This year the executive search market is again heating up, and the demand for top level executives is continuing to surge especially for senior players in the hottest sectors ex: biotech/healthcare/ pharmaceuticals, financial services, technology, and consumer products. Activity in these sectors is also increasing revenues for retained search firms who are expanding their work force in order to handle the high demand for key executives. Last year was an exceptionally good revenue producer not only for the larger search firms but the boutiques as well. From the candidates' perspective this increase in demand is generating feelings of optimism; however, from the employers' perspective firms now realize that they will have to decide on candidates in an expeditious manner, as they won't remain on the market as long.

There are tremendous costs associated with bringing on a new executive that fails during his first 18 months with a new company. Which is why more companies are focusing on formalizing the on-boarding process to help maximize the new executive's ability to succeed. On-boarding should begin two weeks before the new executive joins the new organization, in order to meet the key stakeholders and develop a plan for the first 90 days. Companies are increasingly committing to developing their own on-boarding processes by providing incoming executives with a clear definition of success parameters for their position, along with coaching which can be provided by their Human Resources function or executive coaching services. First impressions with staff, peers, superiors and clients are extremely important to establish in a manner that is in sync with the organizations culture and modus operandi. On-boarding helps ensure that these first impressions will set the stage for continued success.

2006 starts off with a significant increase in the number of top investment firms in North America and Europe requiring their key executives to take Garden Leave if they resign to join a competing firm. For those of you unfamiliar with the term, Garden Leave is a period of time ranging in duration anywhere from 3 months to 1 year during which an executive is barred from performing any work related activities, but is still receiving full compensation and benefits from their current employer. Garden Leave is a retention measure designed to give firms lead time to protect their competitive secrets, and/or replace a key executive responsible for mission critical or sensitive matters for the firm. Failure by executives to agree to these commitments puts their bonuses and long term incentives (which comprise the majority of their compensation package) at risk. While it may be viewed as restraint of trade, Garden Leave is a practice growing in popularity across the financial services industry.