Latest InSights

By Cara Solorzano - Business Development

Stay on pulse with HR trends in the consulting industry as our advisors share the latest insights and strategies gleaned from engagements with firms worldwide.

1. Budget considerations

Many consulting firms are being cautious with their company spending and HR budgets are not immune to imposed constraints. Such budget considerations seem to affect small to mid-size consulting firms more than larger and global players.

2. Both consulting firms and their clients err on the side of caution

Consulting firms are cautious due to a general sense of insecurity surrounding market stability, compounded by clients hesitant to embark on consulting projects, often delaying confirmation and constraining project size and scope in the name of “cost saving”.

3. Q1 offers promising talent in 2024

HR leaders tell us 2024 is offering up a rich pool of consulting talent in Q1. Hirers are excited about having options, something denied them for the past few years as outstanding talent seemed rare to find.

4. Candidate green demands

New hires are very focused on company sustainability and are questioning not only which “green” Employee Benefits a firm may offer, but also the company’s eco-friendly operating policies.

5. Office presence, on occasion

Many firms have cut their physical offices (one client cut 70% of physical locations) and are developing new strategies to maintain team spirit and social interaction. One has endeavored to build “chit chat” culture into video comms: “setting up calls can be daunting, so we are starting to call employees outside of fixed meeting times to simply say hello and have a cup of coffee, like we would in the office”. Another firm that sees a majority of work done remotely has recognized that many younger employees are still keen to come into the office due to their living situations (shared flats or smaller apartments), or simply the desire for more “in-person” connection, and has set up a system allowing consultants to book the times they intend to spend in the office, where space may otherwise be limited.

6. No office, no oversight?

Many consulting firms are concerned about employee output, especially in the context of increased remote work. One client informed us that managers have created a due diligence system to account for employees’ timelines. If an employee is falling behind their quotas they set up one-on-ones and set appointments to review both prioritization and strategy on accomplishing both goals and tasks.

As a trusted HR partner for the consulting industry, Vencon Research is here to help you unlock the full potential of your team. Contact us to learn more about how we can support your HR needs and drive success for your business.

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By Andy Klose - Associate Partner

Designing and defining partner compensation within consulting companies can be challenging, but the Trinity Model proposed here offers a clear solution.

By following this model, companies can confidently institute effective partner compensation to achieve the best outcome for all stakeholders. This model emphasizes the interconnectedness of profit, goals, and pay in shaping partner compensation, ensuring alignment with organizational objectives.

Understanding the Trinity Model

Vencon Research’s Trinity Model for Partner Compensation design is based on three fundamental pillars: profit, goals, and pay (Exhibit 1):

These elements are not discrete elements but are interwoven, shaping the trajectory of partner compensation within consulting firms.

1. Profit: Profitability, in its broadest sense, serves as the cornerstone of the Trinity Model. It encompasses various factors such as geographical location, business segment, industry dynamics, and operational models, delineating the profit potential of a company, service line, or consulting project.
2. Goals: Central to the Trinity Model are the objectives or Key Performance Indicators (KPIs) set for partners. These encompass tangible metrics like sales targets, revenue goals, contribution margins, and profitability thresholds, defining the expected outcomes from individual or team contributions.
3. Pay: The compensation offered to partners is the tangible expression of their contributions and achievements within the organization. While market competitiveness is essential, equitable compensation that aligns with individual contributions is equally crucial for fostering a culture of fairness and performance.

Harmonizing the Trinity

The Trinity Model demonstrates structural cohesion by linking profit, goals, and pay within defined frameworks such as partner levels or career groups. Unlike traditional career progression paradigms, partner levels in this model are based on competency and performance rather than a linear upward trajectory.

In practice, changing one element of the Trinity requires corresponding adjustments to maintain balance. For instance, modifying compensation without aligning goals can cause conflict within the system. Therefore, it is crucial to synchronize all three elements to avoid any potential issues.

The following example should highlight these interrelations: Consider a scenario where a consulting company is striving to achieve ambitious growth goals by increasing revenue. This can be implemented by setting higher revenue goals for the firm’s partners. Profitability is typically defined by the types of clients served or the type of advisory work offered and is often less flexible. In this example, it is a fixed element. So, increasing partners’ revenue goals without adjusting their pay (potential) will eventually lead to an imbalance. Partners can increase their income by achieving higher revenue or profit goals and making other contributions. However, for career levels below partner, pay may also be significantly influenced by inflation and other factors.

