Independent Consultant Survey overall results including data cuts by geography, age and gender. December PDF Free Download

Independent Consultant Survey overall results including data cuts by geography, age and gender December 2018

Survey findings - Highlights Overall results Women vs. Men Millennials: Under vs over 40 years Europe vs North America Independent consultants (ICs) are highly experienced and typically the main earner. Most deliberately chose to start independent consulting (IC) and half plan to be an IC for more than 3 years The vast majority of ICs (c. 90%) are satisfied with working as an IC, and are more satisfied than employed consultants with their current professional life Most are meeting their target days and earning more/similar to when they were employed ICs rate their current work very highly vs when they were at traditional consulting firms with 91% saying it is better value for money for clients 80% of ICs see themselves as successful (half as very/extremely) with ability to work in ambiguity and adaptability as the two main reasons. Unsurprisingly, the downsides are volatility of work, having to pursue business development, and sometimes not feeling part of a team IC radically reduces the gender pay gap, and women are more likely to be meeting their target work days and income expectations vs when last employed Women are as satisfied overall as men, but rate many factors of satisfaction more highly than men (including flexibility, intellectual challenge, work-life balance, time for other interests, personal development and financial security) They also rate their current IC work more strongly than when employed, particularly efficiency and gratification; and they primarily define success by being energised, relatively more than money (which is the key factor for men) Millennials are most likely to have made a deliberate choice to become an IC, particularly to have more control over their time and support new projects, with an entrepreneurial move as the most likely next step if/when they stop being an IC Millennials are more satisfied overall and against many factors, particularly financial security and personal development; and are generally more positive about their current IC projects vs when they were employed in a traditional firm Linked to this, they are typically billing more days, more likely to be billing at least their target days, and 84% are earning the same or more (71% are earning more) than when employed (twice as many as older ICs) There are few geographical differences while North American ICs are somewhat less likely to have deliberately chosen to start IC they are just as satisfied, are particularly satisfied with intellectual challenge and contribution to society, and are even more likely to perceive themselves as extremely/very successful 1 Independent Consultant Survey 2018

Contents 1. Overview of survey findings: Independent consultants and employed consultants 2. Independent consultants Women vs men 3. Independent consultants Millennials vs over 40 4. Independent consultants Europe vs North America 2 Independent Consultant Survey 2018

The survey respondents were split c. 60% Europe and 40% North America (mostly the USA) SAMPLE BY SOURCE AND GEOGRAPHY: CURRENT INDEPENDENTS (SURVEY A) Eden McCallum LBS B2E HighPoint Total Eden McCallum LBS B2E HighPoint Total Europe 116 42 32 1 191 Europe 38% 14% 10% 0% 62% North America 0 6 0 110 116 North America 0% 2% 0% 36% 38% Total 116 48 32 111 307 Total 38% 16% 10% 36% 100% The survey was conducted from 5 October 2018 to 21 October 2018 as an online questionnaire. The sample comes from four sources: Eden McCallum (Europe) B2E Solutions (Europe) HighPoint Associates (North America) London Business School alumni Note: Based off links sent to different source groups 32 Independent Consultant Survey 2018

Independents are older and more experienced KEY FACTS ABOUT THE SAMPLE AGE AND YEARS OF PROFESSIONAL EXPERIENCE Split of respondents by age, % Number of years of professional experience 100% = 307 94 Total years = 3% 61 to 70 14% Other 18% Independent Consulting 25.8 0.4 7.9 51 to 60 37% 23% 15.4 0.4 1.2 Industry 9.8 4.7 41 to 50 33% 55% Up to 40 16% Traditional Consulting 7.7 9.1 Independent consultants Employed consultants Independent Employed consultants consultants (307 respondents) (94 respondents) Note: QA9 and QB2: Looking at your total professional experience, please list the approximate number of years you have spent in each type of the following (traditional consulting, industry, independent consulting, other (please specify); QAge: How old are you? 4 Independent Consultant Survey 2018

The male-female split for both ICs and employed consultants is 80-20; threequarters are the main earner; less than half have young children KEY FACTS ABOUT THE SAMPLE GENDER, MAIN EARNER AND CHILDREN UNDER 18 Split of respondents by gender, % Split of respondents by earning responsibility,% 1 Split of respondents by number of children under 18, % 100% = Female 307 94 21% 19% 100% = Couple - spouse main earner Couple - shared 296 90 2% 9% 22% 19% Sharing earnings load 100% = >=3 2 303 94 7% 4% 22% 19% 14% 1 17% Male 79% 81% Couple - respondent main earner 56% 52% Responsible for earnings load No 54% 63% Single 16% 23% Independent consultants Employed consultants Independent consultants Employed consultants Independent consultants Employed consultants 1 Combines two questions Note: QGender: What is your gender?; QA36 and QB36 Are you the sole provider of income in your household?; QA37 and QB37 Are you the main earner of income in your household?; QA38 and QB38 Do you have children under the age of 18? 5 Independent Consultant Survey 2018

Nearly 60% of IC work is direct and relatively little work is for previous employers; most are signed up to 2 or more third party firms/agencies SOURCES OF WORK AND THIRD PARTY FIRMS/AGENCIES SIGNED UP WITH Sources of work for ICs, % 100% = 307 respondents Number of third party firms/agencies ICs are signed up with, % 100% = 307 respondents Direct to clients 1 51% Previous employer 4% 3% Other 42% Through a third party firm/agency None 10% 1 11% 20% 5 or more Of those signed up to at least one third party firm/agency, 78% have worked with at least one in the last two years 60% 2 to 4 1: Direct to clients excludes previous employers Note: QA4 Still thinking about your billable time as an independent consultant, how often do you work with the following? Your best estimate will do. The total should be 100% QA5 How many 3rd party firms or agencies (companies that connect freelancers with project work) have you signed up with as an independent consultant?; QA6c Please tick the names of the 3rd party firms or agencies (companies that connect freelancers with project work) with which you have worked in the last 2 years. 6 Independent Consultant Survey 2018

c. 90% are satisfied with working as an independent consultant, and nearly two-thirds very/extremely OVERALL SATISFACTION INDEPENDENT CONSULTANTS Overall satisfaction with working as an independent consultant, % 100% = 307 respondents 8% 3% 3% 24% 62% Extremely/very satisfied Somewhat satisfied Neither satisfied or dissatisfied Somewhat dissatisfied Very/extremely dissatisfied Notes: Scoring on a 1-7 scale: 6-7: Extremely/very satisfied; 5: Somewhat satisfied, 4: neutral; 3: Somewhat dissatisfied; 1+2: Very/extremely dissatisfied Note QA16 In general, how SATISFIED are you with working as an independent consultant on a scale from 1 to 7, where 1 is extremely dissatisfied 7 Independent Consultant Survey 2018

