Welcome to the first edition of Inside Hiring Report, a quarterly intelligence brief from the recruiters at executive search and staffing firm firstPRO.

As the economy evolves, through good times and bad, the report will give hiring managers, candidates and the media an inside look into one firm's observations from the front lines. Every quarter, Inside Hiring Report will explore trends in nine key industries in Atlanta, Philadelphia and other major metro areas.

Click the links on the left to navigate different sections of the report.


Spring has arrived, and with it, some very promising hiring trends. Most of our recruiters during Q1 saw an increased demand for talent and predict an even better Q2.

Other staffing firms witnessed substantial gains in Q1. One of the biggest, Manpower, reported Q1 U.S. revenue increased 18.3 percent from the same quarter last year.

After a dismal 2009, staffing firms nationwide are now banking on an improving economy. According to Staffing Industry Analysts, 67 percent of staffing firms expect to hire recruiters. We also plan on expanding.
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  • Market: Atlanta

  • Overview: firstPRO healthcare placements cover non-M.D. positions—from claims processors to nurses.

    Healthcare professionals in Q1 were in high demand. Overall, healthcare placements surged 154.8 percent from the same quarter last year—firstPRO's largest percent change company-wide. Much of this surge, however, was in temp-to-hire positions as employers were still a bit shaky on hiring full-time employees.

    Nationwide, the economy added 27,000 new healthcare jobs in March, according to Staffing Industry Analysts—a good deal more than the 18,000 average monthly gain over the past 12 months.

  • Recruiter: Susan Zingaro, executive vice president Healthcare & Traditional Staffing: "Healthcare isn't affected too much by a bad economy. There was substantial worry over healthcare reform in 2009, but that appeared to have lessened in Q1. Things should be back to normal in Q3."

    "It is important that certifications in healthcare are kept current and continued education is pursued. Healthcare professionals are being hired continually as our Baby Boomer generation lives longer and fills the ranks of those who will need additional healthcare services."

  • Hot Positions: Physical therapists and pharmacists. Overall, there was a continuing shortage of these positions in Q1, leading to a high demand.

  • Cold Position: None. As people still get sick in a bad economy, there were no positions that were down in Q1.

  • Top Paying: Specialty RNs with bilingual skills were placed at $90,000/year.

  • Top Trend: Hospitals and large clinics hired skeleton crews for full-time labor and used temporary employees to fill other needs. This practice keeps overhead low, as employers don't have to carry insurance on non-full-time employees.

  • Outlook: firstPRO will see an increase in temporary business but it's difficult to predict the return of more full-time placements due to a number of variables, including healthcare reform.

A Glimmer of Hope

Continued from cover For many firstPRO verticals, Q1 started with a bang—which is unusual even during great economic times. We're coming off one of the worst years in recent memory. But I see many promising trends, including an increasing demand for salespeople—which is always a strong sign of an improving economy.

Many job seekers believe it's near impossible to find jobs right now. While true for some workers—like an assembler laid off from a shuttered General Motors plant in Georgia—it's not true for professionals who have in-demand skills. In fact, specialized professionals in the healthcare, life sciences and IT fields were increasingly difficult to find in Q1.

During Q1, the number of firstPRO's billable temporary hours increased 43.5 percent from the same quarter in 2009. The number of direct-hire placements, meanwhile, increased 70.8 percent from Q1 2009. Does this mean we're out of the woods? No—the U.S. unemployment rate in April rose to 9.9 percent and recoveries take time. But I see a lot of pent-up demand. I don't see that demand waning anytime soon.

–April Fawcett Nagel
CEO firstPRO

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  • Markets: Major metro areas nationwide.

  • Overview: During Q1, the life sciences sector rebounded. Hiring freezes thawed and life sciences companies were back to the business of researching and developing new pharmaceuticals.

    firstPRO's life sciences placements increased 50 percent from Q1 2009 to Q1 2010. At the end of Q1, firstPRO had 25 open positions.

    firstPRO's Life Sciences recruiters place positions in the biotech and pharmaceutical industries. Candidates in this vertical include M.D.s and Ph.D.s in regulatory affairs, clinical development, operations and management, and more.

