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1、TECHNOLOGY&SERVICES PRACTICE2022 North American Professional Services Partner Compensation SurveyContentsA message from the authors 3Methodology 4Introduction 5Firm and partner background 6Firm dynamics:A sense of operational stress 9State of professional services partner compensation 102022 NORTH A
2、MERICAN PROFESSIONAL SERVICES PARTNER COMPENSATION SURVEY2 Welcome to the 2022 North American Professional Services Partner Compensation Survey,our first survey focused solely on professional services partners compensation,as well as their role structures,support ratio,and expectations.For this repo
3、rt,Heidrick&Struggles compiled compensation and organization data from a survey of 192 partners in the professional services industry in the United States.We hope to expand the numbers and scope of respondents in future years.We hope you enjoy reading the report.As always,suggestions are welcome,so
4、please feel free to contact usor your Heidrick&Struggles representativewith questions and comments.With warmest regards,On confidentialityThe North America professional services partner compensation survey,2022,was conducted on an anonymous basis.All data is reported anonymously and in aggregate.Gus
5、tavo AlbaGlobal Managing Partner Technology&Services PLiz HayesPrincipal Technology&Services PAdele AvilesAssociate Technology&Services PA message from the authorsDiverse region,inclusive workforces:Diversity and inclusion policy and practice in Asia PacificHEIDRICK&STRUGGLES3 MethodologyIn an onlin
6、e survey,we asked participants to provide information on their role,their sales revenue targets,and their compensation for the 2021 fiscal year.All data collected was self-reported and has been aggregated.Responses from 192 participants are included in this report.IntroductionAlmost all professional
7、 services firms profoundly changed their ways of working during the early months of the COVID-19 pandemic,and the aftereffects are still reverberating even though business and client demand have been,and continue to be,generally robust.Indeed,the theme that emerged from this first survey of partners
8、 at strategy,management consulting,and technology consulting firms is one of operational stress.However,given that the industry is still readjusting,and economic volatility continues,it is not yet clear whether the stress will continue in the long term.Many respondents report less delivery support a
9、s well as paying a premium to both attract and retain talent,particularly at the junior levels and for diverse partners.Nonetheless,analysis also shows that compensation,particularly for women,still has a way to go before it reaches parity with male peers at most levels.In future surveys,we expect t
10、o continue to explore the shifting dynamics and compensation at these firms,particularly in the face of the economic slowdown most executives now expect across industries and regions.We will also continue to monitor the path to parity for diverse partner talent compensation.2022 NORTH AMERICAN PROFE
11、SSIONAL SERVICES PARTNER COMPENSATION SURVEY4 Firm and partner backgroundForty percent of respondents work in strategy consulting,and a little under a third in each of management/advisory consulting and technology/IT consulting.Thirty-six percent of respondents report their firms revenue is more tha
12、n$20 billion.The highest share of those firms are technology and IT consulting firms,where more than half are in that revenue bracket.Strategy consultingFirm typeStrategy consultingTechnology/IT consultingManagement/advisory consultingFirm revenueManagement/advisory consultingTechnology/IT consultin
13、gOther27203140221927162263622814225316352395Company information(%)Firm revenue,by firm type$5bn$20bn$5bn$20bnMore than$20bnMore than$20bnLess than$1bnLess than$1bnPrefer not to answer$1bn$5bn$1bn$5bnSource:Heidrick&Struggles North America professional services partner compensation survey,2022,n=192S
14、ource:Heidrick&Struggles North America professional services partner compensation survey,2022,n=192Note:Numbers may not sum to 100%,due to rounding.Source:Heidrick&Struggles North America professional services partner compensation survey,2022,n=192Diverse region,inclusive workforces:Diversity and in
15、clusion policy and practice in Asia PacificHEIDRICK&STRUGGLES5 The professional services partners who responded to this survey were mostly white men;more are based in the Northeast than any other region of the United States.This majority,overall,reflects the demographics of the industry.We hope the
16、industrys demographics will continue to become more diverse.Demographics(%)NortheastUS regionMidwestSoutheastSouthwestWest CoastMid-AtlanticMountain WestPrefer not to answer215411410982Source:Heidrick&Struggles North America professional services partner compensation survey,2022,n=192Note:Numbers ma
