EXECUTIVE CAREER OUTLOOK IN CEE (Central & Eastern Europe)

The human capital talent war combined with international companies actively entering the CEE market has led to a strong demand for trained professionals for the growing number of Executive positions within the CEE. The challenge for Executive Search companies is to identify existing Executives within the market and manage cross border searches using resources such as international databases and research strategies to attract these professionals.

Dramatic increases of international companies entering the market now feel the effects of the “brain drain” within the CEE and South Eastern European Area. This human capital talent war has been caused by the emigration of trained and talented individuals to other nations or jurisdictions due to political conflicts, lack of opportunity or health hazards where they are living. A huge number of young university graduates between the ages of 25-40, many of whom are trained professionals, have continued their careers abroad. These include professionals from the fields of arts, finance and business, law, medicine, science and technology. Efforts are being been made by CEE companies to attract these professionals back to their country of origin. Many CEE companies have realised the value of the support of an international Executive Search firm in attracting and retaining talent.

Think ahead.

The steady growth of the FMCG, retail, IT, finance and real estate sectors has led to increased demand for Finance, Retail, Sales and Marketing professionals who not only are well educated in local regulations but who are also conversant with international standards. Successful organisations are recognising the need to use the right resources to attract, and importantly retain talented employees and they are implementing employee reward and career development programmes accordingly.

Preparation.

Many international companies entering the CEE are baffled by the hardships and challenges which accompany expansion into this regional “gold mine”. The successful executive today in the CEE is well versed in the challenges of expansion into the market. This includes not only foreseeing the challenges but also developing effective solutions in a timely and cost effective manner that are able to be adapted long term. A leading CEE company executive must have a strong network of professionals from all industries, fields of interest and all levels. They must continuously step outside their social comfort zone to scan name tags at events and initiate conversations with anyone who might be an asset to the company including Managers, support employees and young potentials. After all, the executive realizes one day, this might be his/her successor.

Talent/Profile.

Resourcefulness, hands on practical experience and sensitivity to CEE political and cultural history and hardships are key factors in creating a clear vision of the future.  Successful executives’ greatest advantage comes not from presentation in the board room, but rather from high emotional intelligence, excellent interpersonal skills and character. They must have drive for positive change, willingness to learn and listen and the courage to build solid relationships to create a future with their employees and business partners. In the CEE, executives are the new celebrities in such a compact market and their every move is a reflection of the company’s strategy and beliefs. The successful executive will use this to the company’s advantage. Knowing how to communicate, in order to stand up to scrutiny from investors, customers and media, is one of their most important skills.

Resourcefulness.

The leadership shift now occurring in the CEE is away from the chief or “boss” executive to a new kind of executive with the willingness to share accountability and authority in a culture which has its fair share of independent and entrepreneurial managers. The new executive profile skills include practical experience, business education and foreign language competence. The successful executive in the CEE shows resilience through company crises, has strong staying power, is not afraid to seek advice from others yet is decisive and knows when to delegate.

Cross border challenges must be identified and approached accordingly.

The successful executive must be flexible, agile and highly sensitive to cultural norms across the CEE region as well as Europe as a whole. This includes language, cultural, ethnic and historical differences and requires preparation, education and investment into getting to know the country to avoid arrogant or ignorant presumptions or stereotypes of the culture as a whole. This becomes increasingly difficult as a company expands rapidly into the CEE and the biggest mistake is to assume the “cut and paste method” of business development. The successful executive will proactively identify and embrace differences in order to maximize company success within the region.

Remuneration.

Median base salaries for Executives and upper level management have increased dramatically in the CEE as companies are benchmarking their expectations with their Western colleagues. Top skills are being paid for, and with competitive contracts. As such, the increase has actually presented “golden handcuffs” for many executives within the region who have become “stuck” in their current position as most competitors cannot afford such generous contracts. This has led upper level management vying for regional and international opportunities.

The future looks bright for the CEE and talented executives. Companies with strong attraction, development and retention plans will be the winners in the human capital talent war in this growing region.