Characteristics of firms that thrive in uncertainty

In a world riddled with uncertainty, certain firms manage not just to survive, but to thrive. Smaller, more agile firms appeal to candidates in an increasingly competitive marketplace: Movemeon’s 2023 application trends show that the top four firms by number of applications received were all boutiques with a clear industry specialism and mission, and collectively received the same total number of applications as the next 16 companies combined.

This tallies with insights from our 2023 freelance report and 2022 index report, which showed that consultants changing firm while staying in advisory tended to want greater impact. Sideways moves, leveraging their existing (strategy) skills, are enabling more mission-driven career changes.

When compared with external data, it is clear that these career choices reflect broader changes taking place in the consulting industry, as advisory firms and their clients adjust to rapidly changing market conditions.

Agile strategy

In uncertain times, it pays to be adaptable. Tough economic times go hand-in-hand with severe downturns for particular industries and sectors, but it is often hard to predict which markets will be affected and which will endure. 

Companies that rely heavily on a single market or revenue stream are at risk, and it is harder for large organisations to pivot quickly if their core customer base suddenly cuts spending. Smaller businesses, however, typically have faster iteration times; they are used, by necessity, to constantly monitoring, assessing and pivoting their offerings.

This is why smaller companies are currently proving more popular on Movemeon; candidates are clearly attuned to the advantages of boutique firms in the unpredictability of the currency business cycle. 

The need to adapt is also driving hiring behaviours in these firms. Boutique consultancies are increasingly engaging specialists in a variety of niche markets and industries, especially social impact, government and energy consulting.

Contractors are increasingly popular, their flexibility offering much-needed expertise while retaining the ability to cut costs and pivot quickly if necessary. Movemeon’s most successful advisory partners are increasing their use of contractors, as our Advisory Lead, Ethan Cho, mentioned in his most recent newsletter.

Strategic Talent Management

Talented teams drive innovation and navigate change effectively; research from McKinsey Global Institute found that the world’s most successful businesses typically combine investment in talent development with a culture of innovation.

However, gaps exist between supply and demand for certain skills. Companies must therefore be ready to offer training, either to existing staff or to new hires who may lack industry-specific experience but who demonstrate the right transferable skills.

Firms that invest in employee development can see improved talent retention; research from LinkedIn shows that 94% of people will stay at a company longer if it invests in their career development. Similarly, effective in-house training programmes mean these firms can cast the net wider when they do hire, accessing a broader talent pool. This in turn will naturally improve diversity, which improves a business’s ability to adapt and innovate.

Companies offering effective training programmes do well to broadcast them during the hiring process, since candidates, particularly younger ones, are increasingly interested in internal development opportunities when assessing competing job offers.

Movemeon’s in-house experts can advise on the best way to position training programmes in job adverts. Get in touch here!

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Global vision

Geographical diversification can limit exposure to localised uncertainty. 

While “traditional” markets (especially the US, UK and EU) are undergoing a period of economic uncertainty, other geographies, particularly the Middle East, are thriving. Projects are in abundance, and advisory firms are relocating teams and resources here; the FT reported in February that, even as consultancies looked to cut costs in their home markets , firms like PwC were increasing the number of staff deployed in the region.

Boutique and medium-sized firms are also joining this trend, and allocating resources accordingly. For example, Roland Berger’s annual meeting earlier this year saw a quarter of all its partner appointments made to its Middle East practice, while Renoir Consulting acquired Dubai’s ESG-Integrate last year to boost its presence in the region.

Movemeon’s Advisory Lead, Ethan Cho, has been supporting boutiques and large firms with their Middle East expansion. Feel free to reach out for more information or if you have questions about Movemeon’s candidate base in the Middle East.

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