17、y not sum to 100%,due to rounding.WhiteEthnicityAsian or Asian AmericanHispanic or LatinoBlack or African AmericanArab,Arab American,Middle EasternNative American or Alaska NativeNative Hawaiian or Pacific IslanderMixed raceOtherPrefer not to answer1211196161411Source:Heidrick&Struggles North Americ
18、a professional services partner compensation survey,2022,n=178Note:Numbers may not sum to 100%,due to rounding.Source:Heidrick&Struggles North America professional services partner compensation survey,2022,n=178GenderMenWomenPrefer not to answer86862022 NORTH AMERICAN PROFESSIONAL SERVICES PARTNER C
19、OMPENSATION SURVEY6 Ninety-four percent were partners or partner-equivalent,and 62%hold leadership roles in some capacity,most often a practice leadership role.More than half had been in their current roles for three years or less,suggesting that many took on new leadership roles just prior to,or du
20、ring,the pandemic-driven changes in ways of working.While the professional services industry is known for rotational leadership roles,the nearly 60%of participants in new leadership roles(those in their roles for three years or fewer)was almost certainly driven by the pandemic and the firms implemen
21、ting changes to their ways of working.Role information(%)Practice leaderAdditional roleOffice leaderRegional leaderNo551638Source:Heidrick&Struggles North America professional services partner compensation survey,2022,n=191Less than 1 yearTime in current role13 years35 years510 yearsMore than 10 yea
22、rsPrefer not to answer421623710Source:Heidrick&Struggles North America professional services partner compensation survey,2022,n=191Note:Numbers may not sum to 100%,due to rounding.1Current rolePartner(or partner-equivalent)Pre-partner946Source:Heidrick&Struggles North America professional services p
23、artner compensation survey,2022,n=192Practice leaderRegional leaderOffice leader15162743189274511114433Time as a partner,by additional leadership role(%)510 yearsMore than 10 yearsLess than 3 years35 yearsSource:Heidrick&Struggles North America professional services partner compensation survey,2022,
24、n=180Note:Numbers may not sum to 100%,due to rounding.Diverse region,inclusive workforces:Diversity and inclusion policy and practice in Asia PacificHEIDRICK&STRUGGLES7 Overall,39%have been partners at any firm for more than 10 years,though only 29%have been at their current firm for that long.A thi
25、rd have been at their current firm for three years or less,underscoring the significant shifts in many partnerships during the pandemic.That share is even higher among women who responded to the survey:40%say they have been with their firms for three years or less,compared with 34%of men.Strategy co
26、nsulting firms have the highest share of long-tenured partners,at 46%.Strategy consultingTechnology/IT consultingManagement/advisory consultingTime as a partner,by firm type(%)141724462710253819252729510 yearsMore than 10 yearsLess than 3 years35 yearsSource:Heidrick&Struggles North America professi
27、onal services partner compensation survey,2022,n=181Role information(%),continuedTime as a partnerLess than 1 yearTime at current firm13 years35 years510 yearsMore than 10 yearsPrefer not to answer2211172919Source:Heidrick&Struggles North America professional services partner compensation survey,202
28、2,n=1922Less than 1 year13 years35 years510 yearsMore than 10 years136183924Source:Heidrick&Struggles North America professional services partner compensation survey,2022,n=1812022 NORTH AMERICAN PROFESSIONAL SERVICES PARTNER COMPENSATION SURVEY8 Firm dynamics:A sense of operational stressAlmost hal
29、f of the partners surveyed said that partner turnover at their firms in the most recent fiscal year was about the same compared to their expectations at the beginning of the yearbut nearly a third said it was higher.This is unsurprising,given the 33%of partners who have been at their current firm fo
30、r three years or less.(See chart,“Time at current firm”on page 8.)There was a wide range of responses when partners were asked about the changes in their delivery support ratio.A third had seen no change,but 37%said theyd had less support than in the prior year.Significantly lowerActual partner turn
31、over vs.expectationAverage delivery support ratio changeLowerAbout the sameHigherSignificantly higherPrefer not to answer141553245Yes,to attract themYes,to retain themYes,for both attraction and retentionIt varied too much to sayDont know/prefer not to answer37246679Fiscal year changes(%)In addition
32、,a majority of partners reported that they needed to pay more to attract and/or retain junior consultants in fiscal year 2021 than in the prior year.This,along with the higher than expected partner turnover rate,underscores our sense of operational stress at professional services firms.Need to pay j
