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Hiring demand surges, talent supply shrinks: Inside Q2’s shifting job market where Private Equity booms, advisory hiring accelerates, scale-ups rebound, and corporates face mounting pressure to compete
Hiring demand for permanent roles is at its highest we’ve seen for 18 months. We saw an initial strengthening in the market last quarter, but expected this to have dropped given the macroeconomic environment and the impact of tariffs.
However, after a small initial dip in May, the hiring market has continued to grow, reaching its 18-month peak in Q2 2025. As the hiring market has strengthened, the talent index (measuring the supply of great talent on the market) has started to drop. Between Q1 2024 and Q2 2025, the market index averaged at an all time high of 90, before dropping to 75 in July 2025. This is only slightly above the average for 2023 (70), when companies were still struggling to hire post COVID and the Great Resignation.
In this article we look at how different types of companies are being affected by these broader trends. We find that Private Equity is seeing a boom in demand for talent, driven by an increase in deals and an increased focus on operational improvement across ever larger portfolios. We were also surprised to see, despite the coverage that AI is already disrupting the advisory market, that there has been strong growth in hiring across consulting firms.
Finally, we look at the different dynamics of the freelance and permanent markets: Whilst the permanent market has definitely tightened, with visibly less supply, freelance is still a high supply market for talent. We hypothesise that this is more driven by the broader freelance revolution, and a sharp increase in freelancers/ interims available who have chosen to freelance for more control over their work life (which projects they do; hours worked etc.). This might also be contributing to the righter permanent market.
The Index is designed to give employers a read on the talent market: is it competitive? Are candidates open to new roles? Are certain industries or job types seeing more traction than others?
Below is how the index has changed over the last five years. For context, it's worth understanding the Movemeon community:
In terms of interpreting the numbers:
The Talent Index has dropped from 80% last quarter to 76% this quarter. This is considerably below the average over the preceding 12 months of 90, and suggests it is getting harder for companies to hire the talent they need - in other words, demand is increasing as supply decreases. For a point of comparison, it is now at the average level of 2023, where a number of companies were still struggling to hire post COVID and the Great Resignation.
To understand the drivers of this, we are looking into the changes to hiring demand across different company types.
There has been a very clear strengthening in the hiring market since January 2025. We’ve seen hiring activity broadly double over the past 6 months, although this has been very varied by company type.
Whilst Private Equity, Advisory and Scale-ups are fuelling demand in the hiring market, Corporates and Large Enterprises are continue to lag. When we compare the current hiring market with the previous 12 months an even clearer picture emerges: Private Equity funds and portfolio companies have seen sustained growth, whilst hiring across Corporates and Large Enterprises has declined.
There are two primary drivers for hiring demand for PE-backed businesses - the number of new deals and the requirement for portfolio operations support.
New deal activity: There’s been a modest increase in PE deal activity in H1 of this year. This can be shown by EY’s market pulse: there were 275 deals over $100mn vs. 200 in H1 2024. However, this is a long way short of the 400 that were averaged in 2021, and analysing the amount of dry powder in the market, it feels like these are still depressed numbers. Interestingly, based on conversations with funds over the summer period, we’ve noticed a large uptick in deals which we are confident will carry on into H2, so are expecting PE deal activity becoming an increasingly strong driver of hiring demand. This is further supported by EY’s pulse survey, with an overwhelming majority (68%) expecting an uptick in deployment.
Portfolio operations support: The requirement of portfolio operations support is driven by the size of the portfolio and the transformation requirement to achieve the VCP. We believe the increased requirement of support has been the main driver of the increased demand in H1. As funds have held onto portfolio companies for longer, there has been a multiplier effect on the support required. Not only are there more portfolio companies to support, longer holding periods require more frequent chnage to VCPs, often with more hands-on transformation/ operational support. This is against a backdrop of an increased focus on operational improvement, as interest rates have risen and financial leverage has become less effective.
The risks posed by AI to consulting have been widely written about.
It’s clear that AI poses existential threats to the current consulting operating model. At the core of the consulting proposition is synthesising complex data, market intelligence and driving to clear recommendations. All things that AI will be able to do better than humans. It’s not an if; it’s a when.
However, we’ve seen strong growth in hiring for advisory firms. So what’s going on?
