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Between April and June 2020 Vencon Research conducted the first Pulse Survey in the light of the unseen and unknown economic, financial, and personal impact of the COVID-19 crisis.

This Update to the Pulse Survey is a result of many requests from our clients over the past months wanting to find out how other professional services firms have adjusted to the crisis. Not just questions about the near and long-term future but also about the measures taken to react to COVID-19 and which may be sustainable and/or change the future of work and business in the consulting industry.

Most participating firms operated in strategy consulting, followed by IT consulting/services and operations consulting. 51% of responses came from firms located in Western Europe, followed by North America (20%) and AsiaPac (13%); ROW responses were 16%. Responses were well distributed with regards to firm size; slightly more responses came from firms employing 50-249 consultants (27%).

Here are some of the “highlights” from the key findings of the survey:

Business Situation and Prospects

The outlook for the coming year was fairly positive: More than half of the firms (54%) expected COVID-19 to positively impact their business. Generally, the consulting industry was surprisingly optimistic: A total of 82% of the firms expected better business prospects, despite COVID-19.

Effects on Workforce

During the previous 12 months more than half of respondents (52%) stated they reduced hiring; Interestingly, 31% reported increasing hiring. More than half of firms (56%) expected to increase hiring in the coming 12 months based on largely positive expectations regarding their business situation. Most firms (78%) expected either no adjustment or a slight increase in their existing workforce after COVID-19; only 17% of firms expected a significant increase. The problems mentioned resulted from staff working too long, a lack of “down time” and/or “switching off”; “virtual” onboarding/training was also difficult.

Promotion, Compensation & Place of Work

Most firms (82%) provided the necessary support to allow employees to work remotely and/or work from home, including for example computer/laptop, high-speed broad-band internet access, headphones, video camera equipment, etc., as well as other benefits.

The mental health of employees was considered a major challenge during the COVID-19 crisis. Hence, almost all firms provided additional training (93%) and self-management assistance (88%) to ensure employees are not over-worked and do not face “burnout” or the like. However, only 34% actually tracked home office working time.

Firms reacted differently regarding compensation adjustments: “merit” based pay increases continued to be offered; however, bonuses were reduced or suspended.

The majority of firms (75%) expected office usage to be reduced in the future and expected “work from home” to be continued (to a degree). In particular firms implemented “work from home”, which has become a standard way of operating for many firms; at least partly.

Long-term Changes and Challenges

Flexibility of place of work is expected to increase as most respondents (89%) expected “work from home” to be permanently implemented, but at lower than current levels (min. 1 to max. 3 days p/w). With regards to the difficulties arising from the increased usage of “work from home” or “remote work” and other permanent changes in business operations most firms mentioned the “soft” factors (e.g. self-management, continued health and well-being, culture) that were and will be challenges faced by “work from home” policies.

Many firms (59% of respondents) expected Business Development (i.e. sales) to become more “virtualised”.

The Long-term Outlook

Interestingly, almost half of the firms (49%) expected things to get back to “normal” within a given time, i.e. to the conditions before COVID-19. On the other hand, 39% of the respondents stated that there will be no return to a “before”.

Should you have any further questions or would like to receive more detailed information on this topic, please reach out to us at info@venconresearch.com.

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Andy Klose is an Associate Partner at Vencon Research International and heads the firm’s consulting unit.

Erwin Harbauer is a Partner at and co-founder of Vencon Research International.

Vencon Research International is a leading provider of compensation benchmarking and research as well as of compensation and performance-related consulting services for professional service firms, especially for audit and tax, management consulting, and IT services firms. Vencon Research International provides services to a full range of clients in more than 75 countries worldwide and is proud to name more than 85% of the world’s major consulting and/or professional services firm its clients.

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By Mik Bodnar - Business Development

As AI has matured from isolated pilots to enterprise-wide deployment, it has become a central pillar of business change. Consulting firms including Accenture, Deloitte, McKinsey, Bain, EY, KPMG, PwC, IBM, Infosys, TCS, Wipro, and Oliver Wyman have expanded AI-related offerings in response to sustained client demand.

Across firms, these services tend to fall into two broad categories: Insight & Transformation and Implementation & Managed Services. Together, they reflect the strategic and operational sides of AI adoption—defining both what AI should deliver and how it is embedded at scale.

AI Consulting: Insight & Transformation

Definition This segment focuses on setting direction. It covers strategy, governance, ethics, industry perspectives, and workforce change.

Core question What should AI mean for our business?

Strategic AI Consulting

Strategic AI Consulting helps organizations identify where AI can create material value and how it fits into broader operating and growth models. McKinsey’s QuantumBlack unit, for example, supports clients in prioritising high-impact use cases and building adoption roadmaps that extend beyond pilots.

