Exploring Alternative Staffing Models for Mid-Size Consulting Firms

There are several advantages to various staffing models for mid-size consulting firms. Strategizing workforce dynamics is important to ensure that each firm’s skills and needs are adequately satisfied. Additionally, the staffing priorities of a firm – such as the tradeoff between flexibility and stability – are vital to consider based on industry, target markets, and specialty. 

In this piece, we break down the differences between three alternative staffing models for mid-size consulting firms: project-based, retained, and contingent.  

ALTERNATIVE STAFFING MODELS FOR MID-SIZE CONSULTING FIRMS

Project-Based Staffing

A consulting firm that utilizes a project-based staffing model essentially organizes teams to address specific client projects. Oftentimes, these teams are comprised of individuals with specific skillsets that are uniquely suited to the client. For example, an SAP retail project will likely be assigned a team of SAP consultants with tailored industry knowledge in solutions such as SAP CAR.  

One of the primary advantages to a project-based staffing model is that firms can rapidly deploy teams as projects arise. Additionally, firms that typically handle large projects for clients would likely prefer project-based staffing as it creates collaborative problem-solving units. One disadvantage, however, is that teams can be reliant on the abilities and soft skills of the team leader. Thus, it’s crucial for mid-size consulting firms leveraging a project-based staffing model to hire and promote their best candidates into leadership roles.  

Retained Staffing

A retained staffing model involves entering into long-term agreements with clients to provide continuous support and expertise. Unlike project-based staffing, there may not be a concretely defined timeline or project scope. Instead, consultants are retained on an extended basis to address whatever ongoing challenge the client has. Typically, these engagements are long- term and involve deeper immersion within a client’s organization.  

An advantage of a retained staffing model is that consulting firms often develop long-term partnerships with clients. This generates consistent revenue that firms focused solely on project-based assignments may not always experience. Additionally, consultants often deepen their skills throughout the engagement and bring these unique skills back to the firm. This staffing model, however, may also present challenges such as inflexibility with new client demands. If a majority of a firm’s consultants are set into long-term contracts with clients, the firm is less able to respond to new inquiries and prospective clients. Additionally, hiring retained consultants often requires more investment in development to ensure that they possess the necessary expertise needed for deep industry immersion.  

Contingent Staffing

Finally, a contingent staffing model is similar to retained staffing, albeit on a more flexible, as-needed basis. Contingent consultants are deployed to address short-term or temporary staffing gaps within client organizations. For example, a client may contract a contingent consulting firm when experiencing periods of high growth and urgently require extra professional labor. The consulting firm thus maintains a pool of skilled professionals who can be deployed either in teams or individually. 

One of the key advantages of a contingent staffing model is flexibility. Consulting firms that leverage a contingent staffing model can quickly respond to fluctuations in client demand or project scope because their consultants are typically not tied down for relatively long periods of time. Additionally, some clients prefer contingent staffing because it enables support on an as-needed basis, which is cheaper than full-time or long-term contracts. Conversely, a reliance on contingent staffing also provides less stability in periods of high demand. For example, if there is industry-wide demand for labor, firms may regret not signing longer-term consultants when they had the chance. 

PARTNERING WITH BCTG FOR YOUR STAFFING NEEDS

Ultimately, a firm’s staffing model is dependent upon client type and project specialty. Many of the disadvantages associated with these staffing models can be easily avoided by firms with clients that are aware of flexibility and labor demand dynamics. Regardless, firms should choose their staffing model based on finding the right balance between flexibility and stability in meeting client demand and achieving consistent revenue. 

Whether you’re a mid-size consulting firm looking for project-based, retained, or contingent talent, we can help. Contact BCTG to learn more. 

Contributions from Jake Park-Walters