Hiring consultants to solve temporary staffing needs or complex problems is common in both the private and public sectors. To maximize value and keep costs down, it’s important to stay informed about the consulting market and think strategically. Martin Svensson, Head of Strategic Partnerships at Ework Group, shares his best tips on how to succeed with consultant procurement.
Implementing a new IT system, optimizing a production line, or planning a new traffic interchange—there are many reasons why organizations may need to bring in consultants.
Hiring consultants adds invaluable knowledge and expertise, but it can also be costly. That’s why it’s important to do it the right way.
“If a manager or project leader tries to source consultants on their own, there’s a high risk of paying too much and accepting terms that become expensive in the long run,” says Martin Svensson.
For the client, the cost of consultant hours—including the supplier’s fee—is by far the largest part of the total cost.
Ensuring that the supplier’s hourly rate is at a market level is therefore crucial to keeping expenses down.
A consultant broker can help
When companies search for candidates on their own, they are often approached by consulting firms eager to sell their available consultants—regardless of price or how well they match the specific assignment.
One way to avoid this and ensure you aren’t overpaying is to use a consultant broker. Ework’s business idea is to help clients make the best possible consultant purchases, at the best possible price.
Ework has no consultants employed and no framework agreements with individual suppliers. Instead, they operate independently, scanning the entire market for each assignment.
“Prices for consultant hours and different competencies vary, just like anything else, depending on supply and demand. Our clients benefit from that. If you turn to a single supplier, the cost of a consultant hour is usually about the same regardless of how the market actually looks. Today, we see a very large supply of qualified candidates across several competency areas—so there are opportunities to save money,” says, Svensson.
Like a traditional real estate broker, Ework charges a fee on top of the consultant rate. The size of this markup varies case by case.
“But in the vast majority of cases, it’s money well invested. We have 25 years of experience in benchmarking, scouting the market, and knowing what to look for. This means our clients’ total consultant procurement costs are, on average, 12–15 percent lower—including ourmarkup,” says Svensson.
Beyond keeping hourly costs down, a consultant broker can also help reduce expenses in other ways, such as predicting future competency needs and ensuring more efficient use of resources.
“Many companies could work much more strategically with their consultant procurement. Thinking long-term and planning ahead is a vital part of becoming more efficient and keeping costs down,” Svensson says.
5 tips for optimizing your consultant procurement
- Stay informed about the market.
Always request quotes from several suppliers. Consulting prices can fluctuate significantly from one month to another. Take advantage of that. A consultant broker can help you scan the market and secure the right candidate at the right price. - Plan ahead.
Needing a consultant at short notice or extending a contract at the last minute rarely results in the best candidate at the best price. Start early, search broadly, and evaluate candidates from several suppliers. - Be precise in the assignment description.
Describe what the consultant should do and when the assignment should be completed. The clearer the description, the easier it is to get what you expect and assert your rights if something goes wrong. - Read the fine print.
If you know that you may need to extend the consultant assignment, check the terms carefully. Some suppliers automatically raise prices upon extension. What seems cheap at the start may become expensive in the long run. - Focus on the total cost.
The key in consultant procurement is keeping the total cost as low as possible. Therefore, focus on total value and hourly cost. Skipping a consultant broker—or choosing one with an extremely low fee—isn’t necessarily the cheapest option in the end.
