HR Firms Make Corrections in 2003

• While layoffs have been commonplace among strategy (e.g., Monitor, Mckinsey) and IT (Cap Gemini Ernst & Young, Accenture) consulting firms, it wasn’t until 2003 that HR firms began laying off large numbers of people. HR firms such as Watson Wyatt and Mercer Human Resources Consulting have been doing a better job of managing head count through attrition and very selective hiring. Kennedy Information Research Group predicts little to no increase in head counts totals for 2004. Whatever hiring occurs in the second half of the year will not be enough to create a substantial increase for the year as a whole. Then, as the HR consulting industry continues to recover in 2005, head count growth will follow suit.

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