Benhart Associates/DMA Employment Outlook Report

Direct Marketing Employment
Overview Report

In partnership with:
Bernhart Associates
Executive Search, LLC

Page 1

Direct Marketing Employment Overview Report
Copyright © February 2009 by Direct Marketing Association, Inc.

All rights reserved for all DMA’s reports and publications. No part of any report purchased from DMA may
be reproduced, stored in retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise without the prior written permission of the copyright
owner.

DISCLAIMER: DMA does not make any warranties, express or implied, as to results to be obtained from
the use of this report data. In no event shall DMA, its affiliates, or any other entity involved in providing the
data herein have any liability for lost profits or for indirect, special, punitive, or consequential damages, or
any liability to any third party arising out of the use of this data, even if advised of the possibility of such
damages or liability. All disclaimers herein shall not be applicable to liability that cannot be waived under
State or Federal law.

Page 2

Table of Contents

About Our Marketing Partner …......…………...……………………………...… Page 4
Executive Summary…………………………...……………………….…............. Page 5

Chapter 1: Staffing Needs.……..……………….... ..………………..…………… Page 11
Chapter 2: Employee Compensation…………………………………………..… Page 28
Chapter 3: Recruitment of Direct Marketing Employees………….................... Page 38
Chapter 4: Hiring Incentives.…………...………...………………….......…....…. Page 45
Chapter 5: Respondent Profile…..…...………...………………….......…....…… Page 64

Page 3

About Our Marketing Partner

Bernhart Associates Executive Search, LLC is a nationally recognized and leading direct marketing recruiting
firm, concentrating for nearly two decades in senior level direct marketing positions, including E-Commerce,
Database Marketing, Customer Relationship Management, Quantitative Analysis, and Sales/Business
Development.

A sought after speaker and viewed as a leading authority on issues related to direct marketing recruiting and
talent management, Jerry Bernhart's articles, features, and interviews appear frequently in all leading offline
and online direct marketing trade publications and newsletters including DIRECT (Contributing Writer),
DM News, Multichannel Merchant, Target Marketing, Catalog Success, Marketing Sherpa, BtoB, EM + C,
DMA’s 3D, the American Marketing Association, and many more.

In 2005, Jerry Bernhart was featured on the cover of Target Marketing Magazine about the trends shaping
the way direct marketers do business. Hundreds of prominent direct marketing companies, including end-
users, agencies, and service providers, participate in the Bernhart Associates Direct Marketing Employment
Survey. Since 2001, it has been the most widely followed and quoted employment survey for direct
marketing. Jerry speaks frequently for direct marketing organizations throughout the United States and is
currently writing a book on career opportunities in direct marketing.

Page 4

Executive Summary
DMA is pleased to have worked with Bernhart Associates Executive Search, LLC on this new report that
focuses on the current state of hiring within the direct marketing arena. A special “thank you” is in order for
Jerry Bernhart, Principal, Bernhart Associates for his invaluable contribution to this report. He provided
extensive input on the survey document as well as commentary based on his knowledge of the nuances
regarding direct marketing employment patterns. We are very grateful for his assistance and hope that
readers of this report will benefit from his insights.

Objectives:
•This study builds upon a quarterly hiring practices study conducted by Bernhart Associates since 2001. The
intent of the Direct Marketing Employment Overview Report is not only to complement this existing research,
but to provide a broader look at hiring and compensation issues facing direct marketers in this turbulent
economy.
•This report has two main objectives:
– First, this research intends to provide current benchmarks on direct marketing hiring and compensations
issues.
– Second, this report seeks to convey best practices. Bernhart Associates Executive Search, our partner
in this research study and an expert in direct marketing hiring practices, provides their insight into the
findings presented in these pages by drawing on their expertise and experience. Where relevant, their
comments can be found in the chapter highlights sections, as well as throughout the chapters
themselves (note that Bernhart Associates did not contribute any commentary to the chapter that
describes the survey respondents). We maintain that the experience of Bernhart Associates provides a
guide into those practices they find to be most successful and therefore may be viewed as best practices
in this discipline.

Page 5

Executive Summary (Continued)

Methodology:
• This report expands upon a quarterly employment study that has been
conducted by Bernhart Associates Executive Search, LLC for the past eight
years.
• The questionnaire for this report was deployed through email invitations sent in
January 2009 to two lists: approximately 13,000 direct marketers were invited by
DMA, and another 5,000 invitations were sent by Bernhart Associates to a
separate group of marketers.
• Survey respondents answered the survey online, with the average respondent
taking about 10 minutes to complete the questionnaire. Respondents were
offered a free summary of some key findings as an incentive to take the survey.
• In all, 264 responses were received.

Page 6


Survey Responses:
• Not all of these respondents answered every question. The number of respondents
answering a particular question or providing a set of responses can be found by referring to
the “n” on that page.
• The base may change from question to question. Some questions can only be logically
asked of some subsets of respondents. For example, respondents who indicate that their
companies were planning to add to staff were not asked questions relating to a reduction of
staff. Further, not all of those who completed the survey answered every question, in part
because while some questions were mandatory, others were optional.
• Some questions allow for only a single response, while others allow for multiple responses.
In cases where the respondents can only provide one answer, the total response should
equal 100%, although in certain cases the responses may not exactly equal 100% due to
rounding. For those questions where multiple responses are allowed, the total number of
replies will typically exceed 100%.

Page 7


Key Findings:
Chapter 1: Staffing Needs
• Under half (43.2%) say that their company will employ about the same number of DM staff in the first quarter of 2009 as in
Q4 2008.
• Half of the companies surveyed (48.5%) expect to make no changes in their hiring in Q1 2009.
• Many of those companies that plan to add to staff in the first months of 2009 report that these jobs will be new positions only
(43.6%).
• Two-thirds (66.0%) of those companies that plan to reduce staff in the first months of 2009 report that such reductions will be
made through a combination of layoffs and attrition.
• Just under half (47.9%) of respondents report that their company has a hiring freeze in place.
• Three-quarters (74.0%) of those surveyed say that the average tenure of their direct marketing staff is at least three years.

