Executive Search Industry: Trends and Challenges in Human Resources Development Jelena Kralj, Country Manager Serbia Pedersen & Partners

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1 Executive Search Industry: Trends and Challenges in Human Resources Development by Jelena Kralj, Country Manager Serbia Pedersen & Partners

2 What is Executive Search? Consultative service - understanding of clients needs and fine-tuning throughout the search process Recruiting individuals for senior executive positions Implies exclusivity and retainer Follows well-established methodology Client is always an organization, not a candidate

3 History 1926 First ES contract (Mr. Thorndike Deland) Early 50s Real start of ES industry offered by the management consulting companies McKinsey and Booz Allen Hamilton) 1951 Ward Howell 1st ES firm, spin-off from McKinsey 1960s ES firms enter European markets first office was Spencer Stuart opened in London in 1961

4 Role of executive search firms in systematic HRD Assessment of organizational situation and needs Benchmarking locally and internationally Analysis of trends and availability of management talent on a particular market Management Assessment Outplacement Career guidance Confidentiality Objectiveness Wide network of contacts Wide geographic coverage Expertise from various industries

5 Focus Finding Talent

6 Current focus of the Companies/CEOs Shift from cutting costs to retaining customers and enhancing existing relationships Getting to the end of restructuring: streamlining their business operations, dumping nonperforming or nonstrategic assets and keeping eye on break even points Planning for a return to growth focus on shareholder value Understanding the future of the changes forced by this recession Assessing human capital and what each team member contributes to an organization HR roles become more strategic

7 Human Resources Development The focus of all aspects of Human Resources Development is on developing the most superior workforce so that the organization and individual employees can accomplish their work goals in service to customers Companies were teaching us how to be bit better than before, but not how to recreate the unknown The secret is no longer transforming weaknesses into success, but focusing on people s strengths More management solely is not an answer to the world of surprise There is a lot of fear out there, difficult times create grater demands for individuals

8 Challenges for HRD Changing workforce demographics Competing in global economy Eliminating the skills gap Need for organizational learning Need for lifelong learning organizations change, technologies change, products change, processes change, people change

9 Current trends in recruitment Intensified use of technology in the recruitment process (use of advance Client Relationship Management Systems to keep the clients well-informed) Digital + online (for example: use of social network systems) Increased scrutiny of candidates to hire the right one for the job Competitive pressure in the Executive Search industry

10 Why Executive Search Services? Do companies have better methods to recruit executives? No Any new technologies replacing executive search? No Are emerging markets interesting? Yes

11 About us Pedersen & Partners is a leading international executive search firm. We operate 41 wholly owned offices in Albania, Armenia, Austria, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Egypt, Estonia, Finland, Georgia, Germany, Greece, Hungary, India, Iran, Israel, Kazakhstan, Latvia, Lithuania, Macedonia, Moldova, Mongolia, Nigeria, Poland, Romania, Russia, Saudi Arabia, Serbia, Slovakia, Slovenia, South Africa, Turkey, Ukraine, United Arab Emirates and Uzbekistan. Our values Trust - Relationship - Professionalism apply to our interaction with clients as well as executives.

12 Pedersen & Partners - Making a Difference We have 41 wholly owned and integrated offices - one point of contact We have 45 different nationalities in our team of consultants understand local markets and culture Advanced IT and communications systems for a fast, responsive and consistently high quality search execution

13 Our Presence

14 Our strategic focus is to serve regional decision makers well I want a firm that can help me in Belgrade, Prague and Dubai Office Coverage I will be in Budapest next Wednesday and want to meet your Country Manager Local Team Are you sure you really understand the mobile telecommunications business? Regional Industry Practice Parlez-Vous Français? Multicultural Team

15 What s needed to serve regional decision makers best? Best Team Best Geographical Coverage Best Executive Search Service Best Practice Groups Best Processes

16 Our practice groups.. ensure updated industry knowledge and a deep candidate network

17 Executive Search Process Stage 1 Planning Define business needs and search context Create candidate profile Design a search plan

18 Executive Search Process Stage 2 Identification and Assessment Direct search, recommendations, database search, internet and other candidate sources Integration of internal candidates Telephone interviews, consultant interviews Progress reports

19 Executive Search at Pedersen & Partners Stage 3 Shortlist Shortlist of candidates Detailed assessment reports Client interviews Informal references Psychological/psychometric tests

20 Executive Search at Pedersen & Partners Stage 4 Select Executive Finalist interview Contract negotiation Formal reference check

21 Executive Search at Pedersen & Partners Stage 5 Follow-up Ensure proper start Follow up consultation Continuing obligations

22 Thank you For further information: Jelena Kralj

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