Independents are more satisfied than employed consultants are with their current professional life OVERALL SATISFACTION INDEPENDENT VS EMPLOYED CONSULTANTS Overall satisfaction with working as an independent consultant vs satisfaction with current professional life for employed consultants, % 100% = 307 94 Extremely/very satisfied 62% 50% 32% Somewhat satisfied 24% Neither satisfied or dissatisfied Somewhat dissatisfied 8% Very/extremely dissatisfied 3% 3% Independent consultants 6% 7% 4% Employed consultants Notes: Scoring on a 1-7 scale: 6-7: Extremely/very satisfied; 5: Somewhat satisfied, 4: neutral; 3: Somewhat dissatisfied; 1+2: Very/extremely dissatisfied Note QA16 In general, how SATISFIED are you with working as an independent consultant on a scale from 1 to 7, where 1 is extremely dissatisfied; QB4aA1: In general, how SATISFIED are you with your current professional life on a scale from 1 to 7, where 1 is extremely dissatisfied and 7 is extremely satisfied 8 Independent Consultant Survey 2018

Satisfaction Overall, independents are highly satisfied with the most aspects of their professional lives IMPORTANCE AND DRIVERS OF SATISFACTION INDEPENDENT CONSULTANTS All independent consultants, n=307 Very satisfied 6.0 5.5 Flexibility on WHEN work Choice of WHICH work Intellectual challenge Choice of WHERE I work Right work-life balance Time for other/new interests Very and satisfied Somewhat satisfied 5.0 Personal development Not and not very satisfied Neither satisfied nor dissatisfied 9 Independent Consultant Survey 2018 4.5 Status / recognition Tangible career path Employment benefits 1 Social interaction Financial security Contribution to society 4.0 1.0 2.0 3.0 4.0 Not at all Somewhat Very Extremely Importance Very and not very satisfied 1 Employment benefits scores 3.8 on Satisfaction Note: Satisfaction: (1 = Extremely dissatisfied; 7 = Extremely satisfied); Importance: (1 = Not at all ; 4 = Extremely ) Note QA17 - At this stage of your career, how IMPORTANT are the following factors to you?; QA18 Thinking about the same criteria, how SATISFIED are you with your work as an independent consultant?

Satisfaction Satisfaction while their employed peers are markedly less satisfied with many aspects of their professional lives CURRENT INDEPENDENT CONSULTANTS VS THOSE AT TRADITIONAL CONSULTING FIRMS Current independent consultants, n=307 Current traditional consultants, n=94 1 Satisfaction average rating varies by >0.7 points relative to current independents Very satisfied 6.0 Very satisfied 6.0 Somewhat satisfied Neither satisfied nor dissatisfied 5.0 Status / recognition Financial security Contribution to society Social interaction Tangible career path Employment benefits 2 Flexibility on WHEN work Choice of WHICH work Choice of WHERE I work Intellectual challenge Right work-life balance Time for other/new interests Personal development 4.0 1.0 2.0 3.0 4.0 Not at all Somewhat Very Extremely Somewhat satisfied Neither satisfied nor dissatisfied 4.0 1.0 2.0 Importance Importance 1 Both former ICs and those who have never been an IC 2 Employment benefits score 3.8 on Satisfaction for Current independents Note Satisfaction: (1 = Extremely dissatisfied; 7 = Extremely satisfied); Importance: (1 = Not at all ; 4 = Extremely ) Note QA17 - At this stage of your career, how IMPORTANT are the following factors to you?; QA18 Thinking about the same criteria, how SATISFIED are you with your work as an independent consultant? 10 Independent Consultant Survey 2018 5.0 Not at all Financial security Employment benefits Personal development Social interaction Tangible career path Choice of WHERE I work Status / recognition Flexibility on WHEN work Intellectual challenge Choice of WHICH work Contribution to society Right work-life balance Time for other/new interests Somewhat 3.0 Very 4.0 Extremely

Most ICs define success as earning a good income, being energised and having impact; c. 80% see themselves as successful (half as very/extremely) HOW ICs DEFINE SUCCESS AND PERCEIVE THEIR SUCCESS Good income How ICs define success as an IC 1, % 307 respondents 62% How ICs perceive their success as an IC 3, % 100% = 307 Feel energised Impactful work 47% 45% Extremely/ very successful 47% Work-life balance 35% Colleagues 23% Time for other interests Family time 23% 22% Somewhat successful 33% Learning Try new things Other 2 19% Neither 17% Somewhat unsuccessful 12% Very/extremely 2% unsuccessful 5% 3% Independent consultants 1. Maximum of 3 choices allowed 2. Other includes Independence 3. Scoring on a 1-7 scale: 6-7: Extremely/very successful; 5: Somewhat successful, 4: neutral; 3: Somewhat unsuccessful; 1-2: Very/extremely unsuccessful Note Current employed consultants were not asked definition of success, perception of success or factors in their success Note QA19 - How would you personally DEFINE SUCCESS as an independent consultant? Tick a maximum of 3 from the list below; QA20 Overall, how SUCCESSFUL do you think you are as an independent consultant? On a scale from 1 to 7 where 1 is extremely unsuccessful and 7 is extremely successful. 11 Independent Consultant Survey 2018

