November 1, 2018
It's a Candidate's Market Part 1: Sea Change in the C-Suite
The consumer industry is undergoing an unprecedented amount of change, thanks to a number of forces from major generational shifts among consumers and talent to constantly evolving digital capabilities. In our work with consumer packaged goods (CPG) companies, we’re beginning to see the impact of these dynamics on leadership and talent.
Gone are the days when CPG players had a surplus of talent to choose from. Today, it’s a candidate’s market. In this series, we’ll explore this dramatically changing talent landscape and offer ways to help CPG organizations attract, develop and retain top leaders.
For the first time since the internet craze in the late 1990s, the executive talent market has shifted from a client’s market to a candidate’s market. As the internet bubble expanded, there was a war for talent and speed was our clients’ top priority. As the bubble burst, lots of web and digital talent immigrated back to their core industries, the client was back in control, and their demand moved from wanting to find someone quickly to wanting an array of great candidate options.
There is the frequently cited trend that there are now more jobs than there are people actually looking for jobs in the U.S. But that only tells part of the story at the most senior levels. There is a bigger trend in the C-suite that has long been contemplated, but only now is being realized.
There are 78 million Generation Z Americans who were born in the first two decades of this century. There are almost 89 million millennials between the ages of 19 and 38. Combined, that is 51 percent of the U.S. population. Baby boomers, born between 1945 and 1965, represent 73 million, and they are retiring in waves. They may not stop working, and they may continue to generate significant income, but many are wading out of leadership roles and the C-suite.
The next generation of C-suite leaders is Gen X. Also known as the MTV generation or the baby bust generation, they are between the ages of 39 and 54 and total only 66 million. Sixty-six million doesn’t sound so significantly small until you consider that there are 11 percent fewer prospects to fill ever-expanding C-suite needs throughout America. There is a tide of 25 percent more millennials on their heels, and the boomer retirement wave compounds the supply and demand equation as departures begin to outstrip supply. And the industry and innovation emanating from the youngest half of our population will continue to fuel our growth. This will require organizations to adapt and scale their leadership development, and senior executives who are prepared to take the helm.
Where and how we find them will matter. But how we assess and recruit them will matter even more.
Data source: Annual Estimates of the Resident Population by Single Year of Age and Sex for the United States, States, and Puerto Rico Commonwealth: April 1, 2010 to July 1, 2017, U.S. Census Bureau. Release Date: June 2018.
Art Brown is a member of Spencer Stuart's Board, CEO, Consumer, Private Equity, and Marketing and Sales Officer practices. He concentrates on the consumer sector, advising on talent and leadership. Reach him via email and follow him on LinkedIn.
Read Part 2 of the It’s a Candidate’s Market series — Making CPG Cool Again.