Chapter 2: Employee Compensation
• Most (55.8%) of the companies surveyed pay their entry-level direct marketing staff between $30,000 - $44,999.
• Most companies (59.4%) will sometimes break compensation ceilings when recruiting or to keep direct marketing talent.
• Two-thirds (66.2%) of those surveyed expect no change in their salaries for new direct marketing hires over the next
12 months.
• 31.2% of the companies surveyed did not award bonuses in 2008, while 28.1% gave bonuses consistent with those given in
2007.

Page 8


Key Findings:
Chapter 3: Recruitment of Direct Marketing Employees
• The large majority of companies surveyed fill a direct marketing job within four months.
• 64.5% direct marketers surveyed report that it is at least somewhat difficult to identify qualified candidates for their open direct
marketing jobs.

Chapter 4: Hiring Incentives
• Incentives that involve flexible work schedules or time off are among the most commonly used to attract direct marketing job
candidates, including flexible hours (76.0%), ability to telecommute (70.0%), and more time off from work (62.0%).
• Financial incentives are also key, with half or more offering higher bonuses (67.5%), earlier reviews (58.5%), or more help with
relocation costs (49.5%).
• The hiring incentives involving financial incentives such as special bonuses, stock, or help with relocation, as well as those
offering more flexibility in work schedules or paid time off, are viewed as being the most effective in attracting direct marketing
talent.

Chapter 5: Respondent Profile
• 62.9% of survey respondents hold a job title of vice president or above.
• About two-thirds of those surveyed say that their companies derive most of their revenue from direct marketing.
• Just over a third (37.6%) of those surveyed indicate that their organizations market primarily to consumers, while a slightly
smaller number market mainly to businesses (32.9%).
• Just under half (46.2%) of the respondents say that their organizations are Marketers.
• Three out of five (60.8%) survey respondents work for a company with no more than 200 full-time staff members.
• Annual revenue is under $50 million for just over half of the respondents’ companies.

Page 9


Acknowledgements:
• DMA would like to offer its thanks to the hundreds of survey respondents who took the time
to complete the questionnaire. This report would not have been possible without their
contributions.

For More Information:
• To learn more about DMA research, please visit our website:
www.the-dma.org/bookstore

• If you have any questions about this report, please contact the author:
Anne B. Frankel
Senior Research Manager
Direct Marketing Association
afrankel@the-dma.org

Page 10

Chapter 1:
Staffing Needs

Page 11

Chapter 1 Findings
• Under half (43.2%) say that their company will employ about the same number of DM staff in the
first quarter of 2009 as in Q4 2008.
• Half of the companies surveyed (48.5%) expect to make no changes in their hiring in Q1 2009.
• Many of those companies that plan to add to staff in the first months of 2009 report that these
jobs will be new positions only (43.6%).
• Two-thirds (66.0%) of those companies that plan to reduce staff in the first months of 2009 report
that such reductions will be made through a combination of layoffs and attrition.
• Just under half (47.9%) of respondents report that their company has a hiring freeze in place.
• Three-quarters (74.0%) of those surveyed say that the average tenure of their direct marketing
staff is at least three years.

Bernhart Associates Key Insights:

• The percentage of those planning to add to staff stands at an all-time low during the eight years
that Bernhart Associates has been tracking direct marketing employment, and this number has
declined for the past six consecutive quarters.
• The fact is, hiring in direct marketing goes on. It appears that in many situations, positions left
vacant are being redefined or combined with other roles, sometimes as part of a reorganization,
to create new positions with new titles and job descriptions.
• The most significant change recorded for Q1 was in hiring freezes. That percentage soared to
48% for Q1 2009. Uncertainty about when the hiring freeze would end can be attributed to the
lack of ability to foresee short-term business conditions as direct marketers enter 2009.

Page 12

A Minority Say the Number of Direct Marketing Employees
Will Increase in Q1 2009 Compared With Q4 2008
Under half (43.2%) say
that their company will Number of Direct Marketing Employees in Q1 2009 Compared With Q4 2008
employ about the same 50
number of DM staff in the
43.2
first quarter of 2009 as in
Q4 2008. 40

Percentage of Respondents
To put this in perspective,
the same number of 30
26.5
respondents (43.2%) say
that there will be fewer 20
16.7
DM employees than in
the last quarter, including 12.5
10
16.7% who say that there
will be significantly fewer.
1.1
0
While 13.6% of Significantly fewer Somewhat fewer About the same Somewhat more Significantly more
respondents indicate that Total Respondents (n = 264)
the number of DM staff
will grow, just 1.1% say
that there will be
significantly more direct
marketing workers in the
first quarter of 2009.
Source: Direct Marketing Association/Bernhart Associates, 2009

Page 13

Direct Marketing Staffing Levels in
Q1 2009 Compared With Q4 2008


Direct marketers remain gripped by a very high degree of uncertainty. If you exclude
the extremes (significantly fewer and significantly more), more than 80% are
expecting no change, or only moderate change, in their staffing levels in Q1 2009.

The fact that only 1% say that there will be “significantly more” direct marketing staff
in Q1 2009 compared with Q4 2008 is consistent with the results released in the
latest report by the National Association for Business Economics describing the worst
business conditions in the US since that report’s inception in 1982.

Page 14

About Half of Respondents Expect No Change
in Their Hiring Plans for Q1 2009

Changes Expected in Hiring Plans for Q1 2009

One in five (20.8%)
companies plan to add to 10.6%
staff in the first quarter of 20.8%
We will add to staff
2009, which is
comparable with the We will reduce staff
proportion (20.1%) that
expect to reduce staff in No change

that time period.
Not sure
20.1%
Half of the companies
surveyed (48.5%) expect 48.5%

to make no changes in
their hiring in Q1 2009.

Total Respondents (n = 264)


Page 15

Staffing Increases Compared With Staff Reductions

The percentage of those planning to add to staff stands at an all-time low during the
eight years that Bernhart Associates has been tracking direct marketing employment,
and this number has declined for the past six consecutive quarters. The current
percentage (21%) is down notably from the 80% recorded when post-9/11 direct
marketing employment peaked during Q4 2005.