The top two reasons for success are the ability to work in ambiguity/uncertainty and adaptability to new situations IMPORTANCE OF FACTORS IN INDEPENDENT CONSULTANTS SUCCESS (FOR THOSE WHO ARE SUCCESSFUL 1 ) Average rating of each factor in their success as an IC 2 246 respondents Ability to work in uncertainty Adaptability Optimism Network Previous trad. consulting Focusing on strengths My ability to bounce back Education Ability to generate own work Supportive family/friends Colleagues/team mates Affiliation with agencies Deeper purpose 2.0 2.3 2.4 3.2 3.1 3.0 3.0 2.9 2.9 2.8 2.7 3.4 3.4 1. Somewhat/very/extremely successful 2. Where 1 = not at all ; 4 = extremely Note QA21 How do you think the following factors have been in your success as an independent consultant? 12 Independent Consultant Survey 2018

Where working with a third party is a driver of success, the key benefit is less need for business development, followed by greater volume of work and opportunities to work in teams % of respondents 1 All respondents BENEFITS OF WORKING WITH A THIRD PARTY FIRM OR AGENCY TO THEIR SUCCESS 172 respondents Less need for business development 68% Volume of work 54% Teams/colleagues 40% Variety 30% Admin 28% Impact 16% Day rate 12% Other 2 1% 1. For those who are at least somewhat successful and see affiliation with third party firms/agencies as somewhat/very/extremely to their success 2. Other includes: Reduces uncertainty, Access to larger clients that require Master Service Agreements Note QA22 - What have been the benefits of working with a 3rd party firm or agency that finds work for independent consultants? (tick a maximum of 3) 13 Independent Consultant Survey 2018

Starting independent consulting is an active choice for most, driven by a desire to have more control over their time, a better work-life balance and to work differently with clients BECOMING AN INDEPENDENT CONSULTANT What drove the move to IC 1, % Specific triggers in starting independent consulting, % 2 Average age started as an IC 100% = Forced upon me 41.7 304 10% 307 respondents Control of time Work-life balance Work differently with clients 30% 34% 43% Mix of push and pull factors 40% Career change Family time Exit package 19% 19% 18% I lost my job 16% External opportunity 14% Deliberate choice 50% Finance a new project Lost interest in old job 13% 12% Relocation 6% Independent consultants Other 3 13% 1 Excluding n/a 2 Maximum of 3 choices allowed 3 Other includes: Frustration with corporate environments, Circumstances, Specific motives for career change, Attraction to being an IC, Portfolio career, Desire to choose which projects, Another opportunity falling through, To study for a PhD Note QA13 How would you describe your move from working as an employee at a company to independent consulting?; QA15A1 How old were you when you made the move from employment to independent consulting? QA14A - What specifically triggered you to start working as an independent consultant? (Maximum 3 answers) 14 Independent Consultant Survey 2018

Half plan to be independent for over 3 years with many likely to go into something entrepreneurial should they leave independent consulting FUTURE INTENTIONS OF INDEPENDENT CONSULTANTS Years intending to remain an independent consultant 100% = 307 respondents Next move if they were to stop being an independent consultant 100% = 307 respondents 9% 27% 23% 20% 50% 5% 8% 4% 16% 19% 20% More than 3 years 1-3 years <12 months I don t know Corporate role Trad. Consulting Join start up Start own business Career break No longer work/retire Other 1. Other includes: Teach/work in a non-profit, Focus on start-ups/business interests, Career change, Private Equity, Directorships, Not sure, Investment management, Any job, Poetry Note QA27 How long do you intend to remain an independent consultant?; QA28 If you were to stop being an independent consultant, what are you most likely to do? 15 Independent Consultant Survey 2018

Independent consultants think the best thing about being independent is the freedom and control that it brings along with flexibility INDEPENDENT CONSULTANT RESPONDENTS X # respondents providing response in this area 1 What do you find to be the best thing(s) about being an independent consultant? Independence/ Freedom/ Control/Choice 131 Doing the work I want with the clients I want in the way that I want Freedom to choose the projects and people I work with. Being true to my beliefs/values in how I do my work. Being able to see the value I can add and surpassing expectations. The financial return 36 Doing work that I love and being paid well for it Interesting work, good rate, flexibility Good income level vs level of stress Flexibility in timings and locations 103 Flexibility, choice, balance Flexibility (to build the work/life balance that works for you) Freedom and flexibility, ability to pause between projects and to follow other projects between jobs Time to combine with entrepreneurism No internal politics to deal with 32 Independence and control over working life, and less politics Freedom from politics and admin associated with large consulting firms No bosses to worry about Lack of need to engage in personal development and people management, plus the 'office politics' tends to pass me by Variety of projects and new challenging situations 40 Variety of work and potential clients Working on a wide range of projects; being able to define my own working style The work-life balance 31 Own decision when to work. Better work-life balance. Flexibility to have the work-life balance I want Flexibility over time leading to ability to pursue other interests Work-life balance combined with new, inspiring challenges Impact of the work and the focus on results Sense of ownership for what I do (which generates a different sort of client relationship and higher level of integrity) Ability to develop/scope most suitable solution Closer to rewards, and visibility of client impact Feeling of making a difference Your opinion, expertise and work is valued differently than if you were employed 1 Responses were multi-coded Note QA24 What do you find to be the best thing(s) about being an independent consultant? 16 Independent Consultant Survey 2018 Intellectual interest and development 36 27 Own my professional development and progress Opportunity to offer expert and valued advice to people who really want it Variety of work. Interesting challenges

