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6th November, 2024

Disruption reshaping the professional services landscape

In 2024 we have seen Private Equity (PE) funds entering and disrupting the Professional Services sector, targeting inefficiencies in established firms like the BIG4, weighed down by costly management layers and complex decision-making. These issues are driving up overhead, reducing profitability and employee pay

For PE firms, this presents a clear opportunity. They can acquire firms and implement leaner, more agile models, delivering high-quality service at lower costs. By avoiding the overhead burdens of traditional firms, PE-backed firms offer competitive fees and greater profitability, appealing to both clients and top talent looking for better pay, equity, and influence.

This shift is reshaping the Professional Services landscape, positioning PE-backed firms to thrive in a new era.

How can PE backed mid-sized professional services firms, eager to scale but often stretched, meet the demands of their clients to attract the staff without compromising on the calibre of candidates?

The tried and tested answers:

  • Pay more than the competition. Including variables – meritocratic performance bonuses, and equity options
  • Fast track career paths and promos, direct client exposure, drawing in candidates who value quick advancement.
  • Flexible working and Balance – Offer Remote OR  Hybrid – many candidates we speak to do WANT to go to an office and meeting colleague
  • Invest in Training – CFAs, CPAs – and even non vocational certs
  • Diversify Client and Project Experience – more than one project (but not too many!)
  • Demonstrate your values and make it known – candidates really want to know the culture they’re stepping into before they join…
     
    Last but not least - Use Specialist 3rd party recruiters

 For mid-sized consulting firms, having an internal talent acquisition team that is stretched thin can be a significant bottleneck, particularly when competing for top candidates in a tight market. While third-party recruiters may seem costly, the opportunity cost of missing out on talent can be far greater, especially if competitors gain an edge by hiring faster.

Here’s how we add value for our clients:

**Accelerated Hiring Process** 

   Specialized recruiters have established networks and resources to quickly identify and engage high-quality candidates, reducing the time-to-hire.

**Access to Passive Candidates** 

   Third-party recruiters often have relationships with passive candidates—those not actively looking but open to the right opportunity..

 **Focus on Core Operations** 

   Outsourcing recruitment allows the internal team to focus on strategic initiatives and employee engagement rather than spending stretched resources on time-consuming sourcing and screening.

**Cost-Effectiveness in the Long Term** 

   While hiring third-party recruiters can have upfront costs, the long-term return can be substantial. Filling roles efficiently minimizes lost revenue from vacant positions and reduces the burden on existing staff

**Reduced Risk of Hiring Mistakes** 

   Experienced recruiters bring specialized assessment techniques, helping ensure candidates not only have the right skills but are also a strong cultural fit.

 If this makes sense let me know – mark.nelson@neostalent.com or check us out – www.neostalent.com – We have decades of experience in the consulting space – lets talk!