Page 16

Most Additions to Staff Will Be New Positions

Many of those companies that Whether Additions to Staff Will be Replacement or New Positions
plan to add to staff in the first
months of 2009 report that these
jobs will be new positions only 1.8% 9.1%
Replacement positions
(43.6%). only
New positions only
In contrast, 9.1% intend to bring
workers into replacement Both replacement and
45.5% new positions
positions only.
Not sure

Just under half (45.5%) of those 43.6%
firms planning to add to staff say
that new employees will be in
both replacement and new
positions.
Will Add to Staff in Q1 2009 (n = 55)


Page 17

Staffing Increases


When those planning to hire were asked whether they would be replacing staff or creating
new positions, the number planning to create new positions far outnumbered those
planning to hire replacements only. The fact is, hiring in direct marketing goes on, and
many of the biggest online job boards list many dozens of open direct marketing-related
job openings nationwide. It appears that, in many situations, positions left vacant are
being redefined or combined with other roles, sometimes as part of a reorganization, to
create new positions with new titles and job descriptions.

Page 18

Job Functions That Will Be Filled
Job Functions That Will Be Filled:*
• 23.9%: Analytics
• 21.7%: Marketing (general)
• 19.6%: Sales
• 15.2%: Account Management
Those companies that plan to add • 13.0%: Customer Service
to staff most often mention filling
jobs in analytics, marketing, and • 13.0%: Information Technology
sales. • 8.7%: Creative
• 8.7%: Online/Interactive/Digital
• 8.7%: Telemarketing
• 6.5%: Accounting/Financial
• 6.5%: Marketing Coordinators
• 6.5%: Media Management

* Job functions receiving multiple
mentions.

Will Add to Staff in Q1 2009 (n = 46)


Page 19

Job Functions That Will Be Filled

For as long as Bernhart Associates has tracked the job functions that will be filled, typically two
or three categories dominate the list, and this time was no exception with analytics, marketing,
and sales mentioned most, in that order. The strong focus on analytics is well-known in direct
marketing, and in fact, analytics has led the list of job functions that will be filled more than any
other category. Sales has typically been a close second to analytics. This quarter, we saw a
marked increase in the number of companies planning to add to their sales staff compared with
Q4 of 2008, as direct marketers apparently put increased efforts into adding revenue.

Online and interactive-related positions, which have consistently been among the top three
mentions, were further down the list than normal. Customer service and telemarketing are
being given more priority, as direct marketers running customer-facing operations apparently
are focusing on maximizing the effectiveness of their call centers and looking for ways to
generate additional incremental revenue through telemarketing. The relatively strong showing
for marketing (#2 on the list this quarter) is consistent with Bernhart Associates’ experience of
seeing clients boosting their planned direct marketing spend while reducing budgets for less
targeted general advertising. Recessions are a time for re-thinking, re-launching, re-organizing,
and re-hiring. Direct marketers are no different, and apparently they are focusing, at least for the
short-term, on making sure the right talent is in place in three critical areas — analytics,
marketing, and sales — to help them pave the way for the next expansion.

Page 20

Most Reductions in Staff Will Be Made Through
a Combination of Layoffs and Attrition

Two-thirds (66.0%) of those Whether Reductions in Staff Will Be Made Through Layoffs or Attrition
companies that plan to
reduce staff in the first
months of 2009 report that 7.6%

such reductions will be 22.6% Layoffs only
made through a combination
of layoffs and attrition. Attrition only

Both layoffs and attrition
Just under a quarter (22.6%) 3.8%

indicate that job cuts will be Not sure
made in the form of layoffs
only. A small percentage of
companies planning cuts in
66.0%
staff (3.8%) report that any
reductions will come from
attrition only. Will Reduce Staff in Q1 2009 (n = 53)


Page 21

Reductions in Hiring and Staffing for Q1 2009

The percentage of those planning to reduce staff remained steady for most of
2008, but began to deteriorate in the Fall. The current percentage (20%)
contrasts sharply with the readings of 1% - 2% Bernhart Associates noted when
layoffs bottomed out in direct marketing during the Spring and Summer of 2006.

Page 22

About Half of Respondents Say That a Hiring Freeze Is in Effect

Whether Company Has a Hiring Freeze in Effect

Of those surveyed, just
under half (47.9%) report
that their company has a
hiring freeze in place.

Yes
Slightly over half (52.1%)
state that their company 52.1% 47.9%

does not have a hiring
freeze in effect. No



Page 23

Few of the Companies That Have Hiring Freezes
Plan to Lift Them in the Next Few Months
Just about one in seven When Plan to Lift Hiring Freeze
(13.7%) of those firms that 75
have a hiring freeze in
effect plan to lift it within the 63.7
next one to five months.

A comparable number 50

(14.5%) expect the freeze
to be lifted in six to eight
months, while a smaller
percentage (8.1%) think 25

they will be able to hire 14.5
again in nine months to a 7.3 6.5
4.8
year. 1.6 1.6
0
Two-thirds (63.7%) of those 1 - 2 months 3 months 4 - 5 months 6 - 8 months 9 - 11 months 1 year Don’t know
who work for a company Have Hiring Freeze in Effect (n = 124)
that is not hiring are not
sure how long the hiring
freeze will be in effect.


Page 24

Hiring Freezes


• The most significant change recorded for Q1 was in hiring freezes. That percentage
soared from 34% in Q4 2008 to 48% for Q1 2009. One year ago, it stood at 13%. The
fact that as many as half of all direct marketing companies now have a hiring freeze
indicates how the current economic recession is closing the door on job prospects for
thousands of direct marketers, particularly those who live in smaller markets where
fewer direct marketing companies are located.
• Another key issue addresses the duration of hiring freezes. When those who reported
working for a company that have a hiring freeze were asked when they plan to lift it,
almost two-thirds said they didn't know and about one quarter said it would be five
months or longer. The uncertainty about when the hiring freeze would end can be
attributed to the lack of ability to foresee short-term business conditions as direct
marketers enter 2009.