    Hot geographic areas covered during Q1 included the upper Northeast, San Francisco, Chicago and San Diego.

  • Recruiter: Stephen Johnson, executive vice president

  • Life Sciences: "Our biggest challenge right now is finding enough qualified people. We're spending 90 percent of our time looking for candidates—a luxury many other recruiters in other verticals don't have."

  • Hot Position: Oncology specialists. As cancer rates continue to increase, the need for skilled oncologists continues to rise.

  • Cold Position: Sales and marketing. Large multinational pharmaceutical companies are still downsizing and limiting these positions.

  • Top Paying: An executive director for a pharmaceutical company received a $300,000-plus base salary in Q1.

  • Top Trend: Pharmaceutical companies were hiring M.D. candidates straight out of Fellowship—doctors with no industry experience. This was a huge departure from early 2009.

  • Outlook: Doctorate-level—M.D. or Ph.D.—placements will continue to increase in Q2. By the end of Q3, hiring levels should be back to "normal" conditions—as witnessed in early 2008.



4

  • Markets: Atlanta and Philadelphia

  • Overview: firstPRO provides supplemental staffing and executive searches in the accounting and finance vertical on a temporary and direct-hire basis. Positions range from bookkeepers and Sarbanes-Oxley consultants to finance executives.

    Overall, there were strong signs of growth in Q1 2010.

    The number of firstPRO direct-hire placements in Atlanta rose 100 percent from the same quarter last year. The total number of hours billed for Q1 2010 from temporary placements in Atlanta increased 5.3 percent. At the end of Q1, firstPRO had 80 open accounting and finance positions in Atlanta.

    In Philadelphia, the percent change in hours for temporary placements decreased 9.2 percent.

    On average, placements were up 32 percent.

  • Recruiter: Curtis Kiser, managing partner Finance & Accounting: "Things are definitely looking bright. There's been a steady trend for nine months of jobs coming in. Q1 was the first time in two years we've had three pages of open jobs."

  • Hot Positions:

    1. 1. Tax professionals

      (direct-hire). During Q1, demand for professionals with experience in new guidelines including IFRS (International Financial Reporting Standards) was up.

    2. 2. Collections and accounts receivable

      (temporary). An unfortunate sign of a recovering economy, many clients during Q1 still needed help receiving money promised to them.

    3. 3. Technology-company financial professionals

      (temporary). High-tech firms increasingly hired temporary accountants in Q1 and needed help with targeted issues such as SOP 97-2, a regulation regarding software revenue recognition.
  • Cold Positions:

    1. 1. Investment bankers

      (direct-hire). Because firms didn't invest as much, these positions—such as venture capital specialists—were in low demand.

    2. 2. Accounts payable

      (temporary). Companies weren't invoicing as much so demand for this skill was down.

    3. 3. Auditors

      (temporary). As corporate growth was limited, and as merger and acquisition activity was low, the need for auditing decreased in Q1.

  • Top Paying: firstPRO placed a direct-hire division president with a $250,000 base salary plus compensation. firstPRO placed a temporary director of finance at $55/hr.

  • Top Trends:

    1. 1. For direct-hire positions in Atlanta

      , searches took longer because it was more difficult to find quality candidates—a great sign of an improving economy. A big misconception was that it should be easy finding talent. However, direct-hire finance and accounting candidates in Q1 were scarcer than in previous quarters.

    2. 2. For temporary positions in Atlanta and Philadelphia

      , temp to perm positions were still more in demand in Q1 than permanent positions and candidates were asked to work with employers on "working interviews." In a recovering economy, this arrangement tends to work out for both parties—because the employer doesn't have to worry about benefits and the candidate gets needed revenue and also gets to check out the employer.

  • Outlook: For direct-hire positions, firstPRO predicts a steady increase in placements. Temporary accountant placements should also trend upward—but incrementally.

