Marketing Executives Find Double-Edged Sword in the Job Market
July 23, 2008
While offering numerous opportunities, the industry would benefit from improved recruitment and retention
By Jonathan Tannenbaum
Given the state of the economy, marketing executives probably feel relieved to be in high demand. If they find themselves jobless or unhappy at their current office, they can take solace in the fact that many companies need to fill high-level marketing positions. That said, however, people seeking such work should be mindful that their industry often imposes serious obstacles, including a rough hiring process and inaccurate job placement. The Marketing Executives Networking Group (MENG), a national non-for profit, understands this complex situation, seeing ample opportunities for employment, but also the need for revamped hiring and employment practices.
MENG recently joined with ExecuNet and Salary.com to issue two studies, which examine marketing executives’ employment prospects, salaries and job satisfaction. In the one entitled “Executive Job Market Intelligence Report,” more than 70% of those surveyed agree there is a shortage of executive talent, suggesting that even during the recession marketing executives have many chances for prosperity. Their answers coincide with other MENG research, estimating that the market seeks out 10,000 to 20,000 high-level marketing people in a given year. To go along with a large number of openings, such jobs typically provide high salaries. For instance, MENG reports that the median income for a VP of marketing belonging to MENG currently stands at $175,500, while the median income for one outside of the group comes in at $153,189.
But notwithstanding the wide availability of lucrative work, marketing executives experience serious difficulties when looking for a job. MENG Chairman Richard Guha, observes that marketing professionals often find the experience excruciating as they run into poor treatment. He says that for many companies, “Interviewing candidates comes very low down the priority list. It often takes three or four months to interview half a dozen candidates.” Guha notes that even when companies strongly desire a candidate, they often take a very long time getting back to the person. He says he knows of one firm that said it loved a prospective employee, but then they followed up with him 2 months later.
And once job-seekers finally do obtain work, they often run into problems. Businesses routinely fail to bring on the right prospects, since interviewers tend to select candidates they bond with on a personal level, rather than ones possessing skills and qualities necessary for the job. Creating further complications, companies usually fail to coach new employees, throwing them into situations they're unprepared for.
As a consequence, marketing executives routinely change jobs. Guha cites research from recruiting firm Spencer Stewart that finds that the median time chief marketing officers spend at a particular firm is less than two years. Likewise, MENG members possess long careers in marketing, but have, on average, spent 2.5 years in one place. Aware of this problem, a few companies follow through with “on-boarding,” which consists of coaching new employees as soon they join the firm. Guha says that such coaching improves chances of success dramatically. "One of the critical elements in making new hires successful and in retaining them is to provide coaching and counseling in how to work within the company," he says. While they are hired for their skills, they do not know the culture and people within the organization."
Suring up recruitment and retention helps not only prospective employees, but also businesses themselves. Guha says that very large companies lose billions of dollars a year by leaving their top-level marketing positions unfilled. And many companies stand to lose somewhere in the millions. "The cost of replacing anyone is between 50 to 150% of their annual salary. In the case of a senior executive, that is added to the opportunity cost of having the position unfilled for six to 12 months, allowing many opportunities to be missed," he says. Fortunately, these are opportunity costs companies could avoid if they make a few straightforward changes to the way they handle marketing executives.
Sales & Marketing Management Magazine
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