Page 25

Three Out of Four Direct Marketers Have Been With
Their Current Employers for Three Years or More
Three-quarters of those
surveyed say that the
average tenure of their Approximate Average Tenure of Direct Marketing-Related Staff
50
direct marketing staff is at
least three years, including
39.8% who are on staff for 40 39.8

three to four years and
34.2
34.2% who are employed
for five years or longer. 30

23.0
A minority of direct
marketers have been with 20

their current employers for
up to two years. A handful 10
have been employed less
than six months (0.4%) or 2.6
0.4
between six months to a 0
Less than 6 months 6 months - 1 year 1 - 2 years 3 - 4 years 5 years or more
year (2.6%). A quarter
(23.0%) have been with Total Respondents (n = 231)
their current employer for
one or two years.


Page 26

Average Tenure of Direct Marketing Staff

In 2008, Bernhart Associates conducted its own research on average tenure in the
direct marketing industry (these results will be published in DIRECT Magazine’s
February 2009 issue). We calculated average years per employer at just over four
years. The median was slightly less than three years. Those findings were consistent
with the results we see here. Bernhart Associates has observed that turnover rates
rapidly accelerate after one year on the job.

The key to employee retention is understanding that managers and supervisors are
critical. You can have attractive compensation packages, plenty of perks, and
employee-friendly policies, but at the end of the day, people work for people. The
immediate manager defines the work environment for the employee. It has been our
experience that employees would rather work for a great manager in a stodgy
environment, than for a poor manager in a company that offers generous perks and a
more employee-friendly environment.

Page 27

Chapter 2:
Employee Compensation

Page 28

Chapter 2 Findings
• Most (55.8%) of the companies surveyed pay their entry-level direct marketing staff between $30,000 -
$44,999.
•Most companies (59.4%) will sometimes break compensation ceilings when recruiting or to keep direct
marketing talent.
•Two-thirds (66.2%) of those surveyed expect no change in their salaries for new direct marketing hires
over the next 12 months.
• 31.2% of the companies surveyed did not award bonuses in 2008, while 28.1% gave bonuses consistent
with those given in 2007.


• In recent years, beginning salaries for direct marketers have risen only very modestly.
• Today, talented managers want to get paid according to their contributions to the organization.
• Bernhart Associates has observed that companies that have been willing to stretch the barriers of
compensation enjoy a distinct advantage over their competitors in terms of attracting the best and brightest.
• Nearly two-thirds of those responding to this question expect to make lateral compensation offers to new
hires. Lateral salaries are not uncommon during economic recession, but employers should keep in mind
that the most talented and most highly sought-after individuals are generally much more reluctant to accept
a pay cut compared with those who are less skilled, unhappy, unstable, or unemployed.
• Results seem to indicate that direct marketers are not experiencing bonus cuts as drastic as other
segments of the economy. Over the years, direct marketers have been increasingly pegging bonus
payments to individual performance. This has helped to control fixed expenses, while at the same time
rewarding highly-valued talent.

Page 29

Most Entry-Level Direct Marketing
Positions Pay Between $30,000 - $44,999
Average Starting Salary for Entry-Level Direct Marketing Position
Although most (55.8%)
40
companies pay their
entry-level direct

marketing staff between 30
$30,000 - $44,999, a
22.6
third (32.3%) pay 19.0
higher salaries, 20

including 14.6% who 14.2 14.6

pay $55,000 or more. 10.6
10 8.0 7.1
4.0

A minority of 0
companies (12.0%) pay Under $25,000 - $30,000 - $35,000 - $40,000 - $45,000 - $50,000 - $55,000 or
$25,000 $29,999 $34,999 $39,999 $44,999 $49,999 $54,999 more
up to $29,999 to their
beginning direct Total Respondents (n = 226)
marketers.


Page 30

Average Compensation for Entry-Level DM Staff

The response to this question shows a somewhat broad distribution, as there were
almost as many respondents in the $50,000 - $54,999 range as there were in the
$25,000 - $29,999 range.

In recent years, beginning salaries for direct marketers have risen only very
modestly. Entry-level direct marketing salaries in the highest cost-of-living markets,
including New York City, Boston, San Francisco, and Los Angeles, are typically
10% - 15% higher than in lower cost-of-living locations.

Page 31

Most of the Companies Surveyed Will Change Compensation
Caps to Attract or Keep the Direct Marketers They Want

Whether Breaking Compensation Barriers to Attract/Retain Direct Marketers
While just a handful (5.9%)
of respondents report
almost always being 5.9%
flexible about salary limits
when recruiting or keeping
direct marketing talent, 34.7%
most companies will
sometimes break Yes, in almost
compensation ceilings all situations

(59.4%). Yes, in some
situations

A third of the companies No

surveyed (34.7%) will not
59.4%
bend their rules regarding
salary caps when trying to
get or keep direct
marketers.


Page 32

Compensation Barriers

Surprisingly, about one-third of the direct marketers surveyed said that they are not
willing to break compensation barriers to attract and retain the direct marketers they
want.

In the early days of direct marketing, direct marketers were paid largely according to
the office they sat in. When they moved up a pay grade, their salary went up
accordingly. Today, talented managers want to get paid according to their
contributions to the organization. This is consistent with the results we see in the
discussion of the effectiveness of various incentives in attracting direct marketing
talent, which shows performance bonuses to be the most effective incentive. The fact
is, many managers view money as a kind of "scorecard" for how well they are
performing and how much the company values their talent.

There is abundant research and many books that address the subject of compensation
strategies, but Bernhart Associates has observed that companies that have been
willing to stretch the barriers of compensation have enjoyed a distinct advantage over
their competitors in terms of attracting the best and brightest.

Page 33

Most of the Companies Surveyed Will Not Change
Their Compensation for New Direct Marketing Hires
In the next 12 months, two- Change Expected in Salaries for New Direct Marketing Hires in Next 12 Months,
thirds (66.2%) of those Compared With Previous or Existing Salaries
surveyed expect no change 75
in their salaries for new 66.2

direct marketing hires.

