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Recruiting, retaining and inspiring employees is critical to the success of any business. In times of a tight labor market, finding talent is difficult, but retaining employees is
Recruiting, retaining and inspiring employees is critical to the success of any business. In times of a tight labor market, finding talent is difficult, but retaining employees is a real challenge. This certainly also applies to business services, which of all industries are most dependent on the quality of employees. But what do we see on the consulting market?
The SPI Research Professional Services Maturity Benchmark Report 2023 answers this question. This shows that the total annual cost per advisor increased from $122,000 in 2018 to $129,000 in 2022. In addition, this report concludes that 127 working days are required to replace employees who leave the company and to train their replacements.
But there were many other interesting results for consulting companies. I discuss the six main conclusions:
Employee turnover peaked in 2021 but is now starting to subside. Of course, it’s not nice that fifteen percent of all consultants still quit their jobs every year, but compared to other industries, that’s not a bad percentage.
It’s not nice that fifteen percent of all consultants still quit their jobs every year.
Bryce Wolf, Senior Manager Industry Solutions Unit4.
Consultants leave their organization because they see better opportunities at another organization, because they can get a better salary somewhere, or because their opportunities for professional development are currently limited. A good work-life balance can do wonders for employee retention. In addition, the younger generations attach great importance to interesting challenges, exciting customers and the opportunity to work with the latest technologies in the workplace.
Today, business service providers recruit their staff through a mix of onshoring, nearshoring and offshoring. The Corona crisis has shaken the market and these effects are still visible in traditional service models. This increases the pressure on advisors to build strong relationships with clients. At the same time, the consultants themselves have high standards when it comes to career planning, training and flexible work options, among other things.
For the first time in years, the number of annual guaranteed training days has increased to over ten. A positive development that helps progressive service providers find loyal employees.
High-performing companies use a human capital management (HCM) system. The benefits of an HCM system increase when it is integrated into core financial applications. This leads to higher revenue per consultant, higher employee satisfaction, better utilization with more billable hours and higher profits.
Employees of business service providers continue to work approximately the same number of hours per year (2,080). However, they can work smarter by leveraging agile development, virtual consulting, and multitasking.
Some business service providers are trying to slim down their organizations through restructuring. The problem is that this also leads to employees who are still employed deciding to leave out of fear of being the next to be shown the door.
Business service providers must always compete to find and retain top talent. Organizations that excel here often place great emphasis on how they position themselves as employers, invest in high-quality employee recruiting and onboarding programs, and often have a virtual work environment. So let yourself be inspired by successful industry colleagues and take measures based on this to attract and retain personnel.
That is a Post submitted by Bryce Wolf, Senior Manager Industry Solutions at Unit4. Click here to learn more about the company’s solutions.
Source: IT Daily
As an experienced journalist and author, Mary has been reporting on the latest news and trends for over 5 years. With a passion for uncovering the stories behind the headlines, Mary has earned a reputation as a trusted voice in the world of journalism. Her writing style is insightful, engaging and thought-provoking, as she takes a deep dive into the most pressing issues of our time.
