- What management consultants & strategy professionals can expect pay-wise, based on 35,000 data points
- Entry-level management consultants (analysts) can expect a starting salary of £57,000
- Private Equity and Venture Capital offer the highest pay packets for strategy professionals, with directors there earning an average of £279,000
Management consultants or strategy professionals have now been offered a glimpse into their potential earnings, following the release of 2021’s Work and Pay Report figures from Movemeon, the leading channel for hiring strategic and commercial professionals, and its sister company Payspective which provides data driven insight to employers and job seekers.
The study which has been compiled from 35,000 data points, reveals companies are still hiring strategy professionals despite a tough marketplace. The figures clearly showing that leaving consultancy to go in-house has a positive influence on pay.
Nick Patterson, co-founder, Movemeon said “We’re seeing a massive shift in the consulting market. Consultancies are busier than they’ve been for years, but fewer people are looking to work in the consulting industry. Anecdotally, this seems to be driven by the long hours being much harder when working from home.
This supply-demand imbalance has meant consultancies are resorting to paying their staff more to retain and attract new employees. We’re also seeing a significant rise in the number of freelance consultants working as surge capacity for consultancies.”
The data also highlights that the type of consulting background you have is a key indicator of longer term remuneration.
When compared with the UK’s average salary (£31,461), strategy looks a well-rewarded career. For example, analysts, (a junior, entry -level role in a consulting house) will see an average starting salary of £57,000, whereas in industry, an analyst can expect to see a £68,000 pay packet. Both of which are sizeably north of the average graduate wage of £24,000.
When we look at those at associate level (typically 2-5 year’s experience), those working in industry are on £95k vs £80k in consultancy.
However, when reaching managerial levels (at around 7-10 year’s experience), salaries almost converge £112k in industry vs £110k in management consulting, yet at director/VP level those in consulting are on £212k vs £193k in industry.
When the data is looked at for management consultancy providers, those at BCG, Bain, McKinsey, not only start with higher pay, an upward remuneration trend continues throughout their career. The next well paid are those in strategy houses (Accenture, Deloitte, KPMG, PWC A.T. Kearney, Booz Allen Hamilton, Monitor Deloitte, Oliver Wyman, Strategy&) and then management consultancies (the likes of Accenture, CapGemini, Deloitte, PwC).
When you look at total compensation, regardless of the role, PE/VC continually pay a premium, and those strategy professionals working in start-ups at mid/junior levels are paid less than those working in corporates/industry. However, director level roles are better compensated with an average of £217k for start-ups compared with £197k in corporates.
Who got a raise?
Movemon’s data also explored pay rises, and while around a fifth of all corporates, consultancies and start-ups have taken government support, around half have given salary increases to employees. As may be expected, only 7% of Private Equity/Venture Capital firms took state support, and three quarters of these gave pay rises.
Mind the gap
In 2020, the gap between a candidate’s expectation of their worth and what an employer is willing to pay has narrowed, however, those earlier in their career still rank themselves more highly than more seasoned professionals. There’s a gap of a third for analysts, 16% for managers and 9% for VP/Directors.
When we look at industries we see that there’s a bigger gap for those looking to work in start-ups (23%) vs consulting (8%), and it’s closest in PE/VC (3%).
Commenting on the study, Rich Rosser, co-founder, Movemeon said “It’s been a tough year for everyone, including for those needing to make hard choices about the direction of their businesses which is often when strategic input is sought. That’s why, despite choppy economic conditions, management consultants have generally seen their pay increase and alongside a steady, consistent demand for strategy talent.”
“PE and VC have had a busy 18 months, and to take advantage of market conditions they’ve been hungry for the best strategic brains, and they’re willing to pay a premium to get them. We’re always asked by employers how much they should pay and candidates also want to know their worth, this research offers a perfect snapshot of what both parties should expect.”
Patrick Maier, General Manager, Payspective stated, “Hiring talent or moving jobs can be a daunting experience, and we all know negotiations are better when both sides have a clear, data driven picture. With our 35,000 data points we can accurately say what different roles command in different organisations. People want to know their worth and employers want to be sure they’re not paying over the odds, this study makes it easier for both sides.”
About Movemeon: https://www.movemeon.com/
Movemeon is the world’s leading network of strategic and commercial professionals. Founded by two ex-McKinsey consultants, Rich Rosser & Nick Patterson, the company matches strategic and commercial professionals with permanent, interim and freelance roles in startups, PE/VC, corporates, consultancies & more
About Payspective: https://www.payspective.com/Payspective, Movemeon’s sister company, provides data-driven insights for professionals and employers, to help them achieve their vision of making work happier, fairer, more diverse and more productive