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Keep up to date on the latest trends in hiring and employment in digital and direct marketing with our free quarterly reports, distributed to more than 15,000 professionals at the forefront of digital and direct marketing. To opt-in, send an email to survey@bernhart.com and put "opt-in" in the subject line.

Wednesday, February 11, 2009

Why Direct Marketers Switch Jobs- Often. A Study by Jerry Bernhart

Written by Richard Levey, DIRECT magazine, February 1, 2009

The average time spent in a direct marketing job? Just a little more than a presidential term:
4.05 years. So says Bernhart Associates Executive Search LLC, a recruiting firm specializing in direct marketing and related positions.

That's not the only surprise Bernhart uncovered in a study of 1,000 randomly selected
resumes. Another is that entry-level people work for 10 to 12 companies. Granted, there were
exceptions. “As amazing as it may sound, there are some direct marketers out there who have
been with the same company long enough to get their 25-year watch,” says the firm's principal Jerry Bernhart.

To reach these findings, Bernhart focused on the most recent position listed on each resume
with a definite beginning and end date. The pool represented job categories at all levels.
To compensate for the fact that some people stay on the job for decades, Bernhart also
calculated a median number — a figure that more accurately reflects the tenure of a greater
number of individuals. This came out to 2.82 years, prompting him to note that movement has
become the norm. It's what an individual does with that movement — how wisely he or she
follows a career path, or is willing to learn new skills or take on new responsibilities — that
makes the difference over the long haul. Bernhart also attempted to determine the reasons
behind the turnover rates. The answer is in the number of job titles listed under a single
employer. There was only one position per firm listed on 73% of the resumes. Two per
employer appeared on 12%, and three on 11%. This may indicate that people jump for promotions.
“This comes as no surprise,” Bernhart says. “Career advancement is among the
main reasons candidates give us for wanting to begin a search.”

What does this mean for CEOs and business owners? First, that direct marketers are spending
less time with their employers than they did 10 or 15 years ago. This means that turnover costs
are much higher than one might realize. And the cost of these actions may be harder to
recognize. Then consider the full impact when you lose a valued employee: There are the
costs of hiring and training a replacement…not to mention lost productivity, business,
knowledge, experience and skills. The list is long. “Imagine the savings a typical direct marketing company
could realize if it could improve its average turnover rate from 4.05 years to 4.25, or even 4.5,” Bernhart says.


The takeaway for marketers, according to Bernhart, is simply this: Think more about how important
it is to retain top performers. Between skills and legacy knowledge lost, the cost of replacing them is higher
than what's reflected in a hiring search.


Visit our website at www.directmarketingrecruiter.com

Monday, February 9, 2009

Direct Marketing Hiring Outlook Reflects Economic Landscape

Released by Bernhart Associates and the Direct Marketing Association, January 27, 2009

Owatonna, MN — Direct marketers may expect more layoffs, hiring freezes and cutbacks in hiring until at least Spring, according to the first 2009 Employment Outlook Report, based on findings from a recent study conducted jointly by the Direct Marketing Association and Bernhart Associates Executive Search, LLC.

“Each of our key employment indicators are at all-time lows, with almost half of all participants telling us they currently have a hiring freeze,” said Jerry Bernhart, who has been conducting quarterly employment reports for the DM community since 2001. “The worsening economic climate is taking its toll on direct marketers just like everyone else.”

Among those responding, 21% said they will be adding to staff during the first quarter of 2009, down from 31% last quarter. The percentage of companies planning to reduce staff rose from 17% last quarter to 20% this quarter, and 48% report they currently have a hiring freeze, up from 34% last quarter.

When asked when they plan to lift their hiring freezes, nearly two-thirds said they don’t know.

Bernhart said that despite all of the economic pain, direct marketers appear to be doing better than the U.S. economy as a whole.

“According to the latest Employment Outlook Survey by Manpower Inc. in December, 16% of U.S. employers said they anticipated an increase in their staff levels during the first quarter of 2009, compared with 21% among direct marketers who responded to our study.”

“A closer look at our numbers also shows that while quarter-to-quarter changes in planned staffing and hiring freezes are both sharply deteriorating, layoffs are going up at a much more moderate pace,” said Bernhart. “All of this suggests that direct marketers are being spared the massive job cuts that we’re seeing in some other sectors of the economy.”

Bernhart also observed that among companies planning to hire this quarter, new jobs will out-number replacements 5-to-1.

“Recent published surveys show that many businesses are actually planning to increase their direct marketing budgets in 2009 while reducing their spending on less targeted advertising campaigns, and I think that is helping to ease the blow,” said Bernhart.

A total of 264 companies participated in the detailed employment study, which was emailed in mid-January to a combined list of DMA members and past participants of the Bernhart employment survey.

Complete survey results, with expert commentary on direct marketing hiring trends by Jerry Bernhart, can be found in the 2009 Employment Outlook Report. This report will include information on hiring patterns within the direct marketing arena, new employee compensation, bonuses, and incentives used to attract new hires. This report can be ordered via the DMA Bookstore. Click here to pre-order now through 2/13/2009 and use discount code EMP001 to receive a 10% discount.

In 2008, direct marketing accounted for approximately 10 percent of total U.S. gross domestic product, employing more than 10 million people in the United States.

Results of past Bernhart Associates employment surveys can be found in the DMA’s Statistical Fact Book. The 2009 Edition of DMA’s Statistical Fact Book is scheduled for release in February 2009.

Companies interested in participating in the next quarterly Bernhart Associates Direct Marketing Employment Survey should send an email to survey@bernhart.com with “Opt-In” in the subject line.

Visit our website at www.directmarketingrecruiter.com