Last month we asked how the DoH can justify their expenditure on management consultants at a time when staff shortages in the NHS have led to increasing concern over the standard of patient care.

This week we read one answer to that question in Public Finance. The Management Consultancies Association has said that the £300m spent by the NHS on work by its members last year is ‘demonstrably value for money’.

The MCA published its report, Improving care, reducing cost, earlier this week. It found that the NHS spent just 0.3% of its budget on management consultancy in 2008. The report also says that the majority of the consultancy projects in the health service have saved more than they cost.

The report says that: total NHS spending on management consultants in 2008 was £300m – with current total NHS spend more than £100bn; the amount spent on consultancy by the NHS per employee is roughly one tenth of that spent by large private sector organisations; and most spending on consultancy is associated with significant programmes that lead to improved patient care and greater efficiency.

MCA chief executive Alan Leaman said: ‘Management consultancy has recently been caught in the crossfire of the arguments between supporters of reform in the NHS and their opponents.

‘Those who attack the use of management consultants by the NHS are undermining efforts to increase efficiency and improve patient care. The public rightly demands high-quality services and value for money. Those who attack the role of management consultants would deny them both.’

The report also sets out suggestions to improve the NHS’s use of management consultants, including establishing a clearer distinction between consultancy and the use of interim staff, a greater focus on the outcomes of consulting projects and more performance-related contracts.

There are two sides to every argument. The burning question is who is right?

Annual results published on Monday from Britain’s biggest accounting firm, PricewaterhouseCoopers (PwC), showed a record fee income in the UK of £2.25 billion amid the financial crisis.

PwC’s role as administrator of the European arm of Lehman Brothers, the US investment bank that collapsed spectacularly almost a year ago, alone generated about £100 million in fees for the year to June 30.

The firm received £811 million for work across its various practices carried out for financial institutions, including Barclays and Lloyds TSB, as the surge in restructurings and growth in its consultancy practice boosted overall performance by nearly 1 per cent.

Although revenues from audit and tax work fell, this was offset by a 5 per cent rise to £737 million in fees from advisory practices, thanks largely to a 10% jump in consulting demand. The Kennedy Report ranks the firm at No.1 overall in the business consulting market.

This year PwC acquired Sustainable Finance, an environmental consultancy run by Leo Johnson, brother of Boris Johnson, the Mayor of London, and said that it planned to rebuild its management consulting arm by trebling revenue to £1.3 billion in the next four years, less than a decade after selling its consulting arm to IBM.

PwC held its place as Britain’s top professional services firm by revenue and headcount, extending its lead over Deloitte, its closest rival. The firm is one of the private sector’s biggest graduate recruiters and last year took on 1,000 university-leavers.

Ian Powell, PwC’s UK chairman and senior partner, said: “It was a tough year for our clients and ourselves, but we’ve delivered a good, solid set of results given the backdrop.

“I believe our strategy of staying close to clients through the downturn, offering them good value and great service has played a key part in our performance over the past year. The largest multi-national companies remain a key market sector but we are also making real progress with mid-tier companies, non-governmental organisations and the public sector.

“The outlook in the UK remains uncertain in an environment where consumer confidence remains fragile and business investment slow. Business and government need to work hard to ensure that the attractiveness of the UK is maintained. As a firm we will continue to make long-term investments and do the right thing for our people, our business and the wider community to ensure that we have the balance of skills and resources to support our clients as we move out of the downturn.”

While many employees are staying put during the downturn, many are planning to change their job or their whole career when the recession ends. A CIPD’s survey of 3,000 employees found that 34% of employees would change job within the next year in an ideal world.

Furthermore, 24% of these would consider changing sector, and another quarter (25%) wanted to change their line of work altogether.

Claire McCartney, Talent and Resourcing Adviser at the CIPD, commenting on the findings said “It’s clear from this quarter’s findings that the poor state of the labour market is acting like a dam holding back the normal flow of talent. Once job opportunities increase, however, dissatisfied employees will vote with their feet and leave, making it important for employers not to take the loyalty of their people for granted.”