    5

  • Markets: Atlanta, Philadelphia

  • Overview: During Q1, companies continued to increase spending on IT talent. Market activity improved tremendously and there was an increase in permanent positions—which is always a good sign. The speed of hiring picked up, too.

    firstPRO IT placements in Atlanta picked up from the same quarter in 2009—27.4 percent. Placements in Philadelphia increased even more—46 percent. At the end of Q1, firstPRO had 23 open IT positions. On average, placements were up 36.7 percent.

    Nationwide, according to Staffing Industry Analysts, 60 percent of IT staffing firms are expected to increase spending on technology in 2010—the biggest such expected increase of any category.

  • Recruiter: Karl Bonawitz, division director IT, Philadelphia: "We're moving in the right direction after a bad 2009. Hiring decisions are still highly scrutinized. But it is getting better and our pipeline looks healthy."

  • Hot Positions: In Atlanta, .NET and Java developers and network administrators were up as many companies started to spend money on new projects after a year of holding back.

    In Philadelphia, database administrators and network security engineers were in demand as companies focused more on existing functions that were crucial and less on new projects.

  • Cold Positions: The demand for top management and recent college grads was down in Atlanta and Philadelphia. Companies favored mid-career professionals and "doers" over higher-priced managers. As for college grads, they were up against veterans who were also looking for employment . . . and willing to take pay cuts.

  • Top Paying: In Atlanta, a Web architect received $90/hr. In Philadelphia, top-notch network security engineers were placed at $100-plus/hour.

  • Top Trends:

    1. 1. Companies shed under-performers

      , replacing them with superstars—because employers had that luxury due to the recovering economy.

    2. 2. Employers targeted mid-career professionals

      who were able to quickly learn the tasks of top managers and cost less. These mid-career professionals typically had between four and seven years of experience.

    3. 3. Employers increased the hiring of permanent positions

      but temporary hiring was still the favored method.

    4. 4. Employers increased the speed at which they hired candidates.

  • Outlook: Placements will continue to increase. Clients have indicated a desire to ramp up IT spending in coming quarters.




6

  • Markets: Nationwide.

  • Overview: Medical salespeople—especially pharmaceutical sales reps—who were out of work during Q1 had a tough time, as many companies favored candidates who were already working. Further, employers were looking for the "perfect" candidate—because they knew they would likely get it.

    From Q1 2009 to Q1 2010, firstPRO registered a 15 percent increase in the number of placements in this vertical.

    firstPRO places sales representatives, sales managers, clinical specialists, and product managers for leading medical device, capital equipment, pharmaceutical, EMR and biotech companies.

    At the end of Q1, firstPRO had 18 medical sales and marketing positions open.

  • Recruiter: Kate Miller, senior vice president Medical Sales & Marketing: "Hiring managers are less willing to go outside the box. They know they can get everything on their checklist. If they don't get all 10 items, they're not interested. In an economy with a glut of talent, many managers only want perfect candidates."

    "For sales roles, employers want someone who's currently working. Those who aren't are viewed as the dead weight their former employers shed. Of the placements we've made this year, nearly all were candidates who were already employed. Unfortunately, these placements were not the ones who really needed jobs."

  • Hot Position: Positions selling and marketing devices such as heart valves and stents. Since devices are purchased on a per-patient basis, they're often paid for by patients' insurance providers.

  • Cold Position: Capital equipment sales. The demand for positions that sell or market costly capital equipment—which includes MRI machines—was down because of the shortage of hospitals' capital funds. During Q1, expensive equipment was simply a tough sell.

  • Top Paying: Cardiovascular medical-device salesperson, who received a $60,000 base plus another $150,000 in variable compensation.

  • Top Trend: For medical sales and marketing, Q1 would be classified as a quarter of "housecleaning." Companies shed underperformers and replaced them with top reps.

  • Outlook: Q2 looks promising for medical sales as companies continue to seek to replace under-performers and fill vacant territories. At the end of Q1, firstPRO had a robust pipeline of opportunities—including one mid-sized company that was looking to fill eight new positions. The market should improve by Q3 as federal healthcare reform becomes more defined.


  • Markets: Nationwide

  • Overview: firstPRO focuses on business-to-business placements and staffs mid- to senior-level salespeople and marketers in a diverse array of industries.