However, they describe volatility of work and uncertainty of projects as the worst things about being independent CURRENT INDEPENDENT RESPONDENTS What do you find to be the worst thing(s) about of being an independent consultant? X # respondents providing response in this area 1 Volatility of work and uncertainty 159 Unpredictable Worrying about landing next project Uncertainty of cash flow High uncertainty over occupation makes it hard to make long term personal plans Fewer PT projects with limited/no travel Lack of support services 30 Limited support for 'chores' (admin, planning of meetings, etc) Support systems (e.g., IT) Doing everything from Business Analyst to Partner - hard to switch mindset and check own work. The back office: taxes, getting paid, diary management Lock of support Having to services actively pursue business development 45 Time consuming to build business and income streams Constant selling mode and very unpredictable billing Uncertainty business development Procurement process - more difficult for independents than traditional consultancy firms, especially in public sector Lack of professional development 16 More recently: a sameness to projects; roles typically less than I'm capable of and/or typically working for someone whose job I could easily do Lack of progress or at least limited progress Making sure I don't only get hired for what I've done before but [also] develop in the direction I want to develop in Isolation, no feeling of being part of a team 39 Can be a bit lonely sometimes.. even if working in client teams you can t completely relax the way you would with your own team Lack of community Sometimes you are 'alone Not having colleagues to share problem solving with Have to develop your own methodologies and frameworks. Not being surrounded by super bright people 1 Responses were multi-coded Note QA24 What do you find to be the worst thing(s) about being an independent consultant? 17 Independent Consultant Survey 2018

Independent consultants work ~180 days/year; most are working more/the same as their target days and earning more/similar to when they were employed DAYS WORKED AS AN INDEPENDENT CONSULTANT Billable/Non-Billable Days worked as an IC Billed Days vs Target, % Earnings as an IC vs while employed, % Total days = 180 100% = 291 100% = 307 Non-Billable days 45 More than target 20% More 43% Same as target 45% Billable days 135 Similar 24% Less than target 36% Less 33% Independent consultants (307 respondents) Independent consultants Independent consultants Note QA3a Thinking about the past year: How many days in total did you work as an independent consultant? Of that total, how many were billable days (in other words, you invoiced a client for them) and how many were non-billable?; QA3b Thinking about the past year: How did the actual number of billable days compare to the number of days you were targeting? QA26 From a pure financial point of view, do you make more or less money as an independent consultant compared to when you were employed? 18 Independent Consultant Survey 2018

Independent consulting radically reduces the gender pay gap GENDER PAY GAP - OVERALL Last FTE salary before becoming an IC Index : Men = 100 Day rates as IC Index : Men = 100 Men -27.7% -3.0% Women n=264 (53 women, 211 men) n=284 (59 women, 225 men) Note: Index weighted by respondents per currency to negate exchange rate effects Note QA7a Thinking about your billable time as an independent consultant and the day rates you charge: What was the typical day rate that you charged clients over the past year? Please fill in only one currency box per question. QA12c - What was your last yearly salary before you became an independent consultant? (if part-time, then answer for the full time equivalent). 19 Independent Consultant Survey 2018

Independent consultants rate their current work very highly now versus when they were in traditional firms, particularly value for money for clients RATING OF CURRENT WORK AS AN INDEPENDENT VS PROJECT WORK WHEN EMPLOYED IN A TRADITIONAL CONSULTING FIRM % of respondents 1 All respondents 265 respondents Value for money for client 71 20 7 Efficiency of my work 50 26 18 Client relationship 48 19 29 Gratification 45 33 19 Likelihood of implementation 36 30 30 Project impact 34 27 34 Interest of project 32 29 34 Much higher Somewhat higher Similar 1. Excluding those who answered n/a Note QA29 Comparing your project work as an independent consultant NOW with your project work when you where employed in a traditional consulting firm, how would you rate the following factors? 20 Independent Consultant Survey 2018

Women IC s tend to become independent earlier, having spent fewer years in traditional consulting and industry KEY FACTS ABOUT THE SAMPLE PROFESSIONAL EXPERIENCE Number of years of professional experience Level left most recent traditional consulting firm, % Other Independent Consulting 25.8 0.4 7.9 22.9 0.4 26.6 0.5 7.8 100% = Partner / Principal / Senior Partner 265 32% 56 209 23% 34% 8.1 Industry 9.8 8.2 10.2 Project Manager / Associate Princip 51% 54% 50% Traditional Consulting 7.7 6.2 8.1 Consultant / Analyst / Associate 17% 23% 15% Total Women Men Total Women Men 100% = 307 65 242 Note: QA9 Looking at your total professional experience, please list the approximate number of years you have spent in each type of the following (traditional consulting, industry, independent consulting, other (please specify); QA11 What was the level you reached in your most recent consulting firm? 22 Independent Consultant Survey 2018

Women are most likely to have made a deliberate choice to become an IC; key reasons higher than men include control over time, work-life balance and to spend more time/support family and friends Control of time Work-life balance Work differently with clients Career change Family time Exit package I lost my job External opportunity Finance a new project Lost interest in old job Relocation Other BECOMING AN IC What drove the move to IC 1, % Total 50% 40% # respondents 10% 304 Age when started IC 41.7 Specific triggers in starting IC 2, % 43 34 30 19 19 18 16 14 13 12 6 13 Women 60% 35% 5% 65 38.1 60 49 31 17 29 12 6 5 6 18 6 17 Men 46% 41% 12% 239 42.6 39 29 29 20 16 20 19 16 15 11 6 12 Deliberate choice Mix Forced upon me 1 Excluding n/a 2 Maximum 3 answers allowed Note QA13 How would you describe your move from working as an employee at a company to independent consulting?; QA15A1 How old were you when you made the move from employment to independent consulting?; QA14A - What specifically triggered you to start working as an independent consultant? (Maximum 3 answers) 23 Independent Consultant Survey 2018

Women are more likely to be undecided about how long they will remain an IC; if they make a change, it is more likely to be to start their own business; virtually none plan to go back to traditional consulting firms FUTURE INTENTIONS Years intending to remain an independent consultant Next move if they were to stop being an independent consultant 100% = I don t know <12 months 1-3 years 307 27% 8% 16% 65 35% 6% 14% 242 24% 9% 16% 100% = Other 1 No longer work/retire Career break Start own business 307 65 242 9% 15% 8% 20% 21% 15% 4% 5% 3% 19% 16% 28% Join start up 20% 21% More than 3 years 50% 45% 51% Trad. Consulting 15% 5% 7% 0% Corporate role 23% 22% 24% Total Women Men Total Women Men 1. Other includes: Teach/work in a non-profit, Focus on start-ups/business interests, Career change, Private Equity, Directorships, Not sure, Investment management, Any job, Poetry Note QA27 How long do you intend to remain an independent consultant?; QA28 If you were to stop being an independent consultant, what are you most likely to do? 24 Independent Consultant Survey 2018