33、unior consultants moreFiscal year changes(%),continuedIt varied too much to sayDont know/prefer not to answerNo changeHad more delivery support than in the prior yearHad less delivery support than in the prior yearSource:Heidrick&Struggles North America professional services partner compensation sur
34、vey,2022,n=180Source:Heidrick&Struggles North America professional services partner compensation survey,2022,n=1808413676NoSource:Heidrick&Struggles North America professional services partner compensation survey,2022,n=1802Diverse region,inclusive workforces:Diversity and inclusion policy and pract
35、ice in Asia PacificHEIDRICK&STRUGGLES9 State of professional services partner compensationIn terms of how respondents actual total compensation compared with their beginning-of-year expectations,about a third reported being paid more than they expected.Overall,over 80%of respondents were happy with
36、their most recent total compensation,which was an unexpected sentiment.A notable driver of this happiness is likely due to the majority of professional services firms having sold out years,with exceptional revenue growth.Overall,43%of respondents reported total cash compensation of at least$1 millio
37、n.Two-thirds of respondents have an equity or non-cash element to their compensation,with most receiving 30%or less of their total cash compensation in non-cash compensation.Total compensation vs.expectation(%)Significantly lowerLowerAbout the sameHigherSignificantly higherPrefer not to answer134483
38、04Source:Heidrick&Struggles North America professional services partner compensation survey,2022,n=1791Total cash compensation(%)Under$400k$400k$600k$601k$800k$801k$1m$1m$2m$2m$3mMore than$3m1511131827133Source:Heidrick&Struggles North America professional services partner compensation survey,2022,n
39、=192Equity/non-cash compensation(%)Source:Heidrick&Struggles North America professional services partner compensation survey,2022,n=192YesNo66342022 NORTH AMERICAN PROFESSIONAL SERVICES PARTNER COMPENSATION SURVEY10 1%10%Non-cash compensation,as percentage of total cash compensation(%)11%20%21%30%31
40、%40%41%50%51%60%61%75%76%100%101%125%126%150%151%175%176%200%More than 200%24182614453330001Source:Heidrick&Struggles North America professional services partner compensation survey,2022,n=119Note:Numbers may not sum to 100%,due to rounding.A higher share of partners at strategy consulting firms tha
41、n others reported receiving total cash compensation of at least$1 million.Over 50%of respondents from strategy consulting firms reported a cash compensation of at least$1 million.Comparatively,only 41%of management consulting firms and only 30%of technology consulting firms reported over$1 million.S
42、ixty percent of management consulting firm respondents reported cash compensation below$1 million,and over 71%of technology consulting firm respondents reported cash compensation below$1 million.16102052212131012121827292922191286Cash compensation,by firm type(%)Source:Heidrick&Struggles North Ameri
43、ca professional services partner compensation survey,2022,n=192Note:Numbers may not sum to 100%,due to rounding.Strategy consultingTechnology/IT consultingManagement/advisory consulting00Half of those who received non-cash compensation reported percentages between 11%and 30%,with the vast majority r
44、eporting percentages less than 41%.Under$400k$400k$600k$601k$800k$801k$1m$1m$2m$2m$3mMore than$3mDiverse region,inclusive workforces:Diversity and inclusion policy and practice in Asia PacificHEIDRICK&STRUGGLES11 Of those who receive non-cash compensation,42%come from strategy consulting.A higher sh
45、are of partners at strategy consulting firms than others also reported receiving non-cash compensation;this form of compensation also rose with tenure(as did reported compensation overall).Of those who receive non-cash compensation,37%have been a partner for more than 10 years.Source:Heidrick&Strugg
46、les North America professional services partner compensation survey,2022,n=181Note:Numbers may not sum to 100%,due to rounding.Non-cash compensation,as percentage of total cash compensation,by firm type(%)Non-cash compensation,as percentage of total cash compensation,by time as a partner(%)Less than
47、 3 years1935 years2014510 years2424More than 10 years371843YesNoSource:Heidrick&Struggles North America professional services partner compensation survey,2022,n=192Management/advisory consultingTechnology/IT consultingStrategy consulting423618423314YesNo2022 NORTH AMERICAN PROFESSIONAL SERVICES PART
48、NER COMPENSATION SURVEY12 Although sales targets varied somewhat by type of firm,generally partners had high targets,as would be expected for the most senior group of people at their firms.And in general,the partners with higher targets also reported higher compensation.As expected due to the nature
