10-Nov-2004 -
Just when the consulting firms have collectively decided they are short of talent again, what goes and happens? Not only do they find themselves competing with one another to win back talent, but industry decides it’s time to start luring consultants away from consulting and into fast-track blue-chip roles.
There it is, the double whammy. One moment there are just too many consultants chasing too few jobs. Then the situation is turned on its head and consultants find themselves being wooed with salary hikes from their existing employers… fast-track promotions if they join the competition… and a growing range of opportunities to get out of consulting altogether.
We’ve seen this all before during the last economic upturn. FTSE firms in particular strove to build up strategy teams and internal consulting divisions to try and suppress the need to engage consulting firms. More often than not hiring campaigns targeted consultants seeking a break from the consulting lifestyle. As salary rises accelerated in the consulting world industry found it harder and harder to lure consultants away from the big pay packets. But early in the upturn the salary differential was more modest and blue chips did secure the services of many rising stars.
Looking at recent recruitment activity, this upturn is showing all the signs of engendering a similar bout of hiring activity amongst corporates. In just the last weeks Britvic, Avis, BUPA, T-Mobile and the Carphone Warehouse have all been active in the space. The public sector is showing an interest too, with the Department for Work & Pensions (Jobcentreplus) and the Highways Agency two of the latest organisations to tap into the consulting market as a means of attracting talent.
While consulting firms have tried to combat this by raising salaries once again, for the time being at least their finances are not yet rock solid enough to make significant salary rises a viable option. So pay differentials consulting vs. industry remain historically quite low. Expect 18 months of increasing opportunities with FTSE companies and a gradual strengthening of pay scales at consulting firms, as the sector seeks to ensure it is competing only with consultancies in the war for the best talent...
Related links:
>> HR managers invited to 10th December recruiters' meeting
>>Search for the latest Corporate opportunities for consultants
