here are more than one million management consulting firms in the United States, all collectively expected to generate almost $370 billion in revenue this year, according to IBISWorld. Across dozens of industries, consultants throughout the country help companies navigate challenges and seize opportunities in IT strategy, risk management, digital transformation and more.
Still, in such a large market, it can be difficult to discern which consulting firms are delivering the best results in their respective fields. That’s why Forbes partnered with market research company Statista to garner the opinions of industry insiders and create our ninth annual list of America’s Best Management Consulting Firms 2024.
The list is based on two surveys conducted from mid-November 2023 to mid-January 2024: a peer-to-peer survey open to partners and executives at management consulting firms; and a survey of clients who had worked with management consulting firms in the past four years. Both groups evaluated consulting firms within their areas of knowledge across 16 different industries (such as healthcare, consumer goods and insurance) and 16 different functional areas (including human resources, operations, and innovation and growth).
More than 1,100 partners and executives at management consulting firms recommended peers in their industry (respondents were not permitted to recommend themselves), and more than 1,200 clients recommended consulting firms. Last year’s results were considered as well.
All of the responses were combined into a scoring model that weighted this year’s recommendations more heavily than last year’s. And recommendations from the management consultants were weighted more heavily than those from clients.
Ultimately, the consulting firms with the most recommendations in each category were given star ratings: five stars for “very frequently recommended,” four stars for “frequently recommended” and three stars for “recommended.” The final list highlights 190 companies.
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As with all Forbes lists, companies do not pay any fee to be considered. For questions about this list, please contact listdesk [at] Forbes.com.
Rankings derived from a worldwide survey of consultants recognize leading firms in more than 70 categories; Outlook reflects turbulent global economy
NEW YORK, Feb. 21, 2024 /PRNewswire/ — Vault, the leader in data-driven employer rankings and verified employee reviews, today released its 2024 rankings of the Best Consulting Firms to Work For in the Europe, Middle East, and Africa (EMEA) and Asia-Pacific (APAC) regions. These rankings recognize the leading firms in more than 70 categories, including the Best Consulting Firms to Work For in EMEA and APAC. For each region, Vault also ranks the Most Prestigious Consulting Firms, Best Consulting Firms by Practice Area, and Best Consulting Firms by Employment Factor.
According to Eric Stutzke, SVP & General Manager of Vault, “Our EMEA and APAC rankings are unique in that they give us a clear snapshot of how consultants in each individual region view their own firms and other firms. These data-driven rankings are based on thousands of survey responses from working consultants in each region. The ranked firms include both global powerhouses with offices around the world and firms that have a more regional focus.”
To obtain data for the rankings, Vault distributed a global survey in the fall of 2023. More than 15,000 consulting professionals at all levels from around the world participated. For the EMEA rankings, more than 5,000 consultants in EMEA provided data, while more than 2,000 APAC consultants participated in the survey. Survey respondents rated their firms in several categories, including compensation, culture, diversity, hours, training, work/life balance, and wellness. Consulting professionals were also asked to rate firms in their region, other than their own, in terms of prestige. In addition, Vault collected data from more than 8,000 North American consultants; the North American Consulting Rankings were released on February 7, 2024.
Key findings from Vault’s survey of consultants and rankings include:
Bain & Company is the Best Consulting Firm to Work For in EMEA, APAC, and North America. The #1 ranked firm in every region, Bain & Company has offices in 40 countries and recently elected Christophe De Vusser, the former managing partner of its Brussels office, to serve as its next Worldwide Managing Partner (Chief Executive Officer). In all three regions, Bain & Company also secured the #1 rankings in both Formal Training and Informal Training, highlighting its top-notch learning and development programs.
Roland Berger ranks #2 in EMEA and Kearney ranks #2 in APAC. Munich-based Roland Berger took the #2 spot behind Bain & Company in the Best Consulting Firms to Work for in EMEA. Kearney, which has had a presence in the APAC region since 1972 (when the Chicago-based firm opened its Tokyo office), was #2 in the Best Consulting Firms to Work For in APAC.
