| | As attrition rates
across the management
consulting industry
soar, the incentives
employers implement to
try to retain staff are
not always what
consultants want the
most, according to the
latest in-depth industry
survey from
Top-Consultant.com, the
leading career website
for management
consultants.
According to 2007
Retention Report: A key
challenge for the
Management Consultancy
sector, attrition rates
in the industry across
the globe are reaching
the 15%-20% range and
many firms are losing
consultants at higher
rates. The findings are
based on surveys of 140
consulting recruiters
and more than 700
consultants from firms
ranging from the Big
Four to niche | |
|
| | consultancies.
Besides attrition
rates, the study focused
on what compels
consultants to stay or
to leave their employers
and what consultancies
are doing to keep their
staff.
Money has been the
prime retention strategy
for employers. 51% of
firms have made surprise
salary or bonus
increases or have
increased scheduled
salary and bonus
increases.
However, for
consultants, the number
one reason that would
make them stay was
improvement in
management, including
more inspiring
leadership.
Improving management
procedure was 4th down
the list for employers,
(9%), after introducing
more flexible work hour
arrangements and other | |
|
| | benefits aimed at
striking a better
work/life balance (18%);
and increasing the
number or improving the
quality of career
development options
(12%).
Extending ownership
and profit shares was
the fifth retention
strategy employed by
companies (6%) and 4% of
firms conducted surveys
and sought opinion for
improving retention from
their staff.
Consultants on the
other hand, seem
unanimous in wanting
three key things, which
account for almost 70%
of all responses. Aside
from improving the
management of the
practice (37%),
consultants want better
career development (18%)
and a clear, transparent
and fair path for career
progression (16%). Many
consultants complained | |
|
| | that more and more work
on projects was becoming
routine, so they wanted
other avenues for
developing new skills.
External workshops and
industry seminars were
cited as some examples.
Promotions have
always been a key
element in this
competitive industry,
where the practice of
up-or-out is widespread.
Now, more than ever,
delivering on career
progression promises can
be a significant
differentiator between
firms.
Better salary and
bonus are the forth most
important incentive for
employees at 14% of
firms. Now that revenues
are rising, consultants
want a bigger cut. A
further 6% of
consultants explicitly
want a profit-share
scheme.
Being staffed on | |
|
| | interesting projects of
their own choice, a
major swaying factor in
previous years, has
moved down the list to
number five with 8% of
respondents' votes.
Picking your own
projects was followed by
improving consultants'
support structure (4%),
which included things
like personal
assistance, concierge
services, better
technologies and other
upgrades that allow the
consultant to spend more
hours working in this
time of increasing
workloads.
The full report is
available to download in
PDF format
here
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