Despite the steady industry-wide recovery, the survey found that large firms had seen their staff turnover rates fall significantly and would expand headcount by only 4-5% this year. However, smaller firms are preparing to take on 20% more senior associates and consultants in 2005.
In large firms the biggest anticipated increase in staff (4%) was for senior associates and principal consultants, although smaller firms predicted they would increase their quota of senior consultants by 24%.
The survey also found that only 95 consultancy professionals ð less than 1% of the entire industry ð can expect to receive a pay rise greater than 5% in 2005.
The number of graduates entering consultancy will also slump, with firms preferring greater industry experience to more junior staff. One senior consultant said they were an ‘unaffordable luxury’.
Salary increases are on the wane, with possible pay freezes as firms attempt to recover from three years of gloom. Senior associates are expected to benefit most with a 4-5% increase in salaries to £70,800 per year.
For the full survey and more about Management Consultancy go to www.vnuservices.co.uk/mc