Four Key Shifts That Make Consulting a Real Opportunity: Part One

Key Shift #1: Demographics

The biggest cultural shift today is the age and characteristics of workers and managers (demographics). This shift influences your ability to get a “regular” job, the kinds of people you’ll work with and the kind of consulting that is in demand. When we started to write Gen Y Now, it quickly became apparent why this generation is able to effect so much change in society and the work world. Like Boomers before them, it was pure numbers first. Gen Y will put their stamp on our future, and there is nothing that can stop them. They are the majority generation at this time, and will be for quite some time.

The Baby Boom began in 1946 and continued until 1964. During that time, 77.7 million Boomers were born in the United States. As mentioned earlier, on January 1, 2011, the first Baby-Boomer turned 65, and a Baby-Boomer will continue to turn 65 every 8.5 seconds until 2029. This huge generation is marching toward retirement at a record pace.

Generation X followed the Boomers. From 1965 until 1976 there were 48 million X-ers born. Given all of the research we have done, we still do not know why their time frame was shorter, though we have uncovered several possible reasons, from technology defining the groups to birth rates. While there is some variation in how people count the generations, the table shows the most accepted years and numbers for them.

Beginning in 1977, Gen Y continued until 1995. These individuals are the first “technology natives” ever and they are 79.5-million strong. Gen Y is larger than the Boomer generation by a couple of million, and significantly larger than Gen X.

Purely on the basis of numbers, it is a statistical certainty that the future of work will be defined by Gen Y. Their “native” status, growing up with technology, gives them an edge, even over Gen X, which is fairly tech-savvy.

As it relates to numbers in the workforce, if we look at the generations moving forward, for the next 18 years, Gen Y will grow even larger as compared to the other generations. By 2029, the youngest Boomer will be 65, while the youngest X-er will be 53 and the youngest Y-er will be 34.

Using Demographic Shifts


It is important to understand these demographic shifts as you consider hanging out your own shingle. The quicker you understand Gen Y and develop an appropriate strategy, the quicker you can succeed in this new reality. What I am seeing is too many people being like I was in 1999 when I wrote my first book. Too many people are not reading the signs, and they are developing consulting or job search strategies for a market that no longer exists.

It’s interesting how all that you’ve done can come together to create new opportunities. For me, it was the book to help students get jobs, our work on Generation Y, my sales experience and my consulting career. For you, it might be your past experience and the information in this book that will help you build a new career. It is a drastic mistake for Baby-Boomers to base their future job plans on the past economy. The market has changed dramatically. Doors are closing, but new opportunities are opening in turn.

In the last major downturn in 2001, the oldest Boomer was only 55. These experienced folks still had at least a decade of work life ahead of them based upon the traditional retirement age. In 2001, the oldest X-er was only 36, and the oldest Y-er was just out of college, at 24.

When the economy picked back up following 9/11, businesses needed the experience and leadership that could only be gained by hiring back Baby-Boomers. Gen X-ers, while experienced, did not have enough critical mass to replace the Boomers. In 2001, Gen Y-ers were simply too young to be serious contenders to replace Boomer experience.

Fast forward. Today, the situation is totally different. By 2012, the entire Gen X cohort was at least 36 years old and the oldest was 47. Also by 2012, over half of Gen Y was at least 26 years old. I am not being ageist, just pointing out the ages and the corresponding experience. Today, there is plenty of talent available to replace Baby-Boomers. I believe it is a mistake in your job search to ignore these facts. Too many folks have tried to find a job, leveraging their resumes and experience in a market that no longer exists, or at least in a market where other alternatives are available to the hiring organization and the odds are against you. People often think entrepreneurs are big risk takers. In fact, entrepreneurs like to stack the odds in their favor, and that’s what I want to do for you.

What IS missing for the hiring organization, and why independent consultants have an enormous opportunity, is knowledge-transfer strategies. To be blunt, most businesses do not have a knowledge-transfer strategy and have not taken the time to document and leverage their experienced workers’ knowledge. When experienced workers left during the recession, the company also lost the knowledge capital of those workers. There may be many hiring alternatives for organizations to replace workers, but there are not too many alternatives for companies to replace their lost knowledge.

While companies may not want to hire a 20-, 30- or 40-year experienced professional full-time, there is no doubt they need their knowledge capital. They just don’t want to pay “full freight.” Business leaders are much more willing to add variable costs versus fixed cost to their profit-and-loss statements. The economic downturn has taught them to stay nimble. Fixed expenses are an anchor. Variable costs, such as consultant expenses, allow businesses to achieve results while not “weighing down” their financials with long-term employee costs. You are a variable cost when you consult.

The Knowledge-Capital Bank

When companies have a pool of experience, it’s like money in the bank. It provides a sense of security and confidence. For years, business owners watched their people’s wealth of knowledge grow. This knowledge was there when new hires needed to draw upon it, when new circumstances required it or when emergencies came up. Now, a great deal of this knowledge capital is gone, leaving soon or just plain disengaged. Businesses will need to find a way to make deposits back into their “Knowledge Capital Bank” without adding to fixed costs.

This article is an excerpt from Buddy’s latest book "Experience Matters: How to Succeed as a Consultant in Today’s World." To download your free copy of the full version CLICK HERE.