Our initial hypothesis was that boutique advisory firms pivoting to focus on AI were growing fast and therefore needing to hire. This would suggest that rather than the advisory segment growing, that it was more a case of people moving from large consulting firms to smaller ones. However, when we ran the numbers, it became clear that hiring demand was coming from both both boutique and large advisory firms.
What this suggests is that the short-term impact of AI on consulting talent has been over-played. It might also indicate another trend at play: Consultancies going through a period of growth as their clients invest in getting to grips with what AI means for them and their operating model. What remains to be seen is if this is a temporary blip, or the future of consulting.
The scale-up market has been depressed since the 2020-21 VC-driven bubble. The focus has increasingly been on the bottom line, and for many this has meant going into survival mode to elongate runways or drive towards cash-flow positive business models.
There has understandably been a big focus on AI scale-ups, and there is an increasing concern among many that there may be a new bubble forming around AI. But when we look at the hiring demand we’ve seen, it’s been broad and feels like more a return to normal levels.
When we look at the increase in hiring demand, alongside the change in the Talent Index, it’s interesting to see that despite the growth in hiring there is still a lot of supply; the Talent Index remains stubbornly at 94%, well above average in the market. This suggests that this is still a market where there is a lot of talent looking - driven by 2-3 years of depressed hiring.
Large Enterprise hiring is trailing well below the growth we’re seeing across Private Equity, Advisory and Scale-ups. Not only is it below the average demand it’s seen over the last 18 months, it’s also reduced in growth over the last three months.
What’s interesting is that this doesn’t mean there’s oversupply in the market. We were expecting to see a very high Talent Index - indicating there’s a lot of talent in the market looking for new roles. However, at just 58%, Large Enterprises and Corporates have the lowest value of any of our different company types. This suggests there is a real attraction challenge - the growth of PE, and to some extent scale-ups, is taking talent away from more traditional routes like joining the Strategy team of a well-recognised, large, global business.
If Private Equity and Scale-ups continue their growth - we foresee this being a hard part of the market to hire in for the foreseeable future. It’s for this reason that we’re starting to see an increase in freelance and interim demand across Large Enterprises.
Whilst the Talent Index has tightened for permanent roles, it appears to be more resilient in the freelance market, where a continued over-supply of talent persists.
We’ve seen broadly consistent demand across freelance and permanent roles on the hiring side, so it feels like there is something a bit more fundamental at play on the supply side. We have written extensively on the freelance revolution that we are witnessing in the market - some of the very best talent choosing to enter the freelance market to have more control over the work they do, and their lifestyle. The more resilient talent index suggests that very strong supply on this side of the market could be the main driver. It might also help explain why we’re seeing the dip in the permanent market.
Michael’s move wasn’t just about crossing continents—it was a transformative step toward a more fulfilling lifestyle. He discovered a better work-life balance, embracing the perfect mix of beachside living and vibrant city life.
We spoke with Michael, an ex-Bain consultant who recently made the move to Australia from the US to join BC Strategy, a boutique consulting firm based in Sydney that’s exclusively composed of MBB alumni. In this interview, Michael shares his experience of relocating from the US, the transition to a new professional landscape, and the unique culture and work environment at BC Strategy.
Before joining BC Strategy, I worked in the generalist consulting practice at Bain & Company, where I gained valuable experience across a range of industries, including tech, higher education, retail, and the public sector.
Beyond my consulting experience, I’ve worked with nonprofits, supported investment research for Indigenous-led startups, held roles in early-stage companies, hospitality, engineering, and environmental services, and even worked as a backcountry snowboard guide and avalanche educator.
What I’ve appreciated most is the chance to have a real seat at the table early on. From the beginning, I was involved in shaping pitches, contributing to internal initiatives, and engaging directly with both clients and senior team members. The structure is lean, which means you have more ownership and visibility.
Compared to larger firms, it’s much flatter and less about layers of process and more about practical impact. It’s still fast-paced, but there’s more room for open discussion and shared decision-making. That dynamic has made the work feel more personal and more satisfying.
On the work-life balance front, the team genuinely respects boundaries. There’s also flexibility in how the work gets done, particularly when project timelines allow for it. I typically work from 9 to 6, with occasional longer days when a new client or project is kicking off. Most weeks, I spend three days at the client site, one day working from home, and one day in the office with the team - a great balance of face time, flexibility, and collaboration. The pace is fast but sustainable, and expectations are clear.
