Management consultancies facing staffing crisis

Apr 29 2005 by Nic Paton Print This Article

Management consultants are cashing on the continuing bright economic outlook, leading to a crisis in staff turnover at many consultancies.

Research by recruitment firm Top-Consultant.com has reported that many management consultancies are being "torn apart" by surging levels of staff turnover.

The situation is only likely to get worse as the global economic recovery continues, encouraging more and more consultants to vote with their feet, leave their current employer and seek new challenges.

Consultancies in the UK and Ireland reported turnover in the past 12 months of 20 per cent, with mainland Europe on 18.6 per cent.

The situation was little better in the US, on 12.5 per cent, although the slower economic recovery meant turnover was rising more slowly. India was on 10.7 per cent.

A significant number of the UK consultancies polled were reporting turnover levels of between 25-30 per cent.

The report also warned that the current problems could prove to be just the tip of the iceberg.

Under a quarter of consultants polled believed their firm had taken any steps in the past year to improve staff retention rates, whilst 92.5 per cent believed employers would find it harder to retain staff in the coming year in the face of a rebounding market.

This imbalance meant that – for most firms – staff turnover was likely to increase over the next 12 months, the survey suggested.

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