IndusGuru has conducted and released its latest findings from the Consulting Talent Management Research Survey 2024, revealing crucial insights into talent management in the consulting sector. It highlighted the industry's urgent need for reflection and reinvention amid turbulent times characterised by digital disruption, climate change, geopolitical shifts, and evolving career expectations.
As the consulting sector faces a wave of recent layoffs, the survey identifies significant trends and insights across three key areas:
Talent Acquisition Practices
The survey discloses a notable shift in talent acquisition strategies among consulting firms. Historically reliant on top MBA graduates, firms are now recognising the importance of a diverse skill set that includes expertise in digital technologies, industry-specific knowledge, and functional expertise. Only 47 per cent of respondents indicated that they predominantly hire from MBA schools, while 85 per cent reported hiring from engineering colleges and 50 per cent from design and humanities schools.
Moreover, the traditional model of grooming talent from entry-level to partner positions is evolving. With growing talent gaps, firms are increasingly engaging in lateral hiring from the industry, including recruiting partners, to address these challenges. The survey found that only 58 per cent of respondents aspire to grow within their firms to achieve partner status, prompting firms to explore alternative career paths for non-partners.
Diversity, Inclusion, and Flexibility
In the post-COVID era, flexible working arrangements have become essential for retaining talent and enhancing employee satisfaction. New practices previously unthinkable in blue-chip consulting firms are now being implemented, including three days of in-office work, part-time contracts, and relaxed dress codes for non-client days.
Despite advancements, diversity remains a critical challenge within the industry, particularly at the partner level, where gender diversity lags behind other sectors. The survey indicates that gender diversity at partner levels stands at 10-15 and 20-30 per cent for middle management. To address this, firms are adopting structural measures such as achieving 50:50 hiring at analyst levels, utilising alumni networks, integrating returning mothers, and improving diversity within succession pipelines.
Alternate Talent Engagement Models
The survey highlights the growing trend of alternate talent engagement models, with 80 per cent of respondents indicating their use to some extent. These models include freelance contracts, expert consultations, and fixed-term engagements, allowing firms to quickly build teams and access specialised skills.
Commenting on this trend, Deepak Malkani, Co-Founder of IndusGuru, stated, “Organizations are warming up to gig-hiring of experienced professionals—driven by three factors: access to specialized talent, speed and agility to respond to business needs, and the ability to 'variabilize' fixed costs.”
Partners across firms confirmed an anticipated increase in the use of flexi-model talent engagement, with 10-20 per cent of project teams expected to include talent from alternate sources.
The consulting industry is at a pivotal point of transformation, driven by evolving client needs, workforce expectations, and technological advancements. By diversifying talent sources, embracing flexible work models, and addressing diversity challenges, firms can build the X-Factor that differentiates the winners from the also-rans.
