Struggling Economy Has Search Firms<br>Focused On Business Development

A RecruitSmart survey conducted by ExecuNet.com, an online career services center for executives and recruiters, reveals how executive recruiters are changing their business plans to better cope with the struggling economy.

With demand for executives falling 26% and 19% in the first and second quarters of 2002 respectively1, 63% of search professionals report that their firms have become more willing to negotiate fees with clients and 92%
have increased client contact over the past six months in an effort to retain and increase business.

ìThe economic recovery is taking longer than most search firms expected,î
says Mark Anderson, President of ExecuNet.com. ìTo succeed in this market, firms are being forced to consider all possible means for increasing business volume including lowering fees, usually a last resort.î

In addition to fee negotiation and increased client contact, search firms are taking other steps to generate business. Eighty percent (80%) of recruiters have increased new business cold calling, 52% of firms have
introduced new services, 46% expanded their firmís industry
expertise/focus, 23% of search firms are using direct mail campaigns more frequently, and 20% have increased advertising.

Among the new services search firms have begun offering to clients in the past 12 months are:

Discounts on multiple assignments (introduced by 47% of firms)
Career coaching (31%)
An unbundled search process (28%)
Background checks (21%)
Competency testing and assessment (20%)
HR consulting (18%)

To help recruiters gain a better understanding of how colleagues are adapting to the changing economic picture, a white paper titled, ìStaying Afloat In Tough Timesî can be downloaded for free at
www.execunet.com/recruiters/recruithome.cfm.

Results are based on a nationwide survey of 195 executive recruiters.

ExecuNet.com is the leader in providing career management services to the $100,000 executive and senior-level manager. It is the first source
executive and corporate recruiters use to find top executive talent. Founded in 1988, ExecuNet.com posts more than 30,000 executive jobs annually; provides information on salaries and market trends; hosts networking meetings in major metropolitan cities across the U.S.; and
publishes three newsletters covering the latest tips, tactics, strategies, and resources for executive job search, career management, and member networking.