Smaller, regionally focused firms are also among the Best Consulting Firms to Work For in EMEA and APAC. Archery Strategy Consulting has offices in France and Germany and ranked #10 in EMEA. Shanghai-based Kmind ranked #7 in APAC, while Bangkok-headquartered AWR Lloyd took #10. All three of these firms have under 200 consultants.
Firm culture is the top consideration for consultants in EMEA and APAC when choosing an employer. In both regions, firm culture emerges as the top decision factor.
Consultants in the APAC region gave lower scores for Business Outlook than their peers in other regions. In what was a turbulent year for businesses around the globe, Business Outlook scores fell in every region. The lowest average Business Outlook score was seen in the Asia-Pacific region, where markets have seen high degrees of shakiness and uncertainty.
The Top 10 Consulting Firms to Work For in EMEA for 2024:
1. Bain & Company Europe |
6. Strategy&, Part of the PwC Network, Europe |
2. Roland Berger Europe |
7. Alvarez & Marsal Europe |
3. Oliver Wyman Europe |
8. Advancy Europe |
4. Kearney EMEA |
9. EY-Parthenon Europe |
5. OC&C Strategy Consultants Europe |
10. Archery Strategy Consulting |
The Top 10 Consulting Firms to Work For in APAC for 2024:
1. Bain & Company Asia |
6. L.E.K. Consulting Asia |
2. Kearney Asia-Pacific |
7. Kmind |
3. Oliver Wyman Asia-Pacific |
8. Arthur D. Little Asia |
4. Roland Berger Asia |
9. Publicis Sapient Asia-Pacific |
5. Alvarez & Marsal Asia |
10. AWR Lloyd Limited |
View all the Vault Consulting Rankings.
About Vault
Vault is the leader in career research, exploration, and discovery for professionals and students. Through our proprietary data-driven Vault rankings, verified employee and intern reviews, and extensive network spanning more than 500 campuses and universities, we have been the trusted provider of career intelligence solutions for emerging talent for over two decades. Our exclusive company rankings, in-depth employer profiles, and valuable employee and intern reviews encompass a wide range of industries, including Law, Banking, Accounting, Consulting, STEM, and the top Internship programs.
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SOURCE Vault
Top-ranked firms offer development and growth opportunities; Consulting firms remain popular post-college destinations for those who major in Economics, Finance, and Business.
NEW YORK, Feb. 7, 2024 /PRNewswire/ — Vault, the leader in data-driven employer rankings and verified employee reviews, today released its 2024 rankings of the Best Consulting Firms to Work For in North America, providing a comprehensive look at the region’s consulting landscape and recognizing the leading firms in more than 30 categories. The rankings include the Vault Consulting 50 North America, a signature list of the best overall firms to work for. Vault also ranks the Most Prestigious Consulting Firms, Best Boutique Consulting Firms, Best Consulting Firms by Practice Area, and Best Consulting Firms by Employment Factor. The rankings were derived from Vault’s survey of more than 8,000 North American consulting professionals in Fall 2023. The North American survey was part of a larger global survey of more than 15,000 consulting professionals. Survey respondents rated their firms in several categories, including compensation, culture, diversity, hours, training, work/life balance, and wellness. Consulting professionals were also asked to rate firms other than their own in terms of prestige.
“Consulting remains an excellent career choice for professionals, including those early in their careers who want to learn a great deal on the job and have high levels of exposure to clients and their most pressing challenges,” said Eric Stutzke, SVP & General Manager of Vault. Stutzke added, “While firm culture and compensation remain key areas of focus for consulting candidates when evaluating a firm, our survey revealed that being staffed on quality engagements that provide the opportunity to perform substantive work is of nearly equal importance.”
Key findings from Vault’s survey and rankings include:
Bain & Company sits atop the Vault Consulting 50 North America as the #1 overall consulting firm to work for. Boston-based Bain & Company, which has offices in 65 cities across 40 countries and celebrated 50 years in business in 2023, is committed to employee development—the firm secured #1 rankings in both Formal Training and Informal Training.
Specialized boutiques offer focused work and upward mobility. Vault’s Best Boutique Consulting Firms include the best specialized firms to work for that have fewer than 750 consultants. The #1 ranked boutique, Chicago-based ghSMART & Co., is a leadership advisory consultancy that also took the top spot in multiple key categories, including Internal Mobility, Promotion Policies, and Level of Challenge.
