By Steven B. McKinney

McKinney Consulting Inc.

After three years of decreased hiring, finally executive search firms worldwide are showing double digit increases. Search fees increased by nearly 20% from 2003 to 2004 with some of the largest global practices up by 25% according to Executive Recruiter News’ annual analysis of the markets for retained executive search firms.

According to the Association of Executive Search Consultants, which represents 1,200 executive search consultants in 42 countries, 2004 marked the first year of positive growth for the search profession since 2000. In addition, the amount of revenue earned per consultant was up 26.1 percent over 2003.

The past few years’ revenue growth for the 20 largest global retained executive search firms has looked like a camel back on the growth charts. In 1999 revenue growth was up 20% and in 2000 it was up 26%. Then, in 2001 down the camels back it went dropping to a negative 22% in revenues and a negative 16% revenue decline in 2002. In 2003, hiring was basically flat with no significant loss or gain. However in 2004, up the camels back it climbed to a 25% positive increase in revenue, near to year 2000 levels.

In its 2004 year-end industry report, the Association of Executive Search Consultants (AESC) noted that 14 percent of all executive search activity last year originated from companies headquartered in Asia and the Pacific Rim. In Q4 alone, executive searches in the region increased 12 percent over the previous quarter. In a follow-up survey of 47 executive search firms in Asia and the Pacific Rim, the AESC reports that recruiting activity in industries such as information technology, manufacturing and financial services is currently very strong and will continue to grow over the next several years. "Executive search activity is a leading indicator of the executive job market in Asia and the Pacific Rim and a signal of where corporate and market activity may head," explains Peter Felexi, president of the AESC. "The survey shows that companies in this area are actively making strategic investments in the top talent needed to compete globally now and through the rest of this decade."

Employers are back into the hiring game in 2005. Search professionals believe that 2005 will once again post revenue growth. While the global economy may be more sensitive to various factors and consumer confidence shifts, continual growth depends on investments in human capital and executive leadership.

Steven B. McKinney is the founder and president of McKinney Consulting Inc., Korea's most trusted executive search firm.  McKinney Consulting offers a comprehensive range of personalized, professional resource services to a wide cross-section of companies operating in Korea and Asia.  Mr. McKinney is a globally established commentator on international management.  He can be reached at This email address is being protected from spam bots, you need Javascript enabled to view it