Executive Search in Italy – 2020 Outlook
More Majors Take Recruiting In-House
After one year of “centre-right” coalition, a new government (centre-left this time) took office in Italy in late Summer 2019, with the goals of jump-starting growth, fostering social inclusion and securing financial stability. To achieve these goals the Country is supposed to aim at a comprehensive reform package, alongside modest and balanced fiscal consolidation, according to IMF in its annual review of the economy.
The strong political goal of Government and Parliamentary 2 Chambers is to stay in acceptable life until the end of 2023 after renewing the seat of the President of the Republic when new elections will be done.
Domestic issues, namely Alitalia, Arcelor-Mittal refinery, Morandi Bridge casualty v/s Highways, refugees, North-South differences, are inevitably influenced by international issues, namely Lybia, Trump, Brexit, EU, Iran/Iraq
OCSE projects Italy’s economy to grow by 0.4 percent in 2020; the economy faces obstacles from slowing Euro-Zone growth as well as from greater domestic policy uncertainty. This is reflected in the increase over the past year of sovereign borrowing costs. Beyond that, annual growth has to be projected “below 1 percent”.
To lift potential growth and enable Italy to narrow the income gap with its Euro area peers, as well as to facilitate a reduction in its high public debt (still 130% of GDP), it needs to tackle long-standing structural impediments to productivity growth. These include decentralizing the wage bargaining regime, liberalizing service markets, and improving the business climate.
Large international companies, such as Unilever, Amazon, McDonald’s, P&G, are more and more trying to become independent for Recruiting, leaving space for the Executive Search only and, in a limited number of cases, Coaching.
The big names such as Spencer Stewart, EZ, KF, are all active in Recruiting however low the level requested, while Temporary Work companies, such as Kelly Services, Ranstad and Manpower, are trying their best to go north to Recruiting. In this picture Cornerstone International finds itself sandwiched between the two approaches.
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