Top priorities for jobseekers when choosing a consulting firm are firm culture, compensation, and type of work. These three factors all had similar percentages of consultants that identified them as key considerations when choosing a firm.
Junior consultants come from a wide variety of backgrounds, but those who studied Economics, Finance, and Business still enter in large numbers. The most common undergraduate majors among entry-level consultants in the survey were Economics (21%), Finance (8%), Business Administration (6%), Biology (6%), and Accounting (4%).
The Top 10 Consulting Firms to Work For in North America in 2024:
1. Bain & Company 2. Boston Consulting Group 3. Alvarez & Marsal 4. ghSMART & Co. 5. Oliver Wyman |
6. EY-Parthenon 7. Putnam 8. The Bridgespan Group 9. Kearney 10. Roland Berger |
View all the Vault 2024 Consulting Rankings.
About Vault
Vault is the leader in career research, exploration, and discovery for professionals and students. Through our proprietary data-driven Vault rankings, verified employee and intern reviews, and extensive network spanning more than 500 campuses and universities, we have been the trusted provider of career intelligence solutions for emerging talent for over two decades. Our exclusive data-driven rankings, in-depth employer profiles, and valuable employee and intern reviews encompass a wide range of industries, including Law, Banking, Accounting, Consulting, STEM, and the top Internship programs.
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SOURCE Vault
The number of job vacancies at UK consultancies dropped by more than 80 per cent last year, as experts park the blame on firms over-hiring coupled with the drop in demand.
According to data from a labour market analytics firm Vacancysoft shared with Bloomberg, McKinsey and Co., Bain & Co., Boston Consulting Group and Accenture posted just 248 jobs in 2023. These figures were a drop on the 1,389 postings in 2022 and an even bigger drop than 1,764 in 2021.
While for the Big Four firms, all UK vacancies dropped by 60 per cent to 2,767 last year, when the previous year, the job postings were more than 10,000.
Speaking to City A.M., James O’Dowd, managing partner at specialist recruitment firm Patrick Morgan pointed out that major consulting firms had an annual churn rate around 20-25 per cent in pre-covid times.
“However, this year, strong economic headwinds have led to a decrease in this figure to as low as 3 per cent, due to fewer opportunities available for consultants to leave their current firms. This, coupled with the over-hiring in 2022, has significantly reduced hiring needs,” he explained.
While Francesca Lagerberg, CEO of Baker Tilly International focused in on the areas of consultancy businesses that are suffering, as she highlighted to City A.M. that “there remains a genuine war for talent in areas of accountancy and consulting like ESG or AI expertise”.
However, she noted that there “has also been a fall out in the last 12 months from post-pandemic over optimistic hiring in advisory”.
She explained that it is common in consulting to have a ‘W’ shaped trend with retraction, then recruitment, then retraction and recruitment again. “It is far more cyclical as a business than audit and tax,” she added.
O’Dowd pointed out that there has been a significant drop in demand for consulting services in the UK. He stated that the UK appears to have been particularly hard hit compared to other markets.
He explained that there is a reduced number of M&A deals and large-scale transformation projects have left many ‘on the bench’.
“This situation is expected to worsen as many of the longer-term transformation projects signed off in 2021 and 2022 are nearing completion, potentially freeing up hundreds, if not thousands, of consultants in the UK,” he added.
It was reported last month that activity in the consultancy sector is set to have single-digit growth this year, according to figures by the Management Consultancies Association (MCA). The data revealed that activity in the sector grew by 11 per cent in 2023.
It predicted it to drop to 9 per cent this year, however, it did note that activity would return to double digits growth in 2025 (11 per cent).
Tamzen Isacsson, chief executive of the MCA noted that “given the huge fluctuations in client demand since the pandemic, some readjustments to workforces and the balances of skills within firms is expected.”
O’Dowd did add that despite these challenges most consultancy firms are now focused on retaining talent, irrespective of whether demand increases.
He explained: “They aim to avoid being under-resourced should the market rebound, which is particularly critical in the current environment where attracting top talent is a significant challenge due to the limited supply.”