AI Governance, Risk & Ethics

Governance and risk services establish guardrails for responsible AI use, addressing compliance, transparency, and ethical considerations. Deloitte’s Trustworthy AI framework illustrates how firms help clients balance innovation with regulatory scrutiny and reputational risk.

Industry-Specific AI Strategy

AI strategies are increasingly tailored by sector. EY, for instance, advises financial institutions on AI-driven fraud detection while ensuring alignment with regulatory requirements and model risk standards.

Workforce Transformation

Workforce-focused services prepare organisations for AI-enabled ways of working. This includes role redesign, reskilling, and change management. Bain’s work with retailers on AI-supported inventory and demand planning highlights the emphasis on human–AI collaboration rather than automation alone.

AI Consulting: Implementation & Managed Services

Definition This segment focuses on execution—deploying, operating, and scaling AI in day-to-day environments.

Core question How do we make AI work consistently in practice?

AI Implementation & Integration

Implementation services cover the deployment of AI platforms, models, and automation into existing processes. Accenture’s AI Studio, for example, supports the integration of generative AI into customer service functions to improve responsiveness and personalisation.

AI Product & Solution Development

Here, consultants design and build bespoke AI applications, such as predictive analytics tools or domain-specific generative AI solutions. IBM’s work with healthcare providers on clinical data analysis illustrates this product-oriented approach.

Managed AI Services

Managed services focus on ongoing performance, monitoring, and optimisation. Infosys provides managed AI operations for manufacturing clients, ensuring predictive maintenance models remain accurate as conditions and data change.

Data & Cloud Enablement for AI

AI at scale depends on modern data and cloud foundations. TCS supports organisations in migrating legacy systems to cloud environments, enabling more advanced analytics and model deployment.

Why AI Consulting Matters for Firms and Talent Leaders

AI consulting has become a core practice area, combining strategic advisory work with deep technical execution. Yet growth in this space is constrained by talent availability. Demand for consultants who can bridge business context and advanced analytics continues to exceed supply.

For HR and compensation leaders, access to reliable market data on AI consulting roles is therefore critical. Salary benchmarks support competitive pay structures, internal equity, and retention—particularly as firms compete not only with peers but also with technology companies and startups. Without clear market reference points, consulting firms risk losing scarce AI talent just as these capabilities become central to client value delivery.

AI transformation places new demands on roles, skills, and pay structures. Vencon Research provides HR advisory services alongside compensation benchmarking to help consulting firms make data-backed workforce and pay decisions.

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By Yao Tang - Business Development Manager

In a previous article, we discussed the various components of remuneration packages, and today, we will dive deeper into one of the key elements: Allowances.

Allowances are additional fixed payments provided alongside basic salary to address specific expenses, such as housing, transportation, or meals. While allowances are not typically included in bonus calculations, in certain regions they play a significant role in the overall compensation structure.

Regional Differences in Allowances

Allowances and their importance vary significantly across regions. Here's how they differ:

Gulf Countries (UAE, Saudi Arabia, Qatar)

In the Gulf region, allowances play a critical role in consultants’ pay packages. They often account for 30-50% of total compensation, particularly for expatriates. Common allowances in this region include:

• Housing: Often provided due to the high cost of living in major cities.
• Transportation: To cover the cost of commuting or car ownership.
• Education: Expatriate families may receive allowances to cover tuition fees for their children.
• Relocation: Moving expenses are often reimbursed.
• Home leave: Usually flights (roundtrip) once per year for employees and their families are reimbursed.

Allowances are prominent in the UAE because they offer employers greater flexibility and cost control. Since end-of-service gratuity is calculated only on the basic salary, structuring pay with a lower base and higher allowances reduces long-term liabilities. This approach also aligns with local labour laws and common market practices, particularly for expatriate-heavy workforces where housing, transport, and education allowances are expected. Additionally, allowances can be adjusted more easily than fixed salaries, making them a practical tool for managing changing business needs.

India

In India, allowances are highly structured and play a significant role in compensation packages, often due to tax benefits. Common allowances in India include:

• Housing Rent Allowance (HRA): To help cover the cost of housing
• Leave Travel Allowance (LTA): To reimburse travel expenses for employees and their families.
• Fuel/Transport Allowances: To assist with commuting costs.

India also uses a Cost-to-Company (CTC) model, where the total compensation (salary, allowances, and benefits) is disclosed as a single figure. As a result, employees may find that their take-home pay is lower than expected, since some allowances and benefits are included in the CTC but not always in the direct salary portion.

