October 09, 2006
Vacancies Ahead
By MICHELLE WARREN

The economy is buoyant and boomers are retiring. Does your organization have what it takes to attract and retain essential talent?

Money talks and what it says is that Canada's job market is booming. Salaries in the marketing and advertising sectors are steadily being pushed upwards as quality candidates realize their value in an ever-tightening market where companies feel the strain of attracting and retaining talent.
Marketing's 13th annual Salary Benchmarks report aims to capture the pulse of the industry and there's no doubt it is alive and kicking. Consumer confidence, the strength of Canada's natural resources and increased spending by organizations vying to be heard in an ever more complex and competitive marketplace add up to greater employment and business opportunities for those in marketing and advertising. In particular, in the wake of years of cutbacks and stagnant hiring practices, there's demand across the board for mid-level managers and those with strong analytical skills.
According to recruitment experts across the country, planning is paramount if companies and candidates are to take full advantage of a buoyant and healthy market. For employees it's about defining a clear path to attain career goals, for employers the need to put in place hiring and retention plans is key.
All signs point to a pending labour shortage and while demand is edging salaries upward, experts say there's equal attention being paid to non-monetary compensation. Employees are exercising increased power by commanding flexible working arrangements, more vacation time and other perks.
Rick Chad, president, Chad Management Group in Toronto, points out there are significantly more openings than even a year ago. "Spending appears to be way up," he says. "We are coming off the busiest summer since the late '90s and the market is showing no signs in Canada of slowing down."
Experts across the country agree that Canada's strong job market is good news for candidates-the industry hasn't been this lively in nearly a decade-however, while employers reap new business opportunities, they also face growing challenges in the coming year.
Opportunities abound
"The market will continue to be better in '07 for employees," says Harry Teitelbaum, president of InterCom Search in Toronto, who warns it will be "increasingly difficult for employers in (terms of) attracting any talent."
More marketing and agency professionals are recognizing their high value in the marketplace, explains Martin Kingston, president of Martin Kingston and Associates in Toronto. "The risks associated with leaving a steady position have diminished and are stimulating some of the pending job market churn. With the economy on solid ground, business spending is starting to climb, a trend that's already creating a growing number of new job opportunities. This growth could be a windfall for executives looking to make a job change in the months ahead."
Coupled with the retirement of the first baby boomers (see "Goodbye 70-hour workweek," p. 26), companies are being forced to rethink how to attract and retain talent.
"Now, more than ever, it's imperative that organizations take the time to manage and train people well," says Deanna MacDougal, partner, IQ Partners in Toronto. "In today's economy, people and knowledge skills are an organization's greatest asset and advantage. Companies must take steps to protect that advantage. Many companies have been operating lean and find it difficult to fill empty desks. Often, it's the best talent that moves first and then everybody starts re-considering where their next move is."
Steaming sectors
Candidates weighing their next career move would be advised to consider some of Canada's booming sectors. So what's hot? Perhaps the better question is what's not.
"In the early '90s it was telco; in the latter '90s it was technology. In the earlier part of this decade it was pharmaceuticals but today it seems all the sectors are hot without any one category outshining anyone else," says Teitelbaum, adding all job categories are doing well.
Other experts name telecommunications, technology, entertainment, CRM, natural resources, health care, financial services and pharmaceutical. In addition, retail, namely specialty or new improved chains, are going strong. In order to compete, companies are putting increased confidence in marketing and, as a result, there's a rising demand for skilled professionals in every area from business development to strategic planning, specialized consulting and communication. Chad also points out that "there are several areas in marketing where there is a shortage of trained talent, such as interactive account people, modelers, statisticians and market research generalists, to name a few; and these are particular areas where candidates are able to influence their progress in a greater way."
Smart candidates set goals
While there are plenty of opportunities, candidates can't rest on their laurels, warns MacDougal. "I would like to see more candidates thinking longer term and taking the time to build the skill sets that will ensure they meet their career goals," she says. "I see more and more candidates that are interested in changing industry, but aren't willing to invest in their careers to make that move laterally, for example they won't take a financial or title hit. You can't just switch from lawyer to doctor without some work in between, but people are looking for those shortcuts and have become quite complacent about their own development."
Indeed, while the market is tight, companies continue to hone standards when it comes to evaluating candidates. They're seeking natural leaders and innovators, says Caroline Starecky, vice-president La Tete Chercheuse in Montreal. "They are looking for people who genuinely think outside the box. They want their people to be creative and to not just rely on their agencies."