Isacsson suggested that London is home to one of the biggest consulting centres in the world and she stated that the industry is “working hard to ensure it meets future client demand and the enhanced support required for AI, technology transformations and support with sustainability programmes.”
Soft. Flat. Tighten.
Not exactly words that inspire confidence in Economics 101. And you might even feel suspicious when words like steady, normalize, and inertia are tossed into the mix. Fact is, the 2024 Consulting Salaries Report, released Tuesday by Management Consulted, doesn’t mince words. 2023 was a disappointing year for consulting pay and benefits, with the report riddled with terms like decline, fewer, and less.
The silver lining? It could’ve been worse.
“Overall, even amid declining growth, margins held steady due to layoffs, reduced hiring, and flatlining salaries,” according to the report.
CATCHING UP TO AMERICAN PAY
Alas, consultants endured the brunt of industry fluctuations – pay-wise, at least. Management Consulted notes that labor has exceeded work, resulting in hiring freezes and layoffs. In many cases, consulting firms weren’t shy about curbing bonuses and benefits too. After all, they held all the leverage.
“While firms kept base compensation flat, many went further – decreasing the total earning power of new consultants by decreasing the maximum performance bonuses they could earn,” the report notes. “In addition, after recent updates to top-down compensation structures, raises this year were also lower. This tells us two things: first, many firms are using depressed raises as a tool to increase attrition, which has been lower than historical averages over the last year. Second, with slowdowns in traditional exit sectors (e.g., corporate strategy, PE), firms aren’t worried about too much talent leaving at once.”
This gave a decided advantage to larger, incumbent firms. While their pay may have stagnated, they still set the industry pace. Even more, these firms boast the versatility, resources, connections, training, and prestige that bring value beyond a paycheck. Still, the economic downturn dogging consulting did fuel one shift impacting firms big-and-small.
“This year’s compensation inertia took place at both the pre-MBA and post-MBA entry levels and was most pronounced in the U.S. market,” the report adds. “We did see salary growth in markets outside of the U.S., as many markets (e.g., Europe) begin to catch up to U.S. salaries, which have far outpaced global peers in recent years. Still, while many firms aim to achieve parity in purchasing power for employees across geographies, this isn’t often achieved, and the purchasing power of U.S. consultants is still stronger in 2024.”
Consulting Meeting
BREAKING THE BOUTIQUES
These trends – along with a firm-by-firm listing of bases, bonuses, and benefits – stem from the data collected by Management Consulted. For nearly two decades, the organization has collected compensation data from current and aspiring consultants through a variety of sources. These include verified website visitors, along with users of its interview prep and resume prep services. In some cases, Management Consulted receives data directly from the consulting firms themselves. Other times, pay data originates from written pay offers shared with Management Consulted.
As a whole, Management Consulted maintains a community of three million readers. Its annual Consulting Salaries Report features data from over 115 consulting firms, including data specific to both bachelor’s degree holders and MBAs (along with master’s degree holders and PhDs). Best of all, the data is made up of 2023 responses; it isn’t averaged against previous years’ data (with all figures converted to U.S. dollars). Bottom line: the data is current, reliable, and consistent according to Management Consulted – not “outdated or arbitrarily averaged” like salary data supplied by Glassdoor, PayScale, or Indeed.
The biggest takeaway from the 2024 report: Last year didn’t conform to the previous pay growth enjoyed by consultants. In fact, Management Consulted reports it was only the 2nd year – out of 16 – where starting pay didn’t increase for new hires. Compare that to the previous three years, where growth spiked at roughly 10% year-over-year. That said, the pain wasn’t doled out equally in 2023, as boutiques continued to struggle against increasingly fierce headwinds according to Management Consulted.
“Established consulting firms drive a lion’s share of the overall industry growth through organic and inorganic means. This in turn allows them to dramatically outpace the competition in terms of the max compensation they offer (e.g., through performance bonuses and profit sharing), as well as extend lifestyle perks like unlimited PTO and limited travel. At the same time, boutique firms were hit harder by last year’s declining demand for services, and the proliferation of in-house strategy groups at large corporations continues to limit the growth of a fragmented market of boutique players.”