    The sales and marketing vertical had mixed results in Q1 2010. While placements were up overall, there were still positions that suffered.

    Overall, marketing and advertising placements increased 67 percent from Q1 2009 to Q1 2010. At the end of Q1, firstPRO had 12 open Sales & Marketing positions.

  • Executive: Mark Weinstein, chief business development officer: "One common theme for many positions firstPRO was engaged to fill was that interviewing seemed to take longer than it had in recent history. Companies grew extra cautious when selecting candidates. A lot of this was because as the recession hit at the end of 2007, there was good talent coming on the street at slowed or failed businesses. Further, as more employees were being put under the microscope in lean times, self-preservation became the order of the day. Hiring managers were seeking to clearly demonstrate their worth in the organization and were personally investing more hours closing business. Finally, when revenue is tight and budgets are being scrutinized closely, hiring managers are willing to take a bit longer to make sure they're getting exactly the right person."

  • Hot Position: Brand and product marketers. Demand for these positions in Q1 started to bubble up after a dry year and was seen to directly impact client retention and to be essential to core business functions.

  • Cold Positions:

    1. 1. Communications and advertising roles.

      Facing much-needed cost-cutting measures, many companies continued to cut these positions from their budgets. In Q1, companies were looking for candidates with more business-essential marketing experience.

    2. 2. All-around sales.

      In Q1, companies were still looking for ways to save money. As a result, clients were increasingly searching for salespeople with industry-specific knowledge—who could "hit the streets" right away—and less for candidates with generic, even solid generic, sales experience.

  • Top paying: A marketing director at a consumer products company received a $150,000 base salary in Q1.

  • Top Trends:

    1. 1. Clients in Q1 increasingly wanted marketers and salespeople with specific industry-related backgrounds.

    2. 2. Clients were searching for candidates, salespeople in particular, who fit the corporate culture.

      This was a big trend in Q1; companies were looking for candidates who wouldn't leave in six months or so when the economy returns to normal.
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8

  • Markets: Major metro areas nationwide.

  • Overview: If one thing could be said about the supply chain vertical in Q1 2010, it would be that trepidation about the economy had lessened substantially.

    Supply chain placements for firstPRO increased 50 percent from the same quarter in 2009. At the end of Q1, firstPRO had 25 open positions in the supply chain vertical.

    firstPRO staffs strategic-sourcing specialists, plant managers and other positions in diverse industries including biotech, consumer products and defense.

  • Recruiter: David Shelly, senior vice president Supply Chain: "The employment picture is definitely trending up. I think the basic fear is coming out of the market."

    "My advice to candidates is to stay current. The biggest problem with candidates during Q1 was companies dropping them. They were being dropped mostly because they were not staying abreast of the most modern methodologies."

  • Hot Positions: Strategic sourcing and commodities managers. These positions drive costs out. In Q1, if companies weren't growing, they had to find ways to save money. In addition, employers found it was tougher in Q1 to find professionals armed with these skills.

  • Cold Positions: Operations roles such as plant managers. Demand was down because companies were not expanding operations in Q1. For those operations personnel who did not have up-to-date training on Six Sigma, a business-management strategy, demand was even lower.

  • Top Paying: A vice president of strategic sourcing received a $157,000 salary in Q1.

  • Top Trends: Companies dropped employees who did not have the most up-to-date training. That is why supply chain professionals must always be vigilant about keeping abreast of trends, technologies and certifications.

  • Outlook: As the market seems to be picking up, employers will ramp up hiring in the coming quarters. It may not be explosive growth, but firstPRO has many critical positions in Q2 to fill.


  • Market: Atlanta

  • Overview: firstPRO places temporary, temp-to-hire and direct-hire candidates in the administrative, customer service and light-industrial fields. Candidates range from entry-level to mid-level management.

    Improvement in this sector for firstPRO was decent in Q1 2010, and some great signs emerged concerning customer service jobs. firstPRO registered a 49.7 percent increase in traditional staffing hours from the same quarter last year. At the end of Q1, firstPRO had 105 open traditional positions.

    Nationwide, manufacturing in particular fared well. According to data from Staffing Industry Analysts, the manufacturing sector added 17,000 jobs in March.

