During the last downturn (2001 to 2004), Kurt Salmon Associates' executives sat down with every firm employee and discussed what a long-term career at the firm would look like. By letting consultants know what would be expected of them to be promoted, and what resources the firm would make available to help them throughout their career, consultants were less anxious to leave the firm when the economy improved in late 2004 and early 2005. After the program was implemented, voluntary attrition rates fell from the 16 percent to 18 percent range, down to about 12 percent. The lower-than-average rate of voluntary attrition gave the firm a competitive advantage over competitors who saw their attrition rates spike during that time. Consulting's One-on-One sat down with Pam Beckerman, KSA North America's HR Director, to discuss what lessons firms can learn from her experience.
Consulting: Please describe the career track conversations you had during the last downturn.
Beckerman: In 2004, we introduced a structured career path in which people had a clear understanding of what their career in the firm could be. We made it clear to them what competencies they'd need to develop and what results we'd expect. The specifics varied by staff level. For example, recent undergraduate hires were told what tools they'd need to become good team members. And we set expectations that if they delivered a certain level of results, they would get promoted and receive an increase in compensation.
As they moved up through the firm, they'd be expected to lead engagements and cultivate client relationships. If they delivered good results, they'd be promoted to manager. Once they were able to add business development capabilities and manage large, complex teams, they'd be promoted to senior manager. Once they demonstrated their client management skills, they'd be promoted to partner. And once they were able to penetrate a new market or lead a new practice area, they'd be promoted to senior partner.
Consulting: Is the course to promotion always that clear cut?
Beckerman: In reality, it's never that black and white. But setting that framework provided transparency around what a career at KSA would look like. And it helped to start a dialogue around long-term career goals. Everyone gets reviewed for promotion twice a year. They meet with their reviewer and look at the promotion criteria to determine if there's readiness. Meanwhile, HR pulls together a massive spreadsheet that provides utilization numbers, sales volume, number of projects worked, hire date, etc. And we end up with a healthy calibration of what promotion readiness looks like.
Consulting: Has the current economy changed the process?
Beckerman: We recently had a couple of people ask if they are still on pace to be promoted to manager, even if the level of market demand is softening. Our attitude is that we do not want to punish folks that are ready to take the next step in their career. It would be demoralizing to say 'No, you need to take a seat for now.' Consultants are results- oriented people, and we do not want them to feel like they have to hold back their career. Where things have been difficult is the pool of senior managers, the rung right below the partner level. But we tell them if 'you have sold enough work to feed yourself and three others, then there's room for you.'
Consulting: Has the October 2007 acquisition of KSA by Management Consulting Group affected this program?
Beckerman: I've been pleased by the way our leadership team has safeguarded our culture. Everyone from the leadership team on down realizes that the value of our firm is tied to the quality of our people and our culture. In a client-centered business, if you start wringing the spirit out of the people, the whole venture is doomed. MCG realizes that and has done nothing to kill the goose that lays the golden egg. We had record years in 2007 and first half of 2008. MCG has kept perspective and knows it would be unreasonable to think we could sustain that level of growth in today's economy. MCG has a healthy respect for us and has not taken us down any path that would hurt our ability to stay KSA.
Consulting: Given the challenging market environment, what kind of surprising feedback are you getting from internal employee satisfaction surveys?
Beckerman: We've confirmed our understanding that a busy consultant is a happy consultant. Morale is always higher when folks are working on exciting engagements and feel like they are doing work they enjoy. Consultants are willing to cross a desert for work they are really excited about.
That being said, it's amazing how much they value a simple thank you for recognition for work well done. The reward doesn't have to be very expensive to be truly meaningful. Consultants tell us how much they appreciate when the firm rewards them by picking up the tab for dinner with their spouse.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.