Consulting jobs have resurged in popularity, both among graduates and MBAs, who have ditched the idea of working for a Goldman Sachs or J.P. Morgan in favour of the supposedly better lifestyle and more interesting work on offer at the likes Mckinsey and Bain. But, there remains one big downside for anyone choosing consulting over the financial sector – the pay.
We’ve already pointed to the fact that Boston Consulting Group’s London operation offers an average payment for its 700 UK-based staff of £101k ($133k) – Goldman Sachs paid its London employees an average of $503.8k last year – but consulting pay rarely reaches the dizzy heights of banking, private equity or hedge funds, at least until you reach partner.
New figures from Wall Street Oasis suggest that the lack of big bonuses in consulting mean that it takes a very long time before pay begins to rival front office roles in the financial sector. Entry level roles in consulting pay a $71k salary, but a $9k bonus means that total compensation lags investment banking analyst pay by $22k (based on comparable figures from WSO). The figures below, based on 1,566 people, show that bonuses in consulting rarely hit six figures. A managing director earns an average bonus of $90k and total compensation of $294k.
The caveat to WSO’s figures is that they’re based on employees from a wide-range of consulting firms. As well as the big three – McKinsey, Bain & Co and BCG – it’s received submissions from people working for the Big Four accounting firms and a whole range of smaller, niche consulting companies.
The survey also asked about the difficulty of breaking into individual consulting firms, and the career opportunities available. Predictably, McKinsey, BCG and Bain & Co were said to have the toughest interview process. Oliver Wyman and Mercer had the best interviewing experience. But McKinsey, BCG and Bain also ranked top for employee satisfaction, professional growth opportunities and career advancement.
Contact for news, tips and comments: email@example.com
Image: Getty Images