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The Cushman Report

Breaking News, Trends and Information about

the Communications Marketplace for Senior Professionals

August 2006

 

JOB NEWS

View the most recent job posting and see our list of “up and coming” opportunities.

 


MARKET OVERVIEW

SALARY SURVEYS: TAKE THEM WITH A GRAIN OF SALT

MORE ADVICE ON THE ISSUE OF “SENIORITITS”

THE ISSUE OF PASSING THE BATON FOR PRIVATELY OWNED AGENCY BUSINESSES

THE ISSUE OF CORPORATE COMMUNICATIONS/PR AS A COMMODITY


MARKET OVERVIEW

Despite summer vacations, which tend to slow hiring decisions, the market is still strong in the areas and levels I noted in my last newsletter (the life sciences/healthcare and tech PR). The pace of turnover in healthcare, particularly on the agency side, is becoming even more frenetic. I have been reporting the changes on my blog and here are very recent examples of what moves are being announced over just a two week period.

Company: Burson Marsteller, NY

Hired Tony Jewell as Managing Director reported to Ame Wadler, Chief Strategic and innovation officer and chairman of Burson’s global healthcare practice

Company: Chandler Chicco, healthcare boutique PR agency

Hired Fiona Hall, as Managing Director, European Operations and also hired Neil McGregor-Paterson as Managing Director, European operations; Gail Cohen will remain acting MD for Europe through the end of the year

Company: Cohn & Wolfe, NYC

Promoted Jeremy Clark as Managing Director of the firm’s NY healthcare practice relocating from London in Sept. where he was MD of the healthcare practice, London.

Company: Hill & Knowlton, NYC

Loses head of US healthcare practice

Company: Manning Selvage & Lee

Seeks a Senior Vice President for its NY Healthcare Practice.

Company: Novacea, a biopharma co. in So. SFO

Hired Paul Laland, Vice President, Corporate Communications.

Company: Ogilvy PR Worldwide, NY

Hired Michael Durand as Managing Director with an expertise in Healthcare, previously launching major drugs for Aventis, Novartis and Merck/Schering-Plough.

Company: Omnicom’s Brodeur Group, NYC

Hired Charlotte Wray to start a new healthcare division, reporting to Brodeur Group CEO Andrea Coville.

Company: Pfizer, NYC

Loses a Director of Public Relations

Company: Porter Novelli, NYC

Loses partner and founder of its healthcare practice

Company: Weber Shandwick, London
Loses European Manager for healthcare unit

Company: Vaxgen, So. SFO

Loses Vice President, Public Affairs; no immediate plans to fill the post

Company: Zeno Group, an Edelman company

Hired Paul Oestreicher to head the US healthcare practice, NYC. Paul had been with Edelman in Chicago at one point. He replaces Charlotte Wray who left for Omnicom’s Mosaic Health Communications.

One section of my blog, under the “Grapevine” heading, groups moves by Company since January.  Particularly in healthcare, you can begin to see jobs recycle in 6-months as heads of practices leave for excellent packages and bigger roles (sometimes with more senior titles) at competing firms. I noted where one hire was actually rejoining his former employer (after a stint in another position).

I continue to feel this level of activity is unhealthy for executives prematurely assuming responsibilities where they are under-qualified. It is time to search for talented individuals with excellent managerial skills not at competing firms, perhaps with corporate experience or from nonprofit institutions. It will take more time for those individuals to operate efficiently in agencies and will require more “hand-holding” and support. I do not see any easy answer to the shortage. More creative approaches are required. I’d welcome your comments.

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SALARY SURVEYS: TAKE THEM WITH A GRAIN OF SALT

PRNews just came out with a salary survey commenting about how corporate PR “juniors” with the title “Communications Specialist” with from 2-4 years experience, average just over $70,000 - an increase of almost 12%. Agency salaries average $47,000.

I have always been under-whelmed with salary surveys and find myself looking beyond the numbers and questioning the data.  I would advise that approach whenever a survey appears. I have been contacted by hiring managers working with HR officers trying to find a “market range” for the job they are filling. JC&A is asked if the firm conducts surveys. We do not, but can accurately describe to hiring managers what it will take to “attract” an excellent candidate or “replace” an incumbent. This data is far more relevant either to succeeding in the marketplace or establishing the basis for a compensation adjustment. 

