The Cushman Report

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The Cushman Report

Breaking News, Trends and Information about

the Communications Marketplace for Senior Professionals

March 2006

Just a few weeks ago, I launched a blog directed to senior communications/IR professionals. It focuses on the human resource questions that are rarely discussed except in one-to-one conversations with good friends or trusted advisors. To encourage a candid dialog, all remarks are posted anonymously. Initial topics are: "Moving out, moving up, moving where?" which is on the minds of senior (in age) professionals who are dealing with life changing decisions; "Hiring trends" as the market heats up, and "Negotiating offers."

Visit the blog for the topics discussed here and these additional subjects: Search firms for better or worse; VP Searches and above, and Ethics. Please take a look and send remarks in an email to me (jcushman@jc-a.com) with "PR BLOG" in the subject line. Once again, all remarks will be posted without attribution.

Judy

Judith Cushman & Associates

jcushman@jc-a.com, (425) 392-8660

 

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HIRING TRENDS: The market is heating up. There are categories where the turnover is reaching counterproductive levels

NEGOTIATING OFFERS: How to make it a "win/win" and prevent the process from becoming adversarial

MOVING ON, MOVING OUT, MOVING UP: Searching for a job when you are out of work and a "senior" (read mature) professional.

JOB NEWS: JC&A successfully completes search for an EVP, Corporate Communications

UP AND COMING POSITIONS

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HIRING TRENDS

Articles have started to appear in trade publications talking about how robust the market is and how that is good news for job seekers and the industry in general. However, I've been following the movement in certain categories and am very concerned that we are headed for the same "churn" that led to opportunism and inflated salaries for too little experience, just before the tech bubble burst. The price of moving to a new employer on an annual basis, is sacrificing career development and long-term marketability.

At the senior agency levels where I have been following VP moves, the number of open positions in health care all across the country is staggering. There is simply no way to hire up and coming senior directors or VPs from smaller agencies to fill these posts. Agencies who are pressed to fill gaps that put accounts at risk, do not wish to take the time to hire anyone who is less than fully prepared to do the work. Yet, market conditions are so difficult, that the only option may be to look outside traditional places (such as competing agencies) for talent.

The technology practices are also ramping up both at the VP and at the Senior AE levels (with that magic 5+ years experience.) Again, this is a category that was hard hit several years ago when many professionals left the field. There are not enough AEs in the pipeline since many abandoned careers in PR/Communications when the market tanked in 2000. The need for VPs and heads of tech practices is not yet as "heated" as healthcare but the pressure is building and the talent pool is limited.

There is no simple solution and agencies poaching from each other create a hiring spiral that escalates salaries for no real added value. One agency principal in Southern California talked about how hiring a tech Sr. A/E would push him to a $90K level. He had just lost a key employee (and this was the first time he had lost someone at a Director level) to a competitor who had lured her away with a huge salary increase and title change. He simply couldn't compete with the dollars offered.

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NEGOTIATING OFFERS

There is an art and a science to putting an offer on the table to a candidate. I am firmly convinced that if initially you ask the candidate to participate in the process of formulating an offer, then the hiring organization is three quarters of the way to having the candidate accept what is ultimately crafted. However, I do not think that most Human Resource managers understand that by giving up their decision-making authority, they are "winning" the candidate rather than losing the "negotiation game." It is important that the hiring manager participate in the offer process and put him/herself in the shoes of the candidate so that common sense prevails.

I wrote an article for the blog starting at the beginning phase of a search and how to broach the subject of compensation. Please refer to that article for an in-depth discussion of the entire process.

Here are my recommendations once the offer process begins. The framework for success is shared information. The candidate should prepare a complete written document explaining all the financial considerations that will be factored into a hiring decision. The company should outline all the components of an offer which can require explanation: base salary range, stock options and/or grants, vesting periods, bonus programs, special perks, etc. Nothing should be put in writing until this information has been exchanged and an informal discussion held about what the offer will look like. Only when all surprises have been eliminated and the offer confirms what has been discussed, should the offer letter be presented.

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MOVING ON, MOVING OUT, MOVING WHERE? Searching for a job as a "mature" professional:

As our industry's founders retire, the next generation of leaders on both the agency and corporate side are deciding what to do "next." As they move into their 50ties and 60ties, the direction to take is not clear. These are difficult personal decisions with no "retirement career tracks." Here are a few remarks about the reality of those choices with the in-depth discussion posted on the blog.

For a variety of reasons which I elaborate in the article on the blog, successful, hard driving executives are probably the least introspective, the least able to define what accounts for their success and what is most important to them in their work life. That creates a tremendous challenge when they are faced with making a decision about what is best for them versus what is best for the organization or client. Taking the time to explore what really is rewarding and seeking feedback from a variety of sources is essential to developing a "what's next" plan.