It’s a thoughtful and collaborative environment. People are smart and motivated, but they’re also grounded and humble. There’s a shared respect for the work and for each other, which makes it easier to speak up, share ideas, ask for input, and collaborate.
What stands out is that people value being direct, supportive, and focused on outcomes. That makes working here feel constructive and challenging, which is a combination I’ve come to really value.
Progression is driven by impact. If you contribute clear thinking, support your team, and create value for clients, you’ll earn more responsibility - whether that’s leading a stream, owning part of the problem-solving, or shaping how we approach a project.
There’s also space to influence where we play - identifying new opportunities with existing partners or bringing a commercial lens to internal initiatives.
I had been looking for international experience for a while, and Australia offered a compelling mix: a strong consulting market, an interesting client landscape, and a lifestyle that values balance. It felt like a good place to challenge myself professionally without stepping away from the things I enjoy outside of work.
Since moving to Sydney, the transition has been both energising and grounding. The city strikes a great balance - offering strong career opportunities while making space for life beyond work. The high quality of life, paired with easy access to both urban energy and nature, has made it a great fit.
I’m now based in Bondi, just minutes from the beach, and the proximity to the ocean has genuinely impacted how grounded I feel day-to-day. Sydney’s lived up to expectations - and then some.
The work itself is very similar - structured thinking, collaboration, client impact - but the tone feels more agreeable. Clients here tend to be more open, and there’s often a quicker path to building trust that is driven by getting to know the people you're working with directly.
That openness allows for a more direct working relationship, which can make decision-making and progress feel smoother. There’s still urgency and pace, but less formality, which I’ve found refreshing.
Get clear on what matters most to you, both professionally and personally, and make decisions that support both. One of the most impactful things you can do early on is to build a routine and a sense of community outside of work, even if it is just a small start. For me, having a few anchors like surfing or doing yoga before work created balance and brought a sense of familiarity amid the change.
BC Strategy helped sponsor my visa and provided guidance throughout the relocation process. They also supported me during the first few weeks as I got settled, connecting me with teammates who had gone through similar moves. That made it easier to navigate both the logistics and the little things that come up when relocating internationally. Having that backing really helped the transition.
Movemeon was a great resource in my transition and their team was responsive and thoughtful throughout the process.
For anyone considering a move, it’s a platform worth exploring. It made the international search feel more manageable, and helped me find a role and firm that aligned with both my skills and goals.
Thinking about making the move too? Good news! BC Strategy is actively hiring across various levels. Apply through the link below, and we’ll be in touch with you soon!
Application link: https://app.movemeon.com/candidate/jobs/17528
Talent tightens, demand returns: How shifting market dynamics are creating new opportunities — and pressures — across hiring landscapes
This report marks the second instalment of Movemeon’s Quarterly Hiring Analysis — a regular update designed to help hiring managers and candidates stay ahead of the market across Private Equity, VC-backed scale-ups and large Enterprise businesses. Our insights are powered by over 1.8 million data points from the Movemeon platform, giving you a clear picture of how candidate interest and hiring demand are shifting.
At the heart of this analysis is the Movemeon Hiring Index — a scale from 0 to 100 that reflects how attractive the job market is for employers. In short: a higher index means higher candidate interest per role. When the economy slows, candidate supply tends to rise, pushing the index up. When hiring demand picks up and candidate availability falls, the index drops.
To find out more about hiring with Movemeon get in touch with our team here.
After 6 months in the second half of last year with a value between 90 and 100 (the highest values we’d seen, indicating high interest in new roles), the index dropped to 75 in January and 80 in February.
We look at the drivers of this change, highlighting how a drop in the freelance market index pre-empted a drop in the permanent market index. We then look at how these trends have varied depending upon industry, finding that Private Equity is starting to lose it’s talent edge, just as there has been increased demand for hiring in the market.
We conclude that all the drivers are there for a war for talent, but that this is likely to be localised initially to Private Equity backed-companies where we’re seeing both higher hiring demand coupled with a slight decrease in candidate supply. We forecast this to further expand into consulting and potentially corporates, driven by increased demand and reduced supply respectively.
The Index is designed to give employers a read on the talent market: is it competitive? Are candidates open to new roles? Are certain industries or job types seeing more traction than others?
