Top manager employment frozen amid crisis

 “Managers without a contract have a problem at present, because employment is frozen at the top management level,” said one of the best-known head-hunters on the local market, George Butunoiu. Furthermore, “managers who have a contract are more reluctant to quit, with everyone holding on to the position they had when the crisis hit,” he added.

According to Butunoiu “no one is recruiting anyone” at the top management level. However, managers who decided to quit their jobs and take a break saved significant amounts of money in previous years, up to €200,000-300,000, which allows them not to worry.

Since the crisis hit, salary packages are being drafted more carefully and registered a 30 percent drop in value. “If things keep on this way, the executive search industry will decline by 70 percent next year,” he added.

Many companies have frozen some top management recruiting projects until January 2009. “It is really difficult to find a job that fits, when one has reached a certain level, because many of the interesting investments have been halted. Those who have taken a break have usually calculated their moves. A preferred option is consulting, which is a safer and more stable activity,” according to Mihaela Damian, Managing Partner of Stanton Chase, one of the top executive search companies locally.

Damian added that the growth rate of the executive search market is likely to diminish severely in 2009, below 10 percent, compared to 20-30 percent in the past few years.

However, managers who have no current contracts are not pessimistic about their future. “During June and July, I negotiated for the position of Deputy General Manager of an operational bank, but we could not find a common ground. Since the crisis started, I have had no offers from banks,” said Enache Jiru, the General Manager of MKB Romexterra Fond de Pensii pension fund, which is undergoing closure.

Jiru admitted that opportunities drop amid the crisis, but he will not be unemployed for long, however. Next year, Jiru will become General Manager of a consulting company for the banking sector, which is currently being established.

“I think there are still several positions available for top managers. They can also turn to interim positions or project management,” said the former CEO of Tiriac Holdings, Anca Ioan. She said she is still receiving many job offers and that many of these are from the consulting field.

Another top manager, who took a break, is the former CEO of pharmaceutical products distributor and retailer A&D Pharma, Dragos Dinu. He recently told Business Standard that he has not made a decision regarding his career, but is more interested in consulting than a new executive position.