One in five (19.0%) expect
50
to raise salaries for new
hires, with 2.7% expecting
to raise them by 11% or
more, 3.2% boosting them
25
5% - 10%, and 13.1%
planning more modest 13.1
increases of up to 4%. 8.1
2.7 3.2 4.5
2.2
A smaller number (14.8%) 0
plan to lower salaries for Increase, by Increase, by Increase, by No change Decrease, by Decrease, by Decrease, by
11%+ 5% - 10% up to 4% up to 4% 5% - 10% 11%+
new hires – 8.1% plan to
drop them up to 4%, 4.5% Total Respondents (n = 222)
plan to reduce them 5% -
10%, and 2.2% plan
decreases of 11% or more.


Page 34

Compensation for New Hires

Nearly two-thirds of those responding to this question expect to make lateral
compensation offers to new hires, and on either side of “no change,” it is fairly evenly
distributed between increases and decreases in salary.

Lateral salaries are not uncommon during economic recession, but employers should
keep in mind that the most talented and most highly sought-after individuals are
generally much more reluctant to accept a pay cut compared with those who are less
skilled, unhappy, unstable, or unemployed.

Page 35

Most Companies Awarded Bonuses to Non-Executive Staff in
2008; They Were Usually the Same or Smaller Than in 2007
On Average, How Bonuses Earned for 2008 Compared With Those for 2007 for Non-
Just under a third (31.2%) Executive Level Staff
of those companies 40
surveyed did not award
bonuses in 2008. A 31.2

roughly comparable 30 28.1

number (28.1%) awarded
bonuses consistent with
those given in 2007. 20
15.2
One in ten (9.8%) gave
bonuses that were larger 10
7.1 7.6
than in 2007. 5.4
2.7 2.7
Smaller bonuses were 0.0
0
more common, with a third
Up, by Up, by Up, by No Down, by Down, by Down, by Down, by No
of companies reducing
over 30% 15% - under change under 15% - 30% - over 50% bonuses
payouts (30.9%). One in 30% 15% 15% 29% 50% for 2008
ten (10.3%) cut bonuses by
30% or more. Total Respondents (n = 224)


Page 36

Bonuses for Non-Executive Staff


Bonus payments for direct marketers have been significantly impacted by the current economic
downturn. Almost one-third of those responding expect to pay no bonuses for 2008, and less than
10% expect to pay more in bonuses for 2008 compared with the year before. Still, two-thirds of
those responding expect to pay, or already paid, a bonus for 2008.

Bernhart Associates has seen a number of published reports indicating that bonuses across all
industries in the US economy will be down on average 30 - 40% for 2008. Only about 10% of
respondents said they will be cutting bonuses at least 30%; the results seem to indicate that direct
marketers are not experiencing bonus cuts as drastic as other segments of the economy.

Over the years, direct marketers have been increasingly pegging bonus payments to individual
performance. This has helped to control fixed expenses, while at the same time rewarding highly-
valued talent. Bernhart Associates expects this trend to continue as direct marketers realize the
benefit of offering performance bonuses in attracting talent (see the section on hiring incentives).
Companies also appear to be expanding bonus programs to include more junior-level direct
marketing staff, which again is consistent with the results seen in the section on hiring incentives.

Typically, bonus payments for executive-level direct marketers averages approximately 50% of
salary.

Page 37

Chapter 3:
Recruitment of
Direct Marketing Employees

Page 38

Chapter 3 Findings

• 64.5% direct marketers surveyed report that it is at least somewhat difficult to identify qualified
candidates for their open direct marketing jobs
• The large majority of companies surveyed fill a direct marketing job within four months.


• As it turns out, the positions direct marketers are having the most difficulty filling are also
among the positions they most often mention planning to fill this quarter: analysts, marketers,
and sales reps.
• In recent years, demand for analysts has grown on the service provider and agency side of
direct marketing, but also among non-traditional direct marketing industries such as
pharmaceuticals, automotive, and consumer package goods.
• What we’re seeing here is a climate of caution. Hiring decisions are among the most
important decisions a manager will make. These decisions are highly visible in the organization
and the costs of a bad hire can be significant, particularly during challenging economic times
like these. Clearly, direct marketers are taking extra time to make sure they are hiring properly.

Page 39

Most Companies Have Some Difficulty
Finding Qualified Candidates
Even in this slowing economy,
finding qualified direct Difficulty of Finding Qualified Candidates for Open Direct Marketing
Positions (Across All Levels/Job Functions) Within Organization
marketing candidates is not
easy.
4.8%
12.5%
Two out of three direct Very difficult
marketers surveyed report
that it is at least somewhat 28.6%
Somewhat difficult
difficult to identify qualified
candidates for their open
Not very difficult
direct marketing jobs (12.5%
say it is very difficult, while
Not at all difficult
54.0% say it is somewhat
difficult to do so).
54.0%

In contrast, about one-third
are not experiencing much
difficulty, with 28.6% saying it Total Respondents (n = 248)
is not very difficult and 4.8%
saying it is not at all difficult to
find qualified candidates.


Page 40

Positions for Which It Is Most Difficult
to Find Qualified Candidates
Specific Direct Marketing Positions:*
• 23.8%: Analytics
• 14.3%: Account management
• 11.9%: Marketing
• 10.7%: Sales
By a large margin, companies • 9.5%: Online/Interactive/Digital
consider analytics direct • 7.1%: Information technology
marketing positions to be the most • 6.0%: Copywriters
difficult to fill, in terms of finding • 4.8%: Database marketing
qualified candidates.
• 3.6%: Creative
• 3.6%: Production
• 2.4%: Marketing coordinators
• 2.4%: Media management
• 2.4%: List brokers
• 2.4%: Customer service
• 2.4%: Circulation
• 2.4%: Operations
• 2.4%: Art/design

* Positions receiving multiple mentions.



Page 41

Difficulty in Recruiting Qualified DM Candidates
As it turns out, the positions direct marketers are having the most difficulty filling are also among the positions
they most often mention planning to fill this quarter: analysts, marketers, and sales reps.