Women target and bill fewer days than men and are more likely to have met their target DAYS WORKED AS AN INDEPENDENT CONSULTANT Billable/Non-Billable, Days Billed Days vs Target, % Total days = 180 186 100% = 291 57 234 Non-Billable days 45 159 37 47 More than target 20% 26% 18% Same as target 45% 44% 45% Billable days 135 122 139 Less than target 36% 30% 37% Total Women Men Total Women Men 100% = 307 48 259 Note QA3a Thinking about the past year: How many days in total did you work as an independent consultant? Of that total, how many were billable days (in other words, you invoiced a client for them) and how many were non-billable?; QA3b Thinking about the past year: How did the actual number of billable days compare to the number of days you were targeting? 25 Independent Consultant Survey 2018

and are more likely to earn at least the same versus when they were employed PERCEPTION OF EARNINGS Earnings as an IC vs while employed % 100% = 307 65 242 More 43% 42% 44% Similar 24% 31% 22% Less 33% 28% 34% Total Women Men Note QA26 From a pure financial point of view, do you make more or less money as an independent consultant compared to when you were employed? 26 Independent Consultant Survey 2018

There is little difference in satisfaction; in terms of success, men are more likely to say they are very/extremely successful while women are far more likely to say they are somewhat successful OVERALL SATISFACTION AND PERCEIVED SUCCESS Overall satisfaction with working as an independent consultant 1, % Perceived success as an IC 2, % 100% = 307 65 242 100% = 100 65 242 Extremely/very satisfied 62% 60% 62% Extremely/very successful 47% 40% 49% Somewhat successful 33% 45% 30% Somewhat satisfied 24% 26% 24% Neither satisfied or dissatisfied Somewhat dissatisfied Very/extremely dissatisfied 8% 11% 7% 3% 3% 0% 4% 3% 3% Total Women Men Neither Somewhat unsuccessful Very/extremely unsuccessful 12% 12% 11% 5% 6% 3% 3% 2% 3% Total Women Men 1 Scoring on a 1-7 scale: 6-7: Extremely/very satisfied; 5: Somewhat satisfied, 4: neutral; 3: Somewhat dissatisfied; 1-2: Very/extremely dissatisfied 1 Scoring on a 1-7 scale: 6-7: Extremely/very successful; 5: Somewhat successful, 4: neutral; 3: Somewhat unsuccessful; 1-2: Very/extremely unsuccessful Note QA20 Overall, how SUCCESSFUL do you think you are as an independent consultant? On a scale from 1 to 7 where 1 is extremely unsuccessful and 7 is extremely successful ; QA16 In general, how SATISFIED are you with working as an independent consultant on a scale from 1 to 7, where 1 is extremely dissatisfied 27 Independent Consultant Survey 2018

Satisfaction Satisfaction Women tend to be more satisfied on a number of specific factors that are most to them IMPORTANCE AND DRIVERS OF SATISFACTION Female independent consultants, n=65 Male independent consultants, n=242 Very satisfied Somewhat satisfied Neither satisfied nor dissatisfied 6.0 5.5 5.0 4.5 4.0 Tangible career path Status / recognition Employment benefits 1 Choice of WHERE I work Right work-life balance Time for other/new interests Financial security Social interaction Flexibility on WHEN work Contribution to society Intellectual challenge Choice of WHICH work Personal development 1.0 2.0 3.0 4.0 Not at all Somewhat Importance Very Extremely Very satisfied Somewhat satisfied Neither satisfied nor dissatisfied 1.0 2.0 3.0 4.0 1 Employment benefits score 4.0 on Satisfaction for Female independents 2 Employment benefits score 3.8 on Satisfaction for Male independents Note Satisfaction: (1 = Extremely dissatisfied; 7 = Extremely satisfied); Importance: (1 = Not at all ; 4 = Extremely ) Note QA17 - At this stage of your career, how IMPORTANT are the following factors to you?; QA18 Thinking about the same criteria, how SATISFIED are you with your work as an independent consultant? 28 Independent Consultant Survey 2018 6.0 5.0 4.0 Not at all Satisfaction average rating varies by >0.2 points for women versus men Choice of WHICH work Intellectual challenge Choice of WHERE I work Flexibility on WHEN work Status / recognition Tangible career path Employment benefits 2 Somewhat Time for other/new interests Personal development Financial security Contribution to society Social interaction Importance Very Right work-life balance Extremely

Women define success slightly less by income, and slightly more by feeling energised HOW ICs DEFINE SUCCESS AS AN INDEPENDENT CONSULTANT % of respondents 1 All respondents 307 respondents Women 65 respondents Men 242 respondents Good income 62% 51% 65% Feel energised 47% 54% 45% Impactful work 45% 46% 44% Work-life balance 35% 32% 36% Colleagues 23% 23% 23% Time for other interests 23% 22% 23% Family time 22% 26% 21% Learning 19% 20% 19% Try new things 17% 20% 16% Other 2 2% 2% 2% 1. Maximum of 3 choices allowed 2. Other includes Independence Note QA19 - How would you personally DEFINE SUCCESS as an independent consultant? Tick a maximum of 3 from the list below 29 Independent Consultant Survey 2018

