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By BOB WEINSTEIN, Houston Chronicle
Three years ago, middle managers weren't faring so well, especially in technology companies. As companies cut budgets and pared down staffs, they were deemed an unnecessary luxury and were among the first to go.
As the economy picks up more steam, many middle managers have stopped singing the blues. Throughout the first half of 2005, there will be increased hiring of middle managers, according to the 55th International Hiring Survey released by Angott Search Group in Rochester Hills, MI.
"Companies that have been very cautious about making new hires now are gearing up for expansion," says Mark Angott, president of ASG. "They feel confident about investing in their businesses by adding the staff they need to increase market share."
The hiring trend started during the last half of 2004 and is gaining momentum, Angott observes. "We've not seen these kinds of numbers since 2001," he says.
Construction topped ASG's hiring list, followed by consumer goods/products, aerospace/aviation, manufacturing/production and health care.
Along with natural expansion due to increased demand for products and services, Angott feels that new federal requirements, such as compliance with the Sarbanes-Oxley Act have prompted CEOs to hire seasoned managers solely responsible for dealing with security issues. Under the Sarbanes-Oxley law, CEOs are personally accountable for their companies' financial statements and are mandated to prove they have internal controls that secure their IT systems.
Another plus working in middle managers' favor, especially in technology industries, is that they're practically offshore-proof. Well-paid and experienced managers are in the thick of things -- leading, directing, advising and mediating disputes. They are the intermediaries between vendors, employees, tech staffers and management. Project managers -- who are a combination of middle managers, IT pros, business analysts, money managers and industry strategists -- are even more valuable than CFOs because they generate profits.
Jim Maranto, managing partner of Houston search firm Princeton Search Group, agrees. Small and medium-sized companies cautious about hiring experienced project mangers are contracting consulting companies that provide high-level PM advice. Renaissance, multiskilled PMs have incredible bargaining power, according to Maranto.
"Hardly two years ago, most companies were reluctant to invest in ERP software," says Maranto. "Now they’re looking at the benefits of SAP implementations and the most cost-efficient ways to go about it. And they’re also investing in wireless technology, which was considered very risky in 2002."
Throughout Princeton Search's 14 offices, Maranto says there was a 36 percent increase in middle-management hiring from the third to the fourth quarter of 2004.
"Other large recruiters reported similar increases in IT middle-management hiring," he says. "It was far better than expected. A 13 percent to 15 percent increase would have been normal."
Strong IT areas? Networking is largely responsible for driving demand in the IT sector. "We're seeing particularly vibrant hiring activity in retail, business and consulting-services arenas. Even the dormant manufacturing sector is showing signs of life."
Overall, Maranto says middle managers are more confident about changing jobs, which he deems a very positive sign. "Two years ago, there was little movement," he says. "If you had a decent job, you stayed where you were for fear of taking unnecessary chances. Now that the economy is in better shape and demand for experienced managers has increased, there isn’t as much reluctance about changing jobs or relocating when better offers surface."
R. Wendell Williams, president of ScientificSelection.com, LLC, a test and measurement firm in Atlanta, agrees that companies are hiring more middle managers than they did a year ago. But he says companies haven't learned much from the past, because hiring standards have not improved. "Companies are making the same mistakes they made 20 years ago," Williams asserts. "If you look right and answer the questions right, you’re considered 'our kind of folks' and are hired."
Williams says he'd like companies to hire managers the same way talent scouts select members of a sports team. "I'm not sure I‘ll see that in my lifetime," he says. "We assume that skills will just rise to the surface, and that doesn't happen. Managers with the right leadership skills are the exception."
I don't know about you, but a healthy dose of cynicism is like a gust of clean, fresh air. No matter how good things get, don't get too comfortable. You never know when the tides will suddenly change. Keep your eyes on the job market, and become the best manager on the planet. That's the secret to a steady paycheck.