Remember that salary surveys look for average ranges, not the figures to attract the top 20% of performers in the industry. There are also regional and market differences and these numbers, in my opinion, are way above the ranges in second tier markets or where the competition is regional, not national. I wonder how many individuals participated in the survey and how scientifically the candidate base was selected to reflect a national talent pool. I suspect the group was heavily weighted toward East Coast respondents.

Frankly, a Communications Specialist earning 70K with 4-years experience, outside of major markets such as NY or SF (in tech or healthcare) is, in my opinion, significantly above market. The agency figure is more realistic if a firm can find the talent.

The underlying reason for the increase in compensation is the shortage of qualified candidates caused by the recession that drove younger practitioners out of the market. I do not think this increase reflects a healthy trend that recognizes the importance of the function. Rather, I think this is a temporary scarcity issue.

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MORE ADVICE ON THE ISSUE OF “SENIORITITS”

The June 6th Wall Street Journal marketing section column on Managing Your Career talks about, “How Older Applicants Can Put Together a Savvy Job Search.” The subject of the article is Andy Armstrong a “veteran public relations man” at age 49 who has been out of work since 2002. Bill Heyman, a respected industry recruiter, is quoted in the article saying, “Employers ignore a prospect’s age if he is impeccably professional and technologically current.”

There are valuable points in the article but, in my opinion, there are certain facts of life that are not acknowledged. Here is my response which the WSJ author, Ms. J. Lublin, has read and said she is sending it to Mr. Armstrong for his reaction. This commentary will be posted on my blog and I look forward to continuing the discussion.

While I believe there are tactics that job hunters can adopt to give themselves the best ‘shot’ at finding work when they are 50+, the fact is that organizations do find ways to not hire workers that do not fit their culture. Age is part of their culture. That selection process can and does lead to age discrimination although it will not be called that, nor will there be any grounds for action. The process is subtle.

The better news is that very senior positions do require "grey hair." (BTW, how many women in business have grey hair? You find grey hair in senior men… a minor observation about sexism and age.) VPs and heads of functions need years of experience to qualify for these leadership positions. Wunderkinds be warned.

So, for those very talented, excellent performers ready for leadership roles, maturity is an asset.

It is not for those middle level executives who have progressed modestly and who are suddenly cut out of a corporate position in their late 40ties or early 50ties. Their talents are reproducible in younger less "expensive" hires. That is the underlying grinding truth about the stage upon which these mid-rank professionals compete. With the looming shortage of workers as baby boomers retire, this fact may be the single most piece of good news for seniors who wish to work for a reasonable wage.

My advice is to prepare a truthful resume based on achievements and work history. It is OK to leave out early years of a work history since that is rarely relevant to current situations. Do not be defensive or apologetic about what you have done, neither in the way you present on paper or in person. Be clear about your accomplishments whether traditional or non traditional. Provide some sort of a chronology otherwise the lack will be considered a reason for not conducting an interview.

Finding a job is a job, not a hobby. Create a job-hunting plan and be disciplined about following it. If 5-hours a day should be spent on job hunting, do not find excuses to cut corners. That time can be productively spent on networking, researching companies, writing emails, attending meetings and volunteering at professional associations. Also, getting out of the "house" or home office should be a regular goal. Use the time for exploratory social meetings, interviews (of course) and/or education about new technologies or tools to be used in the workplace.

Be prepared for positive but non-committal interviews. There are a limited number of companies at this point (since the job market is not so tight that employers venture out of their comfort zones) that will be open to hiring candidates that do not meet all of their criteria.  The fact is "senioritis" as one of my bloggers called it, is alive and well in the corporate communications and related areas where I conduct searches. Please visit my web site and click on the blog for comments that are highly relevant to this topic and are posted anonymously given the very difficult and sensitive nature of contributor experiences.

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THE ISSUE OF PASSING THE BATON FOR PRIVATELY OWNED AGENCY BUSINESSES

My firm has been retained over the years to work with owners of small, privately held agencies (more women than men) to help the principal(s) sort out their aspirations for their company when they are considering selling the firm.