There is little difference in perception of which factors contribute to their success IMPORTANCE OF FACTORS IN ICs SUCCESS (FOR THOSE WHO ARE SUCCESSFUL 1 ) Average rating 2 All respondents Women Men 246 respondents 55 respondents 191 respondents Ability to work in uncertainty 3.4 3.5 3.4 Adaptability 3.4 3.5 3.4 Optimism 3.2 3.2 3.2 Network 3.1 3.2 3.1 Previous trad. consulting 3.0 3.0 3.0 Focusing on strengths 3.0 3.1 3.0 My ability to bounce back 2.9 2.9 2.9 Education 2.9 2.7 2.9 Ability to generate own client work 2.8 2.7 2.9 Supportive family/friends 2.7 2.7 2.6 Colleagues/team mates 2.4 2.5 2.4 Affiliation with agencies 2.3 2.4 2.3 Deeper purpose 2.0 2.3 1.9 1. Somewhat/very/extremely successful 2. Where 1 = not at all ; 4 = extremely Note QA21 How do you think the following factors have been in your success as an independent consultant? 30 Independent Consultant Survey 2018

Where affiliation to a third party firm is a driver of success, women are more likely to rate teams/colleagues and admin, and much less likely to value the volume of work BENEFITS OF WORKING WITH A THIRD PARTY FIRM % of respondents 1 All respondents Women Men 172 respondents 40 respondents 132 respondents Less need for business development 68% 70% 67% Volume of work 54% 33% 61% Teams/colleagues 40% 50% 37% Variety 30% 25% 31% Admin 28% 35% 27% Impact 16% 15% 16% Day rate 12% 15% 11% Other 2 1% 3% 1% 1. For those who are at least somewhat successful and see affiliation with agencies as somewhat/very/extremely to their success 2. Other includes: Reduces uncertainty, Access to larger clients that require Master Service Agreements Note QA22 - What have been the benefits of working with a 3rd party firm or agency that finds work for independent consultants? (tick a maximum of 3) 31 Independent Consultant Survey 2018

Women are even more positive about the benefits of their work as an IC versus in a traditional firm, particularly efficiency, gratification and interest RATING OF CURRENT WORK AS AN INDEPENDENT VS THEIR PROJECT WORK WHEN EMPLOYED IN A TRADITIONAL CONSULTING FIRM % of respondents 1 All respondents 265 respondents Women 56 respondents Men 219 respondents Value for money for client 71 20 7 74 20 6 70 20 8 Efficiency of my work 50 26 18 63 23 13 46 27 19 Client relationship 48 19 29 50 21 27 48 18 30 Gratification 45 33 19 57 16 25 42 38 17 Likelihood of implementation 36 30 30 40 38 22 35 28 32 Project impact 34 27 34 34 25 39 34 27 33 Interest of project 32 29 34 39 25 34 29 30 34 Much higher Somewhat higher Similar 1. Excluding those who answered n/a Note QA29 Comparing your project work as an independent consultant NOW with your project work when you where employed in a traditional consulting firm, how would you rate the following factors? 32 Independent Consultant Survey 2018

Control of time Work-life balance Work differently with clients Career change Family time Exit package I lost my job External opportunity Finance a new project Lost interest in old job Relocation Other Millennials were most likely to have made a deliberate choice to become an IC; and vs older ICs, they are more likely to do this to have more control over their time or to finance a new project BECOMING AN IC What drove the move to IC 1, % Specific triggers in starting IC 2, % # respondents 43 34 30 Total 50% 40% 10% 304 19 19 18 16 14 13 12 6 13 Millennials (<40 years) 67% 27% 6% 48 48 31 33 25 25 8 6 10 27 10 2 17 Others (>40 years) 46% 43% 11% 256 42 34 29 18 17 20 18 14 11 13 7 13 Deliberate choice Mix Forced upon me 1 Excluding n/a 2 Maximum 3 answers allowed Note QA13 How would you describe your move from working as an employee at a company to independent consulting?; QA15A1 How old were you when you made the move from employment to independent consulting?; QA14A - What specifically triggered you to start working as an independent consultant? (Maximum 3 answers) 34 Independent Consultant Survey 2018

Millennials are more likely to be undecided about how long they will remain independent; an entrepreneurial move is the most likely next step FUTURE INTENTIONS Years intending to remain an independent consultant Next move if they were to stop being an independent consultant 100% = 307 48 259 100% = 307 48 259 I don t know <12 months 1-3 years 27% 8% 16% 48% 6% 23% 8% 14% Other 1 No longer work/retire Career break Start own business 9% 10% 9% 2% 2% 20% 24% 4% 40% 4% 19% 15% More than 3 years 50% 23% 23% 54% Join start up Trad. Consulting Corporate role 20% 5% 23% 25% 8% 13% 19% 5% 25% Total Millennials (<40 years) Others (>40 years) Total Millennials (<40 years) Others (>40 years) 1. Other includes: Teach/work in a non-profit, Focus on start-ups/business interests, Career change, Private Equity, Directorships, Not sure, Investment management, Any job, Poetry Note QA27 How long do you intend to remain an independent consultant?; QA28 If you were to stop being an independent consultant, what are you most likely to do? 35 Independent Consultant Survey 2018

Millennials are more likely to be extremely/very satisfied, though only slightly more likely to perceive themselves as successful than older peers OVERALL SATISFACTION AND PERCEIVED SUCCESS Overall satisfaction with working as an independent consultant 1, % Perceived success as an IC 2, % 100% = 307 48 259 100% = 307 48 259 Extremely/very satisfied 62% 69% 60% Extremely/very successful 47% 52% 46% Somewhat satisfied Neither satisfied or dissatisfied Somewhat dissatisfied Very/extremely dissatisfied 36 Independent Consultant Survey 2018 24% 25% 24% 8% 2% 9% 3% 3% 4% 0% 3% 3% Total Millennials (<40 years) Others (>40 years) Somewhat successful Neither Somewhat unsuccessful Very/extremely unsuccessful 12% 10% 12% 1 Scoring on a 1-7 scale: 6-7: Extremely/very satisfied; 5: Somewhat satisfied, 4: neutral; 3: Somewhat dissatisfied; 1+2: Very/extremely dissatisfied 1 Scoring on a 1-7 scale: 6-7: Extremely/very successful; 5: Somewhat successful, 4: neutral; 3: Somewhat unsuccessful; 1-2: Very/extremely unsuccessful Note QA20 Overall, how SUCCESSFUL do you think you are as an independent consultant? On a scale from 1 to 7 where 1 is extremely unsuccessful and 7 is extremely successful ; QA16 In general, how SATISFIED are you with working as an independent consultant on a scale from 1 to 7, where 1 is extremely dissatisfied 33% Total 29% 34% 5% 6% 5% 3% 2% 3% Millennials (<40 years) Others (>40 years)

