Recruiting in a tough market 2009

Top-Consultant.comGlobal Opportunities in Consulting

Recruiting in a Tough MarketRecruiting in a Tough Market 20092009

Tel: +44 (0)207 667 6880

Friday 6th March 2009


Agenda:

09.00 - 09.30 Registration & Networking09.30 - 10.00 Market update / emerging trends10.00 - 10.20 Key findings from the 2009 recruitment channel report10.20 - 11.00 Coffee & Networking11.00 - 11.20 Recruiter Awards11.20 - 12.20 Question & Answer session**12.20 - 12.30 Close

** Panel comprises experts from Barkers, Enhance Media (publishers of NORAS), TMP Worldwide, Top-Consultant.com and the winner of the 2009 recruiter award.

To better understand today’s tougher recruiting climate, today’s seminar will cover:


Session 1: Market update / emerging trends


Key considerations:

• Retention rates – how are they likely to evolve in 2009 compared with 2008 ?

• Recruitment targets – how do 2009 targets compare with those firms aimed to fulfil in 2008?

• How has the downturn impacted on recruitment activity over the last 12 months and what are the expectations for the future?

•Respondent profile: 60% of respondents operate extensively in the management consulting space; 5% operate in IT consulting; and 35% operate in both.

Data based on survey responses submitted by 142 management consultancy recruiters during January / February 2009


Retention rates & trends


The median attrition rate was just under 10%

Source: 2009

Recruiter Survey

What staff attrition rate has your consulting business experienced in the last year?


The median attrition rate has fallen from just over 10% a year ago to just under 10% now

What staff attrition rate has your consulting business experienced in the last year?

Source: 2009

Recruiter Survey


Recruiters expect staff attrition to worsen slightly over the next year

What do you believe will happen to staff attrition rates in 2009?

Source: 2009

Recruiter Survey


Career prospects and work/life balance now more important than remuneration

Source: 2009

Recruiter Survey

Exit interviews – reasons given for consultants leaving


Movement within the consulting industry remains the single biggest cause of attrition

What types of roles are Consultants moving on to?

Source: 2009

Recruiter Survey


What other factors are pushing consultants to change jobs in the current market?

Source: 2009

Recruiter Survey

• Individuals with lower skill-sets are being offered fewer assignments as the client demand for quality grows. This affects their bonus, leading them to seek alternative opportunities elsewhere.

• Not willing to take responsibility for rounded aspects of the role - i.e. not wanting to be seen as business development people.

• The biggest reason people leave consulting is to move into a corporate where they will travel less and also have the chance to see the impact of the changes and recommendations that they make.

• Redundancy and requests from employers to make contractual changes ie move to a 4 day week, in order to cut costs

• Lack of clear pipeline - "decision paralysis" surrounding new projects/budgets for new work


Recruitment targets and the impact of the economic downturn


Recruiters quantified that:

• 50% had scaled back their hiring targets for 2009 as a result of the recent economic uncertainty

• 34% reported that major recruitment campaigns for 2009 have not yet got underway as consulting firms were waiting to see if a recession was looming

• 38% report that recruitment budgets for 2009 are being scaled back in light of changed market sentiments

• 12% have recruitment on hold as a result of market uncertainty

The downturn has significantly impacted on recruitment for this coming year

Source: 2009

Recruiter Survey


Recruiters expectations have changed significantly since this time last year

2009 vs. 2008 recruitment targets

Source: 2009 Recruiter Survey


Poaching from other consultancies remains the most likely source of hires to meet this demand

Source: 2009

Recruiter Survey

Most likely source of hires in 2009


And in which sectors is most recruitment activity expected within consulting?

Source: 2009

Recruiter Survey


Which functional areas do you expect to be most active through 2009?

