Jose Ruiz

Loyalty is not what it used to be… and it shouldn’t be.

By Jose Ruiz
Translated from articule published in CNNExpansion.com on Dec. 6, 2009

A few weeks ago my grandfather, who was a top ranking executive in the banking industry back in the 80′s, asked me what I thought about the perceived lack of loyalty in today’s employees. He was surprised to see that now, the average time an employee spends working for a company is around 5 years. An uncle, an entrepreneur, quickly responded loaded with sarcasm: “And what do you think about the perceived lack of loyalty in companies? They think short term and fire people when they don’t need them anymore -this month.” Touche. Hey, in the end, it isn’t personal, it’s just business. It may sound cold and ruthless but it’s not. We just need to sit back and analyze some paradigms that have been redefined over the past decades.

To many, especially amid these hard economic times, loyalty has been discarded in the work place. But the truth is, loyalty has only evolved. I’m sure you will agree with me when I say it is crazy to assume that an organization can commit to an employee for life, just as crazy as an employee committing to an organization for life. It could happen under the right conditions, but one cannot assume or guarantee that it will. Things change and they change fast. Organizations and employees need to achieve independence. Now, this may evoke thoughts of selfishness, but it is quite the opposite. Business relationships exist for a mutual benefit. Employment is not an exception. Loyalty is assuming that the relationship can end. Loyalty is taking into consideration what may happen to the other party when it does and loyalty is taking action every step of the way to guarantee that neither party in the relationship becomes dependant. A dependant relationship in business is not a healthy relationship.

The current economic environment has exposed many of these unhealthy relationships. Let’s delve deeper into the concept of dependence using an example: Bill, an employee at ACME, Inc. is a close friend of his manager. He has helped him when unforeseen events have required him to do a little extra of everything. Bill is a go-to guy at ACME and has been rewarded over the years with generous pay increases. The economy has hit ACME hard and has forced the company to close down. Bill is out of work and now struggles to make ends meet. He was presumably loyal and did everything that was asked of him, including jumping from one position to another. Now Bill is in the open market. His post switching did not allow him to define his own niche or career within a discipline -he has no brand- his resume is a mess and his salary expectations are well above what the market will pay for his skill set. Bill was dependant on ACME and ACME never considered what would happen to Bill in an open job market. By not helping him define a career path, (both internally and externally) and overpaying him, Bill was put in a very bad situation. ACME made him dependant and Bill never realized that he was.

Now, let’s assume a scenario where an investor stepped in, ACME re-opened its doors and re-hired Bill. Bill knows that his life style depends on his current job with ACME. The relationship is at a high risk of turning toxic because Bill’s dependence would most likely have an impact on the decisions he makes at ACME. He knows he needs to protect his job. At best, he will make decisions with a higher degree of fear.

A healthy business relationship and true respect comes with the independence of both parties and the trust resulting from it.

 True loyalty in an employment relationship takes into consideration what will happen to the other party when the business relationship ends. A.J. Smith, General Manager for the San Diego Chargers preaches “We are all Chargers one season at a time, one game at a time”.

As an employee, one must consider all the possibilities, including that your job may end at any given moment. Are you ready for it? Do you know what your market value is? Do you know who may demand your services? Ask yourself these questions constantly. If you are taking on a new assignment, inquire how this will impact your personal brand and your resume. No matter what you do, or what your job may be, consider yourself a freelancer and your job as an assignment. Perform as if every assignment was an trial for the next. Above all, never forget that healthy relationships are based on mutual benefit. Push the other party’s benefit to the edge and you may break the relationship. If you guarantee your independence you will become a better employee. Guarantee the independence of those that work for you and you will have more loyal employees and a healthy relationship.

Be independent and be loyal. The new kind of loyal.

About Heidrick & Struggles International, Inc.
The world’s premier provider of senior-level executive search and leadership consulting services. The firm’s executive recruiters and leadership experts operate from principal business centers in North America, Latin America, Europe and Asia Pacific. In Mexico, Heidrick & Struggles operates offices in Mexico City and Monterrey. For more information about Heidrick & Struggles please visit www.heidrick.com 

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By Jose Ruiz

How much?  There is no easy answer for this question but the best way to address is it is to understand a company’s typical thought process.  Regardless of what companies will openly admit there are three things that will determine what a company will offer you when changing jobs:

What you are worth in the Market
This has nothing to do with your perceived value, it is important to distinguish your perceived value from your market value.  Your market value is simply based on what others with a similar skill set and experience (your competition) are currently or willing to make. I have had candidates tell me: “I saved the company $500,000 dollars last year why can’t they pay me 50% more?” And the answer is pretty straight forward, harsh, but straight forward: Because they don’t have to if someone else can save them the same amount for 25% less than what you make.

So, research the market when setting your expectations. Once you arrive at market data it is important to understand how it is used.  If you take market statistics as a reference, consider that companies will try to make offers below the 50 percentile to guarantee room for growth and development. The area above that percentile is reserved for compensating performance and experience at the corresponding level.  If at any point you are able to negotiate above the 50 percentile be cautious of what your future will look like. You might be staring at a few years with below average salary increases.