Europe & North America

In most parts of Europe and North America, allowances are less common compared to regions like the Gulf or India. Instead, firms tend to offer higher base salaries. When allowances are provided, they are typically for specific purposes, such as:

• Transportation stipends
• Meal vouchers
• Relocation support

In these regions, performance-based incentives, such as bonuses, stock options, or profit sharing, are more common than fixed allowances.

Asia-Pacific (Singapore, China)

In high-cost cities like Shanghai, Hong Kong, and Singapore, housing allowances are quite common to offset the high costs of living. Expatriates in these markets may also receive additional perks, such as:

• International school tuition for children
• Home leave flights
• Relocation benefits

Local hires in these regions generally receive fewer allowances, with firms often opting for higher base salaries or bonuses instead.

Are Allowances Always Considered Part of Total Cash Compensation (TCC)?

The answer is generally yes—and this is consistent with Vencon Research’s approach. In most markets, allowances such as housing, transportation, and meal stipends are included in Total Cash Compensation (TCC), especially in regions where such allowances make up a substantial portion of overall pay.

One exception is children’s education allowances, which are usually excluded and instead captured in our separate Benefits Survey. This is primarily because such benefits are not universally applicable—for example, not all employees have children.

Accurate Comparison Requires Regional Nuance

At Vencon, we understand that taking into consideration regional differences in each component of Total Cash Compensation (TCC)—such as allowances—is essential for accurate and meaningful compensation comparisons. We've discussed how allowances can significantly impact total compensation packages in different markets, and we ensure that all these variations are considered in our analyses.

In markets where allowances make up a larger portion of compensation, we provide detailed breakdowns to offer a comprehensive understanding of the total compensation package. These insights combined allow Vencon Research to help organizations make well-informed decisions when benchmarking salaries and structuring compensation packages globally.

By leveraging Vencon Research’s structured approach and industry-specific insights, consulting firms can ensure their compensation practices remain competitive, equitable, and aligned with market expectations.

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The promise of artificial intelligence in HR technology has caught the attention of many leadership teams — and compensation management is one area where interest is growing fast.

With rising expectations around pay transparency, regulatory compliance, and pay equity, many HR departments are wondering whether AI could help manage these increasing demands more efficiently.

At the same time, it’s important to take a realistic view of what current tools can deliver — and, more importantly, what it takes to implement AI systems that are truly effective and reliable in compensation work. While there is clear potential, significant investment and expertise are still required to move beyond basic applications.

Why Salary Data Remains a Limiting Factor

The usefulness of AI in compensation depends first and foremost on the quality of the data it can access. Unlike some other areas of HR, compensation data is largely private. Salary details reside within companies or specialist benchmarking services and are subject to confidentiality, compliance, and commercial sensitivities. Publicly available data — such as figures scraped from job boards or self-reported on crowdsourced sites — is often incomplete, inconsistent across markets, or skewed toward particular industries and seniority levels.

General-purpose AI models trained on open data (such as ChatGPT or similar tools) do not have access to the kind of verified salary data used in professional compensation management. Attempting to generate salary benchmarks based solely on such models carries a high risk of inaccuracy — which could lead to poor decisions on pay levels, legal exposure, or damage to employee trust.

Building Useful Tools Requires Expertise and Investment

There is genuine potential for AI to support compensation work — but delivering useful tools is not a matter of simply “adding AI” to existing systems. It is important to be clear what is meant here. Having access to an AI chatbot (such as one embedded in a broader HR system) is very different from building a bespoke AI application that has been trained and configured using a company’s internal data, role structure, pay philosophy, and specific business requirements.

Many of the most promising use cases require exactly this kind of customisation. For example:

• Automatically generating salary ranges for new or evolving roles
• Identifying pay disparities or inconsistencies across levels, regions, or business units
• Simulating the financial and structural impacts of salary changes
• Monitoring compliance with pay transparency regulations

To achieve this, AI models must be tailored to a company’s compensation framework, legal environment, and data structures. Developing such solutions involves technical expertise, time, and a significant financial investment — both to build the system and to ensure it can be trusted and maintained in practice. The costs of doing this — and of ensuring results remain auditable and aligned with changing pay practices — can be substantial.

Human Oversight is Built Into the Process

Even when custom AI tools are implemented, compensation work remains a sensitive and business-critical area. Outputs need to be reviewed and contextualised by experienced professionals — not just because of current limitations in the technology, but because compensation decisions often involve balancing objectives that are not easily reduced to data alone.

It is this complexity — combined with the need for regulatory compliance and employee trust — that makes careful human oversight an integral part of any AI-supported process.