This week just might have brought the news they were waiting for. Britain's employers are reporting improved recruitment plans for the first time in three years, offering a "glimmer of hope" to jobseekers in the run-up to Christmas. And on a positive note for those looking to change jobs, employers are hiring older, experienced workers rather than young unemployed people.

September's Report on Jobs, which is published each month by the Recruitment and Employment Confederation and KPMG, also showed the first growth in 17 months for permanent placements and an increased demand for staff in most sectors compared to this time last year.

On Tuesday, Economists declared the recession over as official data showed mothballed factories springing back to life and rising optimism in the City stoked a new merger spree. And on Wednesday, the FTSE 100 index closed above the 5,000 barrier for the first time in 11 months buoyed by continuing hope that an economic recovery.

Will all of this optimism lead to a sudden stampede of disgruntled employees flooding the job market? And if employers are opting to hire older, experienced workers, how easy will it be for them to find a new position?

According to the latest McKinsey Global Survey, the heaviest users of Web 2.0 applications are also enjoying benefits such as increased knowledge sharing and more effective marketing.

Over the past three years they have tracked the rising adoption of Web 2.0 technologies, as well as the ways that organizations are using them.

69 percent of the 1,695 respondents reported that their companies had gained measurable business benefits, including more innovative products and services, more effective marketing, better access to knowledge, lower business costs, and higher revenues. Companies that made greater use of the technologies, the results show, report even greater benefits.

Many respondents also said that Web 2.0 tools have reduced the time required to market products and have improved employee satisfaction.

Respondents who reported that Web technologies have strengthened their companies’ links to customers, cite blogs and social networks as important. Both allow companies to distribute product information more readily and, perhaps more critically, they invite customer feedback and even participation in the creation of products. Other favoured Web 2.0 technologies include, video sharing, RSS, Wikis and podcasts.

According to the findings of the survey, large (especially high-tech, legal or professional services) organisations in North America, India and China benefit the most from these practices, however the main objectives are different: some use these primarily for internal reasons, others for customer-related purposes, but many firms get significant advantages from better interactions with external partners and suppliers.

These survey results indicate that a different type of company may be emerging—one that makes intensive use of interactive technologies. This networked organization is characterized both by the internal integration of Web tools among employees, as well as use of the technologies to strengthen company ties with external stakeholders—customers and business partners.

More than half of the respondents expressed plans for increased (and an additional quarter to maintain the level of) investments into Web 2.0. technologies; especially due to the current economic downturn and tight budgets.

At BLT we strongly believe that leveraging these tools are key and incremental for our business therefore we invest time and effort into our online presence in order to engage with new and existing clients and candidates, and increase brand awareness. Have you checked us on Facebook, LinkedIn, Twitter, YouTube, Slideshare, and seen our RSS feed embedded in our newsletter? It is all about interactive and real-time communication, two way conversations. We look forward to hearing from you…

Has your company invested in Web 2.0 technologies? Do you believe they have improved employee satisfaction? And what measurable benefits have you seen as a result?

The new head of the CBI employers' group, Helen Alexander, said industry in the UK is missing out by failing to exploit the talents of women.

Ms Alexander said she believed the problem was not prejudiced against women in the boardroom, but many employers were simply unaware of the skills women had to offer.

Women occupy just 34 of the 970 executive director positions at companies in the FTSE 350 index, according to a survey by the Co-operative Asset Management.

When it comes to non-executive director posts, which do not involve any management power, woman fare slightly better but they still occupy only 204 of the 1,772 jobs available.

Overall, female representation stands at just 8.8%, taking both non-executive and executive directorships into account. This feeble showing is despite the fact that more than nine out of 10 companies in the survey claim to have an equal opportunities policy.

