Will Big Four Consulting Firms Start Hiring in 2021?

The global economy remains under significant strain due to the ongoing pandemic, leading many to question the hiring plans of the Big Four consulting firms. As we approach the end of 2020, it is evident that the hiring landscape for these companies is evolving. Analysts and insiders offer insights into the current hiring trends and what the future may hold.

Current Hiring Trends and Economic Uncertainty

As of November 2020, it is highly unlikely that major international consulting firms will initiate significant hiring at the end of the year. This is largely due to the prevailing economic uncertainty and the ongoing disruption brought about by the COVID-19 pandemic. Historically, November and December have seen a slowdown in recruitment activities as organizations focus on project completion and financial year-end processes.

For the new year, hiring is expected to be uncertain, with companies likely to begin receiving resumes in February or March 2021. However, the hiring process will be gradual and may be paused during the final three months of the year, particularly as organizations keep a close eye on efforts to control the spread of the virus. A precautionary measure, extended hiring may be delayed until the situation stabilizes.

Impact on Existing Employees and Hiring Practices

The current climate is not only affecting potential new hires but also existing employees. Many consulting firms are implementing cost-cutting measures, such as reducing regular hours for higher-paid employees and offering cheaper options for newer hires. This strategy helps firms maintain financial stability while navigating through the economic challenges.

Despite these challenges, some companies have been extending offers to interns, indicating that hiring is not entirely halted. However, the scope of new roles and onboarding processes may be limited until the situation improves. LinkedIn suggests that Big Four consulting firms are still actively hiring, albeit with a more cautious approach across various departments.

Opinions on Economic Recovery and Future Hiring

Many experts believe that significant hiring activities will not resume until the global economy shows signs of growth and stability. The outlook for the United States and other countries suggests that companies are operating on a limited budget, focusing on maintaining operations rather than expanding their consulting workforce. Recent news of a sharp decline in the U.S. economy (approximately a 33% shrink) indicates that other nations are likely facing similar financial difficulties.

Some argue that the effects of an economic recovery, even if it were to occur, are not likely to be felt until the first quarter of 2021. In this scenario, the Big Four might consider using their senior staff to fill gaps rather than hiring new junior employees. Even in the event of a rapid and significant financial recovery, which seems unlikely to happen before the end of the year, the best expectation for significant hiring would be around the beginning of 2021.

Overall, the Big Four consulting firms are navigating through these challenging times by maintaining a strategic and cautious approach to hiring. The future of their employment landscape remains contingent on economic recovery and growing business demands.