“At Bain, we really do try to make everyone better for having worked with us.” _ Keith Bevans
BAIN VS. MCKINSEY VS. BCG
Another trend, Management Consulted observes, is who and where consulting firms are hiring. In particular, they are increasingly gravitating towards technical specialists and candidates from smaller name programs. For example, Management Consulted cites McKinsey & Company, which has extended its net to 370 schools, with fewer than 20% of hires coming from the MBA ranks. That doesn’t mean McKinsey MBAs – or peers at Bain & Consulting and the Consulting Group – aren’t raking in big paychecks early on.
Technically, McKinsey paid the lowest of the ‘Big Three’ in total starting compensation for MBAs and PhDs. The $267K figure reported by Management Consulted matched the 2023 average – though lower than $250K and $230K numbers from 2022 and 2021 reports respectively. Among the MBB, Bain & Company led the pack in MBA first year total compensation at $285K, the same total as 2023 (and a $49K leap over the 2021 report). In between, you’ll find the Boston Consulting Group (BCG), where MBAs pulled in $270K total according to Management Consulted’s 2024 report. Again, this mirrored the 2023 report, with BCG first year hires reporting $236K two years earlier.
How do MBB firms compare in various measures? Bain & Company offers higher starting bases at $192K, $2K more than their MBB counterparts. That said, Bain MBA hires can collect up to $63K in first year performance bonus, much higher than either BCG (up to $50K) or McKinsey (up to $40K) according to Management Consulted. While sign-on bonus remains $30K across the three firms, each offers distinct perks. Bain includes 25 PTO days in their first-year package, higher than either McKinsey (19) or BCG (15). In terms of relocation, Bain covers $8K for moves under 600 miles from the university and $16K above that mark. McKinsey budgets up to $10K for relocation, while BCG includes an interest-free loan for relocation. When it comes to 401K, Bain and BCG contribute $8K and nearly $11K respectively –numbers lower than McKinsey, where there is a 7.5% match (which comes to over $14K in base pay alone). Near term, McKinsey also provides a 50% tuition reimbursement to returning interns. Long term, Bain opens up profit sharing after three years.
Since base pay and sign-on bonuses are rarely negotiable, firms dangle unique perks to distinguish themselves among MBA or PhD graduate. Want unlimited PTO? Check out Ernst & Young and EY Parthenon (with KPMG and Maine Pointe holding their own with 30 and 29 days of PTO respectively). Looking for your second-year of tuition to be covered? ZS Associates and Deloitte’s Strategy and Analytics practice covers that for returning interns. Got debts and need cash right away? Accenture Strategy offers a $35K bonus supplemented by a $17,500 early sign-on bonus. Alix Partners and XY Parthenon does that same at $35K and $10K and $30K and $10K respectively, while Analysis G plops down a lump $45K sign-on sum. If you plan to bet on yourself, Kearney goes as high as $65,000 on performance bonus, while Galt & Company maintains an uncapped performance bonus that is “at least $60,000.” At the same time, L.E.K. Consulting includes up to $42K in profit-sharing to start, while Stax includes an equity award after a team’s manager is promoted.
Next Page: Undergraduate Pay, Intern Pay, Lifetime Pay, and More…
McKinsey clients contributed 20% of global GDP growth in 2022
PAY FOR BACHELOR’S AND MASTER’S DEGREE HOLDERS
Maybe the biggest surprise in this year’s report? The MBB firms don’t deliver the highest entry level packages for MBAs. That honor is reserved for Kearney, where the maximums hits $188K (Base), $65,800 (Performance Bonus) and $35,000 (Signing Bonus). In fact, when it comes to the highest achievable pay packages, Bain & Company ranks just 4th, behind Alvarez & Marsal and Alix Partners as well – while barely edging out Accenture Strategy and the Analysis Group.
In the 2024 Consulting Salaries Report, Management Consulted also combined graduates Holding undergraduate and master’s degrees. This is similar to its pairing of MBAs and PhDs due to their similar starting pay packages. Comparing the two segments you’ll notice a daunting chasm between MBA and undergraduate pay packages. That includes the high end of the pay scales between MBAs and undergrads: Base ($192K vs. $112K), Performance Bonus ($63K vs. $30K), and Signing Bonus ($35K vs $5K).