Satisfaction Satisfaction Millennials are more satisfied about most factors, particularly financial security and personal development IMPORTANCE AND DRIVERS OF SATISFACTION Satisfaction average rating varies by >0.2 points relative to older independent consultants Millennial independent consultants (<40 years), n=48 Older independent consultants (>40 years), n=259 Very satisfied 6.0 Very satisfied 6.0 Flexibility on WHEN work Intellectual challenge Choice of WHERE I work Financial security Choice of WHICH work Right work-life balance Flexibility on WHEN work Choice of WHERE I work Intellectual challenge Right work-life balance Choice of WHICH work Somewhat satisfied 5.0 Personal development Time for other/new interests Somewhat satisfied 5.0 Time for other/new interests Personal development Neither satisfied nor dissatisfied 4.0 1.0 Not at all Status / recognition Contribution to society Social interaction Employment benefits 1 2.0 Somewhat Tangible career path Importance 3.0 Very 1 Employment benefits scores 3.9 on Satisfaction for Millennials 2 Employment benefits scores 3.8 on Satisfaction for Older independent consultants Note Satisfaction: (1 = Extremely dissatisfied; 7 = Extremely satisfied); Importance: (1 = Not at all ; 4 = Extremely ) Note QA17 - At this stage of your career, how IMPORTANT are the following factors to you?; QA18 Thinking about the same criteria, how SATISFIED are you with your work as an independent consultant? 37 Independent Consultant Survey 2018 4.0 Extremely Neither satisfied nor dissatisfied 4.0 Status / recognition Tangible career path Employment benefits 2 Financial security Contribution to society Social interaction 1.0 2.0 3.0 4.0 Not at all Somewhat Importance Very Extremely

Millennials are working the same number of days, but more are billable versus older colleagues; 80% are working at least as many days as targeted (versus 60% for older ICs) DAYS WORKED AS AN INDEPENDENT CONSULTANT Billable/Non-Billable, Days Billed Days vs Target, % Total days = 180 181 180 100% = 291 47 244 Non-Billable days 45 30 48 More than target 20% 34% 17% Same as target 45% 45% Billable days 135 151 133 45% Less than target 36% 21% 39% Total Millennials (<40 years) Others (>40 years) Total Millennials (<40 years) Others (>40 years) 100% = 307 48 259 Note QA3a Thinking about the past year: How many days in total did you work as an independent consultant? Of that total, how many were billable days (in other words, you invoiced a client for them) and how many were non-billable?; QA3b Thinking about the past year: How did the actual number of billable days compare to the number of days you were targeting? 38 Independent Consultant Survey 2018

Nearly 85% of millennials are earning the same or more as an IC versus when employed; 71% are earning more nearly twice as many as older ICs PERCEPTION OF EARNINGS Earnings as an IC vs while employed % 100% = 307 48 259 More 43% 38% 71% Similar 24% 26% Less 33% 13% 17% 36% Total Millennials (<40 years) Others (>40 years) Note QA26 From a pure financial point of view, do you make more or less money as an independent consultant compared to when you were employed? 39 Independent Consultant Survey 2018

Millennials also primarily define success by having a good income and being energised, but impact and colleagues are slightly less while learning is more so HOW ICs DEFINE SUCCESS AS AN INDEPENDENT CONSULTANT % of respondents 1 All respondents Millennials (<40 years) Others (>40 years) 307 respondents 48 respondents 259 respondents Good income 62% 67% 61% Feel energised 47% 50% 46% Impactful work 45% 33% 47% Work-life balance 35% 33% 36% Colleagues 23% 6% 26% Time for other interests 23% 31% 21% Family time 22% 27% 21% Learning 19% 29% 17% Try new things 17% 23% 16% Other 2 2% 0% 2% 1. Maximum of 3 choices allowed 2. Other includes Independence Note QA19 - How would you personally DEFINE SUCCESS as an independent consultant? Tick a maximum of 3 from the list below 40 Independent Consultant Survey 2018

Millennials rate adaptability, previous consulting experience and ability to work in uncertainty as the key reasons for their success; previous experience is deemed more and resilience less versus older ICs IMPORTANCE OF FACTORS IN ICs SUCCESS (FOR THOSE WHO ARE SUCCESSFUL 1 ) Average rating 2 All respondents Millennials (<40 years) Others (>40 years) 246 respondents 39 respondents 207 respondents Ability to work in uncertainty 3.4 3.3 3.5 Adaptability 3.4 3.5 3.4 Optimism 3.2 3.1 3.2 Network 3.1 3.1 3.1 Previous trad. consulting 3.0 3.4 2.9 Focusing on strengths 3.0 2.9 3.0 My ability to bounce back 2.9 2.5 3.0 Education 2.9 2.8 2.9 Ability to generate own client work 2.8 2.8 2.8 Supportive family/friends 2.7 2.8 2.6 Colleagues/team mates 2.4 2.2 2.5 Affiliation with agencies 2.3 2.3 2.3 Deeper purpose 2.0 1.9 2.0 1. Somewhat/very/extremely successful 2. Where 1 = not at all ; 4 = extremely Note QA21 How do you think the following factors have been in your success as an independent consultant? 41 Independent Consultant Survey 2018