Your current salary
This becomes a none-issue if you are at market, but if you are under the market it will force a question: Why are you below market?  In many cases there is a valid reason. But beware of how you present your case. Companies will know about other companies more that you might expect. Company names in your resume and your current salary will hint to what your performance has been. Questions marks will fly if you have been with a well recognized organization for the past 4 years and your salary is below market.  Regardless of how well the interview process goes and how good an organization may be when evaluating potential employees there is never a guarantee that a new hire will perform as expected. So if you are below market don’t expect a significant immediate increase to bring you to market level. Companies will typically provide an increase to bring you on board but it will be up to you to bring yourself to market level by performing.  So worry about positioning yourself in an organization that will FACILITATE getting back to market level within a certain amount of time versus trying to find a sponsor that will immediately take you there because they feel for you and believe your story.

It is also important to consider that while companies understand that money is important they will seek a candidate’s decision based on the challenge, expected career path and career development and not on an immediate boost in pay. For that reason, most organizations will shy away from providing sharp increases when presenting an offer. The average increase, assuming that the increase does no put you outside the hiring companies range for the position is between 15-25%. The higher the salary the lower the percentage tends to be. In very few instances do we see organizations that are willing to increase an executive’s salary by more than 25% when they bring them on board. So once again, worry about positioning yourself in an organization that will provide a level of responsibility, training and experience that will allow you to progressively increase your market value and consequently your salary.
Chase responsibility and experience that can be marketed and the money will come.

Their internal pay structure
You would think that the pay structure in most companies would match market data. Unfortunately it is not always the case and not because organizations would not want it that way. External events can change the market quicker than what a company can or would be willing to react to. When we see a mismatch it is typically a temporary supply and demand issue for specific industries and disciplines. In most instances companies will prefer to take more time to fill a job opening or even lose a few employees to a hot job market over turning their cost structure upside down or generate disgruntled employees by increasing the salary range for specific positions while keeping other similar ones the same.

About Heidrick & Struggles International, Inc.
The world’s premier provider of senior-level executive search and leadership consulting services. The firm’s executive recruiters and leadership experts operate from principal business centers in North America, Latin America, Europe and Asia Pacific. In Mexico, Heidrick & Struggles operates offices in Mexico City and Monterrey. For more information about Heidrick & Struggles please visit www.heidrick.com

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Jobs: Lessons from the Great Recession (Business Week)

Those who still have jobs should get used to pay cuts, furloughs, and all-around uncertainty. Welcome to the age of the microentrepreneur

By Chris Farrell (Source: Businessweek.com)

Thanks to the Great Recession, another corporate taboo has been shattered: large-scale pay cuts. As a general practice, companies typically resist slashing worker pay during downturns, especially for their white-collar employees. The preferred response to falling profits has long been layoffs. The main reason both managers and workers prefer layoffs to pay cuts is that pink slips seem to concentrate the pain while pay cuts spread the distress.

“Employers are reluctant to cut the nominal rate of pay,” says Daniel J.B. Mitchell, professor emeritus at the UCLA Anderson School of Management and the School of Public Affairs. “It causes morale problems and antagonizes the workforce.”

| Read full story

About Heidrick & Struggles International, Inc.
The world’s premier provider of senior-level executive search and leadership consulting services. The firm’s executive recruiters and leadership experts operate from principal business centers in North America, Latin America, Europe and Asia Pacific. In Mexico, Heidrick & Struggles operates offices in Mexico City and Monterrey. For more information about Heidrick & Struggles please visit www.heidrick.com

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It’s not done yet.  But signs continue to indicate that we are heading in the right direction.
by Jose Ruiz

Monterrey, Mexico (August, 25, 2009).-There are internal economic elements in Mexico that can be considered serious weaknesses if the global recession continues over a long period of time. As we continue to monitor key economic data it continues to look like Mexico will dodge the bullet.

80% of Mexico’s exports go to the United States.  The economy in Mexico will begin to pick-up steam when the U.S. consumer starts spending again.

This week U.S. consumer confidence proved that the sleeping giant might be waking up. The index climbed more than forecast at the same time that national home prices increased for the first time in three years.

The increase beyond forecast may be a surprise but the correlation should not be. Most of the net worth of the average American lies in two pots: The equity of their homes and their retirement savings. Both of which had been badly battered in the last couple of years leaving the average consumer feeling unprotected wondering what they would get by with  if they became part of the unemployment statistics.

While the official unemployment numbers are still of concern reports say the proportion of people who said jobs are hard to get decreased to 45.1 percent from 48.5 percent.

The positive environment in the U.S. is already having an effect in Mexico. The peso’s strength is at levels many thought we were never going to see again. It strengthened 0.1 percent to 12.8152 per U.S. dollar today.  At some point in trading it hit 12.7674, a number not seen since November 11 of last year.