Below is how the index has changed over the last five years. For context, it's worth understanding who the Movemeon community are:
The freelance and interim market has broadly mirrored the permanent one, but tends to shift first — reacting more quickly to changes in business needs and macroeconomic signals. This can be seen by the permanent having a slight lag from the freelance index, as well as often slightly dampened highs and lows.
Candidate interest in consulting and corporate roles is now at a one-year low. These sectors are beginning to feel the effects of tightening supply. In contrast, PE-backed companies — where hiring demand remains strong — are still benefiting from relatively high candidate availability, but that gap is closing thanks to slight increases in interest in start-ups/scale-ups as well as consulting.
The phrase “war for talent” was first coined by McKinsey in the late ’90s and resurfaced in 2022 during the Great Resignation and post-COVID hiring boom. Are we seeing a resurgence?
The answer lies in the balance between:
What we’re seeing is clear: Q1 2025 was the busiest hiring quarter since early 2022. This suggests that overall demand is returning — and it’s being led by Private Equity.
In fact, PE’s share of total hiring demand has grown significantly over the past two years. As deal volume picks up and portfolio businesses push ahead with transformation plans, the ‘war for talent’ is likely to intensify, albeit localised at first.
Whilst we expect this war for talent to be highly localised to Private Equity initially, we are forecasting that it will expand into consulting and corporates over the course of the next year. The expansion into consulting will predominantly be demand led: increased deal flow will result in more consulting work, which will mean more hiring in a slightly dampened market. For corporates the challenge will be supply led: their historic disadvantage in hiring ex-consulting talent compared with PE or consulting has further widened, meaning a small increase in demand will have a big impact.
From McKinsey to Agoda: Lex’s bold move to Bangkok unlocked fast growth, impact-driven work & an unbeatable lifestyle. Here’s why he loves it and why you will too!
At Movemeon, we love sharing firsthand insights from professionals who have made exciting career transitions. In this feature, we spoke with Lex Razoux Schultz, a former McKinsey Engagement Manager who successfully moved to Agoda, now working as a Senior Manager in the company’s HQ in Bangkok. Lex shares his relocation journey, career growth opportunities, and what makes Agoda a great choice for ex-consultants.
With an engineering background, I began my consulting career at McKinsey in Amsterdam as a Business Analyst in 2018. Over the 6 years I worked at McKinsey, I gained great experience working across multiple industries and developed a lot of useful managing skills working as Engagement Manager. Around this time I began feeling like it was time for a new challenge, specifically I was looking to pursue a long standing dream to live and work in Southeast Asia. That’s when I made the move to Agoda last year, and it’s been an incredibly rewarding and exciting transition so far.
One of the standout aspects of Agoda is its ever-evolving, fast-paced nature. The online travel space is really dynamic, presenting opportunities to build and test new business models that make an immediate impact. The decisions I make today drive real, measurable results tomorrow. I feel like my role within the Strategy team at Agoda gives me the opportunity to truly make a difference.
For high performers, career growth at Agoda is limitless. There are no fixed hierarchies or rigid promotion timelines - advancement is based purely on impact and performance. This means ambitious professionals can progress quickly, without being held back by structural constraints often found in traditional corporate environments.
Moving to a new country can seem daunting, especially when it comes to work permits and bureaucracy. But Agoda’s dedicated team handled everything, so what initially seemed like a major challenge turned out to be an incredibly smooth and hassle-free experience. The level of support I received made my transition much easier than I had anticipated.
Living in Bangkok offers an exceptional quality of life. One of the biggest draws is the food scene - every meal is an affordable yet delicious culinary adventure. Coming from the Netherlands, where gloomy weather is the norm, stepping outside into Bangkok’s sunshine still feels like being on holiday. The perfect blend of incredible cuisine, year-round warmth, and the city’s dynamic energy makes everyday life in Bangkok both exciting and enriching. Plus there’s the opportunity to explore Thailand and SE Asia right on the doorstep.
I know salary comparisons are often top of mind for candidates, and it’s crucial to factor in marginal income tax rates and the overall cost of living. Bangkok offers a high quality of life at a much lower cost compared to many Western and even Asian cities. The combination of a competitive salary, lower taxes and affordable living means that I can enjoy a very comfortable lifestyle.