Harriet Harman, Leader of the House of Commons and minister for women and equalities, wasn’t too happy about the findings. "This is a very important piece of research," she said. "It shows how important it is for companies to have accountability on gender. A company in the grip of the old-boy network is never going to be successful in the modern world. If they can't see half the population as worthy of a say, then they are in the grip of structural prejudice. What does it say about a company that they have an all-male board? It is backward-looking and old-fashioned."

So what are the barriers that are preventing women from reaching the top? Headhunters say that one major reason women do not reach the top is that male bosses often appoint people similar to themselves.

Trish Lawrence of lobby group Opportunity Now has a slightly different view saying: "The majority of workplaces are designed around a mid-20th-century lifestyle, with an outdated approach to where, when and how work happens. Flexibility... should be a business imperative.

"The lack of women in senior positions may be attributed to the fact that women are much more likely than men to take a career break, and even more likely to take responsibility for child and elder care. We need to 'normalise' flexible working arrangements, encouraging more men to take advantage of these arrangements and sharing the caring responsibilities, while also enhancing their work-life balance."

Further evidence that things in the workplace are far from equal came from an official inquiry by the Equality and Human Rights Commission which tells us that women earn around 80% less than men in performance-related pay at some of the UK's leading finance companies, revealing a "shocking disparity".

Findings also show more than eight out of 10 women starting new jobs are paid lower average salaries than men.

Trevor Phillips, the commission chair, was shocked by the findings saying "The financial sector has the potential to play a central role in Britain's recovery. But it has to address this shocking disparity of rewards. For business to thrive in the new economy it simply can't afford to recruit and reward in the way it has done in the past,"

"By bringing down arbitrary barriers and changing practices that, intentionally or not, inhibit women's success, financial firms have the chance to boost morale, bring on new talent, and maximise the potential of their existing employees."

Why are we still living in the dark ages when it comes to equality in the workplace? What can women do to convince their male counterparts that they are capable of holding down a top position? And when will salary scales be fixed so that the same job commands the same pay regardless of gender?

Are we eventually emerging from the recession? There are definitely reasons for optimism. Activity in Britain’s services industry grew for the fourth month in a row in August and at its fastest pace in almost two years, boosting recovery hopes.

The CIPS/Markit services Purchasing Managers' Index jumped from 53.2 in July to 54.1 last month, its best level since September 2007. It also trumped the 53.9 predicted by economists.

Confidence about prospects is also on the up. Business expectations hit a two-year high, up to 72.3 from 69.3, and new business expanded for the third time in four months.

David Noble, chief executive at the Chartered Institute of Purchasing & Supply, says: “We’ve really seen a strong turnaround in the UK services sector in recent months. The sector has bounced back from its low earlier in the year and in August grew at its fastest pace in almost two years. This is particularly good news as the survey covers almost 40% of the UK economy.

In general U.K business leaders are more upbeat about the prospects of economic recovery than at any time since the recession began, a ComRes poll for the Independent showed last month.

The survey of 170 leading businessmen found that 38% see signs of recovery in their sector, up from 33% last month and the highest figure since the "green shoots" index was launched, the newspaper said.

There’s optimism also in the housing market. British house prices rose for the fourth month running and at their fastest monthly rate in 2-1/2 years in August, the Nationwide Building Society said on Thursday, in a further sign the housing market is picking up.

All of this news does give us reason to hope for better times ahead. But are we really out of the woods? Are you seeing a light at the end of the tunnel? Is your sector showing signs of recovery?

If you’re struggling to find a job why not take a leaf out of Alex Kearns’ book. After applying for scores of jobs, but winning none, he decided he needed to make his CV stand out. Read more.

The enterprising 23-year-old graduate came up with a novel idea when he won an hour's slot on the fourth plinth in sculptor Antony Gormley's One & Other Project.

While many use their hour in Trafalgar Square to promote a cause, Mr Kearns brought his CV scrawled on a 10ft-high piece of wallpaper. For good measure he added a placard which read: 'Save a graduate. Give me a job.'