There's also a strong desire for those with proven analytical capabilities, adds La Tete Chercheuse president Louise Descarie. "We are observing an increase in all positions which involves measuring returns on investments. Whether it is web or direct marketing, all disciplines based on quantifiable analysis are currently on the rise," she says. "Also, because of this increased importance of short-term results, companies want salespeople with marketing experience and marketing people with sales experience."
All of this is having a profound effect on the advertising agency world in terms of new business opportunities. However, as MacDougal points out: "With much of the strategic thinking being done on a North American basis, Canadian marketing is far more execution-based. Hence, the creative online market seems to hit its mark and the Internet sectors are growing at rapid rates."
Promotions, direct marketing, public relations and experiential marketing are all booming, however experts agree interactive is the frontrunner. "The war for talent (in the interactive) sector reminds me of the direct marketing sector in 1999 and 2000, where candidates are being wooed for more money and inflated titles," says Barbara Morris, president, Morris Group International in Toronto.
"We're seeing fairly strong mobility largely due to opportunities being plentiful," observes Sylvia MacArthur, president, Madison MacArthur in Toronto. "We're continuing to see strong candidates considering multiple offers which is putting pressure on clients to move their decision making along so as not to lose candidates. We're seeing the same consistency-a candidate market-across most industries and heavily weighted to mid-management level roles."
Leaders wanted
When it comes to demand, Kingston points specifically to the agency supervisor level. Five to eight years ago, companies created a huge gap in the workforce following severe downsizing, flattening of organizational structures and a general decline in hiring and training. "Today this has resulted in a severe shortage of quality, qualified candidates to fill supervisory positions," he says. "Good supervisors are at a premium and are demanding higher than normal salaries. This shortage is compounded by smart agencies which are protecting their supervisors with higher salaries, and yes, people under them to supervise."
Agencies are struggling also to find good senior level executives and account directors-one of the things they're demanding is candidates who are multi-disciplined, says Descarie. "Agencies are no longer looking just for candidates with advertising experience. They want creative entrepreneurs capable of innovating and following through with ideas. They want candidates with passion who enjoy their work."
The hunt for quality candidates is also prevalent in media, adds Starecky. "Almost every media shop in Montreal is searching for intermediate and senior level candidates. Demand exceeds supply. Agencies are poaching one another's good talent. It's getting very competitive and we are seeing salary increases due to this."
But jumping ship is never just about money and candidates are carefully weighing their options. "People and company reputations are too well-known now that folks are careful where they go, and (potential recruits) are not prepared to take on a new role unless they have researched it thoroughly," says Teitelbaum. "Motivators are never about money but about challenges and opportunity to learn and grow and contribute. If employees aren't challenged intellectually or if they feel they are just a number or a tiny cog they will leave, but they won't leave for just money."
"Most often the reason we hear for movement is general dissatisfaction with the employer for long hours, poor pay, inadequate career opportunity and lack of training," says Kingston. "Too often companies are not totally prepared to retain their talent, and they should be." Retention efforts should begin the moment a new employee accepts an offer and continue throughout their tenure, not just when they're considering a move.
"Organizations don't recognize their vulnerability," Kingston adds. "The majority of companies who get raided do not have employee-retention plans in place, making them easy targets. As a result of this widespread corporate inattention to retention, tenure among executives is deteriorating."
Across the board, employers are under pressure, agrees Michael Gates, VP, partner, Mandrake Toronto. "Top notch candidates may have multiple offers or be wooed to stay with their current employer. This is consistently happening at the mid-manager level because of supply and demand. At the more senior levels the client must work hard because the importance of getting the right person is more pronounced."
Market variables
While the market is good and outlook is positive, there are several factors that could put a damper on things, warn the experts, citing a major global catastrophe and uncertainty regarding the strength of the U.S. economy.
"The expected upturn in the U.S. economy has not materialized and in fact we have witnessed a significant slowdown during the second quarter in the States," says Kingston. "However, we do not predict companies here in Canada or in the U.S. will put the brakes on hiring in the second half of 2006. We continue to feel positive about 2007 with guarded optimism."
That optimism is fuelling an exceptionally upbeat job market. There's opportunity for employees to accomplish great things for companies that recognize and reward strong talent. It's up to candidates and companies, however, to take proactive steps to determine just how bright their futures will be.
MICHELLE WARREN is a freelance writer in Toronto.

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