Beyond the professional opportunities, the culture at Agoda is a huge draw for consultants looking to pivot to client-side. The team is young, dynamic, multinational and intellectually curious - mirroring the stimulating environment of consulting firms. If you’re looking for a career move that offers impact, rapid growth potential, and a fantastic lifestyle, I recommend you check out opportunities with Agoda!
Large-scale change efforts achieve 24% more of their planned value when a dedicated Chief Transformation Officer oversees them.
In an era of constant change, many businesses struggle to execute large-scale transformations. Whether it is commercial transformation, operational improvement, digital adoption, or organisational changes, these are highly complex, cross-functional programmes and are critical to driving value creation.
Enter the Chief Transformation Officer (CTO). A role initially seen more in PE-backed businesses, we have seen huge growth in the number and type of companies looking to hire for this role.
In this article, we summarise what we have heard from Operating Partners at large-cap PE funds and Chief Executives/Chief Strategy Officers at Fortune 500 businesses, as well as recent analysis from Bain & Company. We explain:
Not every company needs a CTO. When we speak with CEOs and Operating Partners, we ask two key questions to understand whether the role is necessary:
To answer the first question on leadership, we work through a tailored list to assess how prepared current executives are for driving transformation. The areas we typically spend the most time discussing are:
In terms of the complexity of the transformation, this is often a faster part of the conversation. We talk through the main drivers of the required transformation and assess how much the current working processes for each function will change.
This conversation typically takes place when transformation is high on the agenda. This usually coincides with particular stages in a business’s growth:
From the outset, the CTO acts as the strategic orchestrator of change within a business. They work most closely with the CEO and COO, ensuring executive alignment on the focus and progress of the transformation. They are also:
Bain & Company analysed the typical focus of the CTO role, and how it changes throughout a transformation programme:
Whilst the CTO plays the part of architect from inception, as a transformation takes shape, different aspects of their role are brought to the fore:
Having hired hundreds of CTOs over the past decade, we have a deep understanding of what makes a good CTO and, more importantly, a great one. Whilst each role is tailored to the company and specifics of the transformation in question, there are two hygiene factors fundamental to this profile.
It is a very specific skill set and requires a true “T-shaped” profile:
In practice, we have found that the balance of 5-7 years in top-tier consulting (e.g., Engagement Manager or Junior Partner at McKinsey, BCG, or Bain), followed by 10+ years of experience in similar PE-backed businesses driving comparable transformations, is a good archetype (albeit not the only one) for an excellent CTO.
A CTO can be one of the highest-ROI profiles you can hire. If your organisation is undergoing significant change, ask yourself the following questions:
Often, the immediate response to “no” is to look at bringing in a consultancy. Whilst this is often a great first step, it is not a long-term sustainable one.
Given our experience assessing different situations on whether a CTO would be helpful, we can provide an independent assessment of what might work best in your circumstances. It is also important to note that the scope of the role can flex with the size of the company: we see the CTO role varying from 12 months to 5+ years, with seniority ranging from 10 years to 30 years. All of these options will have very different budgets.
Consultants often leave due to "up or out" models, lifestyle, and desire to own impact; find out what career paths are the most well-trodden.
Leaving consulting for other industries is more common than staying. Many consultants move on after a few years, whether for career progression, better work-life balance, or the opportunity to take on ownership roles. If you're wondering about jobs after consulting, here’s what you need to know.
Looking for expert coaching to support your career transition? Visit OnUpBeyond for tailored career advice and coaching resources.
From our discussions with Movemeon users and insights from our jobs board, these are the key reasons consultants transition to new roles:
Related Reading
Based on over 20,000 applications on Movemeon, here are the top industries for ex-consultants:
Large companies actively recruit former consultants, often placing them in higher-level roles than their non-consulting peers. The most common functions include:
Find out more about how to thrive in the corporate environment in our interviews with leaders.
Startups offer a fast-paced, dynamic environment for consultants looking to apply problem-solving skills in a hands-on way. Ex-consultants often join startups as:
Find out what it's like to be a Chief of Staff in our interview with Penfold CoS, Aidan Curran.
