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Often, it is not practical to hire all the expertise as full time employees. Specialized knowledge,  seasonal fluctuations, and short term projects require the use of consultants. While this is all well and good for customers who hire consultants, the story is challenging from the consulting company’s point of view. Employee turnover makes the business difficult. Retaining employees is good for any business and it is not different for a consulting company.

Managing the employee portfolio may be a way to mitigate risks. For example, four groups of employees can be found at a consulting company:

• The career consultant. This person has been and will always be a consultant. The pros: he or she has a deep understanding of the business. The cons: he or she lacks the operational experience that can be had only by being a customer of a consulting company.
• Consultants early in their growth cycle. These are the junior folks, bright, and typically, fresh out of college. The pros: they are easy to train and cost less. The cons: they need supervision and may create rework due to their inexperience.
• Consultants in mid career. These are folks who are looking for a change of scene. Having worked with customers, they feel consulting would be a good way to apply their knowledge and skill, as well as prepare for higher responsibilities. The pros: they have a marketable resume. The cons: their stay may be short lived if they are not able to adjust to the travails of consulting.
• Consultants late in their career: These folks have been round the block more than a few times. Their experience beefs up the consulting company’s profile. The pros: they bring wisdom to the table. Their real life experience is invaluable when convincing customers to sign on the dotted line. The cons: they may have lost their “fire” and may be looking to coast, creating a conflict with consulting companies that are hard charging and growth oriented. Further, they may not keep their skills current and may lack the energy of those early in their career, their inflexibility thus becomes a liability.

A good mix of the above will ensure a well rounded and strong bench. Attrition is not a bad thing if two conditions are true:

• There is a formal plan and program to prevent attrition.
• Those who leave are treated as future customers.

This is generally true for all companies, but consulting companies can look to building a stronger bench by considering some of the practices listed above.