With the tight professional services market in the US, everyone I know in consulting has talked about how they know people who jumped consulting firms (this does not count those who changed firms after attending graduate school). I have heard some stories of when firm jumping became a highly stressful endeavor, and occasions when it was a better experience.
In this post, I want to highlight some general themes I have become aware of across many different firms. For me, they serve as teaching points about the consulting profession at large, and guidance on how best to evaluate a firm jumping opportunity.
Why Firm Jumping Happens in the First Place
Most instances of firm jumping are a financial calculation. Either via an upfront signing bonus or longer-term earning potential, money nearly always plays a big role in the decision to switch firms. Sometimes prestige is an additional factor. However, I know plenty of people who jumped to an equally prestigious or even significantly less prestigious firm in order to secure a financial gain.
There are also a host of underlying work satisfaction issues that I have found to be contributing factors. This covers everything from satisfaction with type of work to the desirability of colleagues. These factors usually incentivise people to consider firm jumping opportunities but, without being paired with a financial incentive, I haven’t heard of such factors alone resulting in a firm jump.
When Firm Jumping Creates Problems
I often hear about regret from firm jumpers. Although they are typically not worse off overall after switching firms, they often experience discomfort with their decision. This provides lessons for those considering a move.
The primary issue I hear of is struggling to adapt to the cultural norms of the new firm. This often ties into challenges faced in adjusting to new work life balance expectations that results in a painful settling in period. It is not that people go to a new firm blind about the working culture, but it is one thing to be told about it and another to actually live it. Restructuring workload expectations and life planning around it is often noted as a major life stressor.
Another issue I often hear about is the shock of having to start over in terms of building an internal firm network. The quality of a consultant’s daily work life is heavily influenced by the strength of their internal network within the firm. The big things like getting staffed and being sufficiently supported on projects are made much easier with a network in tow. Even seemingly trivial things like social fulfillment are made much easier if you have a group of colleagues you are friends with. Of course, most firms are very professional and friendly, and building an internal network is a highly encouraged activity. However, starting from scratch takes time and a lot of energy. It can take years to get known and earn credibility.
Lastly, I often hear about issues of personal incompatibility with how the work is being done. Specifically, this ties to a new firm’s common practices for approaching consulting projects. This is understandable since a person who grows up in one firm’s “ways of working” is likely to find any shift in expected collaboration responsibilities, consulting style, or PowerPoint dynamics to be a nuisance.
What A Good Firm Jump Looks Like
When I hear about highly praised firm jumps, it generally involves situations where the new firm really needs the particular talents or network of the firm jumper. An example would be if someone with a lot of industry experience in construction materials is jumping to new a firm that is seeking to invest a lot of resources and attention in building their construction materials practice. In such situations, the new firm usually makes a fair amount of effort to make the firm jumper acclimated and supported for success on top of the increased compensation opportunities.
The Bottom Line
When considering a firm jump, it is important to think about more than just the compensation and other benefits. It is important to look at the total story to consider if the pains of jumping firm – in terms of the time and effort required to build a new network and gain a sense of cultural familiarity – are worth it for the total basket of benefits on offer.
Hall Wang is a dual degree MBA and Master of Public Policy graduate from Georgetown University who has recently matriculated into a major management consulting firm. He has worked at America’s most innovative companies including Blue Origin and Facebook, as well as having done two combat deployments as a US Army Officer.
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