In essence, the example highlights the imperative of harmonizing profit, goals, and pay to maintain balance within the compensation structure. By aligning compensation with organizational objectives, companies can ensure that incentives are calibrated to drive desired outcomes, fostering a culture of accountability and performance at all levels of the organization.

Moving Beyond Benchmarking

Regular benchmarking of pay against relevant peers provides valuable market insights when reviewing pay practices and market positioning. However, some consulting companies, such as those with a more meritocratic pay approach (“pay for performance”) may need to add a second step to the benchmarking exercise, particularly when reviewing Partner pay in relation to performance metrics. Such companies may wish to consider additional factors beyond pay benchmarking to ensure coherence within the Trinity Model and achieve a more holistic alignment across all elements.

Incorporating ESG Considerations

In an era marked by heightened awareness of environmental, social, and governance issues, consulting companies should be encouraged to incorporate ESG considerations into Partner performance assessments and incentives. By doing so, companies can promote a culture that values responsible management, and strive for sustainable value creation over the long term. This holistic approach not only aligns with societal expectations but also enhances the company's reputation and competitive advantage in an increasingly ESG-conscious business environment. This expansion of the Trinity Model to include ESG elements will be covered in a follow-up piece to this article.

Balance & Interdependence for Success

Achieving balance in partner compensation is important for creating a culture of performance, fairness, and sustainability in consulting companies. By acknowledging the interdependence of profit, goals, and pay, and incorporating emerging ESG considerations, firms can implement partner compensation strategies with confidence and foresight.

We would be pleased to assist you with any additional inquiries you may have and offer recommendations on how to enhance partner compensation for your organisation.

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

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.

Compensation and Pay Mix: Part 4

By Andy Klose - Associate Partner

In this series of articles, we highlight an aspect of remuneration strategy that is often overlooked: the ratio of fixed and variable pay to total cash compensation (also known as "pay mix").

Pay mix determines what types of employees are attracted by a particular compensation model, which in turn impacts a company's performance and results. Setting the right pay mix, especially for client-facing and sales roles in professional services firms is critical for success.

As a rule of thumb: The higher the influence of a job holder on clients’ purchasing decisions, the higher the variable portion in the pay mix. Lastly, the type of employees being attracted to a particular compensation model will also shape a firm’s culture in the long run.

Pay Mix: A Defining Differentiator in Compensation

In Part 1 of this series, we explained why the pay mix can be the defining differentiator, particularly from an employee’s perspective, when many of the other key elements of compensation across competing organisations are considered to be broadly similar. In Part 2 we discussed how pay mix affects the financials of firms, especially with regards to personnel costs. Part 3 examined how pay mix should be adjusted in relation to the total cash compensation offered and how benchmarked market percentiles are the most effective indicator of competitive positioning. And, in this final Part 4 we will assess how pay mix may influence firms’ culture and performance.

This is the last part (Part 4) of our series on compensation strategy, where we focus on the critical importance of pay mix - the balance between fixed and variable compensation - in shaping employee attraction, firm culture, and long-term performance. In this article, we provide deeper insights into how pay mix influences organizational culture and overall performance.

Challenging Conventional Wisdom

In the midst of debates over the effectiveness of increased remuneration in motivating employees, it is crucial to challenge conventional wisdom. While monetary incentives undoubtedly play a role, our research suggests that sustainable performance depends more on creating a high-performance environment than simply increasing pay.

We propose a paradigm shift captured in our “Performance Mindset Framework” (Exhibit 1), which highlights the link between mindset, behaviour, and performance. Our model suggests hiring individuals who are motivated by intrinsic factors, such as a sense of ownership and commitment, rather than relying solely on external rewards.

Attracting and Retaining Top Talent

To attract and retain high-potential candidates, firms must adopt rigorous recruitment processes and leverage advanced personality assessments to identify individuals with the right mindset and soft skills. Additionally, offering well-balanced total rewards packages, including compensation, benefits, and personal development opportunities, enhances the value proposition for prospective employees.

