Dernières publications

By:
‍Hilmar Albers – Partner
Erwin Harbauer - Managing Partner

In parallel to the positive momentum witnessed in the country’s economic growth, forecasts indicate that Japan is expected to experience a long-awaited boost in wages. However, Japanese consultants can only look forward to a marginal offsetting of the cost of living pressures experienced in the country.

Domestic demand is a major driver of the Japanese economy. Unfortunately, consumer demand had subdued after a decade of ‘Abenomics’ with only disappointing growth in workers’ earnings, compounded by record inflation during QIV of 2022 and culminating in a 41-year-high rate of inflation of 4.3%¹ in January 2023.

While Japanese inflation remains relatively modest compared to the US or the Eurozone, these levels represent a radical shift for an economy that has experienced decades of ultra-low inflation.

Now, despite famously stagnant salaries, Japanese industry has reacted and wage increases are finally on the cards across all sectors. Open source market analyses predict an average hike in salaries of 2.8% (with estimates ranging from 2.5% to 3.4%)².

When also taking the re-opening of the country's borders to foreign visitors since October 2022 into account, we expect such wage increases to spur domestic demand and further stimulate economic activity. We therefore believe that the outlook for the remainder of 2023 is relatively positive for the Japanese economy.

Furthermore, Vencon Research’s survey data shows that the consulting industry is not excluded here and many of our clients have signalled growing order books. However, although consulting firms are also increasing salaries, the expected increases are far from those being offered by the country’s other industries, and average only 1.4%³ across career levels.

Many firms have also planned different levels of increases across their career grades, with a greater concentration on the lower career levels and less relative growth being offered to the more senior Management and Principal levels.

Since consultants already count as high-earners in Japan (as well as in most other countries worldwide), the lower expected salary growth percentages may be less surprising.

On the whole, while the consulting sector itself can hope to profit from a general uptick in economic conditions, Japanese consultants can only look forward to a marginal offsetting of the cost of living pressures experienced by the country.

For more information on this topic or on how you may successfully respond to the issues raised in this article, please contact Vencon Research – as always, we are happy to assist you.

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_{[1] https://tradingeconomics.com/japan/inflation-cpi;}

_{[2] Various inflation forecasting and research firms, incl. Japan Economic Research Center, Kienbaum, Korn Ferry Hay Group, Willis Towers Watson}

_{[3] Vencon Research analysis; Client feedback}

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PULSE SURVEY: ARGENTINA’S INFLATION AND HR PRACTICES AT CONSULTING FIRMS

Vencon Research’s 2022 Pulse Survey provides an insight into the effects of currency devaluation and inflationary pressures in Argentina. The survey results highlight the challenges faced by firms in Argentina in retaining their employees, and the measures they are taking to address the financial hardship faced by their employees.

1.  HIRING RAMPED UP IN RESPONSE TO INCREASING ATTRITION

 43% of firms reported experiencing an increase in voluntary attrition, which led to a higher rate of hiring to fill vacancies. While this is a concern, it’s reassuring to see that firms are proactively responding to this trend by increasing their hiring efforts.

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2.  RESPONSES FROM CONSULTING FIRMS

A significant majority of the respondents, 57%, reported that their employees are currently facing financial hardship due to inflation and/or currency devaluation. This is a worrying trend, but firms are taking steps to mitigate this issue with all of the firms surveyed adjusting compensation and/or extra payments in the last 12 months. An increase in base salary was the most popular measure taken to adjust compensation (29% of respondents). Additional payments(14%) and an increase in bonus/variable pay (14%) were also popular choices.

3.  DRIVERS OF COMPENSATION DECISIONS

The key influential factors “driving” compensation were identified as inflation (86%),cost of labour (29%), fluctuations in exchange rates (14%), and a rise in the cost of living expenses (14%).

It appears that a significant proportion of respondents (approximately 43%) were unable to make predictions regarding the anticipated situation in the next 12 months in Argentina. Despite this uncertainty, most firms are planning changes to their current compensation model in the coming 12 months, with all proposing to raise the base salary by over 20% and also boost the bonus by 20%.

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4.  REGULAR COMPENSATION REVIEWS ARE ESSENTIAL

Vencon Research’s 2022 “Pulse Survey” highlights the challenges that companies in Argentina face due to inflation and currency devaluation. While the results indicate a worrying trend of financial hardship among employees and an increase in voluntary attrition, the survey also highlights that firms are taking proactive measures to address these issues. With most firms planning to change their current compensation model in the coming 12 months, it’s clear that companies in Argentina need to regularly review and adjust their compensation offerings to mitigate the effects of inflation and currency devaluation.

