Development in Brazil

Le Brésil est une économie émergente dont le taux de croissance de 8 % et l’immensité du marché intérieur défient les crises.

Y investir est devenu une opportunité stratégique pour beaucoup d’entreprises françaises. Mais quelles ressources de management y trouve-t-on localement ? Notre associé brésilien nous décrit la situation… en anglais.

The present economic scenario of the Brazilian market brings new challenges for international companies looking for C level executives and experts in our country.

The present time is the result of a worldwide situation that favors a limited number of emergent economies, and among them, Brazil.

In the last years, such a scenario brought a very important volume of foreign direct investments to the country. Multinational companies focused not only in green field investments, but also on expanding activities, trying to cope with a bullish internal market.

Furthermore, the population got wealthier with the rise of a new middle class, which leads the rhythm of consumption, and nowadays represents about 50% of Brazilians (92 million people).

In 2010, GDP’s Brazil grew by 7.5%. In addition, the discovery of large oil fields reserves (Tupi Field a.o.) will bring an increase of more than a 100% of our oil production capacity. The announcement of the Olympic Games in 2012 and of the Soccer World Cup in 2014, have generated an euphoric feeling in the country as never before.

Among the CEO´s and HR Directors, 71% believe that their companies will hire in the first semester and 60% see recruitment of qualified professionals as one of the main problems to face in 2012.

In the last 2 years, these facts are responsible for an average increase of 20% in recruitment per year, but also for directly related salary inflation. A recent study published by Revista Exame business magazine, shows that, on average, 60% of the Brazilian executive have a salary package based on bonuses, which 30% of them are linked to long term and cumulative targets over years. This combination, took the Brazilian executive to the position of the best paid ones in the world.

The executive search market feeling is that there is a lack of C executives and experts to meet punctual, medium and long term demands. The Brazilian professionals start to be hunted as never before, and right and wrong moves are made, all of them with eagerness and short term expectations. These professionals are more and more attracted by the success of their colleagues and their bonuses.

On the other hand, the knowledge of Portuguese is an actual barrier that make null and void, the solution offered by executive search companies by considering foreign executives. This solution is working only when there is a true transfer of know-how.

So, Brazil is a market under high pressures and hiring bonuses are becoming very common practice for top management recruitment.

According to the same survey, 75% of the interviewed people have participated in at least one recruitment process in the last 6 months. The executive search market showed an increase of more than 30% YTD, led by the FMCG, Services, Real Estate, Industrial and Telecom/Technology sectors.

As a new worldwide crisis becomes more and more likely, Brazil becomes one of the most attractive regions for investments in the world today. The situation will become tenser. The lack of C level executives and experts will be an enduring reality and may have negative consequences for the pace of growth forecast for the next years. Our clients are expecting that our profession will offer innovative and sustainable solutions.

En collaboration avec Eduardo Baccetti