For those who enjoy consulting but want more flexibility, freelancing or starting a boutique firm can be a great path. Benefits include:
Many ex-consultants transition into private equity (PE) or venture capital (VC) due to their strong financial and strategic skills. Typical roles include:
Consultants used to flat structures may find corporate bureaucracy challenging. To navigate this, they should focus on building internal relationships, understanding decision-making processes, and adapting to longer project timelines. Seeking mentors within the organisation and leveraging their problem-solving skills to improve efficiency can also help ease the transition.
Unlike consulting, where advising is the focus, industry roles require direct ownership and execution. Former consultants can ease this transition by:
Some industries, like startups and PE, can be as demanding as consulting, requiring careful career planning. Former consultants should set clear work boundaries and seek roles that align with their lifestyle goals.
Check out Movemeon member, Jonny's story of leaving consulting, joining a startup and going through IPO.
Looking for your next step after consulting? Explore current opportunities on Movemeon.com.
Key 2024 job market trends and how Movemeon is helping candidates succeed in 2025.
2024 was a tough market to find a new job. We wanted to write this note, firstly to recognise the challenging market but also to explain what Movemeon is doing to help.
Whilst we’re proud to have grown by 15% as a business last year, we’re aware that demand for roles was at a decade-long high. Uncertainty in employers’ hiring plans has meant our values of full transparency have, at times, been hard to uphold. We implemented a number of key initiatives to make sure you were still hearing about every opportunity we were working on, and were receiving responses, and feedback, to any application you made.
This year, we are focused on offering even more to our community:
If there’s one thing you can do to help one another - it’s sharing relevant roles in your team/ company (“paying it forward”). 80% of our jobs last year came from our community - so thanks to all of you who have shared roles already. If you or one of your colleagues is hiring, click below and we can set up some time to see how we can help (data, insight, job description, hiring):
2024 was a tough market to find a new job. Our recruitment index showed as much, with demand for roles at a decade-long high. Whilst great news for companies hiring, it meant it was a very hard year for those who were looking for their next opportunity.
We’re very proud that Movemeon grew by 15%, and most importantly connected more than 2,500 of you with interviews at exciting companies. However, the tough market meant living up to our values was harder than ever before.
We built Movemeon out of our frustration with the lack of transparency in recruitment. Our values are therefore focused on empowering you in your job search: we show you all jobs for you to discover, as opposed to only calling a select few people. Uncertainties in employers’ hiring plans, longer interview processes, and increased competition, has meant our approach of full transparency has been hard: at times it would be easier not to market roles to everyone; and at times it would be easier to not give the full picture on hiring processes. However, this transparency is why we set up Movemeon, and know it’s what you value. We are therefore even more proud that our team has upheld these values during a tough market.
We built Movemeon to help you discover great opportunities you wouldn’t have found elsewhere. We were frustrated with traditional recruitment companies, and wanted to know what jobs there were out there that would be a good fit with our experience.
Whilst we were proud to be able to share over 900 jobs with you last year, we are also aware that there are plenty more opportunities out there, and that we owe it to you to find them. We’ve therefore proactively been building our US and APAC teams - markets which are seeing rapid growth, and places we know many of you are.
We’ve been very lucky that our community (you!) shares opportunities in their team when they’re hiring. Given you understand our proposition, you know that working with us ensures you reach the best in the market. If there’s one way you can help each other, it’s paying it forward by sharing these roles. If you have any potential opportunities, please don’t hesitate to get in contact:
We have also worked hard over the last year on building a new team to identify new roles more proactively. All with the single aim of making it easier for community members to share roles with us. Early indications are positive, with 55% more jobs posted in Q4 2024 than in Q4 2023.
How you’re presented really matters.
On average, hiring managers spend just 10 seconds looking at your application. That’s why we have our success team: To give you the best chance of being interviewed.
Our success team read through your screening questions and CV in detail. And ensure that all the most relevant and important information is clearly sign-posted. They also then speak to the hiring manager, and fight your corner.
Given our business model (we only get paid if you get hired), we are incentivised to get you the job (we only get paid when clients hire) - so are always here to help present you with the best possible chance.
Every application must receive a response. Whilst this is harder in a competitive market, there are no excuses for it not happening. As such, this is a central KPI for our team, and last year 93.6% of applicants heard back within two weeks.
And as far as possible, helpful and constructive feedback should be included. We have been working hard to ensure that we can live up to our values and provide as much information as we can about your application to you.
We are also focused this year on getting more actionable feedback from clients around why you’re not being progressed. When this is not possible, we are committed to provide you with an overview of what the candidates who are progressing have.
