Client Engagements
Where the Busy Bodies Are
They may not be as busy as they were, say, two years ago, but consultants surveyed for our "Best Firms to Work For" Survey certainly are keeping themselves busy. And it's probably no secret that where work is most plentiful, morale also seems to be in ample supply. Of course, when the talent bench is filled, layoff fears quickly rise and the more agile consultants hurry to find work within their firms.
Health Care Costs
Sharing the Bill
In addition to the rising cost of living (even with low inflation), more firms are managing the rising cost of health care coverage by passing costs on to individuals, according to a recent report titled Compensation & Benefits in Management Consulting. Almost 40 percent of all firms indicate that they will increase the portion of the premium and/or deductible paid by the individual in 2003, says the report published by Kennedy Information Research Group. This was by far the most commonly used strategy to combat rising health care benefits costs, with another 24.5 percent reporting that they are continually shopping for better rates, KIRG states.
Salary
Consulting Base Salary by Position
Consulting professionals who were fortunate enough to be employed in positions that saw an increase in salary and benefits over the last year typically received little more than a cost of living adjustment, according to the KIRG report. A look at the big picture shows that data from IT firms — when looking at type of consultancy — and data from large firms — when comparing firms by size — pulled down the average salary and bonus increase for the entire consulting industry, KIRG explains. Meanwhile, a few key segments of the consulting industry — for example, those who work in one of the consulting industry's bright spots such as HR consulting or government practices, or who work at midsize firms, among other groups — made greater gains in total compensation compared to the majority of their peers, according to KIRG.
Bonuses
Where, Oh Where, Did the Bonuses Go?
Interviews with consulting and recruiting professionals suggest that a small number of the very largest consulting firms are seeing the greatest decline in bonuses this year, according to the KIRG report. "Bonuses have taken a huge hit in 2003," says the managing director of a leading executive search firm. He adds that, "the folks getting bonuses this year are those who have it contractually guaranteed as part of their compensation." This situation has the potential to create some hard feelings among consulting professionals who are performing at comparable levels but not receiving these payouts, KIRG analysts explain.
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