49、 of their projects,nearly 70%of technology consulting respondents reported sales targets of over$10 million.However,more than 40%of strategy consulting respondents also reported sales targets of over$10 million,which seemed higher than expected.Source:Heidrick&Struggles North America professional se
50、rvices partner compensation survey,2022,n=191Note:Numbers do not sum to 100%because some respondents did not provide sales target information.73261341Sales target,by firm type(%)$3m$6m$6m$10mMore than$10mLess than$1m$1m$3mStrategy consultingTechnology/IT consultingManagement/advisory consulting20272
51、02424616692Despite operational stress,and firms paying more to retain junior consultants,more than three-quarters of partners report not receiving an off-cycle cash compensation increase.However,a third of female respondents said they had received such an increase,compared with only 19%of males.Off-
52、cycle cash compensation increase(%)Source:Heidrick&Struggles North America professional services partner compensation survey,2022,n=192YesNoPrefer not to answer21772Diverse region,inclusive workforces:Diversity and inclusion policy and practice in Asia PacificHEIDRICK&STRUGGLES13 Equity/non-cash com
53、pensation(%)Source:Heidrick&Struggles North America professional services partner compensation survey,2022,n=178YesNo66533447MenWomenBy gender,men more often reported receiving equity or non-cash compensation,and generally reported a higher share of non-cash compensation as a percentage of their tot
54、al cash compensation.And indeed,responses about their own compensation reflect notable disparities by gender as well as race or ethnicity.By gender,more than double the share of men than women reported$1 million or more in total cash compensation;the men also more often reported higher personal sale
55、s targets.A higher share of men reported receiving non-cash compensation,but among the women who did,they more often reported receiving a higher percentage in this format.This aligns with our experience that many kinds of professional services firms are willing to pay some kind of premium to both at
56、tract and retain diverse talent.Source:Heidrick&Struggles North America professional services partner compensation survey,2022,n=178WomenMenUnder$400k$400k$600k$601k$800k$801k$1m$1m$2m$2m$3mMore than$3m1315201071340161329714Cash compensation,by gender(%)02More generally,nearly half,49%,of respondent
57、s said their firms had paid a premium to attract or retain diverse consultants at any level.Notably,though,only 40%of female respondents said this,while a third said their firms had not paid more.Source:Heidrick&Struggles North America professional services partner compensation survey,2022,n=180Note
58、:Numbers may not sum to 100%,due to rounding.YesPaid a premium to attract and/or retain diverse consultantsNoIt varied too much to sayDont know/prefer not to answer19498232022 NORTH AMERICAN PROFESSIONAL SERVICES PARTNER COMPENSATION SURVEY14 Source:Heidrick&Struggles North America professional serv
59、ices partner compensation survey,2022,n=118Note:Numbers may not sum to 100%,due to rounding.Non-cash compensation,as percentage of total cash compensation(%)1%10%11%20%21%30%31%40%41%50%51%60%101%125%61%75%1126%150%76%100%151%175%176%200%More than 200%MenWomen000000000002013232526381225463330Forty p
60、ercent of white respondents reported$1 million or more in total cash compensation,compared with 38%of respondents who identified as a racial or ethnic minority.Source:Heidrick&Struggles North America professional services partner compensation survey,2022,n=178Ethnic minorityWhiteUnder$400k$400k$600k
61、$601k$800k$801k$1m$1m$2m$2m$3mMore than$3m121923122492916123012812Cash compensation,by ethnicity(%)Diverse region,inclusive workforces:Diversity and inclusion policy and practice in Asia PacificHEIDRICK&STRUGGLES15 Copyright 2022 Heidrick&Struggles International,Inc.All rights reserved.Reproduction
62、without permission is prohibited.Trademarks and logos are copyrights of their respective owners.Leaders of Heidrick&Struggles Technology&Services PracticeTechnology&Services PracticeHeidrick&Struggles global Technology&Services Practice solves senior executive leadership issues that will not only gr
63、ow and evolve an organization but also enable business transformation over a longer period of time.Technology companies today are experiencing tremendous challenges and fundamental change.Our clients are part of the evolving business landscape and turn to our experts to help them face many important issues,including globalization,emerging and converging technologies,identifying new sources of revenue,and talent management and retention.Gustavo AlbaGlobal Managing PGlobal