  • Recruiter: Susan Zingaro, executive vice president Healthcare & Traditional Staffing: "Customer service is coming back strongly. These positions went overseas over the past decade. A language barrier can often create a loss of business and the American employer has realized that the loss of revenue did not correlate to the money being saved by sending the work out of the country. Several call centers in Atlanta are starting to bring business back to the metro area and decrease the number of positions that are being offshored."

    "It is more important for candidates today to look at the position and the company rather than focus on the salary being offered. Being hired by a stable company has much more value in the long run."

  • Hot Positions:

    1. 1. Electronic repair / assembly.

      In Q1, consumers and companies were spending more money on repairing hardware and less on buying new hardware.

    2. 2. Customer service / technical support.

      These positions started to trickle back to the states after years of being sent overseas.

    3. 3. Admin assistants.

      More managers in Q1 found their workload higher because of downsizing. As a result, multi-skilled administrative assistants were in demand again.

  • Cold Position: Distribution. These positions were down because warehouses in the metro Atlanta area were already stocked due to a bad 2009 economy.

  • Top paying: A bilingual executive assistant received a $55,000/year salary in Q1.

  • Top Trends:

    1. 1. Overall, hourly wages and annual salaries for some positions dropped slightly

      in Q1 from the same quarter last year—as employers were seeing a glut of available talent.

    2. 2. Because companies that hire traditional candidates were coming off such a bad 2009, many continued to hire more contractors instead of full-time employees.

      However, full-time hiring did increase in Q1.

  • Outlook: Traditional staffing will improve incrementally and companies will continue using temporary employees and contractors. There is uncertainty as to how the healthcare bill will affect employers. Several employers in Atlanta have already stated that once the bill is clearly understood, their cost could become prohibitive and they are fully expecting to have a greater usage of supplemental staffing as a result.

9





10

  • Markets: Nationwide with a focus on East Coast metro areas.

  • Overview: After a bleak 2009, attorney recruiting picked up. From Q1 2009 to Q1 2010, the number of partner placements increased 25 percent and the number of associate placements increased 133 percent.

    However, it's important to note that Q1 2009 was one of the worst quarters in recent memory. Nationwide, the law industry was estimated to have shrunk an incredible 40 percent in 2009, according to Staffing Industry Analysts.

    At the end of Q1, firstPRO was aware of 139 open associate positions in Atlanta, Washington D.C., New York and Philadelphia—primarily with medium-sized and large law firms. On average, placements were up 79 percent.

  • Recruiter: Richard Rice, JD, SVP and managing partner Legal division: "Jobs in the legal industry appear to be coming back slowly and new unemployment claims from lawyers have almost stopped."

  • Hot Position: Partners with portable $1-million-plus books of business who are willing to move to other firms.

  • Cold Position: Junior attorney positions. Law firms simply can't afford too many junior lawyers who don't traditionally originate business and only primarily function to service partners whose business may have declined over the previous year.

  • Top Paying: firstPRO placed a partner in Q1 at $450,000/year. The highest-paying position ever for firstPRO exceeded $1 million.

  • Top Trend: During Q1, large law firms lost talented partners to midsized firms, which were believed by some to be better managed or less prone to downsizing.

  • Outlook: It's going to get even better. firstPRO's pipeline is larger than just a quarter ago, and it appears the "bleeding" has ended as far as additional associate layoffs are concerned.

About firstPRO

With annual revenues exceeding $30 million, firstPRO's executive search, professional placement and traditional staffing is now one of the largest and fastest-growing independently-owned firms in the United States. firstPRO was ranked No. 23 by Staffing Industry Analysts for U.S. Women and Minority-owned staffing firms by revenue, and named one of Inc 5000's Fastest Growing Companies. firstPRO was also honored with the ACG Growth Award by the Association for Corporate Growth and was named a Top Business in the U.S. by diversitybusiness.com for 2009.

Atlanta
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Atlanta, GA 30342
404.252.9422

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Philadelphia, PA 19102
215.599.9001





Executive Search | Professional Placement | Traditional Staffing
www.firstproinc.com