Consulting firms' hiring conundrum ahead of Harris-Trump election
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Strategic communications firms were caught on their back foot when Donald Trump was elected in 2016 and they aren't looking for a repeat, particularly as geopolitics becomes more engrained in the work.
Why it matters: While the experience of political operatives and those with public affairs backgrounds is needed more than ever, concerns over culture fit are dividing employees.
State of play: Managing geopolitical risk has become a commoditized product in the consultancy space — and many firms are staffing up with former diplomats, politicians and operatives in response.
- Edelman's hiring of former Republican presidential candidate Nikki Haley follows this playbook, as it looks to enhance its public affairs offerings.
Context: The agency has hired Republican operatives in the past — most notably, Steve Schmidt and the late Michael Deaver.
- Strategic comms firm Teneo has also hired several conservative leaders including former House Speaker Paul Ryan, senior advisor to former President Trump Jason Miller, and reportedly courted Sarah Huckabee Sanders.
Yes, but: This is a particularly potent conundrum for a firm like Edelman, which has built its business around smart positioning, trust and mission-driven counsel.
- Many employees feel the hiring — and the way it was announced — go against the advice they typically provide clients, with one Edelman executive telling Axios that Haley's public policy stances "are divisive or discriminatory for our employees, our clients and our work projects."
Between the lines: The firm is experiencing what its clients already know — strategic business moves don't always translate internally.
- Haley's hiring announcement was made shortly after employees learned that U.S. revenue was down roughly 10% and bonus and raise pools were slim, according to several sources Axios spoke with.
- Employees also told Axios that Haley's hiring has impacted morale and the tongue-in-cheek hashtag #MEGA — Make Edelman Great Again — has been circulating among teams.
- "Our workforce mirrors society and in that we recognize that everyone has different views and beliefs," said an Edelman spokesperson.
The other side: Haley's experience as UN ambassador and governor of South Carolina allows her to provide both domestic and foreign policy counsel.
- Plus, if Trump wins, Edelman will likely be able to support clients in a way that firms without ties to the administration could not.
- "Clients are seeking this type of counsel, and it is essential that we continue to be positioned to offer our clients senior strategic counsel that encompasses diversity of thought, both within the U.S. and globally," added the spokesperson.
The big picture: The reaction within Edelman is a reflection of the political division our nation faces — something these firms are hired to help companies navigate.
What they're saying: A deep bipartisan bench of experts is what clients now expect, says one long-time agency executive who works for an Edelman competitor.
- "Hires like Nikki Haley are able to go in and add value for the firm right away — as someone that clients respect and want to hear from. It may take employees a little bit of time to get used to, but hopefully they see the value in having some of those folks too," the executive added.
What to watch: A flurry of political hires are still expected, but most will likely land after the election.
- In the meantime, corporate communications plans are focused on scenario planning for everything from a contested election and culture wars, to geopolitical implications on supply chain.
More on Axios: Former Republican presidential candidate Nikki Haley joins Edelman
