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Has the Quality of Consultants Directly Impacted Bill Rates?
In reading yet another posting on EMR consultant rates, it had not occurred to me the idea that the quality of consultants is a potential direct impact of reduced rates. Check out http://concepcionguzman.com and read his story, “The #1 Reason EMR Consultants’s Rates Have Declined More than 35.9% Over the Last 5 Years.” I have to debate his findings, and look at this over the entire market space, not just go-live support and training.
No doubt the quality of resumes he suggests in his story, people who worked at Walmart and McDonald’s with only 2 go-lives under their belt, is something that is happening more and more. But only in the go-live and training arena. I assure you consultant firms are not hiring analysts, builders, testers, interface or report writers without the back ground required to fill these roles. The overall statement that consultant rates are dropping because of the quality of consultant is skewed, as many firms don’t even provide go-live support services. And for good reason!
I’ve written many stories on this topic, and continue to watch the consultant market become over saturated with firms and consultants. This is the simple concept of supply versus demand. A perfect example is this past week my firm received a need for a Resolute HB candidate. So did about 40 other firms, as that client uses a Vendor Management System. The VMS just sends the need out to everyone. On sites like LinkedIn, you could see the posting over and over and over, looking for candidates. The client will have the best of the best to pick from, and price point will be up to the consulting firm. With that in mind, it is my theory and suggestion that the decline in bill rate (and consultant compensation) continues to decline due to reduced demand in consultant needs and a high number of resources available.
Hiring practices for consultant services are clearly changing to meet demands. First time consultants may help with meeting margins, but often directly impact quality of service. KLAS ranks over 60 consultant firms, who all just poach from one another project after project. The days of consultants being at the same firm for 5+ years is quickly fading. It’s those firms that continue to focus on quality consultants at fair market bill rates that will succeed.
What are your thoughts? Seeing a reduction in your bill rate that is impacting your success?
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