Retained Executive Search Worldwide Trends, Challenges and the AESC

European Annual ConferenceMadrid: November 13th, 2014

Peter Felix, AESC President

Global Industry Revenues (Retained Executive Search, 1978-2013)

Tot

al R

even

ues

$ (i

n b

illi

ons)

0.75

2

3 3.1 33.2

3.53.9

4.5

5.5

6.3

7.2

8.3

6.6

5.65.3

6.41

7.45

8.73

10.6511

7.43

9.55

10.41

9.74

10.57

0

2

4

6

8

10

12

Market Share by Region – Q3 14

Market Share by Industry – Q3 14

Average Net Revenues

Average Revenue per Consultant

7

2014 Member Outlook Report

The Changing Market2010 2014

Opportunities

• Clients use and need retained search $200k+ • More organizations using search • New markets opening up around the world• Global revenues sustained despite volatility• Firms offering leadership consulting• Global talent shortage• Industry restructuring• Executive mobility

Challenges

• Growth of in house recruiting• Commoditization of lower end / purchasing• Promoting retained in emerging markets• Need to differentiate/add value• Take search back to consulting roots• Brand the profession to protect margins• Raise standards• Build the future generation

AESC Overview• Global since 2004 - 3 Councils; Intl Board• National Committees • The global Association for retained search• Voice of the Industry• Membership growth: 6,000 consultants – 75+

countries; 2,000 researchers• $5m+ revenues; 24 staff (US ,EU ,Asia)

Member Involvement• Regional Councils:100+• Board -15• Rotating chairs • Membership• Standards• Campus• Webinars• Information• BlueSteps

AESC Recent Highlights

• First Council meetings in Sao Paulo; Istanbul • First Forum in Beijing: China Going Global • Local Meetings in New York, Chicago, Sydney, Hong

Kong, Delhi, Dubai, London, Warsaw, Paris, Madrid, Stockholm, Vienna, Frankfurt, Moscow

• Researcher Summits: New York; Sydney; London

Women on Boards

15

• UK Voluntary Code adopted across EU• BlueSteps Alliance with Global Board Ready

Women (8,000+) – European Commission & Business Schools initiative

• New AESC UK “Women’s Committee”• Partnership with 30%club• Voluntary Code underway in Australia,

Canada & Hong Kong

Client Communication

AESC MemberSearch Firms

AESC MemberDirectory & RFPs

DownloadAESC Publications

Registered Clients (1,400+ clients)

Client Database: Growth by Year

2008 2009 2010 2011 2012 2013 2014 YTD 2014 Fore-cast

Cumulative 77 187 469 767 986 1216 1505 1600

Annual 77 110 282 298 219 230 289 384

100

300

500

700

900

1100

1300

1500

1700

Num

ber o

f Clie

nts

Clients by Region

60%23%

17%

Americas Europe/Africa/Israel APAC & Middle East

AESC Publications New! AESC Global

Talent Quarterly SearchWire President’s Letter Executive Search Connect News BlueSteps Executive News Researchers’ Forum & ShortList Webinars Social Media

Search Quarterly Magazine

Issue 3 2014

Issue 4 to be released in January

iOS App developed and awaiting approval by Apple

Public Relations

Branding

Professional Development

• Researchers/Associate Certification: – 80 certified; 30 in process

• Researcher SummitsLondon (Sept. 19th), NY (Oct. 16th), and Hong Kong (Nov. 3rd)

• Cornell Advanced Program in Executive Search Consulting – 67 consultants; 15 countries

BlueSteps

• 90,000+ senior executives worldwide• Average salary $ 250,000 • Exclusive and Free to AESC Members

BlueSteps Traffic – 2008-Q3 2014

08Q208Q3

08Q409Q1

09Q209Q3

09Q410Q1

10Q210Q3

10Q411Q1

11Q211Q3

11Q412Q1

12Q212Q3

12Q413Q1

13Q213Q3

13Q414Q1

14Q214Q3

0

20000

40000

60000

80000

100000

120000

140000

160000

BlueSteps Traffic

BlueSteps Database: Growth by Year

28

02Q102Q3

03Q103Q3

04Q104Q3

05Q105Q3

06Q106Q3

07Q107Q3

08Q108Q3

09Q109Q3

10Q110Q3

11Q111Q3

12Q112Q3

13Q113Q3

14Q114Q3

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

17044119

762111586

1587620274

27298

34669

4280648281

54559

60830

67180

75835

84149

Total Members by Quarter by Region

APAC EMEA Americas

BlueSteps Upgrade

UpdatedExecutive Profile

Responsive Designfor Mobile Devices in Progress

ShorterRegistration Funnel

Business School Partnerships

• Alliances with 40+ leading business schools

• Connects with EMBA and MBA Alumni • Participation as panelists at live events• Adding high quality candidates to BlueSteps

How can you help?

• Tell your clients – standards/compliance• Branding – use AESC logo /documents• Utilize AESC Professional Development

(Certification, trainings, webinars…)• Keep us informed of issues in your market• Refer quality firms into membership• Use the BlueSteps Database• Refer Candidates to BlueSteps• Get involved - Promote the profession

Thank you! …Questions?

www.aesc.orgwww.bluesteps.com

www.executivesearchconnect.com

pmf@aesc.org