Recruiting in a tough market 2009

Top-Consultant.com
Global Opportunities in Consulting
Recruiting in a Tough MarketRecruiting in a Tough Market
20092009
Tel: +44 (0)207 667 6880
Friday 6th March 2009

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Agenda:
09.00 - 09.30 Registration & Networking
09.30 - 10.00 Market update / emerging trends
10.00 - 10.20 Key findings from the 2009 recruitment channel report
10.20 - 11.00 Coffee & Networking
11.00 - 11.20 Recruiter Awards
11.20 - 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:

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Session 1: Market update /
emerging trends

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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

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Retention rates & trends

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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?

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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

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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

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Career prospects and work/life balance now
more important than remuneration
Source: 2009
Recruiter Survey
Exit interviews – reasons given for consultants leaving

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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

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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

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Recruitment targets and the impact
of the economic downturn

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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

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Recruiters expectations have changed
significantly since this time last year
2009 vs. 2008 recruitment targets
Source: 2009
Recruiter Survey

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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

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And in which sectors is most recruitment activity
expected within consulting?
Source: 2009
Recruiter Survey

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Which functional areas do you expect to be most
active through 2009?
Source: 2009
Recruiter Survey

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Session 2: Key findings from the
2009 recruitment channel report

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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

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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:

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Some headline findings in terms of
candidate trends for 2009

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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?

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Though on a positive note the majority intend to
remain within consulting
Source: 2009
Candidate Survey
In the next 12 months I am most likely to accept:

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Are there any other trends or changes you've
noticed in the management consultancy
recruitment market in the last 12 months?
Source: 2009
Candidate Survey
• 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.

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Candidate attraction key findings

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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

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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
Source: 2009
Candidate Survey

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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
Source: 2009
Candidate Survey

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Corporate Sites

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More consultants are making direct applications
than ever before
Source: 2009
Candidate Survey
Penetration – corporate sites

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But the share of applications made via this channel
has fallen
Source: 2009
Candidate Survey
Share of Applications – corporate sites

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How do candidates reach corporate websites so
that they can make their direct applications?
Source: 2009
Candidate Survey
If you submitted applications via corporate websites, what
prompted you to visit their website?

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Personal Referrals

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Personal referrals have consistently generated
applications from ~2/3 of all candidates for the
last 8 years
Source: 2009
Candidate Survey
Penetration – personal referrals

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However, share of applications achieved has fallen
this year
Source: 2009
Candidate Survey
Share of Applications – personal referrals

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Newspapers

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Newspapers - candidate penetration levels
continue to fall
Source: 2009
Candidate Survey
Penetration - Newspapers

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… translating to a situation where they are now
responsible for less than 8% of applications
Source: 2009
Candidate Survey
Share of Applications - Newspapers

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Recruitment Agencies

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The use of recruitment agencies rebounded during
the upturn but is falling once more
Source: 2009
Candidate Survey
Penetration – recruitment agencies

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Share of applications has remained fairly steady
Source: 2009
Candidate Survey
Share of Applications – recruitment agencies

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Internet Job Sites

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Internet Job Sites enjoy the highest share of
candidate usage
Source: 2009
Candidate Survey
Penetration – internet job sites

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Candidates are on average making more
applications through this channel than they have
in recent years
Source: 2009
Candidate Survey
Share of Applications – internet job sites

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Future trends?

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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

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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
ShareofApplications
Source: Analysis,
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Session 3: Recruiter Awards

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Choosing recruitment agency and
job board suppliers

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Channel: Recruitment Agencies

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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

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Top Management Consultancy Recruiters (2009)
in recognition of outstanding candidate feedback
•• Rakesh PabbiRakesh Pabbi Consulting PointConsulting Point
•• David LancefieldDavid Lancefield SelectureSelecture
•• Chris SaleChris Sale PrismPrism
•• Jason LaJason La BastideBastide Aaron Millar SearchAaron Millar Search
•• Don LeslieDon Leslie BLTBLT
Which individual recruitment consultants have you been particularly
impressed with?
Source: 2009
Candidate Survey

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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
Source: 2009
Candidate Survey

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The recruitment agencies that consultants rated
most highly were:
Are there any recruitment agencies you would particularly praise, and why?
Source: 2009
Candidate Survey
Hays8
Aston Carter7
FreshMinds6
Hudson5
Mindbench4
3
2
1
Recruitment FirmRanking

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In 3rd place were Robert Half
Source: 2009
Candidate Survey
Hays8
Aston Carter7
FreshMinds6
Hudson5
Mindbench4
Robert Half3
2
1

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In 2nd place were Prism
Source: 2009
Candidate Survey
Hays8
Aston Carter7
FreshMinds6
Hudson5
Mindbench4
Robert Half3
Prism2
1

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And in 1st place, congratulations to all the team
at BLT
Source: 2009
Candidate Survey
Hays8
Aston Carter7
FreshMinds6
Hudson5
Mindbench4
Robert Half3
Prism2
BLT1

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Channel: Internet Job Boards

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Top-Consultant remains the job board with the
greatest penetration of the consultant population
Which websites
do you
regularly
review for
consultancy job
opportunities?
Source: 2009
Candidate Survey

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… 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?
Source: 2009
Candidate Survey

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Conclusions: what are the key To-Do’s for
recruiters?
Key Messages:
•• Recruitment agencies and internet job boardsRecruitment agencies and internet job boards now account for 70% of all
applications made by consultants – make sure you have built relationships with
good providers in both these channels.
•• Personal referral or bounty schemesPersonal referral or bounty schemes remain candidates’ preferred means of
finding new employment – work on improving take-up of your scheme
•• Corporate careers pagesCorporate 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
•• NewspapersNewspapers should be considered when there is a consulting supplement
or special edition, which act as a draw to suitable candidates; but as a regular
recruitment channel for consultants their effectiveness continues to decline

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Session 4: Question & Answer
session

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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.

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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.

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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…

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1. What is the best way to reduce recruitment
costs in 2009?
(Shae Withers, Ineum Consulting)
Charles Hardy, TMP
Giles Guest, Enhance Media
Matt Alder, Barkers

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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, BLT
Matt Alder, Barkers

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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, Barkers
Don Leslie, BLT
Charles Hardy, TMP

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4. What is the first thing a Recruiter should do
when the activity goes to "ON HOLD"? (question
amended)?
(KPMG)
Charles Hardy, TMP
Tony Restell, Top-Consultant & ConsultancyRoleFinder

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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)
Don Leslie, BLT

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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)
Panel
Floor

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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)
Panel
Floor

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Thanks to our panelists:
Matt Alder, Barkers
Don Leslie, BLT
Matt Alder, Barkers
Charles Hardy, TMP
Tony Restell, Top-Consultant &
ConsultancyRoleFinder

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Finally, two dates for your diary…

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The Consultancy Careers Fair
8th & 9th October 2009
The Barbican Hall 1,
London

Recruiting in a tough market 2009

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