Thinking about this issue is the first step in emotionally disengaging from the company. The drive to continue to build the organization becomes tempered with a sense that fundamental change will happen over time. This realization can happen gradually, even over a period of years, but the owner should recognize that s/he has made a major shift in focus that cannot be ignored.  This shift in attitude is a complex, emotionally loaded process.

Often the business has as its “brand” the values and personae of the founder who wants to preserve the agency’s distinct characteristics (think of Blanc & Otus, Cunningham Communication, Patrice Tanaka). Of course, when the firm changes hands, the new owner values what the founder has built and is paying for the brand, goodwill and reputation. However, once the agency becomes a small piece in a larger whole, the commoditization process inevitably begins.

My task has been to ask in a neutral, non-judgmental way the important questions that permit an owner to determine if the business has the potential to be sold to employees, to be purchased, perhaps by a global firm, or to decide to do neither and possibly reorganize the business.

Once the owner has a clear idea of how personal values mesh with business objectives then the hard questions arise. These are about the ability of a business to “self fund” a buyout, versus be acquired and who, within the firm, has the talent, energy and desire to continue to operate it and maintain the “brand.”

I talked with Art Stevens, who along with partner Rick Gould counsel agencies in the area of mergers and acquisition. (StevensGould Partners, LLC.)

We discussed size of firm and profit margin as factors in the business decision, once the emotional issues were resolved. He said there is no way an owner will ever be able to earn out significant funds from a sale to employees compared to selling to another firm. He added, that an owner would have had to put aside significant financial reserves before considering an internal transfer of ownership. He also said a target level of profitability for a firm should be 20% in order to be seen as a healthy and attractive acquisition.

Another question: Does an employee (or employees) even with partner status, actually want to take over business? More frequently than not, according to Art, the answer is no. That answer, quite often, is a surprise and disappointment to the owner.

When all of the analysis is complete, the decision becomes clear that “selling on the outside” is the most viable way to extract value for the effort of building a firm. It also speaks to a trend in our industry that mirrors the life cycle of start-ups in tech and health care. At a certain point it makes sense to be acquired by an organization with the resources to take the firm to the next stage in its growth or the agency may stagnate.

The issue of the agency as a business first and a creative organization second raises yet another topic for discussion.

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THE ISSUE OF CORPORATE COMMUNICATIONS/PR AS A COMMODITY

Public relations is an accepted business tool and a for-purchase service. While I still contend most senior corporate officers know how to talk about PR but really don’t understand the actual practice, they do expect to have that function “covered” either by in-house staff or external counsel. It is a routine budget item and is expected to deliver value. The specifics, I contend, are not of great concern to the corporate officer. An exception--if the President or CEO wants a trusted advisor for media strategy or executive presentations (speeches) then he or she most likely would be deeply interested in the individual selected. The trend I feel is toward hiring a solution for the specific problem on a situation by situation basis and not assuming a prior relationship guarantees a new contract. In short, PR is becoming a commodity.

Global agencies can position their firms with a depth of offices and staffs to deliver a variety of services that are attractive to global brands. The competition for that business is based upon the ability to deliver a solution and consolidate the management of the account - keeping the process more simplified. It is about group resources not individual relationships.

That trend is one direction our industry is going but creative boutiques spring up constantly and state their mission is all about personal service and relationship building.

Their ability to compete in the marketplace will be limited by scale of operations and their capacity to tackle local, national and international PR work. I see both models operating successfully with the overall trend toward consolidation continuing.

Michael Smith (mike@michaelsmith.biz), who just left Euro RSCG Magnet, set up his own consulting firm, Michael Smith Business Development, Inc. in Dulles, VA, and was quoted in PR News in July. He talks about relationship building and making personal connections even though we have the tools to make the claim that our work was, “never touched by human hands,” (my comment). He says, “I believe PR is the best tool in the marketing arsenal… It is about relationship building and using channels to reach customers… While high technology has permitted us to literally “automate” the media contact management process… making those personal connections today is perhaps more important than ever.”

I have felt my work is a personal service and is about building relationships, although I acknowledge that many clients do not share that opinion. I believe that much of the creativity and synergy that lead to great PR campaigns start with excellent chemistry and teamwork. Achieving the balance between delivering great work and managing complex organizations to meet profit goals seems one of the most difficult issues in our industry.

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