Leaders of the executive search field cite several other factors for the thriving recruitment business. Robert Rollo, a partner of Heidrick & Struggles, one of the largest recruiting firms, credits the Sarbanes-Oxley Act passed in the wake of Enron’s collapse six years ago with increasing the need for professional recruiting. “The greater liability placed on chief financial officers and senior executives makes the hiring process a lot more critical,” said Mr. Rollo, who has been in recruiting for 25 years.
Robert Bellano, managing director of cFour Partners Worldwide, a firm based in Santa Monica, Calif., noted that the growth of venture capital and private equity financing for high-technology companies, plus globalization, had increased the demand for his company’s services. “Often we need to hire highly specialized senior people on a global basis for critical technological and financial positions,” Mr. Bellano said.
Daniel Conway, managing director of Focal Point Partners, a Santa Monica investment bank, agreed. “Frequently, private equity funds need someone right away to fill a critical position at a company they’ve invested in. The funds are glad to pay the fees of recruiters who deliver.”
Mr. Solomons said baby boomer retirements should create a constant need for recruiter services. A study, “The Aging of the U.S. Work Force,” by Ernst & Young, the accounting firm, raises the question of whether labor shortages may occur as vast numbers of workers now age 55 to 64 retire with fewer younger workers available to replace them. But Mr. Solomons sees a trend of “mobility” as even more meaningful.
“The generations of younger workers don’t value stability as the older workers did,” he said. “Their attitude is, ‘My career is my product and I’m going to the highest bidder.’ ” he said.
