@olds how does consulting fare in a recession? How about specific specialties like sustainability or healthcare?

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“@olds” 😂

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I am old but wtf 🤣

Rx about to be 🔥

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🤞🏽🤞🏽🤞🏽

Mixed bag depending on your industry. Consulting budgets are often on the chopping block when corporations need to cut spending, but niche areas like government and healthcare consulting tend to stay fairly healthy. Sustainability consulting I would imagine would be seen as “nice to have” spending when a company needs to make hard choices, so I’d guess it would fall extra hard.

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Depends on your focus area but generally speaking pretty well. Tech does well because people start to outsource their work and cut headcount internally. My last firm did exceedingly well in that small correction a few years back that had people spooked.

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Just like any other industry

Unless you were born last year, consulting laid off, cut partner comp etc etc just in 2020. D laid off 5000 people, EY laid off 300 SMs and many others. It was more of a shock and awe, but you will see instant reaction in consulting.

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What?

Consulting has no problem weathering recessions, and we saw exactly what happened during the last recession in 2020 when unemployment spiked to 16%

Consulting agencies will cut bonuses first. That way they can continue paying talent. If that’s not enough, they’ll cut PPMD pay to almost nothing. Again, that’s done to retain talent, since without talent, the company is nothing. Finally, if those things don’t work, they’ll cut the lowest performance outliers….like 8 month bench riders

Tldr: consulting will do everything it can to keep its talent

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Depends on what you do, but generally well. On times of economic growth our clients look to us for competitive advantages over competitors. In economic declines those same clients come to us for outsourcing, opex savings, and help guide them through the turmoil.

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