Source: 2009

Recruiter Survey


Session 2: Key findings from the 2009 recruitment channel report


Profile of respondents:

• c. 8,000 candidate responses during last 8 years including 877 candidate responses to the 2009 survey

• Most this year were Strategy consultants (21.9%), then Change Management consultants (21.7%), or Programme Management consultants (17.2%)

• Those specialising in Telecoms, Media & Entertainment were the most numerous this year (15.8%), then Public Sector specialists (13.8%) and Financial Services (Retail F.S. focus) specialists (11.5%)

• 63.1% of candidates have changed jobs within the last 3 years

Trends are based on data collected from c.8000 management consultancy candidates over the last 8 years


54% of respondents were reached from approaches to candidates made via CV database searches (including Monster, Jobsite, Totaljobs), LinkedIn and from various consulting firms encouraging their staff to take part in the survey

• 46% came from responses to a direct Top-Consultant mailer to our readers

• Candidates from all the major consulting firms have once again participated in the survey in their hundreds including those from Accenture, Atos Consulting, Capgemini, PA Consulting Group, Deloitte, Ernst & Young, KPMG, PwC, Bain, EDS, IBM, Logica, Microsoft, Oracle, Siemens, SAP, Unisys etc.

• Plus many consultants from niche consulting firms and potential industry hires looking to move into consulting

Candidate responses were generated from a variety of sources:


Some headline findings in terms of candidate trends for 2009


Candidate intentions reinforce the view that attrition will worsen over the coming year

Source: 2009 Candidate Survey

Compared with this time last year are you more or less likely to change employer in the next 12 months?


Though on a positive note the majority intend to remain within consulting


In the next 12 months I am most likely to accept:


Are there any other trends or changes you've noticed in the management consultancy recruitment market in the last 12 months?


• Fees for freelance consultants are going higher. Salary for permanent jobs are going down.

• Classical consulting is on the way out. Hybrid profiles and small boutiques stand to gain.

• Consultants must be multi-skilled and have at least 5 years varied experience in all roles to be considered.

• People in consulting firms seem to be looking for very narrow very specific skills not strong consultants with problem solving skills.

• As the market tightens (for opportunities), we are retaining more of our experienced (e.g., higher cost) resources, causing price-resistance by prospects.

• Softening demand is leading to employers to lower their retention game. When uptick comes their reactive retention lunge will fail to retain best staff.


Candidate attraction key findings


Candidates questioned about their use of – and experiences of using – five key recruitment channels:

• Corporate websites

• Personal referrals

• Newspapers

• Recruitment Agencies

• Internet Job Sites

The survey examines the volume and penetration of different recruitment channels


Two channels generate the majority of candidates’ applications

Overall the survey shows the importance of Internet Job Sites and Recruitment Agencies…

2009 share of applications



How many candidates are you currently failing to reach?

But also that a multi-channel approach is essential in order to saturate the market

2009 channel penetration



Corporate Sites


More consultants are making direct applications than ever before


Penetration – corporate sites


But the share of applications made via this channel has fallen


Share of Applications – corporate sites


How do candidates reach corporate websites so that they can make their direct applications?


If you submitted applications via corporate websites, what prompted you to visit their website?


Personal Referrals


Personal referrals have consistently generated applications from ~2/3 of all candidates for the last 8 years


Penetration – personal referrals


However, share of applications achieved has fallen this year


Share of Applications – personal referrals


Newspapers


Newspapers - candidate penetration levels continue to fall


Penetration - Newspapers


… translating to a situation where they are now responsible for less than 8% of applications


Share of Applications - Newspapers


Recruitment Agencies


The use of recruitment agencies rebounded during the upturn but is falling once more


Penetration – recruitment agencies


Share of applications has remained fairly steady


Share of Applications – recruitment agencies


Internet Job Sites


Internet Job Sites enjoy the highest share of candidate usage

Source: 2009

Candidate Survey

Penetration – internet job sites


Candidates are on average making more applications through this channel than they have in recent years


Share of Applications – internet job sites


Future trends?


