In the last edition of DataWatch, we published consultants’ anticipated tenure at their current firm, by staff level, through 2013. The takeaway was that most consultants don’t anticipate staying at their current firm for very long: Among staff below the manager/director level, one-third plan to leave within two years and more than half plan to leave within the next four years. This month we’ll answer questions related to the obvious follow-up questions: Where are they going to go, and what can one do to retain staff longer?
According to a proprietary survey of nearly 10,000 consultants, the vast majority (59 percent) say that their next career will likely bring them into general industry. From a consulting firm’s perception, the challenge becomes both selling consultants on: 1) the merits of a consulting career; and, 2) the value of their current firm.
For years, we’ve been hearing from MBA recruiters that the number one question asked on campus is: ‘How is your firm going to prepare me for a job in industry within five years?’ Therefore, it shouldn’t be surprising that many of those MBAs who have spent several years at their first consultancy and are now looking to use their consulting experience as a stepping stone. Career plans have a way of changing over time. But the survey’s findings suggest that firms have to push hard to overcome most consultants’ career goals.
Among those consultants that want to pursue a career in industry, one approach may be to take a page out of the playbook of some of the elite strategy firms. McKinsey & Company, Bain & Company, and The Boston Consulting Group generally accept that they will lose some consultants to industry. Those firms keep active track of their alumni with the double goal of using them as client prospects and as possible experienced hires if they choose to re-enter the consulting profession.
Knowing what another firm could offer to lure away a consultant provides insight into what a consultancy can offer to discourage a consultant from wanting to leave in the first place. Consultants that would consider moving into industry say greater work/life balance would be the single biggest motivator.
While work/life balance is an age-old problem for consulting firms, there are things firms can do. Some firms are trying to limit the burden of travel by increasing focus on local clients. In this economy, firms can hardly be blamed for pursuing client engagements wherever they may be. But firm leaders should keep in mind that there’s a potential cost to turning top performers into road warriors.
