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Based on recent data and partnership promotions for 2024, the pathway to partnership within professional services will continue to lengthen over the coming years. In the previous decade firm-specific growth initiatives, economic tailwinds, and a rising number of retiring partners have led to accelerated partnership opportunities. Today’s environment is stark by contrast, at the macro level, increased economic uncertainty, inflation, and added regulatory complexity remain. Cost-out programs alongside the introduction of new profitability models continue to focus executive leadership on equity value, which in turn narrows the availability of partnership slots.
Partnership opportunities are arguably now more restricted than at any point during the last decade. The delayed nature of these promotions has become highlighted in recent years with the adoption of new titles, i.e., Managing Directors, Principals, etc., with the explicit purpose of retaining valued, technical professionals, typically considered better suited towards execution than strategic origination. Compensation models have adjusted accordingly to reflect this, and it’s not uncommon to see senior non-partner compensation in excess of first-year hybrid/non-equity partners, with performance upside.
By contrast, specialised and boutique firms are communicating a different story. These nimble players, often built around niche expertise or innovative service models, maintain a dynamic, agile approach to growth. They promote high performers more quickly, offering broader responsibilities and greater exposure to clients and significant decision-making at an earlier stage in a consultant’s career. Within these firms, it is not uncommon to see individuals in their early 30s reaching the partner-equivalent level.
Driven by the growth agenda of the firm, these boutiques are expanding into new markets, geographies, and service lines, creating opportunities for consultants to take on significant responsibilities much earlier in their careers. The reality is that once a firm reaches scale, opportunities typically emerge more slowly, unless the firm is able to continue to grow at scale year-on-year.
Established firms with strategic growth agendas are also creating new pathways to partnership. These firms are actively seeking to innovate and expand their service offerings, which in turn generates new leadership roles. Consultants who can drive these strategic initiatives are well-positioned for accelerated promotion into partnership roles. This focus on growth and innovation means that high performers have the opportunity to advance more quickly, even within larger, more traditional firms.
Despite the extended timeline to partnership in larger firms, there are significant opportunities for ambitious professionals. Both new entrants and established firms with strategic growth agendas continue to create pathways for rapid career advancement. By aligning with firms that prioritise growth and innovation, partner aspirants can accelerate their partnership opportunities and take on influential roles that continue shape the future of the industry. To unlock your career’s next chapter, please reach out to Robert Atkinson to arrange a confidential discussion.
Robert Atkinson
Partner
robert.atkinson@watermarksearch.com.au