We know there’s a long way for us, and even further for the industry to go. This will be a continued strategic focus for us this year, and we welcome any feedback or thoughts you might have.
Last year, Rich, our co-founder, launched OnUpBeyond to help you build your best career in or beyond consulting / finance.
We’ve always wanted to offer more to our community, and are delighted that this has come to fruition this year. Focused on how you progress in your career, it offers courses, coaching, and roundtables to connect with a peer group of like-minded professionals. If you'd like to know more:
As our community has become more experienced, we’ve increasingly worked on more senior roles. In the last year we helped more companies than ever to hire Chief Executive Officers (CEOs), Chief Strategy Officers (CSOs), Chief Transformation Officers (CTOs), Chief Commercial Officers (CCOs), Chief Financial Officers (CFOs) and Operating Partners.
This level of hiring requires a more hands-on approach, for both our clients and for our candidates. As such, we are excited to be launching our Search proposition focused on Chief Strategy Officers and Chief Transformation at Enterprise businesses and Operating Partners in Private Equity (coming in Q2 2025).
If your next move will be at C-Suite level, please do keep your eyes open for the next update.
This year, we are focused on driving even more insights from our rich data set. We are in a unique position to share compensation, data and insights.
In case you missed any of it, here are our most popular articles of 2024 - which cover compensation and hiring trends.
We know how hard this market is, and we are here to help however we can. We also are constantly striving to improve. So if you have any thoughts on what else we should, and could, be doing - please don’t hesitate to email us at info@movemeon.com. We thank you in advance for any thoughts (and thanks also to those of you who kindly took the time to provide feedback in 2024 - it really is enormously helpful).
In the meantime, we wanted to say a big thank you for trusting us to help, and celebrate all the new jobs you found last year…
Strategy consulting is facing disruption as clients demand more flexibility, industry expertise, and quality.
10 years ago, HBR explained that strategy consulting was on the cusp of disruption, driven by a reduction in pure strategy work, growth of in-house strategy teams and democratization of data. Fast forward to 2021-22 and that prediction was looking rather amiss with the strategy consulting industry registering consistent double digit growth. But, just a year later, the warnings became reality. A perfect storm of increased salaries, over-hiring through Covid and a smaller percentage of core strategy work meant the strategy consulting firms were not ready for the correction in the market. Low utilization resulted in lay-offs.
In this article we summarise what we’re hearing about hiring strategy consultants, directly from Chief Strategy Officers in large enterprises and Operating Partners in Private Equity. Client demand for consulting has rapidly shifted in the last couple of years and we believe that a new generation of boutique firms will be best positioned to capitalize on these changes. Typically led by ex-McKinsey, BCG and Bain Partners, they are providing a combination of deep industry expertise and flexible delivery models to provide superior returns on investment.
If you’d like to speak to any of these boutiques, to hear more about their offering, just click here.
Over a decade ago, the Harvard Business Review wrote about consulting on the cusp of disruption. They explained that consulting had experienced two decades of rapid growth in the 90s and 00s. As a result, the share of work that was “classic strategy” had steadily decreased to just 20%, down from 60% to 70% some 30 years ago.
This work was far less defensible, and as a result the incumbent firms were going to see their competitive position eroded by technology and alternative staffing models. “The vast turnover at consultancies means armies of experienced strategists are available for hire by former clients, whose increasing sophistication allows them to allocate work instead of relying on one-stop shops as they did in the past.”
It concluded with a warning: “...the pace of change being managed by the traditional clients of consulting firms will continue to accelerate, with devastating effects on providers that don’t keep up. If you are currently on the leadership team of a consultancy and you’re inclined to be sanguine about disruption, ask yourself: Is your firm changing (at least) as rapidly as your most demanding clients?”
During the post-COVID boom years, you would be forgiven for thinking that the HBR had got things rather wrong. The consulting industry saw rapid growth driven by increased corporate earnings and M&A. In 2021 alone, the strategy industry saw revenues grow by 15%.
The challenge for the consultancies in 2021-22 was hiring enough people - both freelance and full-time to keep up with client demand. Alongside the need for extra capacity, The “Great Resignation” meant retention was the other big focus, heralding blanket pay rises across the board.
