Some UK employees who would like to leave are being offered the chance to quit together with additional resources and career-coaching services by the management consultancy business. The move, which was originally revealed by The Times of London, is the most recent in a string of personnel changes at the renowned advisor to presidents and CEOs.
It also coincides with a recent warning by McKinsey to certain US consultants that their opportunities for advancement were running out. Amidst waning client demand over the last year, McKinsey and its consulting industry counterparts have reduced personnel, postponed start dates, and slowed the hiring pace.
An email from a McKinsey representative stated, "These actions are part of our ongoing effort to ensure our performance management and development approach is as effective as possible, and to do so in a caring and supportive way." Assisting individuals in developing into leaders, whether they choose to stay at McKinsey or pursue other career paths, is at the heart of our mission.
The Times said, citing people familiar with the initiative who it did not identify, that the offer will be extended to associate partners and McKinsey's engagement managers, who oversee teams of consultants on client projects. Similar offers have reportedly been made to managers in the US, according to the Times. The overall number of employees who will be qualified for the offer is unknown.
Underperforming workers at McKinsey who have client-facing responsibilities often leave after being "counseled to leave," a phrase that implies the corporation doesn't want them working on client projects and advises them to look for another job. However, in this instance, respectable employees are, in a sense, giving their own advice to quit. Even if they were unable to find employment within that time frame, those who accepted the nine months of salary would still have to leave.
A uncommon wave of job layoffs was started by McKinsey last year, with plans to reduce roughly 1,400 positions, mostly among support personnel rather than positions that included direct client interaction. The reductions represented almost 3% of the total population, which had increased from 28,000 to over 47,000 in only five years. According to a McKinsey representative, the company would "continue to recruit and hire robustly."
According to McKinsey, the company made a record-breaking $16 billion in revenue last year and just reelected global managing partner Bob Sternfels, who was up against competition from other firm employees for the coveted top position.