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Tech Watch Online - Middle-Management Hiring
Outlook Never Looked Better
February 20, 2005
By BOB WEINSTEIN, Houston Chronicle
Three years ago, middle managers weren't faring so well, especially in technology companies. As companies cut budgets and pared down staffs, they were deemed an unnecessary luxury and were among the first to go.
As the economy picks up more steam, many middle managers have stopped singing the blues. Throughout the first half of 2005, there will be increased hiring of middle managers, according to the 55th International Hiring Survey released by Angott Search Group in Rochester Hills, MI.
"Companies that have been very cautious about making new hires now are gearing up for expansion," says Mark Angott, president of ASG. "They feel confident about investing in their businesses by adding the staff they need to increase market share."
The hiring trend started during the last half of 2004 and is gaining momentum, Angott observes. "We've not seen these kinds of numbers since 2001," he says.
Construction topped ASG's hiring list, followed by consumer goods/products, aerospace/aviation, manufacturing/production and health care.
Along with natural expansion due to increased demand for products and services, Angott feels that new federal requirements, such as compliance with the Sarbanes-Oxley Act have prompted CEOs to hire seasoned managers solely responsible for dealing with security issues. Under the Sarbanes-Oxley law, CEOs are personally accountable for their companies' financial statements and are mandated to prove they have internal controls that secure their IT systems.
Another plus working in middle managers' favor, especially in technology industries, is that they're practically offshore-proof. Well-paid and experienced managers are in the thick of things -- leading, directing, advising and mediating disputes. They are the intermediaries between vendors, employees, tech staffers and management. Project managers -- who are a combination of middle managers, IT pros, business analysts, money managers and industry strategists -- are even more valuable than CFOs because they generate profits.
Jim Maranto, managing partner of Houston search firm Princeton Search Group, agrees. Small and medium-sized companies cautious about hiring experienced project mangers are contracting consulting companies that provide high-level PM advice. Renaissance, multiskilled PMs have incredible bargaining power, according to Maranto.
"Hardly two years ago, most companies were reluctant to invest in ERP software," says Maranto. "Now they’re looking at the benefits of SAP implementations and the most cost-efficient ways to go about it. And they’re also investing in wireless technology, which was considered very risky in 2002."
Throughout Princeton Search's 14 offices, Maranto says there was a 36 percent increase in middle-management hiring from the third to the fourth quarter of 2004.
"Other large recruiters reported similar increases in IT middle-management hiring," he says. "It was far better than expected. A 13 percent to 15 percent increase would have been normal."
Strong IT areas? Networking is largely responsible for driving demand in the IT sector. "We're seeing particularly vibrant hiring activity in retail, business and consulting-services arenas. Even the dormant manufacturing sector is showing signs of life."
Overall, Maranto says middle managers are more confident about changing jobs, which he deems a very positive sign. "Two years ago, there was little movement," he says. "If you had a decent job, you stayed where you were for fear of taking unnecessary chances. Now that the economy is in better shape and demand for experienced managers has increased, there isn’t as much reluctance about changing jobs or relocating when better offers surface."
R. Wendell Williams, president of ScientificSelection.com, LLC, a test and measurement firm in Atlanta, agrees that companies are hiring more middle managers than they did a year ago. But he says companies haven't learned much from the past, because hiring standards have not improved. "Companies are making the same mistakes they made 20 years ago," Williams asserts. "If you look right and answer the questions right, you’re considered 'our kind of folks' and are hired."
Williams says he'd like companies to hire managers the same way talent scouts select members of a sports team. "I'm not sure I‘ll see that in my lifetime," he says. "We assume that skills will just rise to the surface, and that doesn't happen. Managers with the right leadership skills are the exception."
I don't know about you, but a healthy dose of cynicism is like a gust of clean, fresh air. No matter how good things get, don't get too comfortable. You never know when the tides will suddenly change. Keep your eyes on the job market, and become the best manager on the planet. That's the secret to a steady paycheck.
Executive Search | Recruitment Process Outsourcing | Contract Staffing | College Recruiting | Site Map
This site is optimized for 1024x768 resolution and Internet Explorer.
Copyright © 2010 PrincetonOne