In the latter segment, consultants actually lost ground in pay among MBB firms. Bain again topped its MBB rivals in starting total compensation for bachelor’s and master’s degree holders at $140K. While this matched the previous year, you can’t say the same for McKinsey ($135K vs, $147K) or BCG ($137K vs. $140K). Still, in the MBB, undergraduates enjoyed similar benefits to their MBA counterparts. McKinsey hires received 19 PTO days or $10K for relocation expenses. At the same time, Bain and McKinsey carved out $5K payments for this segment to cover housing allowances.
At the Big Four – Deloitte, Ernst & Young, KPMG, and PwC – pay didn’t deviate much from the previous year. At PwC Strategy& and PwC Consulting, total compensation hasn’t budged from its $132K and $102K marks in three years! Over the past two years, just two firms – Ernst & Young S&O and KPMG Consulting – have increased total compensation by $15K over the past two years. In fact, you won’t find a Big Four or MBB among the three-highest paying consulting firms to the undergraduate and master’s sector. Instead, Alvarez & Marsal boasts the highest potential package here at $185K, which includes a $149K max base, $51K max performance bonus, and $5K max signing bonus. Accenture Strategy) and OC&C round out the top three for max compensation, with Bain & Company clawing its way to 5th.
INTERN PAY
While pay may be lower starting out for bachelor’s and master’s degree holders, consulting firms don’t skimp on perks for them. ZS Associates embeds an $18K cost of living adjustment in its package. Cornerstone Research covers 100% of moving expenses (along with four nights in a hotel). West Monroe and Mercer Management can pitch unlimited PTO, with KPMG and Targus Consulting countering with 30 days each. After three years, Ernst & Young tacks on a $50K retention bonus. And FTI Consulting contributes an overtime bonus. When it comes to bases, there are two firms – Ernst & Young and Riveron – paying more than $100K. In terms of signing bonus, NERA Economic Consulting pays more than anyone else in this sector at $20K.
Before there are job offers, consulting firm test prospective hires during internships. Like starting pay packages, internship compensation runs the gamut. In the report, Strategy& posts the highest hourly pay for bachelor’s and master’s degree holders, paying interns $48 per hour (plus overtime). The rate is $45 an hour at EY Parthenon (plus a $3K signing bonus) and $41 an hour at Simon Kucher & Partners. Similarly, Alvarez & Marshal hits the $41 an hour mark – not counting overtime at 1.5 times that. Among lump sums, McKinsey outpaces BCG by a nose ($21,250 vs. $21,154), though BCG tacks on a $10K bonus for interns who were previously part of its Growing Future Leaders program.
Among MBAs and PhDs, few firms entice prospective interns with sign-on bonuses. Simon Kucher & Partners and The Chartis Group were among the few firms doling out bonuses to MBA interns, paying an industry high of $5,000. Instead, many firms chose an hourly rate, led by FTI ($75), KPMG ($66), and West Monroe). Among the MBB, Bain MBA interns pull in the highest sum at $40,000, edging out McKinsey ($36,923) and BCG ($36,538).
BCG’s New York office at 10 Hudson Yards – overlooking the Hudson River. Photo by Anthony Collins
A LOOK AT LIFETIME EARNINGS
The 2024 Consulting Salaries Report features Another value-add: lifetime earnings in consulting. Management Consulted plots out a career that includes 10%-20% raises and promotions every 2-3 years. That translates to $220K-$240 bases and $100K-$140 performance bonuses when MBAs become managers or project leaders by the end of Year 3. Fast forward two more years and their bases will have risen to $275K-$350K, accompanied by bonuses ranging from $150K-$250K. Within eight years of starting, consulting firms expect their hires to move into junior partner or principal roles, which comes with $375K-$450K bases and bonuses that can exceed $500K. By the time, they reach senior partner or director – a decade or more after joining the firm – MBAs should receve bases and bonuses that eclipse $500K.
