2010: Where is the talent wind blowing?

By Kelly Kincannon, Chairman and Founder

Since the financial markets crumbled in the second half of 2008, Kincannon & Reed has received an unusual spike in the number of questions about the marketplace for talent in the changed environment. As a kickoff to the New Year, we offer our perspectives on the two most common questions. These are, of course, broad generalities; exceptions abound, so please view these as observations on the direction of the wind.

1. Is there a greater supply of top talent available due to the financial and economic situation?

In a word, no. The number of top executives open to change is actually less than before the recession within the food, agribusiness, and life sciences sectors due to the following:

• Top people feel secure. Although no firm was immune, companies in these sectors have been hit less hard than other industries, so the top people are feeling generally secure and less open to change.
• Talent is more cautious. Talent is more cautious about change and is reluctant to swap the proverbial “devil they know for the devil they don’t”.
• Security is key. Executives and their families value security more than they did before mid 2008. Consequently, features such as defined benefit pension plans (Yes, a few companies still have them!) are proving to be effective retention mechanisms.
• Falling real estate values create a new barrier to change. This barrier is usually more psychological than anything, as one’s house has lost the same value irrespective of whether or not one sells it, and presumably one will buy a house in the new location at a similar discount. But if the net sale price is below the mortgage payoff amount, then the barrier is real and often the hiring company must come up with the cash to bridge the gap and eliminate the relocation obstacle.
• Shortage of talent in key areas remains a critical issue. For example, senior marketing talent is sparse for the simple reason that top executives are quickly tapped for general management roles. True leaders are rare no matter the state of the economy.
• Delayed retirements. Many top executives who were considering retirement (early or otherwise) have decided to continue working until they feel more certain about the quality of their nest egg.

In other industry sectors the wind shifts the other way:

• Abundant supply of available talent. So many companies have downsized so severely that many more talented executives are actively looking for a new position than in recent memory. We continue to be deluged with unsolicited résumés.
• Talent now available in areas of historic shortages. The troubles of other industries are creating a fresh pool of talent for roles in such critical areas as senior strategic marketing, finance, and supply chain.
• Think broadly. As a result, we are encouraging clients to think more broadly about the backgrounds of people they will seriously consider. We are finding some very interesting matches.

In all sectors, relocation reluctance and obstacles continue; the New York Times had a recent article on this subject: http://roomfordebate.blogs.nytimes.com/2010/01/10/a-nation-of-hunkered-down-homebodies/?emc=eta1

2. Are there fewer top jobs available due to the economic situation?

If our experience is any indication, in the food, agribusiness, and life sciences sectors there are as many (if not more) opportunities available for top talent as before the recession.

• Despite the recession, and following strong growth in 2008, Kincannon & Reed had a record number of new searches in 2009.
• Companies in these sectors have fared relatively well, but of course some industries (poultry and pork come immediately to mind) have been squeezed hard.
• Leaders in food, agribusiness, and life sciences have a longer term view than in most other industries. Wise leadership will not hold up recruiting and hiring for strategic roles just because margins are not as strong as the year before.

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We welcome your response to our observations above. We continue to believe that food, agribusiness, and life sciences are the places to be – now more than ever – as you, our clients, help to feed the world and keep it healthy.

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