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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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By Yao Tang - Business Development Manager

In recent discussions with consulting firms in the U.S., one recurring theme has been job hugging: employees remaining in their current roles longer than usual, not necessarily due to engagement or satisfaction, but because external opportunities appear limited or uncertain.

From a Total Rewards standpoint, this trend carries several implications:

• Lower turnover may give an incomplete picture of workforce stability.
• Firms with slower salary progression or career advancement may face sharper attrition once mobility returns.
• Reviewing competitiveness now can prevent costly corrections later.

What Is “Job Hugging”?

Job hugging refers to employees choosing to stay put — often despite feeling underutilised or dissatisfied — rather than pursuing external opportunities. It represents a reversal of the “job hopping” behaviour that characterised much of the post-pandemic period.

Why It’s Emerging

Several factors are contributing to this shift:

• Economic uncertainty and layoff activity: Employees are more risk-averse and value job security.
• Perceived scarcity of external opportunities: A cooling labour market has reduced hiring across sectors.
• Relative comfort: If pay and benefits are broadly competitive, employees may see limited incentive to move.

Implications for Consulting Firms

1. Low Turnover Can Mask Underlying Risk

U.S. quit rates have fallen to around 2% per month (compared with roughly 3% during the peak of the “Great Resignation,” according to the Bureau of Labor Statistics). On the surface, this appears positive — but reduced movement may reflect caution rather than commitment.

When hiring activity picks up again, turnover could accelerate sharply, particularly among high performers who have postponed their next move.

Key point: Low attrition during periods of uncertainty should not be interpreted as loyalty. Job hugging is a temporary pause, not a sign of long-term satisfaction.

2. Slower Career and Pay Progression Amplify Future Attrition

Career growth remains a defining factor for consulting talent. If internal progression is noticeably slower than market norms — for example, where promotion steps take several years longer or salary growth at promotion is smaller — frustration can accumulate even during periods of low mobility.

When external opportunities re-emerge, those who feel “stuck” are often the first to leave.

Key point: Firms with below-market progression structures risk concentrated attrition once confidence returns to the labour market.

3. Proactive Benchmarking Reduces Future Costs

The last period of rapid mobility (2021–2022) showed how quickly pay structures can come under pressure. Firms that had not reviewed salary levels in advance often needed substantial market corrections to retain staff.

Regular benchmarking helps identify misalignments early and allows for phased, measured adjustments — avoiding sudden, reactive pay increases later.

Key point: Periodic benchmarking is not simply about keeping pace; it’s about maintaining readiness when market dynamics change.

Staying Prepared

Vencon Research works with consulting firms across markets, using directly collected and regularly updated compensation data from entry level through senior roles. This provides firms with a clear view of how their salary structures compare today — and how they may need to evolve as market conditions shift.

Accurate benchmarking is ultimately about preparedness. Understanding where you stand now ensures you’re ready when job hugging transitions back into job hopping.

Vencon Research is the largest player in the field of consulting compensation metrics. Our client list includes 85 per cent of the world’s major management consulting firms and we have over 20 years of experience and data at our fingertips. To find out more about our benchmarking products and services, visit our website or get in touch with our team.

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By Osas Ohenhen - Business Development Manager

Benchmarking compensation accurately starts with identifying the right peer group—and in consulting, that also means matching by line of business (LoB).

Many firms operate across multiple LoBs, from strategy to IT implementation to risk advisory. Each of these business lines serves different markets, demands different skill sets, and carries different compensation expectations.

Comparing roles across unrelated LoBs—whether within your own firm or externally—introduces distortions. A senior consultant in digital transformation doesn’t operate under the same market pressures or salary expectations as a peer in commercial due diligence. Yet we frequently see data misused in exactly that way.

One Firm, Multiple Realities

Consulting firms are rarely single-specialty. Even smaller firms may offer services across several distinct areas. Larger firms might have a dozen LoBs under one umbrella. Treating them as one homogenous group for compensation purposes obscures important differences.

Take two examples:

• A consultant in IT Risk & Cybersecurity (ITR) is likely to have a specialized technical background and face strong competition from both consulting and non-consulting employers. Compensation must reflect that scarcity.
• Meanwhile, a peer in Operations-Based Management Consulting (OPO) might face a more traditional consulting talent market, with different leverage models and client fee structures shaping pay expectations.

Even within broadly defined domains like IT or Finance, sub-lines matter. IT Strategy, IT Infrastructure, and Enterprise Software Implementation differ in project focus, required experience, and salary bands.

The Scope of LoBs

Vencon Research tracks more than 35 distinct lines of business in our compensation benchmarking—offering granular, role-by-role data within each. This includes well-established categories and fast-evolving specialties:

• Strategy Consulting Firms
• Operations-Based Management Consulting
• Digital Strategy and Transformation
• AI Consulting
• Commercial Due Diligence
• Restructuring and Turnaround
• Cybersecurity Consulting
• Tax, Transfer Pricing, and Assurance Services
• Actuarial, Legal, and Government Consulting
• ...and many more.

