Transcript National Investor Relations Institute

National Investor
Relations Institute
Luncheon Meeting
Cleveland, Ohio
March 18, 2010
Presented By
Ronald S. Torch
President and CEO
Torch Group, Inc.
Today's Recruiting Environment
What You Need to Know as an IR Professional
Understanding the drivers and trends
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Overview and Outlook
Cautious Optimism
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2010 holds a brighter future than last year.
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But results for growth and hiring will be mixed.
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Companies revisiting headcounts and costs.
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Hiring strengthening for IR and communications pros.
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Hiring curve will lag recovery curve.
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By 2011 hiring curve will track significantly higher.
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Overview and Outlook
What is driving cautious optimisim?
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The Obama Effect
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The Economy
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Workplace Changes
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Social Media and Web 2.
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Hiring & Recruiting Trends
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IR/PR Trends
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The Obama Effect
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May be bad for Corporate America, but good for PR/IR.
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Socio/political liberals driving PR/IR/Govn’t Affairs jobs.
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Companies staffing up to “defend” themselves.
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Stimulus program provides numerous stories.
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PR will play key role in moving country out of the recession.
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The Economy
Good News
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US economic recovery has begun.
Economy grew at annual rate of 5.7% in Q.4, more than
expected and fastest pace in over six years.
GDP highlights new mix of growth...exports and
investments offset consumer spending and housing.
Jobless rate steady.
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The Economy
Not So Good News
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Job growth, other economic indicators remain weak.
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Biggest challenges - confidence, credit and cash.
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Credit shortage should end later this year.
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The Economy
Mixed News
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Fed will not increase interest rates until later this year.
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Companies have stronger competitive position now.
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Expect higher earnings, margins and investments.
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When?
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Work Place Changes
Key Trends
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Employers remain cautious about full-time hiring.
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30% say they will turn to freelancers and contractors.
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Retirees will re-enter workforce.
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Flex schedules and telecomm options will be more
widespread to create better work-life balance.
Bilingual job seekers will be in demand.
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Work Place Changes
Key Trends
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74mm Baby Boomers have begun retirement.
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49mm generation “Yer’s” are entering workforce.
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Result will be unprecedented 25mm employment gap.
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Pool of retired consultants with real experience and
knowledge expanding.
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Work Place Changes
Key Trends
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Competition for experienced talent will increase.
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Incentives will be offered to stay on instead of retire.
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Retirees want to keep working, adding to talent pool.
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77 percent expect to work for pay after they retire.
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Result in creation of new “class” of part-time workers and
consultants.
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Social Media & Web 2.0
Key Trends
Investment in digital PR and media accelerated during
recession.
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- Clients became more focused on measuring impact of efforts.
- Compared to advertising, internet offers yardsticks to gauge effects.
To leverage social media, give up some control of message.
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- Have to figure out how to best manage it.
- Require more hiring to monitor blogs and provide responses.
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PR’s growing importance...more attention from regulators.
- Not clear PR behind independent commentary on social networks.
- FTC guidelines for bloggers require they disclose being paid.
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Social Media & Web 2.0
Key Trends
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Companies that fall afoul of rules will need PR help.
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Baby Boomers not as tech savvy.
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Will accelerate hiring of younger generations to learn.
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Companies will leverage social media and create new jobs.
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Hiring & Recruiting Trends
Recruiters View
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Expect increased jobs & revenue.
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Hiring pendulum will swing back.
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One-third companies that laid off workers plan on hiring
for those positions in the first 6 months of 2010.
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37% of companies plan on replacing underperforming
employees with new talent.
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Rich & ready experienced talent is in market
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Utilization of contractors and consultants in lieu of full-
time hires growing exponentially.
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Hiring & Recruiting Trends
New IR Jobs
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IR field will lead resurgence of communications hiring.
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IR agencies and corporate IR departments underwent
cutbacks in personnel and pay scale to survive.
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Now need young blood with new ideas to move ahead
with times.
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IR/PR Trends
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PR industry showing cautious optimism and promise.
Key to growth - identify, capitalize on trends and
specialties.
Social media and interactive media are critical.
On M&A, agencies looking to buy small social media
firms.
PR firms beginning to encroach on advertising territory.
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IR/PR Trends
PR Agency View
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Industry spending on public relations grew by more than 4%
in 2008 and nearly 3% in 2009 to $3.7 billion.
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By comparison, spending on advertising contracted.
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However, 64% of PR firms saw revenues slide in 2009.
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And reported average 11.6% profit margin, drop from 19.2%.
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Two-thirds of PR firms expect higher revenues in 2010.
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IR/PR Trends
Outlook
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Spending on PR forecasted to double to over $8Bil by 2013.
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PR industry is benefiting from changing media landscape.
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Both attracting journalists’ attention and exploring new
routes.
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Much of growth will come from online projects.
