Location:San Francisco
Newsletters
Q1 Newsletter:
Dear Friends of Sanford Rose Associates - San Francisco:
We wanted to reach out and share with you our perspective on the first quarter of 2009 from the point of view of an exclusively life sciences-focused, executive search firm. At Sanford Rose Associates - San Francisco, our clients span the range from small and venture backed, to large and publicly traded companies within biotech, pharma, diagnostics, & medical devices. I speak with many clients and candidates each day on both sides of the equation, and I know that all of you would like more insight into all of the dynamics at play as you continue to seek talent for your organizations. From my experience, CEO’s/hiring managers would also like to understand what their peer companies in the industry are doing in reference to search, particularly since managing budgets incredibly closely has become even more critical than in the past.
Some trends we have observed on the client side over the past 6 months are as follows:
1. Companies that are relatively financially stable and need to continue to deliver upon timelines to meet shareholder expectations are still actively hiring and leveraging search firms. However, because of the internal dynamics at the hiring companies (discussed in more detail below), in today’s economy just about everything about the search process tends to take longer today than it did just 6 months ago: from candidate evaluation, to interviewing, lead candidate determination, offer approval, offer negotiation, and candidate acceptance (particularly when a potential relocation is involved).
2. It is more important than ever for the CEO to be able to demonstrate to the Board, the management team, and all stakeholders (with data) that s/he’s done an exhaustive search and has identified the single best candidate within the crowded playing field. As a result, the interview process for executive candidates has become very elaborate. Because time is money and search fees have not increased, in today’s economy it actually makes sense to have a search firm doing this higher level of evaluation.
3. Before engaging a retained search firm, most all hiring managers are electing to first fully exhaust their personal network of referrals, which takes time. Once exhausted (literally and figuratively), most hiring managers will elect a life sciences experienced retained search firm such as Sanford Rose Associates - San Francisco for the company’s VP or C-level searches, since the executive candidates they seek tend to be more responsive to such highly experienced firms. For Director level opportunities, most companies will experiment with postings and/or contingency firms for a fixed period of time, with retained search as a backup strategy when the time vs. money balance becomes out of synch. Director level positions which are historically hard to fill (i.e. R & D positions, Medical Directors and Regulatory/ Clinical/ QA positions) often go directly to retained search since there is such competition for this finite and “in demand” candidate pool.
4. We are once again in an employer’s (buyer’s) market, and companies that we’ve worked with recently have been able to negotiate some great values on some highly accomplished candidates (the same effect we are seeing in the real estate market). Unfortunately, it takes much more due diligence to identify and land the best candidate today, given the candidate dynamics that follow.
We have observed some important trends on the candidate side as well:
1. Although unemployment is at an all time national high, it does not mean that the best candidates are any more available – in fact, just the contrary is true. The best candidates are still very much employed, and their internal value has typically increased exponentially of late, given most employers’ need to “do more with less”. On the plus side, retained search firms typically target and engage “passive candidates” (those typically happily employed) as well as those that are more visible, which is equally necessary in today’s environment.
2. The competition for key executive roles has gone up dramatically. On any given search, we are seeing a higher number of candidates matching the technical requirements than we have in the past, many of whom are either risk takers using the down economy/ loss of equity where they are as a reason to engage, candidates that are between jobs, or consultants looking to rejoin industry for to gain stability. However, since “personality fit” is easily >60% of the equation, we need to conduct even more elaborate front end interviewing/ screening to be sure we present only the superstars with long term potential, versus the chronic job seekers that are easy to find and engage.
3. Relocation continues to be the most challenging hurdle to overcome for both the employer and the candidate. Most all homeowners are electing to keep their homes given perceived losses. It is important that the candidate also considers he is getting a great deal on the buying end, which will in some ways compensate for any losses he may take on his home. If candidates can afford to invest in a second home and rent their current home until the market recovers, then obviously, they would prefer to do so. We are skilled at having these conversations and engaging a relocation assistance firm (at no cost to the employer or candidate) at the right time….all this is key to a successful placement.
If you have any questions about what’s happening in the industry, and or want to discuss your personal situation further, please feel free to give me a call at your convenience. As always, at Sanford Rose Associates - San Francisco, we are working very hard to satisfy our valued clients, and to connect the best talent in the industry with excellent employment opportunities. We all feel fortunate to have your support and the ability to represent some very attractive employment opportunities at a time when “hot jobs” are few and far between. Regardless of the economy, the commitment we all have to the industry will not allow us to fail, and I am certain that the strong and committed leaders and their companies will find a way.
Thanks again for keeping in touch over the years and hopefully well into the future,
Robin