SOURCE: Kennedy Consulting Research and Advisory

Kennedy Consulting Research & Advisory

February 01, 2011 12:04 ET

Compensation Changes Within Consulting Profession Leading Top Players to Explore Other Options

Kennedy Finds Consulting Firms Are Being Squeezed by Increasing Turnover Rates and Lingering Economic Challenges

PETERBOROUGH, NH--(Marketwire - February 1, 2011) - A noticeable uptick in employee turnover due to frustrations with negligible salary hikes and declines on one side. Business failing to recover to levels that provide firms with margins that allow meaningful increases on the other. These are just two of the challenges squeezing consulting firms on the compensation front.

According to new research from Kennedy Consulting Research & Advisory, Consulting Compensation Data, Trends, and Strategies 2010-2011, even top-performing consultants who were previously thought to "invest" in their firms through the downturn are seeking employment in alternative industries and/or firms to secure higher pay increases. In fact, the research indicates an astounding percentage of respondents relatively new to the consulting profession that said they do not see themselves working in consulting in the near future.

"Overall, consulting firms will have to carefully watch their competitors more closely than ever before," predicts JJ Sendelbach, Senior Advisor to Kennedy Information Advisors. "Consultancies will more frequently revisit, revise and adjust their compensation philosophies and strategies to retain and attract top talent."

The data also shows that workplace wellness programs and benefits restructuring are taking center stage across many midsized and large enterprises, with many professional services firms seeking benefits advisory to help broker different packages that reduce tax burdens, while maintaining the perception of value to employees. Increased telecommuting options and other non-cash based incentives are also being utilized to help offset the stress of a downward economy and bonus cuts.

Consulting Compensation Data, Trends, and Strategies 2010-2011 is Kennedy Consulting Research & Advisory's most comprehensive analysis on compensation within the consulting profession -- constituting a vital resource for firm planning, recruitment, and hiring/retention strategies. Unlike compensation managers, particularly at larger firms, who largely rely on "payroll tape" databases for compensation data, Kennedy leverages its deep knowledge of the profession and proprietary compensation data to help managers and firm owners make critical business decisions in the context of specific consulting segments in which they operate and compete for talent.

About Kennedy Consulting Research & Advisory

Since 1970, Kennedy Consulting Research & Advisory has been the world's leading source of market analysis on the Management and IT consulting industries, serving the most highly regarded professional services firms and Fortune 500 companies across the globe. Kennedy's stand-alone consulting advisory unit, Kennedy Information Advisors, provides results-oriented strategic guidance to buyers and sellers of consulting services.

Contact Information