What does that mean in real numbers? For one, MBA degrees bases matter. Take a $190K starting base – a high mark at an MBB– compared to the $175K a candidate might earn at Deloitte or Ernst & Young. At an MBB, MBA consultants would clear $1,160,000 over their first five years in base alone with 10% annual raises, nearly double than their counterparts with bachelor’s or master’s degrees over that same period ($683,771). Factor in annual performance bonuses (potential $40K-$60K vs, $18K-$22K) and the difference couldn’t be more stark. That said, the gap between the MBB and the Big Four – at the MBA level – isn’t as pronounced. Compare a $190K MBB base vs. a $175K Big Four base. Over the same five-year period with consistent 10% raises, the total pay difference is just $92K – numbers that can be easily narrowed by stellar performance that produces higher raises and bonuses.
That said, Management Consulted is careful to note that the highest performance bonuses are divvyed out to just the top 5%-10% of consultants. In addition, many firms maintain a up-or-out policy, with expectations growing with each step up. Despite this, the industry offers a pathway to bigger roles, as consultants often enjoy a 12%-20% increases in pay after leaving their firms according to Management Consulted.
“Because of the up-or-out structure and the attractive exit opportunities, only a small percentage of consulting recruits make it all the way to Senior Partner,” the 2024 Consulting Salaries Report adds. “Regardless, salary growth is substantial for each promotion you receive at a consulting firm.”
COMPETITION GALORE
What can consultants expect to see in the 2025 Consulting Salaries Report? In the short term, Management Consulted projects continued slow growth as large players continue to expand capabilities and retain talent at the expense of boutique firms. On top of that, Management Consulted doubts the labor market will explode in 2024, meaning firms will feel little incentive to boost pay beyond nominal increases. Still, the report does lay out one labor group who could come out winners in this cycle.
“We still expect that firms will begin to hit the upper limits of their pricing power within the next decade as the competition between established players grows ever fiercer. This may spur firms to begin to prioritize cheaper, pre-MBA hires as opposed to more expensive post-MBA ones. We believe this is already playing out in the market, as evidenced by the fact that full-time MBA hiring decreased at a higher level in 2023 than full-time pre-MBA hiring.”
Another factor cited by Management Consulted is labor competition with the tech and financial sectors. As interest rates begin to fall, Management Consulted anticipates an accompanying rise in IPOs and acquisitions. By the same token, th3 decrease in the cost of capital could spur the tech industry. Hence, both sectors will be prowling for talent, creating competition that potentially pushes consultant pay higher. While consulting firms could lose talent to tech and finance, these losses will be more than offset to the industry’s allure.
“The competition for these open roles will be fierce,” according to the 2024 report. “Demand for open consulting roles will far outpace the supply of open roles, as hiring is not going back to the frothy environment of 2021 and 2022. Combine this with the fact that consulting is still a “safer” option than banking and tech; with more eager candidates than ever before chasing the prestige, pay, and relative stability of a consulting job, the consulting job market will be even more competitive this year.”
WHY TOMORROW WILL BE BETTER
Big picture, Management Consulted believes the consulting industry holds an enviable position. Despite a slowdown in 2023, the 2024 report notes that demand still hovers above pre-pandemic levels due to “increased digital, S&O, ESG, and supply chain work.” That doesn’t mean the industry is poised for a major rebound, however. One reason: fewer competitors mean fewer options for consumers and consultants alike.
“Industry growth is still concentrated in a small core of established players, and when the growth of these entities slows, it has an outsized industry impact,” according to the 2024 Consulting Salaries Report. “Furthermore, the specter of economic uncertainty still looms, decreasing the number of market entrants. Add it all up, and there continues to be less overall competition in the market than there was ten years ago.”
Don’t write off the consulting industry quite yet. After all, hard times create customers in need and consultants ready to lead. More than that, the industry fundamentals are solid and firms have taken the past year to ready themselves for what’s next.
“It’s a great time to break into the industry,” the report adds. “Comp should be on the rise in 2025, and the lifestyle is actually better than it was 5-10 years ago. How? Travel is down, utilization is coming down from pre-pandemic highs, and salaries are still significantly higher than 2019. Put it all together, on top of the professional development and exit opportunities, and that’s a pretty great value proposition for consulting.”
To download the full 2024 Consulting Salaries Report, which includes pay details for 115 consulting firms, click here.
DON’T MISS: TOP 50 CONSULTING FIRMS TO WORK FOR IN 2023
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