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Charles Burleigh, a fellow Sales Performance Compensation consultant, data integration expert and blogger, wrote an interesting post about consulting rates.
In his post, Burleigh asks an interesting question: should a senior consultant drop his rate in order to remain engaged on a project? He notes that recent Callidus TrueComp positions being advertised only fetch around $40-$50; less than half the “acceptable” rate. He attributes this drop to less experienced consultants willing to take on these roles at lower rates, and to clients that may have unrealistic expectations.
I think there are several forces at play creating this situation:
Should senior consultants accept lower paying contracts? There may not be other options. Keeping your skill set up to date and getting more relevant experience during the market downturn (even at lower rates) could make a difference in getting a more lucrative contract once the market recovers.
This being said, companies should be very careful to choose consultants or consulting companies with the the right experience, and not settle with a junior consultant only to save a few bucks. After all, you often get what you pay for. But keeping this in mind, for the reasons I have outlined above, now might be a good time to kick off an SPM project and obtain ‘better-than-usual’ rates.
In the meantime, an industry-wide consulting rate drop might be just what is required to generate more demand, to help the sales performance management industry to prosper, and in turn cause the consulting rates to climb back.
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