KIA Corner: The Mystery of the Millennials

KIA has advised numerous clients on compensation strategies. We keep a close eye on the various compensation and recruitment processes that have evolved over the downturn and how it affects the new breed of Millennials who are more informed and social-media savvy than the generation before.

When asked what the top three criteria were that she used to narrow down to her future employer, she responded with:

1. Professionalism and respect with which recruiters conducted the first contact and subsequent follow-ups painted a first impression that lingered. She mentioned a particular instance of a recruiter from one of the (declined) firms quite bluntly telling her that she can only apply to the home office of her current city, not the bigger city she indicated as her first choice preference in her application, thus limiting her exposure. KIA has observed that these seemingly minor inflexibilities set a negative tone with the candidates during recruitment process as it is perceived as a precursor to future roadblocks in mobility within the firm.

2. Brand name and practice leader compatibility played another big part in the decision making process. Students are receptive to on-campus recruitment efforts and the image firms portray. It often comes down to which firms all the "cool kids" end up working for. A final round interview with a personable practice leader often allays fears for those who seek a mentor-mentee relationship, rather than a master-indentured servant relationship that give the profession a bad name.

3. Pay, career, and lifestyle flexibility played supporting roles in the process. Intense competition among jobseekers has sprouted a trend where candidates differentiate themselves, not only through academic excellence, but also through leadership in student and non-profit organizations. Most entry level consultants at bulge-bracket firms may lose the ability to maintain these commitments due to intense travel and long hours at the office. The firm that offers the flexibility to pursue social activities, in addition to offering competitive compensation packages, may end up attracting the top talent.

In addition to charting a path to her preferred firm practice area, the firm also deferred her starting date to accommodate a four month trip to South America with a non-profit organization. The final accepted offer was in excess of $20,000 year more than the closest competitor, something she skillfully negotiated after gathering intelligence from her alma mater connections at the firm through social networking mediums.

KIA has repeatedly heard from the rank and file of the consulting world that their experience was akin to being "another cog in the wheel," "easily replaceable," and "of little impact," before switching jobs to boutique firms (with better recognition and work-life balance), or to other industries. In a recent Consulting magazine survey, as much as two -thirds of recent MBA hires say they anticipate leaving their current firm within four years.

Much to the dismay of HR departments, 80 percent of analysts see management consulting jobs as a stepping stone to something bigger and better, a trend fueled further due to stagnating compensation growth since 2008. Top-tier strategy firms often allow many of their first-and second-year associates to pursue entrepreneurial opportunities after being on the job for a couple of years.

In an atmosphere where firms are trying to curb excessive turnover and retain top talent, it is imperative that recruitment and HR formulate strategies that help applicants and future employees feel less like a disposable asset (from the get-go), and instead build a sense of loyalty and belonging where they can see long-term career options and invest in the progress and growth of their respective firms.