The Perfect Storm of Industry Retirements

Grice Whiteley is founder and CEO of Grice Group, a consultancy that provides recruiting services exclusively within the airport sector. Since 1999, Whiteley has personally completed almost 150 successful personnel searches for airports, airport consultants and airport equipment companies. Previously, he served eight years as director of operations for Airport Consultants Council. Grice Group also consults on aviation marketing and merger/acquisition strategies.

A very large wave of retirements has recently been announced among our most experienced industry leaders. The possibility of a "perfect storm" like this has been talked about at conferences for the past 12 months, but suddenly it's upon us.

Executive-level changes are in the works at Dallas/Fort Worth International and facilities in Miami, San Jose, Sacramento and Reno. A host of other airports also have changes brewing but aren't ready to make the news official.

The turnover also extends to the senior leadership of our trade organizations and several consulting firms. At the very moment I write this, an email arrived from Airport Consultants announcing that its executive director, Paula Hochstetler, will retire at the end of the year. A similar departure at the American Association of Airport Executives is widely expected before the end of the year.

We shouldn't be shocked or concerned about such announcements. Leadership change is a natural part of any organization or industry's lifecycle. New leaders bring new visions, updated agendas, fresh perspectives and their own network of relationships and trusted advisors. It's just remarkable that we currently have so many key leaders stepping down at the same time. In my 25 years in the industry, I can't remember so many people simultaneously deciding they were done.

With numerous airports and related organizations facing near-term change, what's the right response: Panic? Talk the leaders out of leaving? Call a search firm? Run an ad? Post on a job board? Spread word on LinkedIn?

As a search firm principal, I advise organizations to survey industry changes when facing a leadership change. It's essential to understand what's happening to the demographics, economics and experience levels of candidates, because the pool of prospects is probably quite different than the last time they looked.

Everyone is being squeezed. In many cases, enplanements are flat or down; and if they're growing, it's certainly not to the degree they were five to 10 years ago. With shrinking flight schedules have come shrinking airport and FAA budgets - and shrinking family incomes. Many of the people I interview daily are looking for stability as well as opportunity. One candidate I spoke with recently began our conversation with "Back when air travel was fun ..." For those of us with a passion for aviation, that's certainly a bit of a bummer.

Today's airport leaders have diverse educational training, work experiences and cultural backgrounds. MBAs are becoming more common, and AAAE accreditation is often a minimum requirement to lead an airport. But your next leader might come from an area that previously may have been overlooked.

It's also crucial to consider the potential chemistry and cultural fit of various candidates. Being able to navigate the complicated world of airport politics is not for the faint of heart.

In an effort to attract and retain effective leaders, smaller airports and consulting firms have begun offering salaries and benefits on par with larger organizations. Many have realized it's less expensive to keep a leader than to replace one. Compared to your last airport director or consultant, your next hire will likely be more expensive, more reluctant and have more competitive offers from other organizations.

Realize that whomever you hire will cause a ripple effect throughout the organization. Qualified internal candidates who are passed over will likely leave and inspire other departures; so looking inside is important. On the other hand, strategic outside hires often bring new talent with them.

Listing an open position online, however, will not magically bring in the best candidates. I suggest finding a headhunter who follows our industry full time but isn't distracted by daily airport management responsibilities. It's also helpful to have someone familiar with the search process tracking specific developments. A good search consultant will sell your organization to candidates who aren't even interested in looking for a new position.

Airport professionals who are ready to move will have a lot of options available in 2013, and many rising stars will emerge from our current wave of retirements. The leader you want to hire may cost more than you hoped, but making the wrong hiring decision is far more costly.