Where working with a third party is a driver of success, millennials are more likely to see teams/colleagues and day rates as benefits; while volume and variety of work are less so versus older ICs BENEFITS OF WORKING WITH A THIRD PARTY FIRM % of respondents 1 All respondents Millennials (<40 years) Others (>40 years) 172 respondents 26 respondents 146 respondents Less need for business development 68% 69% 68% Volume of work 54% 42% 56% Teams/colleagues 40% 46% 39% Variety 30% 19% 32% Admin 28% 31% 28% Impact 16% 19% 15% Day rate 12% 19% 10% Other 2 1% 0% 2% 1. For those who are at least somewhat successful and see affiliation with agencies as somewhat/very/extremely to their success 2. Other includes: Reduces uncertainty, Access to larger clients that require Master Service Agreements Note QA22 - What have been the benefits of working with a 3rd party firm or agency that finds work for independent consultants? (tick a maximum of 3) 42 Independent Consultant Survey 2018

Millennials are more positive about the benefits of their work as an IC versus in a traditional firm RATING OF CURRENT WORK AS AN INDEPENDENT VS THEIR PROJECT WORK WHEN EMPLOYED IN A TRADITIONAL CONSULTING FIRM % of respondents 1 All respondents 265 respondents Millennials (<40 years) 46 respondents Others (>40 years) 219 respondents Value for money for client 71 20 7 77 18 2 70 20 8 Efficiency of my work 50 26 18 55 27 11 49 26 19 Client relationship 48 19 29 56 20 22 47 19 31 Gratification 45 33 19 48 33 20 45 33 19 Likelihood of implementation 36 30 30 30 41 20 38 28 32 Project impact 34 27 34 28 30 33 35 26 35 Interest of project 32 29 34 38 20 36 30 31 34 Much higher Somewhat higher Similar 1. Excluding those who answered n/a Note QA29 Comparing your project work as an independent consultant NOW with your project work when you where employed in a traditional consulting firm, how would you rate the following factors? 43 Independent Consultant Survey 2018

North American respondents are slightly more experienced KEY FACTS ABOUT THE SAMPLE YEARS OF PROFESSIONAL EXPERIENCE Number of years of professional experience Other 25.8 0.4 25.0 0.4 27.2 0.5 Independent Consulting 7.9 7.9 7.9 Industry 9.8 8.8 11.5 Traditional Consulting 7.7 8.0 7.3 Total Europe North America 45 Independent Consultant Survey 2018 100% = 307 191 116 Note: QA9 Looking at your total professional experience, please list the approximate number of years you have spent in each type of the following (traditional consulting, industry, independent consulting, other (please specify)

and similarly are more likely to be over 40 years old KEY FACTS ABOUT THE SAMPLE GENDER AND AGE Split of respondents by gender, % Split of respondents by age, % 100% = 307 191 116 100% = 307 191 116 Female 21% 23% 19% 61 to 70 14% 11% 20% 51 to 60 37% 39% 35% Male 79% 77% 81% 41 to 50 33% 31% 35% Up to 40 16% 19% 9% Total Europe North America Total Europe North America Note: QAge: How old are you?; QGender: What is your gender? 46 Independent Consultant Survey 2018

North American respondents are more likely to be the main earner; fewer IC s have young children in North America KEY FACTS ABOUT THE SAMPLE MAIN EARNER AND CHILDREN UNDER 18 Split of respondents by earning responsibility,% 1 Split of respondents by number of children under 18, % 100% = Couple - spouse main earner Couple - shared 296 186 110 9% 11% 6% 15% 19% 21% IC sharing earnings load 100% = >=3 2 1 303 190 113 7% 7% 5% 22% 24% 19% 12% 17% 21% Couple - respondent main earner 56% 55% 58% IC responsible for earnings load No 54% 48% 63% Single 16% 13% 21% Total Europe North America Total Europe North America 1 Combines two questions Note: QA36 Are you the sole provider of income in your household?; QA37 Are you the main earner of income in your household?; QA38 Do you have children under the age of 18? 47 Independent Consultant Survey 2018

North Americans work more billable days and unbilled time, yet are a bit less likely to hit their target billable days DAYS WORKED AS AN INDEPENDENT CONSULTANT Billable/Non-Billable, Days Billed Days vs Target, % Total days = Non-Billable days 180 45 173 39 192 54 100% = More than target 291 182 109 20% 21% 17% Same as target 45% 47% 40% Billable days 135 134 138 Less than target 36% 31% 43% Total Europe North America Total Europe North America 100% = 307 191 116 Note QA3a Thinking about the past year: How many days in total did you work as an independent consultant? Of that total, how many were billable days (in other words, you invoiced a client for them) and how many were non-billable?; QA3b Thinking about the past year: How did the actual number of billable days compare to the number of days you were targeting? 48 Independent Consultant Survey 2018

Perception of pay: The majority of both North Americans and Europeans feel they are earning more or similar as ICs than while employed full-time PERCEPTION OF EARNINGS Earnings as an IC vs while employed % 100% = 307 116 191 More 43% 40% 46% Similar 24% 20% 26% Less 33% 41% 28% Total North America Europe Note QA26 From a pure financial point of view, do you make more or less money as an independent consultant compared to when you were employed? 49 Independent Consultant Survey 2018

Independent consulting radically closes the gender pay gap, particularly in Europe GENDER PAY GAP Europe North America Last FTE salary before becoming an IC Day rates as IC Last FTE salary before becoming an IC Day rates as IC Men -30.8% +1.2% -27.5% -9.6% Women 159 respondents (32 women, 127 men) Index : Men = 100 175 respondents (38 women, 137 men) Index : Men = 100 104 respondents (20 women, 84 men) Index : Men = 100 109 respondents (21 women, 88 men) Index : Men = 100 Note: Index weighted by respondents per currency to negate exchange rate effects Note QA7a Thinking about your billable time as an independent consultant and the day rates you charge: What was the typical day rate that you charged clients over the past year? Please fill in only one currency box per question. QA12c - What was your last yearly salary before you became an independent consultant? (if part-time, then answer for the full time equivalent). 50 Independent Consultant Survey 2018

Independent Consultant Survey overall results including data cuts by geography, age and gender. December 2018