A new survey of the UK’s independent consultants has found that they have higher job satisfaction than those in traditional roles. Eden McCallum found that independents believed they had better work-life balance, and fairer pay, which may continue attracting talent to the rapidly expanding segment in the years to come.
Major consulting firms have struggled to adjust to adapt to fluctuations in demand since the Covid-19 pandemic. While the world’s largest professional services firms enjoyed a surge in growth amid the crisis period, the years since have seen consulting revenue expansion return to normal levels – leaving many firms left with inflated headcounts which leaders claim has left them with little choice but to impose hiring freezes, and to weigh up lay-offs and pay cuts.
Amid this, the popularity of the independent consulting space has continued to boom. With the UK’s gig economy still enjoying rapid expansion – the country is now home to more than 4 million freelancers – the number of consultants going independent is also accelerating. According to data from the Office for National Statistics, in late 2024, there were roughly 256,200 independents in the UK – up from just over 164,000 at the close of 2023.
Source; Eden McCallum, London Business School, HPA
According to research from Eden McCallum, the new entrants into the sector are joining established incumbents, who are themselves deciding to stay independent for longer than before. While most independents previously saw the move as a temporary stopgap, fewer and fewer are feeling inclined to hurry back to the world of salaried work – with 72% now saying they expect to remain independent for over three years in 2024, compared to just 32% in 2002.
This sea-change means that the independent consulting segment is among the fastest growing in the whole industry. To understand what the key trends were that have driven this, Eden McCallum collaborated with London Business School and HighPoint Associates, to speak to more than 500 professionals – both in the independent space, and those employed by traditional firms.
Source; Eden McCallum, London Business School, HPA
What the researchers found, was that independent consultants are generally happier and more satisfied with their work, than those in permanent positions. A majority of 89% of independents said they were satisfied with their career, including 60% who said they were extremely satisfied. Only 74% of employed consultants were in the same boat, while just 31% were extremely satisfied.
While total income and financial security were important to both groups, employed consultants put more emphasis on it. On a scale out of 3, the importance of financial security was rated 2.1 by those at a firm, who said they were relatively satisfied with it – compared to 1.5 among independents, who were did not feel one way or the other about it. But independents rated client impact and work-life balance more important – each at more than 2.2 out of 3 – and were also more satisfied on all of those fronts than those in firms.
Source; Eden McCallum, London Business School, HPA
Further to this point, the survey illustrated how having more of a say on who they worked with contributed to the happiness of independents. Comparing their personal experience, more than 90% of independent consultants said they believed they had more control over their work than when they were employed, enabling them to enjoy an improved work-life balance and flexibility.
The majority of independents also felt they received fairer rates of pay than at firms – many of which are still making slow progress when it comes to tackling gender and ethnicity-based pay-gaps. Around 70% said pay as an independent was more fair, including 38% who believed it was “much more likely”. They might have less financial security on paper, then, but independents clearly feel that is a worthy trade when it comes to their immediate pay, conditions, and quality of life.
And looking ahead, this might also see the trend toward independent consulting further accelerate. Eden McCallum asked over 100 former independent consultants if they would consider returning to life outside a traditional firm. Only 10% ruled it out, while the other 90% cited autonomy on projects, flexibility, and attractive pay – as well as the chance to escape from the ‘corporate politics’ of the office – as factors which could lure them back.
Source: Independents consultants satisfied with their work-life and career freedom
