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Edouard Ribes
 
''Organizational sustainability and career frameworks in professional services firms.''
( 2020, Vol. 40 No.1 )
 
 
This article proposes a resourcing model that can be used to optimize the costs of large professional services firms [PSFs]. Its outcome is based on trade-offs between promotions and external hires under a variety of firm-specific constraints. It is enabled by continuous coupled age structured equations that take into account the workforce evolution at each level of the hierarchy. The model first explicitly provides conditions on the leverage structure of a PSF to design a pure ”up or out” organization. Second it shows that a professional services organization can benefit from creating alternate career tracks such as pools of specialists with different compensation schemes. The type of cost optimization is shown to achieve about 5% savings.
 
 
Keywords: Workforce planning; Structured equations; Personnel Economics; Cost optimization; Asymptotic analysis
JEL: L8 - Industry Studies: Services: General
M1 - Business Administration: General
 
Manuscript Received : Feb 03 2019 Manuscript Accepted : Mar 25 2020

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