She says that the first murmurings of economic disaster can always be gauged early on from the hundreds of conversations the sector has every week with movers and shakers in the business world, and that thus far, there has not been a hint of the negative sentiment that preceded the 2009 global financial meltdown.
"The executive search sector is very much in touch with what is happening in businesses throughout the country, and the views and sentiments held by top managers at any given time," says Goodman-Bhyat.
She says that Jack Hammer speaks to more than 500 top executives per week, and that when the economy is in danger of going pear-shaped, executive candidates will either say that they need to get out of their current company urgently, or alternatively that they are not keen to consider new career opportunities because things are looking shaky, so they are not going to do anything to risk their current position. "There has not been an inkling of these kinds of concerns so far this year," she says.
Goodman-Bhyat explains that these insights are not meant to negate the reality that there are job freezes and retrenchments happening at companies throughout SA. However, the executive search industry provides a tool by which one can gauge the prospective scope of the economic downturn. "At this stage, the signs in our industry show that investment sentiment remains positive overall, with business confidence up post-election and stock markets generally performing well.
"Since the beginning of the second quarter, we have seen a 20% increase in the number of searches over the same period last year. Companies have started looking around again for seasoned leaders to head up their strategic departments. And the demand is coming from all sectors, including private sector corporates, academia, foundations, and government."
Goodman-Bhyat says that, even as companies put freezes on hiring in low-to-mid tier positions, the demand is going strong for strong leadership in crucial leadership roles, which should be interpreted as a positive sign for the economy. "Without strong leaders, companies are doomed. The fact that they are continuing to invest in top appointments, means that they are still talking growth."