There is also the age question. No matter what is legal, companies hire for their culture and "fit." If everyone in leadership positions is under 50, a senior executive aged 55+ will most probably not be invited back as a finalist. With 10-years to official retirement age, some organizations will consider a hire at 55. However, at 60 the reality is that companies establish job criteria and experience requirements so that the individual will simply not fit the profile of the position. In short, joining a company at age 60 is extraordinarily rare.

Please visit the blog for additional discussions about search firms for better or worse, ethics and VP positions that are open.

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JOB NEWS

JC&A SUCCESSFULLY COMPLETES SEARCH FOR AN EVP, CORPORATE COMMUNICATIONS

Cell Therapeutics, Inc. Hires Former Bio VP of Communications; Dan Eramian to Join CTI as EVP of Corporate Communications

SEATTLE, March 3 -- Cell Therapeutics, Inc. (CTI) (Nasdaq: CTIC) today announced that Dan Eramian, former Vice President of Communications at Biotechnology Industry Organization (BIO), will join the Company in early March as Executive Vice President of Corporate Communications. Eramian will serve as a member of the Company's senior management team and will be responsible for developing and implementing the internal and external communications strategy. Eramian brings nearly 13 years of experience in the biotechnology industry to the position. The search was conducted by Judith Cushman, Judith Cushman & Associates, Seattle, WA.

"We are very pleased to have Dan join the senior management team. His wealth of industry knowledge and experience has earned him the trust and respect of his colleagues," said James A. Bianco, M.D., President and CEO of CTI. "We are confident that his experience and leadership will be an asset to CTI."

Most recently Eramian was Vice President of Communications at BIO, a Washington, DC-based industry organization representing more than 1,200 biotechnology companies, academic institutions, state biotechnology centers and related organizations. Prior to BIO, Eramian was Assistant Administrator of Communications at the Small Business Administration and Director of Public Affairs at the Department of Justice and Chief Spokesman for the Attorney General.

"In my 13 years at BIO, I have worked with scores of fine CEOs and member companies," stated Eramian. "I am especially excited about joining the CTI team and contributing to their bright future."

"CTI has landed a significant asset. Dan Eramian is a highly experienced professional and has performed exceptionally well at the international, national, and local levels without ever losing his rare common touch," noted Carl B. Feldbaum, president emeritus and former president of BIO.

About Cell Therapeutics, Inc.

Headquartered in Seattle, CTI is a biopharmaceutical company committed to developing an integrated portfolio of oncology products aimed at making cancer more treatable. For additional information, please visit www.ctiseattle.com.

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UP AND COMING POSITIONS

EVP, Global Healthcare

In NYC or DC, highly respected global PR agency is seeking an overall head of their healthcare practice. A mix of corporate and agency experience (20 years) would be ideal.

National Manager - Corporate Communications

Financial services company in So. CA. Client seeks broad based corporate communications professional to manage small staff, counsel senior management, develop crisis communications plans, work with the Public Affairs staff in DC and tackle high-level media relations that impact the company nationally. Prior corporate experience in these areas preferably in a financial services organization would be most desirable. Will relocate.

Communications Manager

Corporate opportunity in the Pacific Northwest. Currently JC&A is consulting to refine and define the position. Client is moving forward and has reviewed the job description. Tentative timetable to create the post is the end of the first quarter 2006. This is a new opportunity in an expanding department and is a combination of implementation and program planning. Corporate background and/or agency experience essential. 10+ years experience desired. Estimated salary in the low six figures.

Senior Manager to Director, Corporate Communications

Located in the East Bay, Northern California. This is a newly created position reporting to the Marketing group of a public telecom company (established in '99) operating at the OEM level and offering an array of scalable platforms. We will be seeking PR professionals with business to business high tech experience (approximately 8-years) to establish the function on a global basis. A mix of both corporate and agency background would be ideal.

Account Manager (with 6+ years of experience, minimum)

San Diego based, 15-person employee-centric agency seeks high tech/industrial PR professional to work with trade publications and manage accounts. Competitive salary offered (top of range on a national scale).  Firm is stable, with an excellent reputation for mentoring professionals and allowing for flexibility in the work environment. Prior agency background in media relations with trade publications in the high tech, engineering and industrial categories are suitable. Candidates from across the country will be considered and a relocation allowance is offered.

Senior Director, External Communications

Midwest, Consumer Products Company, 10-years experience with a mix of corporate media relations and financial communications, including the annual report. Highly professional organization with history of stability requires sophisticated, results-oriented performer.

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