This breadth ensures that benchmarking is never reduced to broad categories like “Consulting” or “IT Services.” Instead, we ensure each job is matched to its correct peer group—based on functional focus, project type, and market conditions.

Why It Matters

HR leaders rely on benchmarking to set competitive pay, manage internal equity, and guide offer negotiations. But those decisions are only as sound as the underlying comparisons. Without alignment to the correct LoB, even the most robust benchmarking data can lead you off course.

At Vencon Research, accurate benchmarking—within clearly defined lines of business—isn’t an extra. It’s a pillar of our methodology. We work closely with clients to ensure each role is benchmarked where it belongs, across a peer group that reflects both the function and the market.

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Analysis by Irina Kvirikadze - Senior Manager, Data Integrity Lead

Competitive compensation remains essential for attracting, retaining, and motivating top talent—crucial for delivering client value and sustaining long-term growth into 2025.

Research from Vencon Research and other sources shows that while consulting salaries continue to rise in 2025, the pace of increases has slowed compared to previous years. Firms are regularly adjusting their compensation structures in response to economic conditions, technological advancements, shifting client expectations, and overall business strategy.

Our data indicates that average global salary increases in 2025 stand at 4.5%, with inflation at 2.6%—both lower than the 2024 projections of 5.4% salary growth and 3.1% inflation.

Across regions, the range is narrow, from 4.1% in Europe to 5.6% in the Middle Eastern and African countries analysed. The range of inflation rates is even tighter, from 2.4% to 2.8%.

Expected Regional Salary Growth Projections: Europe

In 2025, salary increases across Europe are expected to range from 2% to 7.6%, while inflation rates are projected between 1% and 5.1%. Overall regional salary growth is forecast between 4.1% and 5.1%, with inflation ranging from 2.4% to 2.8%.

Our country-specific projections indicate 3.6% salary increases in the United Kingdom, 3.9% in Germany, 3.6% in France 3.6%, and 3.6% in Spain.

Expected Regional Salary Growth Projections: Americas

In 2025, salary increases across the Americas are projected to average 4.4%. Excluding Argentina, where hyperinflation distorts salary trends, Latin America is expected to see the highest wage growth in Colombia (6.1%), Mexico (5.4%), and Brazil (5.3%).

In North America, projected salary increases are more moderate, with Canada expected to see a 3.6% increase, while the United States is forecast at 3.7%.

Expected Regional Salary Growth Projections: APAC and MENA

According to our research, most locations in the APAC region are expected to maintain real salary growth rates similar to those seen in the previous year. Additionally, the region is projected to experience some of the lowest inflation rates globally. However, India stands out as a leader in salary growth, with an anticipated 9.3% increase.

In the Middle East and South Africa, average salary increases are expected to be lower than last year but will still remain strong throughout 2025. Projected increases include 4.2% in Saudi Arabia, 5.9% in South Africa, and 3.8% in the United Arab Emirates.

Trends Influencing Salary Changes in 2025

Economic Slowdown and Company Performance

Despite overall salary growth, some consulting firms are moderating salary increases in response to economic slowdowns and declining deal activity, which traditionally drive industry revenues. As a result, firms are increasingly adopting a balanced approach—while base salaries continue to rise, performance-based bonuses may be adjusted downward, particularly in firms that rely heavily on transaction-driven consulting services. This shift reflects a broader focus on cost management and financial sustainability amid uncertain market conditions.

Demand for Digital and AI Expertise

Market dynamics, driven by digital transformation, are pushing up salaries for consultants with expertise in AI, big data, and cloud/cyber technologies. Major firms, including top-tier strategy consulting firms and the Big Four, are making significant investments in AI and data driven consulting solutions. As a result, professionals with strong tech and analytics capabilities are commanding premium salaries.

Demand on Expertise in Sustainability

As businesses increasingly prioritize sustainability and environmental, social, and governance (ESG) strategies, consultants specializing in these areas are seeing salary premiums. Firms are expanding their ESG consulting departments, creating new opportunities for professionals with expertise in sustainability initiatives and triggering subsequent effects on staffing and compensation packages.

Emerging Industry Trends and Competitive Landscape

While established consulting firms maintain their dominance through structured practices and global scale, emerging players and boutique consultancies are gaining traction by focusing on niche sectors and delivering agile, customized solutions. This shifting competitive landscape is fuelling salary growth, as firms compete for top talent with competitive compensation and enhanced benefits. As demand for specialized expertise rises, consultants with sought-after skills and deep industry knowledge are increasingly able to negotiate higher salaries and more lucrative opportunities.

