Interviews
- »One on One with Eric Pelander – part 2
As consulting firms gear up for another wave of M&A,Consulting’s One on One sat down with Eric Perander, a partner inside the strategy-consulting firm Waterstone Management Group, to better understand the lessons he learned from one of the largest, and most successful, acquisitions in the profession’s history.
- »One on One with KPMG's Koecher & Rodriguez
KPMG’s Restructuring Services group just got a lot stronger. On July 16, KPMG acquired Grant Thornton’s supply chain advisory practice, effectively doubling the size of its core restructuring team and broadened its service offerings.
- »One on One with Ed Hess
Grow or Die. It’s probably the most common business axiom, and the least accurate, according to the new book “Smart Growth: Building an Enduring Business by Managing the Risks of Growth” (Columbia Business School Publishing). To better understand the book’s implications for firms, Consulting’s One-on-One sat down with the book’s author, Ed Hess, a former Arthur Andersen strategy consultant and current professor at the University of Virginia's Darden Graduate School of Business.
- »One on One with Summit's David Litherland
When prospective employees interview for a job, they obsess over making a good, lasting impression. Firms should do the same. To learn how firms can avoid typical pitfalls, Consulting’s One on One sat down with David Litherland, managing partner of Summit Search Group, an executive search firm specializing in placing professionals within professional service firms.
» View all
Upcoming Events
- Webinar - Best Practices in Firm Management - A 360° Update - September 22, 2010
- Virtual Symposium - New Ideas in Consulting Firm Management - September 30, 2010
- Consulting Summit - Innovative Solutions for Sustainable Growth - November 4, 2010
» View all
advertisement
|
Home
Service Line
Human Resources
7
8
2010
»DataWatch: Staff Retention Trending in the Right Direction
 Fewer consultants are planning to leave their firm in the next few years
While an alarming percentage of consultants still plan to leave their current firm by 2014, the trend appears to be improving, according to preliminary findings of Consulting’s annual Best Firms to Work For survey.
Across all staff levels, with the exception of entry level/analysts, fewer consultants plan to leave their current firm as quickly as they reported a year ago. In most cases, it’s not a big improvement. But it’s at least a sign that firms’ retention efforts and stability across the profession are starting to have an effect.
It’s still not reason to celebrate, however. Roughly half of all consultants, below the VP/partner level, still plan to leave their current firm within the next four years. Among the most junior hires, about one in five consultants (18 percent) plan to leave their current firm within one year. This represents a slight uptick from the same survey conducted in mid-2009.
At both the consultant/recent MBA and entry level/analyst level, Consulting’s survey finds a slight increase in those that plan to leave their firm within six to 12 months. Because the surveys were conducted over the summer, that timing suggests that there’s a wave of talent that’s planning on leaving just after this year’s performance bonuses are paid, typically in the first quarter of the following year.
The projected timing of these defections is worth noting. Most consultants reported a significant expectations gap in this year’s bonus payments (the difference between what the average consultants expected to receive and what they actually received). Some consultants may have been willing to swallow their frustration for one year, blaming their disappointment on the economy and other factors beyond their firms’ control.
 However, they may be less conciliatory a year from now. Because of uneven market demand, and strains on profitability, firms may again not be able to meet consultants’ compensation expectations. However, improved internal communication may go a long way to bridging the gap.
Finding a way to retain a firm’s talent is always important, but it is especially crucial now. First, after a year of layoffs and more aggressive up or out programs, the average remaining consultants is likely a better performer with skills in higher-demand areas than was the case a year ago. And, second, firms are beginning to hire again in relatively significant numbers, making replacing those lost through voluntary attrition all the more difficult.
The preliminary findings are based on a sample of just over 5,000 consultants participating in Consulting’s 2010 Best Firms to Work For survey. More than 85 percent of the respondents work for large consulting firms. The survey was conducted from May through early June 2010. The 2009 survey findings are based on a sample of nearly 10,000 consultants.
—Jess Scheer
|
advertisement
|