Strategic Pay Mix in Professional Services Firms

In industries like consulting and IT services, where achieving “hard KPIs” such as, e.g., sales targets and margin goals is paramount, offering a competitive pay package is imperative. Consulting companies not in the top quartile of their niche can leverage a slightly higher total cash package with a “riskier” pay mix to attract individuals motivated by performance-driven incentives.

Expected Long-term Effects of Compensation Strategies

Based on the following example, we present the expected long-term effects assuming that the compensation strategy and pay mix are implemented consistently over several years. In simplified terms, the expected results are shown in Exhibit 2:

Firm 1 will attract more 'hunter'-type employees who are drawn to the compensation model, which includes a relatively high variable, performance-related portion with the potential for the highest total cash. This will result in a competitive and dynamic corporate culture. The main challenge for the company will be fostering cooperation between employees rather than motivating them.

Firm 3 is the ideal choice for employees who value a higher fixed base income over a higher total remuneration. Individuals who are less performance-driven or less self-assured may find this option more attractive compared to Firm 1. This situation may result in performance issues for the company in the long term. There is the danger that employees who consistently outperform their colleagues will leave due to the relatively low variable bonus component, which prevents them from expecting a significantly higher salary than their peers. Additionally, these employees may be enticed to work for one of the other two rival types of companies, where they can earn significantly more for the same level of performance.

In the long term, Firm 2 will see long-term results between the two scenarios outlined. Identifying 'over-performers' and motivating them may be a key challenge, but one that can be overcome with the right approach.

Long-Term Implications

Different pay mixes yield distinct long-term effects on a company's economic situation and culture. Companies with a higher variable portion in their pay mix tend to attract dynamic, performance-oriented individuals, fostering a competitive corporate culture. Conversely, companies with a lower variable portion may face challenges retaining top performers and maintaining a high-performance environment.

Tailoring Pay Mix to Market Dynamics

Designing the right pay mix necessitates a nuanced understanding of market comparatives and cultural preferences. Pay mix varies by region and country, with some cultures more receptive to aggressive pay mixes than others. Therefore, companies must align their compensation strategies with local norms while remaining competitive in talent acquisition and retention.

Conclusion

Pay mix is a strategic tool that significantly impacts employee attraction, firm culture, and overall performance. A comprehensive approach to compensation and aligning pay structures with organizational objectives can position companies for sustained success in a competitive marketplace. Optimizing pay mix and remuneration systems to suit individual company needs and objectives is essential for achieving this success.

We are at your disposal for further questions and suggestions regarding how you optimally design pay mix (and/or remuneration systems) for your company.

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

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 Andy Klose - Associate Partner

The rise of remote work after the COVID-19 pandemic has led to discussions among consulting firms about how to adjust pay for remote employees. This article explores the complexities of compensation strategies for remote work, including different pay models, remote work policies, and long-term perspectives within the consulting industry.

Exploring Pay Strategies

The question of whether consulting companies employ different pay strategies for their remote employees is a common one. To address this, we must first consider the various pay strategies employed by consulting firms (there are other as well as hybrid strategies in place):

1. Employee location-based pay: In this approach, companies adjust salaries based on the cost of living in the employee’s location (which often applies also to remote employees). This ensures equitable compensation, with higher salaries in high-cost areas such as San Francisco.
2. Office location-based pay: Some companies base employee salaries on the location of their offices, considering the local cost of labour which is not only driven by cost of living but also by talent supply and demand.
3. Country-based Pay: Another strategy is to set salaries based on a national average or maintain consistent pay across all locations in the country. While straightforward to implement and to maintain consistency across the organization, this approach may not account for regional cost-of-living differences.

Given these pay strategies, companies with employee location-based pay strategies are less likely to differentiate pay for remote employees. Conversely, those with office location-based or country-based pay strategies may be more inclined to do so.

Remote Work Policies

Furthermore, the diversity of remote work policies further complicates the issue (there are other as well as hybrid policies in place):

1. Fully remote: Some companies allow employees to work entirely remotely.
2. Hybrid remote: Many companies offer a blend, where employees work remotely part-time and attend office meetings or collaborations as needed.
3. Remote-friendly: Others permit remote work on an as-needed basis or with managerial approval.

Therefore, companies that have fully remote or hybrid remote work policies are less likely to differentiate pay for remote employees. This means that companies with remote-friendly policies seem to be more likely to consider different pay to their remote employees.