Analytics clearly dominates this list. As a recruiter who has focused heavily in analytics for nearly 20 years,
Bernhart Associates understands firsthand how challenging it is to recruit and attract these candidates. In
recent years, demand for analysts has grown on the service provider and agency side of direct marketing, but
also among non-traditional direct marketing industries such as pharmaceuticals, automotive, and consumer
package goods. Companies in these industries are increasingly seeking marketing approaches that are
based on quantitative facts and actionable data to ensure a high return on every marketing dollar
spent. Demand is also being fueled by the need to measure, collect, and analyze vast amounts of data being
generated through online and interactive marketing.

At the same, more than just quantitative skills are highly valued. Communication skills, client-facing ability,
and management experience are also high on the wish list, narrowing the talent pool even further. Supply is
short and demand is long for individuals who possess these combined skills, with the possible exception of
managers who are becoming somewhat more plentiful due to growing layoffs.

A handful of direct marketing job categories will remain in demand, at least in the short-term. The current
recession notwithstanding, anyone who is looking for analysts, sales reps, marketers, account managers,
programmers, anything related to online or interactive, copywriters, database marketers, or call center reps
might potentially encounter additional challenges in locating and attracting top talent in these particular job
categories, and therefore might consider adjusting their recruiting strategies accordingly.

Page 42

Most Direct Marketing Positions Are Filled in Four Months
Most of the marketers
surveyed report that it
typically takes no more
than a few months to fill Average Length of Time to Recruit Direct Marketers Into Available Positions
an open position. 50

The large majority of 43.1
36.9
companies surveyed fill a 40

direct marketing job
within four months. 30
Seven percent fill them in
under a month, 36.9% fill
20
them in one to two
months, and 43.1% take
9.3
three to four months to fill 10
7.1
these jobs. 3.6

0
A minority of companies
Less than 1 month 1 - 2 months 3 - 4 months 5 - 6 months 7 months or more
find that it takes them
longer to recruit direct
marketers, with 9.3%
saying it takes them five
to six months and 3.6%
saying it takes seven
months or more.

Page 43

Length of Time to Fill an Open Position


You might think that it would be taking direct marketers less time to fill open positions
because of the growing supply of available talent due to layoffs. But according to
results, most direct marketers tell us that it takes them three - four months to fill an
available position, with one - two months a close second.

If you were to draw a bell curve of hiring times during periods of economic growth, the
top of the bell would be approximately 60 - 90 days, and rarely would it take more than
four months. Currently, nearly 10% of respondents report that it takes as long as six
months. What we’re seeing here is a climate of caution. Hiring decisions are among
the most important decisions a manager will make. These decisions are highly visible
in the organization and the costs of a bad hire can be significant, particularly during
challenging economic times like these. Clearly, direct marketers are taking extra time
to make sure they are hiring properly.

Page 44

Chapter 4:
Hiring Incentives

Page 45

Chapter 4 Findings
• Incentives that involve flexible work schedules or time off are among the most commonly used
incentives, including flexible hours (76.0%), ability to telecommute (70.0%), and more time off from
work (62.0%).
• Financial incentives are also key, with half or more offering higher bonuses (67.5%), earlier reviews
(58.5%), or more help with relocation costs (49.5%).
• The hiring incentives involving financial incentives such as special bonuses, stock, or help with
relocation as well as those offering more flexibility in work schedules or paid time off, are the most
effective in attracting direct marketing talent.

• When making employment offers to top candidates where salary range limits have been
reached, this data gives direction into which incentives might help influence a candidate to accept
an offer.
• The results indicate that by not considering more of a performance incentive or sign-on bonus,
you could put yourself at a competitive disadvantage in attracting best of breed. Over the years,
sign-on bonuses have become much more commonplace among direct marketers as the supply
of talent in certain sought-after job categories has tightened, most notably for analysts and
harder-to-get technology workers.
• The ability to work from home and more flexible work hours tend to succeed only in those
organizations whose culture is strongly supportive of arranging work hours and location according
to need.

Page 46

Flexible Hours Is the Incentive Most Often Used
to Attract Direct Marketing Talent
Incentives that involve
flexible work schedules Types of Hiring Incentives Used to Attract Direct Marketing Talent (page 1 of 2)
or time off are among the 100

most commonly used

76.0
incentives, including 80
70.0 68.0 67.5
flexible hours (76.0%), 62.0 58.5
60
ability to telecommute 49.5
(70.0%), and more time 40
off from work (62.0%).
20
Financial incentives are
also key, with half or
0
more offering higher More flexible Ability to work Additional Higher Additional Earlier Additional help
bonuses (67.5%), earlier hours from home training and performance vacation or performance with relocation
education bonus paid time off review expenses
reviews (58.5%), or more
benefits
help with relocation costs
(49.5%). Total Respondents (n = 200)

Two-thirds of companies
(68.0%) entice potential
employees with more
training and education
perks.

Page 47

Fewer Companies Offer Sign-on Bonuses, Equity, and Bigger
Retirement Plan Contributions to Attract Direct Marketing Talent

Types of Hiring Incentives Used to Attract Direct Marketing Talent (page 2 of 2)
100

About four our of 10
companies surveyed offer 80
financial incentives in the
form of sign-on bonuses 60

(39.5%), more stock/stock 39.5 39.5 38.5
40
options/equity (39.5%), or
increased retirement plan 14.5
20
contributions (38.5%).
0
Sign-on bonus Additional stock, Bigger retirement Other
stock options, or plan contributions
other equity



Page 48

Over Half of Companies Offering Flexible Work Schedules
Report That It Is Effective in Attracting Direct Marketing Talent

More Flexible Hours: Rating of Effectiveness in Attracting Direct Marketing Talent
(Scale of 1 to 5, with 1 = Not Effective at all, 5 = Extremely Effective)

55.3% say that more 60
flexible hours is effective

in helping them to attract
direct marketing
40
candidates, including
32.9
22.4% who find it to be
26.3
extremely effective. 22.4
20
A minority (18.4%) say 15.8
that it is not effective.
2.6
0
Not effective at (2) (3) (4) Extremely
all (1) effective (5)
Use Incentive (n = 152)