Candidates confirmed that these trends are likely to continue into the future

•Personal Referrals remain candidates’ preferred route

• Internet Job Sites usage well-established

•Recruitment Agencies drop from 2nd to 3rd

•Corporate sites increasingly preferred

• Newspaper demise likely to continue Source: 2009

Candidate Survey


Candidate Reach

Meaning that job board and recruitment agency strategies are key to saturating the market

40%

0%20% 80%

Recruitment Agencies

Internet Job Sites

Personal Referrals

Corporate Sites

Newspapers

Sh

are

of A

pp

licat

ion

s

Source: Analysis,Top-Consultant.com


Session 3: Recruiter Awards


Choosing recruitment agency and job board suppliers


Channel: Recruitment Agencies


We asked candidates to help us identify the best recruiters based on their own experiences

•• Best individuals within the industryBest individuals within the industry

“If you have been particularly impressed with an individual recruitment consultant you have worked with in the past, please provide their name & company so that we can give them special recognition”-> 5 individuals are singled out for special praise

•• Recruitment firm with the greatest reach in the industryRecruitment firm with the greatest reach in the industry

Which agencies generate the highest share of all applications?-> Top 20 recruitment agencies listed

•• Best recruitment firm within the industryBest recruitment firm within the industry

“Are there any recruitment agencies you would particularly praise, and why?”-> 8 recruitment agencies are singled out for special praise


Top Management Consultancy Recruiters (2009)in recognition of outstanding candidate feedback

•• Rakesh Pabbi Rakesh Pabbi Consulting PointConsulting Point

•• David Lancefield David Lancefield SelectureSelecture

•• Chris Sale Chris Sale PrismPrism

•• Jason La Jason La BastideBastide Aaron Millar SearchAaron Millar Search

•• Don Leslie Don Leslie BLTBLT

Which individual recruitment consultants have you been particularly impressed with?



The agency with the greatest candidate reach was Michael Page, up from 3rd place last year

Top 20 recruitment firms by reach (% of share of applications)

120Robert Walters

119Michael Warwick Nicholls

118Pacific

117Heidrick & Struggles

1.216Huxley

1.415Odgers

1.414Elan

1.713FreshMinds

1.712Harvey Nash

211Aston Carter

2.110Hudson

2.59Prism

2.68Korn Ferry

2.77Selecture

36Robert Half

3.45Consulting Point

3.44Mindbench

4.53Hays

7.82BLT

101Michael Page

% share of applications2008 rankRecruitment agency



The recruitment agencies that consultants rated most highly were:

Are there any recruitment agencies you would particularly praise, and why?


Hays8

Aston Carter7

FreshMinds 6

Hudson5

Mindbench4

3

2

1

Recruitment FirmRanking


In 3rd place were Robert Half



Hays8

Aston Carter7

FreshMinds 6

Hudson5

Mindbench4

Robert Half3

2

1



In 2nd place were Prism



Hays8

Aston Carter7

FreshMinds 6

Hudson5

Mindbench4

Robert Half3

Prism2

1



And in 1st place, congratulations to all the team at BLT



Hays8

Aston Carter7

FreshMinds 6

Hudson5

Mindbench4

Robert Half3

Prism2

BLT1



Channel: Internet Job Boards


Top-Consultant remains the job board with the greatest penetration of the consultant population

Which websites do you regularly review for consultancy job opportunities?



… and also remains Consultants’ preferred site for finding Management Consultancy jobs

Which of the job sites do you rate above all others for finding a consulting job?



Conclusions: what are the key To-Do’s for recruiters?

Key Messages:

•• Recruitment agencies and internet job boards Recruitment agencies and internet job boards now account for 70% of allapplications made by consultants – make sure you have built relationships withgood providers in both these channels.

•• Personal referral or bounty schemes Personal referral or bounty schemes remain candidates’ preferred means of finding new employment – work on improving take-up of your scheme

•• Corporate careers pages Corporate careers pages are of growing appeal to candidates once again. But remember to be mindful how candidates find themselves on your website especially if it’s likely they won’t have come across your firm before

•• Newspapers Newspapers should be considered when there is a consulting supplement or special edition, which act as a draw to suitable candidates; but as a regularrecruitment channel for consultants their effectiveness continues to decline


Session 4: Question & Answer session


We are delighted to have on today’s panel a line-up of recruitment & advertising experts

Charles Hardy is an Account Director with TMP and his key clients include RBS, Dell, Oracle, Motorola, the NHS and IBM. Prior to this role Charles worked at IBM and managed a central team supporting pan-European hiring across IBM, having previously been a practising consultant within the business.