The signs are encouraging and it appears we are on the path to recovery. There are internal concerns, but there is reason to continue to be optimistic as long as the U.S. economy continues to show signs of strength.

About Heidrick & Struggles International, Inc.
The world’s premier provider of senior-level executive search and leadership consulting services. The firm’s executive recruiters and leadership experts operate from principal business centers in North America, Latin America, Europe and Asia Pacific. In Mexico, Heidrick & Struggles operates offices in Mexico City and Monterrey. For more information about Heidrick & Struggles please visit www.heidrick.com

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America Economia (Agosto 2009)

Por Arly Faundes

Cuando todo parece estar en contra, un buen jefe se vuelve fundamental para las organizaciones. Por ello, las crisis son escenarios privilegiados para descubrir al líder que llevamos dentro.

No es fácil estar en medio de una tormenta y decidir hacia dónde remar. Alguien tiene que guiar al resto para que todos vayan hacia el mismo lado y no termine por hundirse el bote. Ésa es la labor del líder: conseguir que su equipo lo siga y obtener buenos resultados. No sólo porque los demás sean sus subordinados, sino porque realmente confían en él, en su actuar y en que está tomando las decisiones correctas. “Son aquellas personas que tienen credibilidad por lo que hacen”, dice Fernando D’Alezzio, director de Centro de Negocios Pontificia Universidad Católica del Perú (Centrum).

Esto se vuelve aún más fundamental cuando la tormenta es una crisis económica mundial que azota a gran parte de las industrias, el consumo, el empleo. A todo y a todos. “Una característica de un buen líder es adaptarse a la situación en particular que se está viviendo”, afirma José Ruiz, director general de Heidrick & Struggles en Monterrey, empresa de reclutamiento y consultoría en liderazgo.

Según Ruiz, en momentos de crisis, una persona pasa por tres cuestionamientos. Cuando comienza la urgencia, se pregunta: “¿qué está pasando?”. Después de identificar la situación, evalúa: “¿cómo me está afectando, estoy en riesgo?” Y el tercer paso es asimilar la situación y ver qué sigue y qué se debe hacer. Las respuestas a estas interrogantes son las que un buen líder responde tanto para él como para informarlas a todo su equipo.

Por esto la comunicación y la transparencia son clave. Lo importante, dicen los expertos, es disminuir la incertidumbre. “En tiempos de crisis económica son momentos en que los liderazgos se consolidan y duran por mucho tiempo”, agrega Ricardo Aparicio, académico de Ipade, en Ciudad de México.

¿Y cómo han reaccionado los líderes en América Latina? “Hay que aprender mucho de esta lección”, dice D’Alezzio. “Tenemos buenos gerentes, pero no buenos líderes”. Según el académico, falta una visión hacia el bien común. Una visión de largo plazo y que se trabaje más allá de los beneficios para los dueños de la empresa, sino para la sociedad. “El liderazgo no permea toda la organización”, agrega Roberto Cabrera, especialista de la consultora KPMG. “Se toman las decisiones de manera adecuada, pero no se crea una visión ni se comunica”.

| Leer articulo completo en AmericaEconomia.com

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According to companiesandmarkets.com’s new research report, “Aerospace Industry Forecast to 2013″, growing air travel and wars around the world are driving the global aerospace industry. Civil aerospace segment is expected to grow at a faster pace than the defense segment. It is estimated that by the end of 2027, the world’s airlines will take delivery of 29,400 civil airplanes with total value of US$ 3.2 Trillion to keep pace with the growing demand for air travel.

The US represents the biggest aerospace market, with total sales estimated to have closed at US$ 204.4 Billion in 2008, followed by EU, Canada and Japan. But in future, developing economies such as China, India, Mexico and Brazil are expected to emerge as big marketplace for aerospace products.

The Chinese aerospace sector ranks among the world’s most dynamic sector due to the massive investment by the country. Moreover, Chinese aerospace companies are fast showing their presence in the global aerospace industry. It is anticipated that China will buy more than 3,700 airplanes before 2028 with the potential market value of US$ 390 Billion, becoming the most potential civil aerospace market.

Companiesandmarkets.com’s  report gives an extensive and objective analysis on the global aerospace market. It investigates both the past and current trends in the global aerospace market, and outlines the future trends shaping it. It comprehensively assesses the industry performance both in civil and defense segment. Based on various market indicators, the report evaluates future outlook of the industry. The report can thus give valuable information to manufacturers/investors preparing to enter the aerospace market.

The report also provides future perspective of the following countries

Developed Markets
- US
- Canada
- Japan
- UK
- France
- Germany

Emerging Markets
- Middle East
o UAE
o Saudi Arabia
o Qatar
- China
- India
- Mexico
- Brazil

Profiling on Key Players

This section gives overview on the key players, including The Boeing Company, EADS NV, United Technologies Corporation, Lockheed Martin Corporation, Northrop Grumman Corporation, Honeywell International Inc., Raytheon Company and BAE Systems plc, operating in the global aerospace market. It provides vital information, like business overview and financial information, of each company.

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