- Korn/Ferry Survey Finds That Lack of Challenges and Ineffective Leadership
Are More Common Drivers -

Los Angeles, March 2, 2006 – Only five percent of global executives surveyed cite inadequate or inconsistent compensation as the primary reason for leaving their last job, according to the latest Executive Quiz from Korn/Ferry International (NYSE:KFY), a premier global provider of talent management solutions. Rather, lack of challenges or career growth (33 percent) topped the list of responses, which also included ineffective leadership (20 percent) and attractive job market alternatives (17 percent).

Further, when asked which improvement would make the biggest difference in organizations’ ability to retain talent, four in ten executives (42 percent) said empowering employees to make decisions. Other suggestions included more opportunities for advancement and career development (32 percent) and better work/life quality (16 percent). Just six percent of respondents cited more attractive compensation packages.

“Executives don’t leave jobs for better money, they leave jobs for better opportunities,” said Jack MacPhail, Managing Director, Americas for Leadership Development Solutions at Korn/Ferry International. “Formalizing talent management processes and placing more emphasis on identifying and developing top performers are essential steps in retaining talent. Effective leadership is often the difference between organizational success and failure.”

The survey also explored what executives seek in terms of career opportunities. Four in ten executives (40 percent) cited the company’s management team as the most important factor when considering whether to accept a new position. Other popular responses were culture (17 percent), brand and reputation (16 percent) and current strategy (11 percent). When asked what type of company they find most appealing, the largest number of executives (45 percent) cited large national/multinational firms, followed by established, stable mid-size companies and small, fast-growth companies, which both garnered 27 percent of responses. Family-owned and operated companies received just two percent of responses.

Finally, when asked which professional move – a change in industry, job function or geographic location – they would be most likely to consider, the largest percentage of respondents (21 percent) selected a change in industry. Changes in job function and geographic location represented 14 percent and 13 percent of the responses respectively. Nearly half of respondents (49 percent) indicated that they would consider all three professional moves, and only three percent said that they would not consider any.

Methodology
The Korn/Ferry International Executive Quiz is based on a global survey of executives registered within the firm’s online Executive Center, ekornferry.com. Respondents from more than 80 countries, representing a wide spectrum of industries and functional areas, participated in the most recent Executive Quiz between December 2005 and February 2006.

About Korn/Ferry International
Korn/Ferry International, with more than 70 offices in 35 countries, is the premier provider of executive search, outsourced recruiting and leadership development solutions. Based in Los Angeles, the firm partners with clients worldwide to deliver unparalleled senior-level search, management assessment, coaching and development, and recruitment outsourcing services through its Futurestep subsidiary. For more information, visit the Korn/Ferry International Web site at www.kornferry.com or the Futurestep Web site at www.futurestep.com.

Media Contacts:
                                                                                                                                                  
Asia/Pacific: Marta Grutka, + 65 6231 6215, marta.grutka@kornferry.com
EMEA: Stephanie Cohen, + 1 310 226 2645, stephanie.cohen@kornferry.com
North America: Sabrina Tanenbaum, + 1 212 576 2700, stanenbaum@goodmanmedia.com
South America: Marcel Dellabarba, + 11 3017 5300, marcel.dellabarba@edelman.com
UK: Sarah Tovey, + 44 (0) 20 7404 5959, kornferry@brunswickgroup.com