A big driver of the Covid ‘boom’ was in fact the very thing the HBR warned would be the strategy firms’ downfall - expansion beyond the core strategy work. As you can see from below, pure strategic advisory shrunk as a percentage of revenue from 17% in 2010 to just 10% in 2023.
This combination of pay rises, over-hiring and an increasing reliance on non-core strategy work meant the industry was not prepared for the correction in 2022-23. As central banks wrestled to get inflation under control, the increased cost of debt drove the M&A market to a stand-still. Earnings were also squeezed, meaning companies had less cash to spend on consulting.
Suddenly, the HBR’s decade old warning seemed prescient: utilisation dropped rapidly sparking job cuts and wage stagnation, in turn prompting more consultants to jump ship and either go freelance or join a smaller outfit.
Given our exposure to Chief Strategy Officers in large enterprises and Operating Partners in PE, we speak with key decision makers regularly. And some very clear themes are developing:
Increased need for industry experience: With the increased prevalence of data, analytics and internal strategy teams, consultants are increasingly used to bring deep industry experience. PE funds in particular are looking for people who have spent 10-15+ years in the industry - people who haven’t simply observed what great looks like, but have been responsible for it (and know the mistakes to avoid).
Fees at unsustainable levels and rigid delivery model: Fees rose rapidly in 2021 and 2022. Whilst demand soared and consultants were having to turn away work, fees were central to growing revenues. These changes in fees were also critical to underwriting the increased compensation for consultants, both below and at Partner level. Whilst this new fee level might be defensible for core strategy work, clients are not prepared to pay such high fees for non-strategy consulting. Clients are also demanding more flexible delivery models: EM+2 isn’t the right model for a long-term transformation, and they want their partners to scale-up and down teams at the right times to provide the most impact.
Decline in quality: In our 10+ years in business we’ve not heard the quality of strategy consulting firms come into question, until now. Perhaps the most concerning of these three trends, increasingly we hear clients reference a lower bar to entry for consultants in the “boom” years of 2021-22, and that hybrid working resulted in lower levels of mentorship for more junior consultants. This is further evidenced by a recent survey commissioned by digital consultancy, Emergn: of 702 senior executives and project managers surveyed, 84% felt that the services of McKinsey, Boston Consulting Group (BCG), and Bain “were no help at all” in corporate transformation projects, while only 13% found them more helpful than a hindrance.
In response to this, we’re seeing some disruptive changes in the consulting landscape. Over the last 6-12 months we’ve seen:
Partners launching boutiques: Top-billing Partners are getting frustrated with the high-overheads that the consultancies have built up over the last few years, and it’s increasingly hard to get compensated as their predecessors did. This, partnered with the rise in quality of the freelance market, has meant a number of Partners are setting-up their own boutiques. Whilst this is not in itself a new phenomenon, the difference we are seeing is the volume at which it’s happening, and the quality of the Partners leaving. We’ve partnered with a couple of these new firms, and are seeing huge demand for their offerings.
Rise of quality in the freelancer market: we’ve written about this over the last decade a few times. The quality, and volume, of freelancers in the market has dramatically improved over the last 10 years. This trend has accelerated with the increased prevalence of Private Equity using it as a route to hire full-time team members: combining both a high quality bar, and providing the freelancers with extremely relevant experience.
Change from AI on the horizon: whilst the impact of AI thus far has been more limited than many expected, we are expecting this to play a critical role in the next 1-3 years. The role of the Analysts and Associates will change from a focus on analytics, to application to a specific company and industry. As such, our prediction is that there’ll be a premium on people who have deep experience within a company, even at the more junior levels.
The strategy consulting firms are some of the most well-known and respected brands in the global business world. We do not expect that to change, but we do expect a period of much lower growth/ decline in real-terms. Given the majority of the cost is variable (people), we have no doubt that this will be effectively navigated, and that profitability will be restored in the mid-term.
However, we don’t expect them to grow into the implementation and transformation space to the extent that they did in 2021-22. We believe the firms with a right-to win are those who have deep industry expertise outside of consulting, having successfully run similar businesses. We also believe that teams driving transformation will be flexible freelance consultants, who can offer more agile support than an EM+2 model, and aren’t as reliant on the apprenticeship model. Associates will no longer be a few years out of Grad of Business school - they will be 10-15 years into their career, with a real understanding of what it takes to implement change.
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