What Do Consultancy Firms Need To Do To Address Wage Inflation In The US?

It’s no secret that we are seeing significant wage inflation across all industries, and it’s been particularly noticeable in the world of consulting over the past 12-18 months. Increases on base, big bonuses and retention bonuses amongst other offerings have been more and more prevalent. It’s a sure-fire way of ensuring companies look after their current employees and attract new talent.

Here are a few ideas on how best to address wage inflation in your business:

Raise the base wage

According to the most recent data regarding wage inflation in the US, We’re seeing increases of around 7% and above, on base salaries across the majority of businesses. If you want to retain existing employees as well as attract talented new recruits, there is no denying that the base wage will have to be increased. Those that are staying stagnant or even matching inflation are getting left out to dry as talented candidates seek jobs elsewhere.

Implement signing on bonuses

Where once primarily seen at strategy consultancies, we’re seeing signing bonuses become more popular across all types of US consultancies. It may be that you have to make that upfront payment to secure the person that you want.

Spread out bonuses throughout the year

All consultants look forward to their year-end bonus, they’ve really earned it after all! If you’ve had a very successful year then share some of that success with your employees. Consultants like to talk and if they hear of their peers elsewhere having a bumper year and they are not seeing the same success then they will be unhappy. Consider paying bonuses 6-monthly or quarterly, this will have the added effect of avoiding a yearly outflux on bonus payment day. Leavers are inevitable for a whole host of reasons but are much easier to manage if they are spread out across the year.

Match New York salaries

A lot of companies will be happy for their consultants to work remotely post-pandemic. This means that people can earn New York or San Francisco salaries wherever they are based and the reality is that you will likely have to match this wherever your home office is. People could easily jump ship and join a business based in a city with a higher cost of living while working remotely and take home the higher salary associated with it.

Offer meaningful employee benefits

It’s not all about the amount of dollars, you need to compete on benefits too. 401K, healthcare, dental, maternity and paternity leave, hybrid working, unlimited vacation, a home-working budget. You don’t have to offer everything, but our clients that are most successful with their recruitment tend to offer most of these add-ons.

Common Queries

How am I going to pay for this you may ask? Well, the reality is that card rates may have to increase, or perhaps offer lower discounts. There is a lot of demand for US consulting services currently and we are seeing it becoming more of a seller’s market. Consultants are problem solvers, so you’ll find a way to make it work!

Find out more

If you have any questions or comments about this, or any general recruitment enquiries, then please get in touch.