Consulting firm compensation is a hot button issue these days. While the industry overall enjoys solid growth, compensation at consultancies has actually remained somewhat flat. This has resulted in more consultants staying put at their firms, and lowering industry-wide attrition. Is that necessarily a good thing? Robert Wise heads Operating Metrics research for Kennedy Consulting Research & Advisory. He talks with Consulting about why more money might not be the best answer.
Consulting: How have industry compensation trends evolved over the past few years?
Wise: Industry compensation trends are always evolving. While firms have dealt with and adjusted to the new buzzwords of today "economic downturn", "economic recovery", and "the new normal" the one constant is people always would like to paid more. That being said, we have seen compensation packages morph more into something like a diversified investment portfolio. Firms and their employees are not putting all their weight behind a salary, but choose to take trade-offs that include more flexible/comprehensive benefits package, less travel, office perks such as telecommuting, training, etc.
Our latest compensation metrics report, Compensation Metrics in US Consulting 2014 , details how the market is recovering from recent economic turmoil. We are seeing firms become optimistic again. Which is reflected in a timid .04 percentage point growth to mean base salaries for the overall consulting market in 2014. In the mature markets of North America and Europe we have seen a muted growth as the recovery continues and the market crowds with a growing need for talent. In developing markets Asia and India there are still some steep increases as those geographies experience high growth.
