KRS Market Insights: Jan-Jun 2024

A Message from Our Leaders

Kerone Daniel

Despite ongoing perceptions of market turbulence, life science consultancies are showing encouraging signs of revenue growth, having adapted effectively to narrow profit margins and lower project volumes. That said, performance continues to vary significantly across the industry.

Firms that invested in developing their Partner talent from pre-pandemic conditions have demonstrated greater consistency in scaling revenue in 2024. Partners who have strengthened client relationships over time have proven to be strategic assets, driving measurable growth even amidst fluctuating economic conditions.

It is common for Partners to appear to fall short of pre-set financial expectations. However, firms that adjust targets and compensation frameworks proportionately – aligning what is expected with what is rewarded – foster accountability, clear performance metrics, higher retention, and sustainable growth.

Top-performing firms in H1 2024 have focused on refining their value propositions and internal structures to retain Partners. This includes assessing financial packages as well as cultural and behavioural elements that influence motivation and engagement.

“Companies that remain competitive are those directly addressing internal talent strategies, prioritising retention, and simultaneously pursuing opportunities for growth.”

Life Science Consulting Market Overview

Organic Growth Strategies and Talent Dynamics Across Specialist Firms

Boutique and specialist consultancies have demonstrated strategic agility, achieving strong revenue growth without resorting to frenzied hiring. By maintaining low overheads and prioritising deepening existing client relationships, they have nurtured client loyalty and consistent revenue streams that weather economic pressures.

Discussions with boutique firm leaders highlight ongoing talent challenges:

• Competing for top talent against larger market competitors.
• Scaling operations without robust infrastructure or processes, risking inefficiencies.
• Clearly communicating company mission, vision, and growth plans to potential hires.
• Developing a compelling value proposition to attract and retain talent.

Targeted talent management initiatives, coupled with clear value propositions, enable boutique firms to strengthen recruitment outcomes and retain high-performing teams.

Balancing Cost Control with Strategic Workforce Planning

Private equity-backed consultancies face challenges as investors impose hiring freezes to control costs, optimise operations, and leverage internal talent. This can limit the ability to fill internal skill gaps and increase pressure on teams, creating the risk of skills mismatches, reduced client delivery effectiveness, and employee attrition.

Effective talent management remains essential: neglecting it can lead to overburdened teams, underutilised skills, higher turnover, and compromised client outcomes. Firms must carefully balance cost control with strategic workforce planning to ensure operational efficiency and sustainable growth.

Shifting Motives in Mergers and Acquisitions Amid Organic Growth Challenges

While previous market conditions drove high acquisition activity, current strategies focus on strategic value rather than short-term gains. Firms now view mergers and acquisitions as tools to access resources, enter new markets, and diversify capabilities, enabling long-term growth and a “full-service solution” for the Life Sciences commercialisation space.

Key Takeaways:

• The consulting industry remains resilient and forward-looking despite operational and talent challenges.
• Firms leveraging organic growth via deep client engagement demonstrate agility and sustainability.
• Others are pursuing strategic acquisitions to expand capabilities rapidly.
• Navigating the trade-off between short-term gains and long-term positioning, supported by strategic talent initiatives, will be critical in 2024.

Industry Hiring Demands

Priority of hires across the industry:

• Senior Leadership: 72%
• Project Managers: 13%
• Delivery Team: 15%

Skillsets and expertise in demand:

• Strategy – 40%
• Market Access – 32%
• Management Consulting – 12%
• Sales/BD – 8%
• Brand & Commercial – 4%
• Analytics – 4%

By seniority:

• Senior Leadership – 64%
• Project Manager – 20%
• Delivery Team – 16%

A Message from Our Leaders

Steve Robertson

“At the end of last year, we anticipated pockets of growth for consultancies, and this has proven true so far in 2024.”

Green shoots of recovery are evident. While the majority (68%) of KRS vacancies remain at the Principal and Partner level, there is renewed demand in delivery roles, with 18% of openings for junior positions. This reflects modest revenue growth among partners and consultancies leveraging junior talent as a cost-efficient delivery strategy.

Mid-level positions, particularly Engagement Managers or Associate Principals without a defined book of business, remain constrained, with firms focusing on cost optimisation.

Specialised consultancies are showing resilience: Pricing/Access & HEOR accounted for 32% of placements in 2024 to date, and Analytics vacancies nearly doubled, signalling firms’ strategic pivot into new revenue streams.

Candidates experienced with products, platforms, or analytics are well-positioned for 2024/25, as these skills are increasingly in demand.