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Consultant starting salaries at MBB, Big 3, remain flat: report

Jan 27, 2025 - businessinsider.com
A report by Management Consulted reveals that starting salaries for consultants have remained flat since 2023 across boutique, MBB, and Big Four firms. This stagnation is attributed to a slowdown in demand for consulting services and productivity gains from AI and remote work, which have reduced the need for new hires. Previously, annual salary increases of 5 to 10% were common, but the industry has seen a plateau despite some signs of increased demand in 2024. The report highlights that post-MBA hires at top firms earned a base salary of $192,000 in 2023, while pre-MBA hires earned $112,000, with additional bonuses. However, fewer consultants are leaving the industry due to limited opportunities elsewhere, contributing to stagnant salaries.

The report also notes that firms are hiring more undergraduates than MBAs, as the perceived value of MBAs varies widely. Some firms have adjusted their variable compensation structures to make pay packages more appealing, although only a small percentage of consultants earn the maximum bonus. Management Consulted expects an increase in hiring as demand and attrition rise in the coming years, but salaries for new hires may remain unchanged.

Key takeaways:

  • Consultant starting salaries have remained flat since 2023, with no increases at boutique, MBB, and Big Four firms due to slowing demand and AI-driven productivity gains.
  • The 2025 Consulting Salaries Report by Management Consulted found that starting total compensation at major firms has not increased since 2023, affecting both undergraduate and MBA/PhD hires.
  • Productivity advancements from generative AI and remote work, along with slower attrition, have reduced the need for new hires and stalled salary growth in the consulting industry.
  • Despite expectations of increased demand and hiring in the coming years, Management Consulted anticipates that salaries for new hires may remain stagnant.
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