While slowing demand for consulting services is effectively impeding utilization rates and compensation growth rates, many North American firms concede that the need to retain top talent outweighs profitability pressures. Currently, firms continue to hire aggressively especially for senior-level positions.
Whereas in prior downturns (2001 for example) consultant compensation grew in congruence with fee rates, new analysis from Kennedy Consulting Research & Advisory identifies that salary levels per consultant will rise in 2009 and likely beyond.
The recent research, "Compensation in Consulting 2007-2009," identifies a new dynamic between revenue generation and compensation levels within the profession. There are four major characteristics contributing to this unexpected break in historical trends: the number of former consultants in senior-level positions is at a record high, consulting firms have a severe shortage of mid-level experienced talent, the turnover rate for entry level consultants is expected to be constant, and consulting firms are experiencing rapid growth in emerging markets that requires an influx of domestic talent.
Kennedy's "Compensation in Consulting 2007-2009" provides consulting firm leaders, HR managers and compensation professionals with in-depth analysis of current and forecasted compensation levels across the consulting service lines of Operations, Business Advisory Services (financial and analytical), Strategy, Human resources, and Information Technology.
The research scrutinizes the methods consulting firms are likely to implement in an effort to bridge the gap between the rise in market rates for compensation and the slowdown in revenues. It also investigates compensation variance by career level, educational background, and employee entry point to the profession.
Kennedy analysts also provide compensation levels for the talent needed to support over 15 unique project types including: Financial Strategy, Marketing/Planning, Strategic Planning, and Organizational Strategy compensation, Operations Improvement, Supply Chain Management, Forensics and Litigation, Internal Audit Advisory compensation, M&A Advisory, Risk Management, IT Assessment, IT Process Improvement, IT Strategy & Planning, Compensation and Benefits and Human Capital Strategy.
About Kennedy Consulting Research & Advisory
Since 1970, Kennedy Consulting Research & Advisory has been the world's leading source of market analysis on the Management Consulting and IT Consulting industries. Kennedy provides accurate and reliable market sizing and forecasts for consulting services world-wide, needs analysis and vendor profiling for buyers of consulting services, timely and insightful intelligence on the top consulting firms in their respective markets, and operational benchmarks that measure consulting performance. Kennedy's research spans multiple service areas, client vertical industries, and geographies.
Kennedy's stand-alone consulting advisory unit, Kennedy Information Advisors, provides results-oriented strategic guidance to buyers and sellers of consulting services. Its stand-alone executive search unit, Kennedy Consulting Search Group, provides recruiting and talent assessment services specifically for the management consulting industry.