Manager Hiring Cools in Second Half

June 14, 2005 ( - The number of companies planning mid-to-upper level manager hires during the second half of 2005 is off 8.9% from predictions made for the January to June period, according to a new survey.

A news release from Management Recruiters International (MRI), a personnel search firm, said its hiring manager survey found that 50.4% indicated plans to increase their mid-to-upper level managerial and professional staffs, down 8.9 points over last half. Another 42.7% plan to maintain their current staff sizes, up by 5.9% earlier in the year and 6.9% plan staff decreases, an increase of 3%.

Although companies ranging from less than 100 employees to more than 1,000 are all anticipating adding staff to their mid-management and professional ranks, the greatest growth is projected in the largest companies, according to MRI.

The study, which is conducted twice a year, was comprised of personal interviews with more than 200 executives responsible for the hiring of middle management and professional staff at their organizations.

Overall Hiring

Meanwhile, in a separate survey by Internet job site, one-half of hiring managers anticipate increasing their staffs over the summer months, while 39% of hiring managers are slowing recruitment. CEO Matt Ferguson said in a news release that third quarter hiring plans are generally below that forecast for the second quarter. While four-in-ten hiring managers plan to hire between one and 10 workers in the third quarter, 22% expect to add between 11 and 50 workers and 17% expect to add more than 50.

The search for top talent is becoming increasingly difficult for some industries. Forty-one percent of hiring managers report it is hard to find qualified workers, up from 31% in the previous survey. One-in-four report it is taking them two months or more to fill their open positions.

The leading areas for new jobs include health care, sales, accounting/finance, information technology, retail and customer service. In terms of job level, three-in-ten hiring managers plan to recruit candidates to fill professional and technical positions and one-in-ten plan to recruit for managers, directors, team leaders and senior executives. Demand for entry-level employees is on the rise with 18% of hiring managers recruiting for administrative and clerical roles, up from 12% in the second quarter, according to the news release.

Also, businesses will be less likely to take part in outsourcing in the second half of 2005 as compared to the first half. While 10% of hiring managers expect to outsource functions overseas in the latter half of the year, the vast majority – 76% – say they will be keeping the jobs at home. Fifteen percent had said they would outsource in the first half of the year.

For the third quarter in a row, projected hiring activity in the Midwest is tracking below the other regions. However, steady increases in employment are expected across all regions, according to the news release.

According to the news release, pay continues to serve as a primary motivator for job changes, as 47% of workers state they want more money in their paycheck. With 63% of workers reporting their workloads have increased over the last six months, 47% categorize their workloads as too heavy – up from 43% last quarter.

A lack of career advancement opportunities remains a major area of concern for 40% of workers, according to the news release. Thirty-seven percent feel dissatisfied with career development and learning programs offered by their present employers while 40% of workers are looking to senior management to provide a more positive work experience overall, up from 35% last quarter.

More information on the survey is here . The survey was conducted from May 17 to May 27, 2005 of more than 1,600 workers.