Don Leslie is a director of BLT, a professional services recruitment company which he co-founded in 1987, when he was four. He recruited his first management consultant in 1983, and has specialized in the sector ever since. BLT recently came second in UK Recruiter’s ‘Recruitment Blog of the Year’ survey, so today’s result means a bigger trophy cabinet will be required.

Tony Restell is Director and co-founder of Top-Consultant (2000) and also of the pay-per-click jobs board ConsultancyRoleFinder (2008). The businesses help attract candidate hires to 60+ of the top 75 consulting firms primarily via both online and offline advertising and events. Previously Tony was a Senior Consultant with Roland Berger Strategy Consultants.


We are delighted to have on today’s panel a line-up of recruitment & advertising experts

Matt Alder is Head of Digital at Barkers. He has overall responsibility for Barkers team of 50 digital specialists who have expertise in digital media strategy, web site development and digital recruitment effectiveness measurement. Ten of his twelve years of digital work experience have been spent within the online recruitment industry.

Giles Guest is the Director of Enhance Media, a specialist online recruitment research, strategy, training and advertising agency. They annually conduct the largest piece of online recruitment research in Europe and use the findings combined with their other substantial research (including RIO delivered in conjunction with the REC) to deliver specialist online recruitment strategy and advice to clients. They are the only company in the UK accredited to deliver online recruitment training to the national BTEC standard and also deliver expert, highly targeted online recruitment advertising across job boards, search engines and social media.


In the next hour we are going to try to tackle 7 questions covering 4 topics relating to recruiting in a tough market

reducing recruitment costs

candidate selection

pricing of recruitment services

the recovery…


1. What is the best way to reduce recruitment costs in 2009?(Shae Withers, Ineum Consulting)

Charles Hardy, TMPGiles Guest, Enhance MediaMatt Alder, Barkers


2. As the pool of candidates becomes larger, which methods can we use more actively to separate the great from the good?(anonymous)

Don Leslie, BLTMatt Alder, BarkersGiles Guest, Enhance Media


3. Are candidates less likely to leave current employers in the current economic climate? What key factors would influence an experienced consultant to leave a consultancy firm and go to another lesser known consultancy in the economic downturn? (Jayne Santacana PRTM)

Matt Alder, BarkersDon Leslie, BLTCharles Hardy, TMP


4. What is the first thing a Recruiter should do when the activity goes to "ON HOLD"? (question amended)?(KPMG)

Charles Hardy, TMPTony Restell, Top-Consultant & ConsultancyRoleFinder


5. What innovative pricing models and solutions do recruiting agencies intend to come up with to compete in the current climate where the competition for talent seems to be in decline??(John Barber OEE Consulting)

Giles Guest, Enhance MediaDon Leslie, BLT


6. How do you think the current economic downturn will change the landscape of the management consultancy market over the next 18 months?(Angela Heath - BLT)

Tony Restell, Top-Consultant & ConsultancyRoleFinderPanelFloor


7. Do you believe that consultancies will lead the way in recruiting into the recovery, and when do you believe we might see this happening ?(Richard Harris, Mohawk Consulting)

Tony Restell, Top-Consultant & ConsultancyRoleFinderPanelFloor


Thanks to our panelists:

Matt Alder, BarkersGiles Guest, Enhance Media

Don Leslie, BLTMatt Alder, BarkersCharles Hardy, TMP

Tony Restell, Top-Consultant & ConsultancyRoleFinder


Finally, two dates for your diary…


The Consultancy Careers Fair

8th & 9th October 2009

The Barbican Hall 1, London


Recruiting in a Tough MarketRecruiting in a Tough Market 20092009

Tel: +44 (0)207 667 6880

Friday 6th March 2009

Recruiting in a tough market 2009

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