Long-Term View on Remote Work Policies

Additionally, consulting companies’ long-term view on remote work policies vary:

1. For remote work: Advocating for remote work indefinitely, some firms commit to embracing its advantages.
2. Against remote work: Conversely, other companies aim to return to pre-pandemic office norms, underscoring e.g. the value of in-person interactions.
3. Undecided: Certain companies are struggling with the decision of whether to continue remote work or return to the office. They recognize the challenges of reversing current remote work trends or are unsure about the potential benefits, such as increased efficiency.

Only firms in the first category, which are for remote work, are likely to consider pay differences for their remote employees. The other two groups are less likely to do so due to a possible transition.

Conclusion

All in all, most consulting companies remain hesitant to implement different pay strategies for their remote employees due to strategic and ethical considerations:

1. Strategic considerations: Companies typically choose office locations strategically, independent of individual employee locations, to achieve business metrics like revenue and margin. Thus, business outcomes remain unaffected by remote work. For example: A consulting company will charge the same billing rate to a bank in Manhattan regardless whether the consultant will be working in the New York office or remotely.
2. Misusing financial leverage: Paying remote employees less could be seen as an attempt to force them to return to the office. Transparent communication about the reasons for this request would be more effective.
3. Efficiency evidence: There is little or conflicting evidence (depending on the sources) that a full return to the office improves long-term employee efficiency.

In summary, creating suitable payment strategies for remote work requires thoughtful consideration and customised solutions. If you and your team require assistance, we are ready to provide support and expertise. Our aim is to ensure that your compensation approach aligns with your organisational goals while promoting fairness, engagement, employee satisfaction, and productivity.

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

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: Andy Klose and Jalol Khodjaev

In the competitive landscape of consulting firms, attracting and retaining top talent is crucial. Vencon Research has recognized the need for strategic guidance in compensation management and has introduced Pay Recommendations, an innovative enhancement to our compensation benchmark reports for the consulting industry. This solution is designed for both consultants and partners and has the potential to revolutionise how consulting companies approach their compensation strategies.

Tailored Solutions for Consulting Firms

At the heart of our Pay Recommendations lies a deep understanding of the unique needs of consulting firms, particularly for client-facing career levels below Partners and above. These recommendations are not one-size-fits-all; rather, they are bespoke reports crafted based on the Consultant Salary Reports or Partner Compensation Reports delivered to clients. Taking into account the specific local and service line dynamics of each client’s company, our reports provide a comprehensive evaluation of various compensation elements, including Total Cash Compensation, Basic Salary, Target Bonus, and Allowances.

Strategic Insights for Optimal Compensation Strategies

Vencon Research provides strategic insights into career progression and budget implications, in addition to numerical analysis. We align compensation elements with the client's desired market positioning to ensure adherence to the firm's pay philosophy while maintaining market competitiveness. Our aim is to facilitate gradual increases aligned with market percentiles, fostering employee rewards and career development in tandem.

Actionable Recommendations for Sustainable Growth

The true value of our Pay Recommendations lies in their actionable nature. With detailed suggestions for appropriate changes in each relevant compensation element, tailored to the client's positioning target, pay philosophy, and other metrics, our reports empower consulting firms to make informed decisions. By providing insights into the expected budget impact and assessing staff distribution across career levels, we enable strategic workforce planning and optimization of resources.

Illustrative Graphics and Comparative Analysis

Illustrative graphics within our reports vividly demonstrate the gap between current pay structures and market percentiles, highlighting areas for improvement. Through comparative analysis, we offer a holistic view of the client’s situation, enabling them to benchmark their compensation practices against industry standards. Moreover, our unique feature comparing career progression provides a time-based perspective on firm attractiveness for career development opportunities.

Guidance and Insights

Our Pay Recommendations provide clear and concise guidance on compensation elements, ensuring ease of implementation. We offer simulations of expected budget impacts and comparisons of staff distribution across levels, providing valuable insights into competitive positioning. Vencon Research provides data-driven recommendations and strategic guidance to empower consulting companies to optimize their compensation strategies for sustainable growth.

