Millennials are changing the economics of PE consulting
May 20, 2016
PitchBook Dealmakers Column
One of the biggest challenges facing consulting firms is the acquisition of top talent. One of the greatest barriers for clients is the exorbitant level of fees charged by many consulting firms. Fortunately, two developments—the advent of the ‘gig economy’ and the emergence of Millennials entering the workforce—are helping to enable a new model that can help address these problems.
Clearly, Millennials have different job and work-life balance expectations than previous generations. Today’s generation values flexibility, purpose and exposure to new experiences. Millennials are ‘team oriented’ and multi-tasking is a way of life.
As such, Millennials are increasingly drawn to the gig economy, wherein they serve as independent contractors and offer their services to companies for short-term engagements. This allows them to have an improved work-life balance versus what they would find in a traditional job. Consulting firms and others have the opportunity to benefit from this trend by engaging Millennials, often highly trained at top notch firms. Typically, they are exceptionally motivated and possess the specific experience to fit the task at hand, essentially on a ‘plug and play’ basis.
This new age dynamic bodes well for firms that have adapted to the gig economy by creating models with a focus on blending industry experts and highly trained Millennials into customized teams that are tailored to meet the needs of each specific project on an ad hoc basis. In so doing, an approach like this also helps clients by delivering highly customized outcomes at a fraction of the cost of the traditional ‘brick and mortar’ consulting model.
To find out how the 'tailored teams' model can transform your business, click here for a two-minute description of our approach.
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