Top Consultant reports that management consultancy salaries have increased and
fee rates are firmer now than they have been for 3 years, and there is a bit more money to spend on salaries. All firms reported a shortage of good candidates, and those that gave October salary reviews awarded increases of around 5%, reflecting the need to attract new staff and retain those remaining.
Of course, these are the firms that were shedding staff two years ago. They’ll end up with the usual suspects: under-40s who have no life and are driven by power issues. Or maybe I’ve been in consultancy for too long.
IT consultancy looked fairly flat. Who wants to spend money? A friend tells me it’s the result of Y2K spending. Many companies simply added on additional projects that they could do then, making the upgrades now unnecessary. And once the big shift happened to the Internet, few companies (BIG excepted) had much left that needed doing. Most of smaller in scope. Still interesting, but not needing the hordes of externals.