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Credit availability will spur growth of PR agencies and
hiring.
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IR/PR Trends
Bright Future
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Boardrooms will seek proven IR talent that can package
recovery story for Wall Street.
May be fastest upturn of any segment of PR industry.
IR will be main resource to ensure rebound in company
fortunes coincides with rebound in recognition among
investors.
This means finding "pure" IR counseling and outreach, not
asking marketing department for PR help.
IR specialist agencies to benefit.
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IR/PR Trends
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Feeding the demand upsurge will be one of history's biggest
years for IPOs.
Total could soar from few dozen in ‘09 to more than 150 in‘10.
Each requiring heavy guidance in pre-IPO prepping, story
positioning, aftermarket programming, communications
infrastructure, spokesperson training.
Indicating a demand for experienced IR counselors or inhouse IR directors.
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IR/PR Trends
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Newer tools...electronic targeting, webcasting, online
profiles, blast email require people with those skills and
experience.
A big need for journalists for thousands of "pent up stories"
waiting to be given a public airing.
We see more PR outsourcing to agencies.
Companies trimmed in-house IR departments and are now
reluctant to rebuild them.
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Recruiter Relationships Strategies
How Recruiters Find You
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Most use a variety of resources and tools to generate initial
pool of potential candidates.
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email blasts, online postings, user groups, LinkedIn, database
and job board resume searching, etc.
Research and direct calling for passive candidates and
referrals.
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Niche sites, associations and databases.
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Networking and referrals.
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Recruiter Relationships Strategies
How to Connect with Recruiters
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Identify and build open relationships with 3 firms, one from
your industry, one in your functional area and one in your
local market.
Update your resume. Create your "promise of value," a
unique blend of your strengths, accomplishments and
personal characteristics.
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Use personal and business referrals.
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Stay in touch, update us on news and changes.
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Job Search Tips
How to Connect with Recruiters
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Build your brand. Use social networking to express your
personality and professional knowledge. Join user groups,
associations.
Leverage Social Networks. LinkedIn, Twitter and Facebook
are the hottest tools in the job seeker's arsenal.
80% of companies plan on using social networking sites to
fill vacant positions.
LinkedIn is the most popular site with 95% of companies and
recruiters using it. Use of Twitter is growing quickly.
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Job Search Tips
In Transition
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If in the market...make it known on social sites.
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Add keywords - companies, title, skills, seeking employment.
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Consider temporary jobs and assignments
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Join or start professional interest groups.
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Think before you tweet. Control and manage your image.
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35% of recruiters eliminate applicants on social network findings
Share personal & business updates on social networking
sites.
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Job Search Tips
Network for Best Jobs
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More than 90% of jobs are landed by networking.
Make a list of 25-50 people in your professional and social
network.
Make a second list of 25-50 companies that you've
researched that you'd like to work for.
Meet each of the people on the first list and ask them who
they know inside your second list. Use social media to find
contacts.
Attend industry and user groups & events.
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Job Search Tips
Passively Looking
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Confide in a few recruiters.
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Seek referrals and introductions.
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Post resume confidentially.
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Job Search Tips
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Be sure your resume doesn't just read like a job description
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Reflect accomplishments during each stage of your career
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Consider options such as temporary jobs and assignments.
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Consulting assignments, projects or temp-to-hire can lead to
full-time, more permanent position.
Finally, register online at www.torchgroup.com
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Mission Statement
Torch Group helps companies meet their marketing,
sales, communications and creative needs by
providing custom-tailored talent solutions.
From strategic to tactical and temporary to permanent;
we have a wide breadth of specialists with the industry
and functional expertise you need and the flexibility to
engage them when and how you need talent.
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Biography
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Ronald S. Torch
President & CEO
 MBA Marketing
 Ten years brand management and marketing

Pepsi-Cola, A.1., Grey Poupon, Durkee Foods
 Five
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Colgate-Palmolive, Seagram’s, Hershey Foods
 Ten
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years advertising and promotion agencies
years marketing consulting experience
Polaroid, Duracell, AT&T, G.E. Consumer Products
 Principal
& founder of Torch Group since 1990
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Contact Information
Ronald S. Torch
President & CEO
Torch Group Inc.
Contact :
email - [email protected]
Phone - (440) 519-1822
website - www.torchgroup.com
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References
CareerBuilder.com recent survey of 2,700 HR professionals
Ziff-Davis Enterprise Magazine - 2010 Employer Outlook: 10 Top Trends
The Bureau of Labor Statistics
Bullhorn’s industry survey
PRWeek, January 04 2010 New York
2009 survey by StevensGouldPincus
Pew Research Center
The Economist print edition Jan 14th 2010 | NEW YORK –
Veronis Suhler Stevenson (VSS), a private-equity firm.
AllianceBernstein L.P.
The Chicago Sun Times;
The Financial Relations Board
Jobvite survey
New York Times
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