Empowering Consulting Firms for Success

In conclusion, Vencon Research's Pay Recommendations signify a significant change in how consulting firms approach compensation management. Our Pay Recommendations provide actionable insights, specific pay suggestions, and strategic guidance, empowering our clients to attract and retain top talent while maintaining competitiveness in the market. As the consulting landscape continues to evolve, our commitment to unlocking strategic insights remains unwavering. With Vencon Research as your partner, you can embark on a journey towards success, driven by informed decision-making and strategic vision.

A video overview of the Pay Recommendations report is available here.

We are at your disposal for further questions and suggestions regarding how you optimally design pay ranges and/or remuneration systems for your company.

Book your introduction meeting online here.

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

Jalol Khodjaev is a Senior Consultant at Vencon Research International’s consulting unit.

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 Irina Kvirikadze - Senior Manager Data Integrity

Competitive compensation packages play a pivotal role in attracting, retaining, and motivating top talent - essential for delivering value to clients and driving sustainable growth in the consulting industry.

Here, we take a look at expected global and regional salary increases, as well as factors influencing salary adjustment for the year ahead.

Expected Global Salary Growth Projections

Vencon Research’s own findings [i], backed up by other studies [ii], suggest that despite some economic concerns, companies all over the world are inclined to maintain a fairly aggressive approach towards compensation.

Among the primary factors for increasing salary budgets are inflation and cost of living adjustments. Inflationary pressures and rising costs of living have compelled consulting firms to review and adjust their compensation structures accordingly. Expected salary increases in 2024 are, partially a response to inflationary trends to maintain the purchasing power of their employees.

Salary increases and inflation rates exhibit significant variation across countries, yet this overarching trend is observable in many, though not all, countries. According to Vencon Research findings (see Figure 1), average global salary rises in 2024 is 5.2% and inflation rate 3.3%. It's important to highlight that in 2023, salary increases outpaced inflation [iii], and this trend is likely to persist into 2024.

Salary increases can vary depending on the geographic location of the consulting firm within a country and its employees. For example, consultants working in major metropolitan areas with higher costs of living may receive larger salary increases compared to those in smaller cities or rural areas. Consequently, each country [iv] and region should be assessed independently, given the significant disparities in economic conditions. The subsequent section will provide further exploration into expected salary increases at both regional and national levels.

Expected Regional and National Salary Growth Projections

Regional salary increases in 2024 vary from 5% to 5.4% and inflation rates from 2.8% to 3.8% (see Figure 2). In Europe, salary increases vary between 2% to 10.4% and inflation rates from 1.9% to 6.6% (see Figure 3). In Belgium, as the inflation rate stabilizes, salary increases for 2024 are projected to decrease to 4.9% compared to the previous year's increase of over 11%, which was influenced by wage indexation tied to inflation [v]. In Germany expected salary increase is 4.4%, in France 4.1%, in Spain 3.9% and in the United Kingdom 4.8%.

In countries with high inflation rates such as Türkiye, where the predicted inflation rate for 2024 exceeds 50%, the expected salary increase stands at 45.4%[vi]. Nevertheless, companies are implementing additional measures such as frequent salary adjustments and issuing payments in foreign currencies.

In the Americas, encompassing both North and South America, projected salary increases stand at 5.3%. Excluding Argentina, a country experiencing hyperinflation, the highest average salary increases in this region are anticipated in Brazil (6.3%) and Colombia (10.1%) (see Figure 4).

In Canada and the United States of America (USA) expected average salary growth rates are 4% and 4.3% respectively.

It is essential to acknowledge that the anticipated economic growth of individual countries is an also an influential factor. The United States of America holds a central position in this regard, owing to the size and resilience of its market. Furthermore, certain US companies boast sales figures that surpass the gross national product of entire countries. Increasingly, attention is shifting towards APAC (Asia Pacific) while diminishing emphasis on Europe. This transition is further accelerated by sluggish economic growth in Europe and notably in Germany [vii].

According to the Vencon Research study, it is anticipated that a majority of locations in the APAC region will either maintain or surpass their real salary growth rates from 2023 in the year 2024 (see Figure 5). China is anticipated to maintain one of the lowest inflation rates at 1.7% in 2024, trailing only behind Taiwan and Thailand in this region. Despite this, it is expected to experience a notable average salary increase of 5.6%. Conversely, India which is poised to lead the way in projected salary increases within the APAC region, with an impressive figure of 9.7%.