Areas Where AI is Already Proving Useful

While the more advanced applications require considerable investment, there are areas where AI can already deliver value in a more straightforward way:

• Data cleaning and preparation, especially when combining multiple survey sources
• Drafting job descriptions or compensation documentation with natural language models
• Flagging anomalies or outliers in pay data for further review
• Supporting pay equity reviews by highlighting trends and patterns

These practical applications can help free up HR and compensation teams to focus on higher-value analysis and decision-making. Still, while some of these use cases may be served with ready-to-use models on a subscription or even free basis, others will require bespoke implementation that will come at significant cost. Using online models also opens up a plethora of data confidentiality questions that should not be taken lightly.

A Measured Path Forward

AI is unlikely to transform compensation management overnight — not because of a lack of potential, but because building models that genuinely reflect the complexity of compensation requires considerable customisation and resources. For many companies, the path forward will be gradual: using AI first to support data processing and review, while investing in more advanced tools where business needs and resources align.

In the coming years, AI will no doubt play a larger role in compensation management. But as with many areas of HR, its value will depend not just on the technology itself, but on the care and expertise brought to its implementation.

How Vencon Research Can Support Your Compensation Work

At Vencon Research, we work with consulting firms to ensure their compensation decisions are grounded in accurate, relevant data. Whether you're exploring how AI might support your internal processes or simply need reliable benchmarking to build on, we can help you get the foundations right.

Tariffs are often viewed through the lens of international trade policy, but their downstream effects reach deep into professional services—consulting included.

Recent rounds of tariff introductions and revisions, particularly by the United States, have added another layer of global economic uncertainty. While consulting firms may not import or export physical goods, they operate within the broader systems shaped by such policy shifts.

As tariffs alter client behaviour, restructure supply chains, and reshape corporate priorities, they also impact demand for consulting services and influence compensation dynamics within the industry.

Disruption Triggers Demand—But Not Evenly

Historically, tariffs trigger uncertainty and disruption. For consultants, disruption often translates into opportunity. Clients facing increased costs due to tariffs seek advice on how to restructure operations, identify alternate suppliers, localize production, or navigate cross-border regulations. Strategy and operations practices typically see an uptick in demand in these periods.

However, the benefits are not evenly distributed. Boutique firms that rely heavily on clients in trade-sensitive industries may feel the pinch if those clients pause discretionary spending. Conversely, larger firms with diversified client bases and deep expertise in supply chain or trade compliance may see growth.

Services and Tariffs: Not Immune, Just Indirect

Consulting services themselves are rarely subject to tariffs. Most trade policies target physical goods, not expertise. Still, the consulting industry is affected indirectly. Tariff-driven cost increases or supply chain disruptions can shift client spending priorities—sometimes delaying projects, other times accelerating demand for advisory support. In more complex trade disputes, regulatory barriers to delivering services across borders may also emerge, though this remains uncommon.

Regional Compensation Pressures

Tariffs often prompt companies to shift operations regionally, particularly from high-tariff geographies to more favourable ones. This movement affects the distribution of consulting demand geographically. For example, an uptick in demand for consultants in Mexico or Southeast Asia might follow tariffs targeting Chinese goods, as companies explore alternative manufacturing hubs.

This regional shift can create compensation pressure, especially for firms trying to retain experienced consultants in high-demand markets. While global firms may have the flexibility to adjust pay bands across offices, many still benchmark compensation by region or country. In those cases, benchmarking data needs to be updated more frequently to remain accurate during volatile trade shifts.

Compensation Structures Adapt to Market Volatility

Volatility brought on by tariffs and related trade policy changes may lead consulting firms to revisit their compensation structures. In periods of uncertainty, firms may emphasize performance-based bonuses over fixed salary increases, particularly at senior levels. Incentives tied to utilization, client retention, or business development become more prominent as firms aim to reward adaptability and revenue resilience.

On the recruitment side, firms may also shift their hiring strategies—favouring professionals with trade policy or supply chain backgrounds, which can place upward pressure on compensation for niche skill sets.

Tariffs as a Benchmarking Variable

For firms benchmarking compensation, tariffs are an indirect but relevant factor. While they don’t directly alter pay, they influence the conditions under which consultants operate—demand for specific services, client industries under pressure, and regional reallocation of work. When reviewing benchmarking data, consulting firms should consider whether tariff changes or anticipated policy shifts might be distorting demand in certain functions or geographies.

At Vencon Research, we’ve seen clients request more granular cuts of benchmarking data during periods of trade disruption. Understanding compensation trends not just by role, but by industry served or region of operation, becomes essential to ensure alignment with shifting market realities.

