Gail Burns, Managing Director of Target Search & Selection - a Glasford International Partner  -  reports on how the executive search market is developing in South Africa.

2010 is no doubt a milestone year for South Africa as we anticipate the arrival of the world for the biggest event ever to be hosted on the African continent, the FIFA 2010 World Cup. And, while 2009 was all about apprehension and anxiety in the wake of the global economic meltdown, 2010 is all about optimism and possibilities. As they say: “What goes up must come down and then, of course, go up again.” Our economy is exactly the same and after a few ‘boom’ years, it was inevitable that we would hit a few tough years.

The outlook in South Africa for the executive search market is promising. As we move into economic recovery, top talent, who have been holding onto their jobs, will suddenly find opportunities opening up. In turn, employers can  expect a flurry of resignations as there is an increase in counter offers and remuneration offers. Employers need to be more aware that top performers have options and they need to work a little harder at ensuring they do all that is necessary to retain them.

Search fees in the S.A. can vary significantly dependent upon industry sector, client drivers and the ‘name’ and status of a search firm. The most well known, South African based search firms frequently trade on the consultants’ name and reputation, attracting only the top clients and candidates. Conversely, it is encouraging to note that more organizations are placing greater emphasis on personal service, industry expertise and cost.Typically fees vary from 21.5% to 35% of the employee’s first year earnings.

Smart organizations are now recognizing that the ability to rebuild the best talent quickly outweighs the small cost savings they might make by negotiating fiercely on fees. Yes, there is greater pressure on S.A. search firms to deliver within increasingly shorter time-frames. The impact of the recession in South Africa had undoubtedly reduced the demand for top executives and placed additional pressures on margins and the procurement for contracts as more clients are establishing internal search resources. Such pressures inevitably test the depth and flexibility of a search firms’ resources and its capability to manage the search process quicker than was previously the case.

The decisions we take today in South Africa in rebuilding organizational capability and how this unfolds over the approaching next two years will be critical. Business leaders have to ensure that they do not lose top talent by actively reviewing their talent management strategy and practices, with special attention to their mission critical positions, high potential talent, succession plans and scarce technical and professional skills. As search consultants, we must work proactively with our clients in adding value, helping them manage their talent needs so that they can compete more effectively in their respective markets.

As the world awaits for the FIFA 2010 World Cup to be hosted in South Africa,  we await for business leaders and search consultants to review their game plan so they can effectively select their best players and ultimately, win the championship.