Executive Search in Italy – 2016 Outlook
RECRUITERS DISCOUNT FEES, WIDEN SEARCH
The market situation in Italy early in 2016 shows a slight improvement relative to the projected GNP increase at just a bit better than 1%. The four major Executive Search Firms (namely Spencer Stewart, Korn Ferry, Egon Zehnder and Russell Reynolds) have heavily decreased their fees and have also lowered the level of their searches down to junior level.
Also they are all offering consulting activity, mainly Assessment, and with success. Almost all of companies who are, directly or indirectly controlled by the State (e.g. Finmeccanica, Poste Italiane, Ferrovie dello Stato, Fincantieri, etc.) are calling for public tenders resulting in a review of the lowest fee against the best quality. We are focusing on medium size organizations and keep our fee at a decent level, i.e. not below 25% of the total compensation.
No major events are foreseen in 2016 beside the Vatican Jubileum, which we don’t think will have any impact on our business. The politic outlook is gradually deteriorating into a more and more fragmented number of Parties some of which are aligned against immigrants, against Euro and some also UE
We have a new team in Milano which we are expecting to generate both domestic revenues and additional referrals internationally. In addition, we are strongly supporting the promotion of consulting activities as an independent business and also in support to Executive Search.