CEO of Maki People, a skills assessment tool to hire better and faster.
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Entering 2023, it’s understandably tempting to assess business conditions from a defensive posture as economic pains and pressures mount. Inflation remains near a 40-year high and the Federal Reserve shows few signs of pulling back on the highest interest rates in 15 years. But in many ways, it’s the employment picture that poses the more immediate challenge.
Consulting Is Thriving
That’s because, despite adverse economic indicators, some sectors continue to thrive, including business consulting. That’s being driven by a steadily increasing demand for services as clients struggle to fill open positions; clients rely on consulting firms for fast solutions to plug the gaps.
What’s more, that growth shows no signs of cooling. This means that significant pains await consulting firms facing enormous recruiting challenges that could become major barriers to growth. According to the U.S. Bureau of Labor Statistics, management consultant/analyst jobs will increase 11% from 2021 to 2031, well above the outlook for most jobs. Case in point: For the 12 months ending in July 2023, EY expects to hire a stunning 220,000 people.
Where will that top talent come from? Facing the daunting task of filling tens of thousands of positions, firms are casting their nets more widely than before and recruiting candidates with diverse backgrounds. Previously, major and mid-market firms might have selectively skimmed the top percentiles of MBA graduates. Today, they’re looking everywhere.
The implications are clear, especially in this economy: Consulting firms must change how they recruit and retain talent. Without the right talent, firms risk losing contracts and clients while being overtaken by competitors who win the recruitment and retention battle.
Better Hiring Starts With Better Recruitment Experiences
As businesses continue to shake off the effects of the Covid-19 pandemic, it’s evident that consulting firms are not immune to the effects of the Great Resignation and that the old rules no longer apply. Talent matters, and top-notch employees are increasingly taking control of the employment relationship. They’re forging careers where they expect to change jobs more frequently than workers in previous generations.
To pull in thousands of talented (and typically younger) new employees, consulting firms must embrace new ways of thinking that align with the speed and expectations of Generation-Z candidates raised in an online world. Too often, firms have failed to move on from outdated screening and evaluation methods. They’re relying on pre-pandemic recruiting processes that don’t account for disparate geographies and hybrid work models that are rapidly transforming work environments. Overmatched recruiters spend weeks evaluating candidates, while job seekers invest multiple hours a week finding, applying and interviewing for jobs. Then they must wait for replies.
Savvy employers recognize that a modern, technology-centric recruiting experience is now required—one that is fast, intuitive and responsive. Candidates don’t want to wait days or weeks for confirmations, responses, interviews and updates. Instead, they want to move with the speed and transparency they’ve grown accustomed to in the e-commerce world. Research shows that up to 92% of job applicants never submit their applications due to the length or difficulty of the process.
Instead of clicking through hundreds of profiles without providing any feedback, recruiters must make the effort to respond to applicants who are hungry for constructive feedback that can help them improve their applications. This is even more important in a remote or hybrid work environment where it’s harder to demonstrate your strengths and weaknesses.
When a company asks elite candidates to endure a poorly designed website, mysterious workflows and needless (and inexplicable) delays, they’re making poor first impressions. PwC recently found that 49% of survey respondents had turned down a job offer due to a bad recruiting experience. Consulting firms need sophisticated automation to streamline the process and compete with the innovation of agile tech firms that provide a smooth, intuitive and transparent experience. (Full disclosure: My company offers an automated recruitment platform, but you have many choices when it comes to automating your hiring process.)
Is The Résumé Dead?
The résumé and CV remain the dominant vehicles for candidates to present credentials and experience. But are they outdated? Many companies are embracing the “competence economy” paradigm, looking beyond the polished PDF, the “right school” or “right degree.” Instead, they’re taking a pragmatic look at whether the candidate possesses the right skills—acquired in traditional or nontraditional ways—to do the job. Many candidates complete online courses or vendor certifications that are more relevant to their future jobs than college degrees. What’s more, the soft skills that are elusive (but highly desired) don’t show up on paper.
Many companies are turning to skill assessment tests, one of the more objective and accurate methods to evaluate a candidate’s ability to successfully perform a role. These tests may be administered on their own or as part of a broader automated recruitment process that administers and scores the assessment, enabling recruiters to quickly identify the most qualified candidates. (Full disclosure: My company's hiring platform includes optional customized assessments, but there are many other ways to incorporate assessments into your process.)
A recruitment process that emphasizes skills over traditional qualifications opens the door to applicants with atypical experiences and prevents capable candidates from slipping through the cracks. This can lead to increased diversity and a broader talent base, including employees who bring new perspectives and nontraditional approaches.
Final Thoughts
Ultimately, the uncertain economic conditions present consulting firms with an important challenge: How will they compete for the elite employees they need to keep their businesses growing? The firms that adapt to this changing employment market will be the ones that survive and thrive.
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