And it worked! Soon after his appearance in July he was contacted by a manager at the International Business Development Group and he’s now working as a sales executive at their London offices, selling consultancy services to companies in the UK and abroad.

'I had applied for hundreds of jobs but nobody was giving me a chance. And it worked, my new boss said he was impressed that I had some get-up-and-go.'

This really is a fantastic example of what you can achieve if you show a bit of initiative.

Will other people emulate his idea? Can we now expect to see CVs plastered on billboards around the country? What other unique ways have people come up with to market themselves? We’d love to hear them...

Strategy consulting is the sector of choice for most aspiring consultants. After a quiet 12 months the top tier strategy firms are back hiring again. But the bar is set high. BLT’s Angela Heath answers some of the most frequently asked questions.

I don’t have an MBA. Am I out of the race already? Not at all. Firms recruit new-entry consultants from a variety of sources, and “Experienced Hires” – that is, candidates with 3+ years post undergraduate work experience – are as much sought after as MBAs.

I’ve got an MBA. Will I be a shoo-in? I’m afraid not. An MBA is good to have, but the reputation of your School and your GMAT score will also influence matters.

I’m not in business. Is that a hindrance? Again, not at all. Strategy firms hire people from all backgrounds. It doesn’t matter what you’ve done, as long as you’ve done it exceptionally well. In my time at BLT I’ve recruited civil servants, medical doctors, a professional sportsman, a volcanologist…

So having pointy ears is helpful? Not a Vulcan, a scientist who studies volcanoes. Next question….

What else do I need? Problem solving skills, logical reasoning, comfort with ambiguity, ability to synthesise information, numerical competence, business judgment. Good first degree from top university (minimum 2.1 or equivalent) and good A level/high school certificate leaving results. And also a track-record of career progression – you need to have outperformed your colleagues.

I’ve got all that and I’m on £150k. Will I earn more in strategy consulting? You might, but certainly not to start with. Firms have a salary and grade cut-off for first-timers. They only break that if you are a nationally known speaker in your field, for example, or have some highly-prized experience.

What, take a salary cut? Why should I? I could tell you about the unrivalled exposure you’ll get to senior figures in business and government, the opportunity to solve a wide array of organizational problems, and the superb peer group you’ll work with, but as your clearly only interested in the money, why don’t you….

Sure. Consulting firms are still hiring. Some of it’s opportunistic: smaller consultancies, for example, see this as a good time to pick up (normally) hard-to-find big-firm trained consultants, and larger consultancies are adding talented people in in-demand areas such as restructuring, cost reduction and performance improvement.

We’ve had instructions from top tier strategy houses – maybe a sign that things in the wider economy are on the mend. Public sector consultancies are still hiring in certain sub-sectors. Business development and consultancy sales roles are coming through.

But we’re not in full-on recruitment mode by any means. Those green shoots we hear so much about: they could still yet be strangled by the pernicious weeds of economic uncertainty. And that is holding back a lot of firms from hiring…just yet.

I suggest you keep an eye on our vacancies. Let’s see if the number we’re handling changes much over the next few weeks.

Watch the video of Don talking about the Management Consultancy market:

Yours,
Don

Although business is still reasonably quiet due to the recession and the summer holidays, we are beginning to see a light at the end of the tunnel.

At the end of August, the British Chambers of Commerce claimed the recession is coming to an end, with some commentators expecting reports on growth within 40 days, which has to be welcome news for job seekers!

The current economic climate has encouraged the recruitment industry to re-think their strategies and consequently there has been a marked upsurge in the use of Social Media for recruiting.

For jobseekers this is good news. Individuals can now market themselves as a “brand” through personal websites, video profiling and self-promotion. This ability to promote yourself and network with others is going to become ever more important as more and more businesses turn to Social Media sites to help in their recruitment drives.

At BLT we use a wide range of recruitment methods; we continue to post all our current vacancies on the BLT website but you can also receive vacancy updates via Twitter. We also maintain an active presence on Facebook, LinkedIn and YouTube.