Increased utilization and a tight labor market have led to an unprecedented rate of exits from the industry in the last 12 months. …but There’s Still a Need for More Talent …and the Staff are Staying Busy…Īs demand for services increases and travel demand remains depressed, consultant utilization has risen to all-time highs. At the same time, while the rate of growth for boutique firms increased compared to 2020, a fragmented market of boutique players continued to be hurt by the resurgence of in-house strategy groups at large corporations. This in turn allowed them to increase max compensation through performance bonuses and profit sharing, as well as extend lifestyle perks like unlimited PTO. What do you get when you put it all together? The Gap Between Top Firms and the Rest is Widening…Įstablished consulting firms drove a lion’s share of the overall industry growth through organic and inorganic means. Strategy firms acquired specialist players to continue to move further downstream into supply chain, sustainability, digital, and implementation work (ex: McKinsey acquiring Material Economics). Large firms acquired boutique strategy houses in lieu of (or in addition to) organically building their own (ex: AlixPartners acquiring Galt & Co.). The M&A activity revealed two basic patterns. The potential result? Without the traditional increase in pricing power that industry consolidation brings, we may see firms begin to shrink project teams or prioritize the hiring of cheaper pre-MBA talent in the next decade. Still, there is only so much firms can cut. So far, margins have been protected by a decrease in operational costs (i.e., smaller office space, less travel). Future margins are at risk as firms continue to raise salaries without a commensurate rise in project rates. However, this growth is not without potential peril. This led to record revenue for many consulting firms and a continued wave of M&A activity, leading to double-digit industry growth. 2021 saw firms grapple with the tightest global labor market in decades in conjunction with an explosion of demand for management consulting services. It’s a big year for the consulting industry as well. The Winter Olympics take place in Beijing, the FIFA World Cup takes place in Qatar, and Queen Elizabeth II will celebrate 70 years on the British throne. This is a big year: We enter the 3 rd year of the pandemic with hope that there is light at the end of the tunnel. Welcome to 2022, and our updated management consulting salaries report! OFFERS EXTENDED IN 2022 BUT WITH 2023 START DATES ARE HIGHER – OUR 2023 SALARY REPORT WILL REFLECT THOSE UPDATED FIGURES! NOTE: THE SALARIES IN THIS REPORT REFLECT STARTING BASE SALARIES FOR OFFERS WITH 2022 START DATES. So whether you’re looking for a Bain consultant salary, Deloitte consultant salary, or information about niche boutique consulting firms, you’ve come to the home of the most up-to-date management consulting starting salary numbers available. This – to the best of our knowledge – is the only firsthand report in the industry containing current numbers obtained directly from offer letters for an entry level McKinsey salary, Boston Consulting Group salary, and stats from over 60 additional consulting firms. That’s why we put in hundreds of hours of research each year to bring you the most up-to-date consultant salary information – anywhere. Determining the management consultant salary you can expect to receive, or more narrowly, a strategy consultant salary, is probably one of the defining factors in deciding which firms you will apply to.
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