Vencon Research provides consulting firms with precise, industry-specific compensation benchmarking, ensuring they stay competitive in a rapidly evolving market. Our research includes further detailed insights into salary increases for 2025 by country, line of business, and career level, helping firms understand pay trends and make informed compensation decisions.

Learn more about how Vencon Research can support your firm’s pay strategy.

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By Veronika von Strachwitz-Camara - Business Development Senior Manager

Many larger consulting firms have not only started integrating sustainability and environmental topics into their services but have also established separate entities focusing solely on these issues.

Growth Trajectory

As the world grapples with escalating environmental challenges, companies and organizations have increasingly recognized the imperative to integrate sustainable practices into their operations.

Consulting firms with backgrounds in mining, energy, or engineering provide expertise to help companies navigate the intricate landscape of environmental regulations and develop sustainable strategies.

These were the pioneers. However, nearly all management consultancies have since incorporated environmental and sustainability into their services, recognizing their growing importance in both business and daily life. Such is the popular recognition of environment and sustainability that the enhancement to brand reputation gained from openly addressing it is significant.

Evolution and Current Trends

While the goals of environmental and sustainability consulting have remained largely similar over the years, there are observable shifts in focus from year to year based on changing requirements and technological possibilities.

Public opinion and corporate attitudes towards environmental issues have undergone significant changes over the past decade. Climate change, resource depletion, pollution, and social responsibility have become key concerns globally. Consumers demand environmentally friendly products and services, while investors and sustainable shareholders prioritize them. In response, companies are recognizing the need to incorporate environmental sustainability into their long-term strategies.

Environmental and sustainability consultancies offer expert advice on various issues, including energy efficiency, waste management, emissions reduction, and sustainable supply chain management. They assist in identifying and managing potential environmental risks, helping companies adopt sustainable practices that meet regulatory requirements and international standards.

Factors Driving Continued Growth

Several factors continue to contribute to the steady growth of the environmental and sustainability consulting industry:

1. Evolving regulatory landscape: Governments worldwide are introducing stricter environmental regulations, compelling companies to adapt to new compliance requirements. Environmental consulting firms help companies navigate these regulations and develop effective strategies.
2. Corporate Social Responsibility (CSR): Companies are under increasing pressure to demonstrate commitment to the environment and social responsibility. Environmental consultants help integrate sustainability into CSR initiatives, showcasing environmental responsibility to stakeholders.
3. Cost savings and efficiency: Sustainable practices often lead to cost savings and improved operational efficiency. Environmental consultants identify opportunities for resource optimization, waste reduction, and energy efficiency.
4. Improving reputation and brand: Implementing sustainability can enhance a company's reputation and brand value. Environmental consultants help organizations implement sustainable initiatives, improving brand perception and customer loyalty.
5. Investor demand: Institutional investors and asset managers increasingly incorporate environmental, social, and governance (ESG) criteria into investment decisions. Environmental consultants help companies identify ESG-related risks and opportunities, meeting investor expectations and accessing capital.

Current Trends in Environmental Consulting

Major current trends in environmental and sustainability consulting include:

1. Data-Driven Approach: Accurate and reliable ESG data is essential for providing optimal advice and decision-making. Technological developments allow precise data collection and analysis for ESG decisions.
2. Global ESG Frameworks: ESG consultants are promoting international transparency, addressing issues beyond climate change, such as socioeconomic inequality and human rights breaches, reflecting a push for more accountability and transparency.
3. Impact Investment: Investments are increasingly made with the aim of creating positive social and environmental effects.
4. Decarbonization and "Net-Zero" Aims: Holistic approaches involve switching to renewable energy, decarbonizing supply chains, implementing pricing mechanisms, and promoting circular economy principles.
5. Advancing Sustainability Through 5G: The 5G technology impacts sustainability in various fields, including reducing commuting, promoting 'smart' cities, minimizing resource usage, and precision farming.

Expansion and Opportunity

Environmental and sustainability consulting clearly plays a pivotal role in addressing the escalating global challenges we face today. ESG regulations are expanding as are the opportunities in using data to help find the best decisions for companies to tackle environmental, social, and governance challenges. Consultants need to be on top of national and international ESG regulations as well as know how to leverage the “big-data” being generated in this field and optimally advise on operational and investment decisions that companies need to take.

Amidst these trends, it becomes imperative for consulting firms to stay abreast of compensation levels and comparisons within the environmental consulting services sector. This insight is essential for providing optimal advice and decision-making in an ever-evolving landscape.

If you are keen to delve deeper into pay scales and gain valuable insights into environmental and sustainability consulting services, we invite you to connect with Vencon Research International. Our team will provide you with valuable information to navigate the complexities of compensation in this vital industry.