Smaller firms suffering from lost talent
Fewer job-seeking managers and executives are looking for new positions with smaller firms. That may not bode well for small companies as the economy recovers.
According to the latest Challenger Job Market Index, a quarterly survey of 3,000 discharged managers and executives conducted by international outplacement firm Challenger, Gray & Christmas, only 54 per cent of managers and executives went to smaller firms in the second quarter of 2001. That was 12 per cent lower than during the same period last year, prior to the economic downturn.
The survey reveals that many managers and executives are confining their job searches to larger firms, where they are more likely to start at a higher salary, have better benefits and receive a more favourable severance package if the job doesn’t work out. For the same reasons, many such workers are less willing to start their own companies when they become unemployed.
Small business was the source for almost all new jobs in the 1990s, according to Challenger. But, with fewer start-ups and with many small businesses unable to attract experienced management, Challenger concludes that there may be substantially slower job creation in this sector in the future. If that happens, it may take longer for the economy to recover.
For more information on the Challenger survey results, e-mail Herbert H. Rozoff at [email protected].
According to the latest Challenger Job Market Index, a quarterly survey of 3,000 discharged managers and executives conducted by international outplacement firm Challenger, Gray & Christmas, only 54 per cent of managers and executives went to smaller firms in the second quarter of 2001. That was 12 per cent lower than during the same period last year, prior to the economic downturn.
The survey reveals that many managers and executives are confining their job searches to larger firms, where they are more likely to start at a higher salary, have better benefits and receive a more favourable severance package if the job doesn’t work out. For the same reasons, many such workers are less willing to start their own companies when they become unemployed.
Small business was the source for almost all new jobs in the 1990s, according to Challenger. But, with fewer start-ups and with many small businesses unable to attract experienced management, Challenger concludes that there may be substantially slower job creation in this sector in the future. If that happens, it may take longer for the economy to recover.
For more information on the Challenger survey results, e-mail Herbert H. Rozoff at [email protected].
