area."
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Getting the Best From Your Technical Consultants
January and February are typically the time when companies are finalizing budgets and issuing vendor contracts. The Ayers Report asked group head Donna Held for some advice on what
clients should consider as they begin issuing requirements for consulting assignments.
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Career Transition Sees Longer Programs for Some Candidates
Along with an uptick in outplacement activity, members of the Career Transition team at The Ayers Group are seeing an interesting trend. “We’ve had several cases recently where major companies have increased the duration of outplacement programs for specific groups of employees across the board,” says Managing Director Terry Ebert. The Ayers Report asked him to talk about this trend.
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Consultant's Corner
GETTING IT RIGHT IN LUXURY RETAIL
Affluent consumers have more choices these days. They also have become savvier, more demanding, and less brand-oriented. In the highly competitive luxury retail market, it’s no longer enough to have the “it” product; you also have to provide the “it” experience.
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Successful Landings
Ongoing restructuring in the financial services industry and the consolidation that follows the new wave of M&As have stepped up outplacement activity. Renewed confidence in the
business outlook is tempered by a job market that is still demanding and highly competitive. Instances of multiple offers are on the increase. The following represent a cross-section of the success stories reported by Ayers’ Career Transition consultants in the last few months.
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Organizational Effectiveness Consulting
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