As seen in numerous other countries, the anticipated average salary increases in the Middle East and South Africa are poised to remain robust throughout 2024. Projections indicate that pay raises are expected to reach 6% in Saudi Arabia and South Africa, while in the United Arab Emirates, the figure is slightly lower at 4.2% (refer to Figure 6).

It is essential to note that beyond inflation and cost of living, there are additional pivotal factors that drive salary increases within this sector.

Factors Influencing Salary Trends: Beyond Inflation and Cost of Living

Tight Labour Market and Competition

In 2024, the demand for consulting services continues to increase as businesses face complex challenges such as sustainability initiatives, post-pandemic recovery strategies and digital transformation. In this context, consulting firms are under high pressure to attract and retain top talent to meet client expectations. This heightened demand has translated into competitive salary packages and lucrative benefits for consultants.

Today, it's not only the leading consulting firms competing for talent, but also the MAANG [viii] companies, as well as ever multiplying start-ups. This resonates with the "Z" generation, which has its distinct priorities. They are willing to put in the effort, but seek fair and transparent compensation, alongside a work-life balance conducive to family life, within a communicative, team-oriented environment. This trend predominantly impacts consulting firms operating in mature markets, while emerging markets are not experiencing the same degree of impact at present.

Industry Specialization and Niche Demands

Diversity of client specialization and the rapid emergence of new topics with increasingly shorter life cycles have significantly altered the requirements for potential consultants. Specialized expertise and niche knowledge are now more sought after than ever before. Certain specialized areas within consulting, such as technology, healthcare, or sustainability, may experience higher demand and thus higher salaries. Consultants with expertise in these areas may see larger salary increases compared to those in more general consulting roles or general lines of businesses.

Emerging Industry Trends and Consolidation

Emerging trends and innovations in the consulting industry, such as the adoption of new technologies or methodologies, may influence salary increases. Consultants with skills and expertise in these areas may be in high demand and receive higher compensation as a result.

Apart from that, the consulting landscape has witnessed significant consolidation through mergers and acquisitions, with larger firms acquiring boutique consultancies to expand service offerings and market presence. Salary increases may reflect the impact of industry consolidation, as firms seek to integrate talent seamlessly and align compensation structures across merged entities.

Conclusion

In conclusion, the dynamics of expected salary increases in 2024 within the consulting industry reflect a multifaceted interplay of global economic factors, regional trends, and industry-specific dynamics. Despite economic uncertainties and inflationary pressures, consulting firms are maintaining fairly aggressive compensation strategies to attract and retain top talent crucial for delivering value to clients and sustaining growth.

Across different regions, variations in salary increases and inflation rates underscore the importance of localized analysis and decision-making. Factors such as tight labour markets, industry specialization, and emerging trends significantly influence salary trends, with specialized expertise commanding higher compensation. Furthermore, the ongoing consolidation within the consulting landscape through mergers and acquisitions has implications for salary structures as firms integrate talent and align compensation strategies across entities.

It is interesting to observe how all the market conditions and factors will influence actual salary budget expenditure across all markets in 2024. However, as the consulting industry continues to evolve, a nuanced understanding of salary dynamics remains essential for sustainable growth and success.  To effectively navigate these complexities and ensure competitive compensation packages, it is imperative to base decisions on the most accurate, pertinent, and up-to-date market data available. Failure to do so will perpetuate the challenges currently faced by employers, ultimately eroding efforts in attraction, retention, and motivation, thereby resulting organizations failing to meet their anticipated outcomes.

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.

[i] Vencon Research analysis encompassing more than 50 countries.

[ii] Various inflation forecasting and research firms, incl. Kienbaum, Korn Ferry and Willis Towers Watson

[iii] Bremen, John. "Will Pay Increases Exceed Inflation in 2024?" Forbes, 14 Dec. 2023

[iv] Each country and its profile will be thoroughly reviewed in upcoming briefings from Vencon Research.

[v] Vencon Research. "Belgium's Consulting Industry Braces for Government-Enforced Salary Adjustments" Vencon Research

[vi] Considering hyperinflation and data volatility

[vii] DW News. "Germany's Economy Set for Rough Ride in 2024" DW

[viii] Meta (Facebook); Amazon; Apple; Netflix; and Google (Alphabet)

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