If you're re-evaluating your compensation strategy or want a clearer picture of where the market is heading, Vencon Research can help. We specialize in compensation benchmarking tailored to the consulting industry—so you can make informed decisions, no matter how the trade winds shift. Get in touch now.

By Gunjan Kalwani - Senior Associate, Data Integrity

The consultant experience as an employee is shaped by multiple factors, from career progression and financial incentives to work-life balance and organizational culture.

Vencon Research’s Consultant Salary Survey not only provides detailed salary structures but also examines career-related aspects such as time-based remuneration, career progression, sign-on bonuses, and other factors that significantly influence employment decisions in a competitive market. These insights are included in the accompanying presentation format of our survey as standard.

Career Progression: Mapping the Path Forward

Career progression in consulting follows a structured advancement through different roles, characterized by increasing responsibility, skill development, and experience over time. Aligning career progression with both company growth and employee expectations is essential for attracting ambitious talent and retaining high performers.

While many professionals follow a standard promotion timeline, others may progress at faster or slower rates depending on performance and business needs. Vencon Research’s Consultant Salary Survey captures all three career tracks—fast, typical, and slow—to provide companies with a clearer view of industry norms. Firms can use this data to assess whether their career progression structure aligns with competitive benchmarks and industry best practices.

Beyond broad career tracks, Vencon Research also offers detailed breakdowns by individual career levels, helping firms compare their career progression models with those of their competitors and refine their talent development strategies.

Time-Based Remuneration: Understanding Pay Progression Over Tenure

Time-based remuneration progression tracks how salaries evolve based on tenure, offering valuable insights even if compensation is not strictly linked to time spent at a particular level. This data helps organizations understand historical pay trends, benchmark against industry standards, and identify potential inequities in pay structures.

While Vencon Research’s salary surveys primarily benchmark roles based on responsibilities rather than tenure, time-based remuneration insights are available to provide additional context on how salaries change over time within the industry.

Graduate Starting Salaries: Setting Competitive Entry-Level Pay

Starting salaries are a crucial factor in attracting top graduates and early-career professionals. These salaries vary based on factors such as educational background, geographical location, and market demand. Competitive starting salaries ensure firms can secure the best talent while avoiding the risks of over- or underpayment.

Vencon Research’s Salary Survey includes detailed insights into starting salaries at the entry level for candidates with Bachelor’s, Master’s, and MBA degrees, helping firms refine their recruitment strategies and compensation packages.

Sign-On Bonuses: A Key Talent Attraction Tool

Sign-on bonuses serve as financial incentives to entice new employees to join a company, often structured as a lump-sum payment with a payback period if the employee leaves within a specified timeframe. These bonuses can be particularly influential in consulting, where firms compete for high-calibre candidates.

Tracking sign-on bonus trends through benchmarking allows companies to assess whether their offerings remain attractive relative to competitors, ensuring they maintain a strong recruitment advantage.

Referral Incentives: Encouraging Employee-Driven Recruitment

Financial incentives for employee referrals reward current staff for recommending qualified candidates, helping firms reduce recruitment costs and improve hiring quality. However, ensuring these incentives strike the right balance between motivation and budget efficiency is key.

Benchmarking referral incentives allows firms to fine-tune their programs to maximize effectiveness while maintaining cost control.

Overtime Policy and Time Off in Lieu: Balancing Workload and Compensation

Overtime compensation policies vary widely across consulting firms. Some companies pay overtime at an enhanced rate, while others offer Time Off in Lieu (TOIL), allowing employees to trade extra hours worked for additional paid leave.

Comparing these policies with industry standards helps firms identify potential gaps or inefficiencies, ensuring their approach remains competitive and supports employee satisfaction.

Beyond Compensation: Additional Career-Related Factors

Other aspects such as internship programs, utilization rates, and revenue targets also serve as valuable benchmarks for assessing industry trends and identifying areas for growth. These factors influence not only individual job satisfaction but also the broader organizational culture – all of them are included in our reports.

Long-term success in consulting isn’t just about securing clients—it’s about developing and retaining talented professionals who can drive the firm’s vision forward. Offering transparent career progression and effective incentive structures reduces turnover and strengthens employer branding. Regularly reviewing and benchmarking these policies and keeping them in view when benchmarking compensation ensures they remain relevant, competitive, and aligned with evolving workforce expectations.

Download a sample report to get a full picture of our benchmarking data.

Vencon Research provides the insights consulting firms need to attract and retain top talent. Contact us today to learn how our benchmarking reports can help you refine your compensation strategy and stay ahead of the curve.

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