Press Room

Fort Lauderdale , FL– June 13, 2002 –Company turmoil, poor economic performance and the free-agent mentality of the late nineties have led to increased turnover at the executive level over the past few years. Every executive departure results in substantial replacement costs, leadership issues and crisis management. In order to effectively capitalize on this developing trend, Spherion Professional Recruiting Group recommends that companies develop flexible employment arrangements with qualified executives who possess the skills and characteristics necessary to fill executive vacancies or who specialize in managing critical corporate projects and functions.

Interim leaders, executives brought in on a project basis to manage and accomplish specific business objectives, are a viable means for businesses to cost effectively leverage the right leadership at the right time. According to Spherion survey data, the average tenure of today’s middle market executive is little more than two years. Compared with the early nineties, this is an extremely short time period, considering that executive tenure once averaged four to ten years.

To further deplete the American workforce, the Bureau of Labor Statistics reports that 6.5 million baby boomers will become eligible for retirement in 2002, reducing the entire workforce by several percentage points. The dwindling labor force trend will continue as more and more baby boomers retire and the number of 35 to 44 year olds declines by 15 percent over the next 15 years.

“As baby boomers retire and the trend in executive turnover increases, the need for experienced leadership intensifies among companies nationwide,” said Eric Archer, president of Spherion Professional Recruiting Group. “Interim executive consultants offer businesses the opportunity to temporarily fill leadership gaps and meet important business objectives without investing in an expensive talent search.”

Turnovers are costly, especially at senior executive levels. The Saratoga^® Institute, a human capital benchmarking and research organization, reports that the cost to exit and replace senior executives can range between two and three times the individual’s salary. Besides a cost-effective benefit, employer advantages to using interim executives include:

Executive level skills and expertise: Hiring experienced and skilled executives on a project basis will keep fixed labor costs low and productivity high. Businesses are then better equipped to manage immediate needs without disruption or operational slowdowns while searching for a new executive.

New business perspectives: Interim executives bring diverse skills, ideas and information into an organization. A fresh approach will help drive new innovation and reenergize a company.

Leaders and mentors: Experienced, project-based executives can also serve as mentors to internal employees for complex projects such as mergers, corporate reorganizations or international ventures.

Maintaining balance: A sudden vacancy in an executive position creates the need for internal cohesiveness. Interim executives can ensure that critical operations will continue while internal leadership can focus on maintaining the existing infrastructure.

Defined roles and objectives: Interim executives have their role and objectives clearly defined at the outset of their engagement. They are allowed to focus exclusively on their main goal and are not hindered by internal politics or barriers.

“In times of transition, new perspectives and executive skills will ensure that the organization will remain balanced,” Archer said. “Companies can rely upon carefully selected interim leaders to focus on results and offer an efficient way to maintain smooth operations during times of change.”

Spherion Corporation’s Professional Recruiting Group has a specific practice for the recruitment and placement of qualified interim executives; from “C-level” executives to project managers. For more information, please visit: www.spherionprofessionalrecruiting.com

About Spherion

Spherion Corporation provides Recruitment, Outsourcing and Technology services. Spherion recruitment experts offer organizations a diverse portfolio of customized solutions. Engagements include flexible staffing, direct hire, interim executives and on-site management and outsourcing. Spherion currently serves 85% of all Fortune100 companies in an array of industries. Founded in 1946, Spherion has operations in North America , Europe and Asia/Pacific. Visit the Company's Web site at www.spherion.com.