Page 49

Six in 10 Companies Offering Telecommuting Find That
It Is Effective in Attracting Direct Marketing Talent

Ability to Work From Hom e: Rating of Effectiveness in Attracting Direct Marketing
Talent (Scale of 1 to 5, w ith 1 = Not Effective at all, 5 = Extrem ely Effective)

62.9% say that offering 60
the ability to work from

home helps them to
recruit direct marketing 40
talent, with 29.3% finding 33.6
29.3
this incentive to be
22.9
extremely effective. 20
A small minority (14.2%) 12.1
say that it is not effective,
2.1
and just 2.1% say it is not 0
all effective. Not effective at (2) (3) (4) Extremely


Page 50

A Minority of Those Offering Additional Training and Education
Benefits Find It Effective in Attracting Direct Marketing Talent

Additional Training and Education Benefits: Rating of Effectiveness in Attracting
Direct Marketing Talent (Scale of 1 to 5, w ith 1 = Not Effective at all, 5 = Extrem ely
One out of four (23.5%)
Effective)
companies offering
additional training and
60
education benefits as a

recruitment incentive find
them effective – and just 43.4
40
5.9% find them very
effective.
26.5
In contrast, one in three 20 17.6
(33.1%) respondents say
that this is not an 6.6 5.9
effective recruitment 0
incentive. Not effective at (2) (3) (4) Extremely


Page 51

Two-Thirds of Companies Offering a Higher Performance Bonus
State That It Is Effective in Attracting DM Candidates

Higher Perform ance Bonus: Rating of Effectiveness in Attracting Direct Marketing

The majority (68.9%) of 60
those surveyed find that

48.9
a higher performance
bonus aids them in 40
recruiting direct
marketing talent, with 24.4
20.0% saying it is an 20 20.0
extremely effective
incentive.
5.2
1.5
Just 6.7% say it is not an 0
effective tool, and only Not effective at (2) (3) (4) Extremely
1.5% find it not at all all (1) effective (5)
effective. Use Incentive (n = 135)


Page 52

Half of the Companies Offering More Vacation or Paid Time Off
Find That It Effectively Attracts Direct Marketing Applicants
Additional Vacation or Paid Tim e Off: Rating of Effectiveness in Attracting Direct
Marketing Talent (Scale of 1 to 5, w ith 1 = Not Effective at all, 5 = Extrem ely
Effective)

Although offered by a
60
majority of companies,

just about half (48.4%) of
those respondents who
40
entice applicants with 33.1
extra paid days off say 29.0
that it is an effective 19.4
20
incentive. 15.3

Few (18.5%) find it 3.2
ineffective, with just 3.2% 0
reporting it as not at all Not effective at (2) (3) (4) Extremely
effective. all (1) effective (5)


Page 53

One in Four Companies That Offer Earlier Performance Reviews
Find It Effective in Recruiting Direct Marketing Talent
Earlier Perform ance Review : Rating of Effectiveness in Attracting Direct Marketing

A minority (23.0%) of
60
those who offer an earlier

performance review to
entice applicants report
40
that it is effective, and
just 6.8% view it as being 30.8
28.2
very effective.
20 18.0
16.2
In contrast, about half
(48.8%) say that it is 6.8

ineffective, with 18.0% 0
finding it not effective at Not effective at (2) (3) (4) Extremely
all. all (1) effective (5)


Page 54

Nearly Half of Companies Offering Additional Help With
Relocation Expenses Say It Helps Attract DM Talent
Additional Help With Relocation Expenses: Rating of Effectiveness in Attracting Direct
Marketing Talent (Scale of 1 to 5, w ith 1 = Not Effective at all, 5 = Extrem ely Effective)

46.5% report that offering 60

added assistance with

relocation costs does
help them to recruit direct 40
36.4
marketing candidates, 34.3
although just 10.1% find
it an extremely effective
20
inducement. 15.2
10.1
Just one in five (19.2%)
4.0
say that it is not effective,
0
with only 4.0% finding
this extra assistance to Not effective at (2) (3) (4) Extremely
be not at all effective.


Page 55

Three Out of Five Companies Offering Sign-On Bonuses Report
Viewing Them as Effective in Attracting Direct Marketing Talent
The old saying that Sign-On Bonus: Rating of Effectiveness in Attracting Direct Marketing Talent
money talks seems to (Scale of 1 to 5, w ith 1 = Not Effective at all, 5 = Extrem ely Effective)

hold true here. Most
(59.4%) of the firms 60

offering sign-on bonuses

report that they work well
in attracting DM 40
candidates, and over a 31.6
quarter (27.8%) say that 27.8
24.1
they are a very effective 20
recruitment tool. 13.9

Relatively few (16.4%) 2.5
say that this incentive is 0
not effective, including a Not effective at (2) (3) (4) Extremely
handful (2.5%) who all (1) effective (5)
report that it is not all Use Incentive (n = 79)
effective.


Page 56

Half of Companies Offering Additional Stock, Stock Options, or
Other Equity Find This to Effectively Attract Direct Marketing
Talent
Additional Stock/Stock Options/Other Equity: Rating of Effectiveness in Attracting
Direct Marketing Talent (Scale of 1 to 5, w ith 1 = Not Effective at all, 5 = Extrem ely
Effective)
49.4% say that more
added stock, stock 60

options, or other equity is
valuable in helping them
to recruit direct marketing 40
35.5
candidates.
25.3
At the other end of the
spectrum, one in four 20
13.9 13.9
(25.3%) say that it is not 11.4

effective, with 11.4%
saying it is not effective 0
at all. Not effective at (2) (3) (4) Extremely


Page 57

One in Four Companies That Offer Larger Retirement Plan
Contributions Find It Effectively Attracts Direct Marketing Talent
Bigger Retirem ent Plan Contributions: Rating of Effectiveness in Attracting Direct
Marketing Talent
(Scale of 1 to 5, w ith 1 = Not Effective at all, 5 = Extrem ely Effective)

A quarter (24.7%) of 60
those offering bigger

retirement plan
contributions say that this 40
35.0
is effective in helping 32.5
them attract direct
marketing candidates. 20
15.6
In contrast, 40.3% say 9.1
7.8
that this is not effective,
although just 7.8% find it 0
not at all effective. Not effective at (2) (3) (4) Extremely


Page 58

A Third of the Companies Offering Other Incentives Find
Them to Be Effective in Attracting Direct Marketing Talent
Other Incentives: Rating of Effectiveness in Attracting Direct Marketing Talent
(Scale of 1 to 5, w ith 1 = Not Effective at all, 5 = Extrem ely Effective)

Just over a third (34.5%) 60
say that other incentives

are effective in helping
them to acquire direct 40
34.5
marketing candidates.
27.6 27.6
A similar proportion
(31.0%) say that other 20
incentives are not
effective. 6.9
3.4
0
Not effective at (2) (3) (4) Extremely


Page 59

Bonuses and a Flexible Work Schedule Are the Most Effective
Types of Incentives in Attracting Direct Marketing Talent
Effectiveness of Hiring Incentives Used to Attract Direct Marketing Talent: Incentives
Rated as Somewhat or Very Effective, “4” or “5” on a 5-point Scale (page 1 of 2)
100
Those companies

participating in the survey 80
report that hiring 68.9
incentives involving 62.9 59.4
60
financial incentives such 55.3
49.4 48.4
as special bonuses, 46.5

stock, or help with 40
relocation, as well as
those offering more 20
flexibility in work
schedules or paid time
0
off, are the most effective Higher Ability to work Sign-on More flexible Additional Additional Additional help
in attracting direct performance from home, bonus, n=79 hours, n=152 stock/stock vacation or with relocation
bonus, n=135 n=140 options/other paid time off, expenses,
marketing talent. equity, n=79 n=124 n=99

Use Incentive


Page 60

Fewer Companies Find Retirement Plan Contributions,
Additional Training, or Earlier Reviews to Be Effective in
Attracting Direct Marketing Talent
Effectiveness of Hiring Incentives Used to Attract Direct Marketing Talent: Incentives
Rated as Somewhat or Very Effective, “4” or “5” on a 5-point Scale (page 2 of 2)
100

The minority (about one
out of four) of companies 80

surveyed find that bigger
60
retirement plan
contributions, more
40 34.5
training or education
benefits, or earlier 24.7 23.5 23.0
20
performance reviews are
especially effective as 0
incentives when trying to Bigger retirement Additional training Earlier performance Other, n=29
attract direct marketing plan contributions, and education review, n=117
applicants. n=77 benefits, n=136

Use Incentive


Page 61

Other Incentives Offered

Other Types of Incentives Offered to Attract Direct
Marketing Talent:*
• 19.2%: Travel incentives
Companies offer a number of other • 15.4%: Extra salary/bonuses/commissions
types of incentives in order to attract • 11.5%: Merchandise discounts
direct marketing talent, including travel • 11.5%: Employee-friendly environment
perks and monetary incentives.
• 7.7%: Free workplace meals
• 7.7%: Desirable location
• 7.7%: Technology/electronics (free or
as incentives)

* Multiple mentions.

Offer Other Incentives (n = 26)


Page 62

Hiring Incentives Overview

The effectiveness of increased relocation assistance has been of particular interest to employers in light of
the current housing crisis. Only 10% rated it being "very effective." That's largely a result of the depth of the
housing crisis itself. For many direct marketers who are homeowners and whose home values have sharply
declined, almost no amount of "standard" relocation assistance would keep them whole if they sold their
homes. According to the survey results, relocation has a more or less "average" impact for attracting talent
compared with other incentives on the list, given the current economic climate.

When making employment offers to top candidates where salary range limits have been reached, this data
gives direction into which incentives might help influence a candidate to accept an offer. The results indicate
that by not considering more of a performance incentive or sign-on bonus, you could put yourself at a
competitive disadvantage in attracting best of breed. Over the years, sign-on bonuses have become much
more commonplace among direct marketers as the supply of talent in certain sought-after job categories has
tightened, most notably for analysts and harder-to-get technology workers. In direct marketing, sign-on
bonuses typically range from 5% - 10% of salary. If you are looking for a hard-to-find skill, Bernhart
Associates recommends a sign-on bonus with a one-year payback provision.

The ability to work from home and more flexible work hours can indeed be effective, but these policies tend to
succeed only in those organizations whose culture is strongly supportive of arranging work hours and
location according to need.

Page 63

Chapter 5:
Respondent Profile

Page 64

Chapter 5 Findings

Respondents represent a cross-section of industries, markets, and company sizes:

• 62.9% of survey respondents hold a job title of vice president or above.
• Just over a quarter (27.4%) of those surveyed are in Services, while just over a
fifth (21.2%) are in Retail Trade verticals.
• Close to two-thirds (63.5%) of those surveyed say that their companies derive
most of their revenue from direct marketing.
• Over a third (37.6%) of those surveyed indicate that their organizations market
primarily to consumers, while a slightly smaller number market mainly to
businesses (32.9%).
• Almost half (46.2%) of the respondents say that their organizations are
Marketers.
• Three out of five (60.8%) survey respondents work for a company with no more
than 200 full-time staff members.
• Annual revenue is under $50 million for just over half of the respondents’
companies.

Page 65

Benhart Associates/DMA Employment Outlook Report

Benhart Associates/DMA Employment Outlook Report

Recommended

Recommended

More Related Content

What's hot

What's hot (9)

Similar to Benhart Associates/DMA Employment Outlook Report

Similar to Benhart Associates/DMA Employment Outlook Report (20)

More from Bernhart Associates Executive Search, LLC, 28 Yrs Exp. Placing Digital and Multichannel Marketers

More from Bernhart Associates Executive Search, LLC, 28 Yrs Exp. Placing Digital and Multichannel Marketers (20)

Recently uploaded

Recently uploaded (20)

Benhart Associates/DMA Employment Outlook Report