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. 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.
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. 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.
2022 Consulting Salaries Overview
Welcome to 2022, and our updated management consulting salaries report!
This is a big year: We enter the 3rd year of the pandemic with hope that there is light at the end of the tunnel. 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.
It’s a big year for the consulting industry as well. 2021 saw firms grapple with the tightest global labor market in decades in conjunction with an explosion of demand for management consulting services.
This led to record revenue for many consulting firms and a continued wave of M&A activity, leading to double-digit industry growth. However, this growth is not without potential peril. Future margins are at risk as firms continue to raise salaries without a commensurate rise in project rates. So far, margins have been protected by a decrease in operational costs (i.e., smaller office space, less travel). Still, there is only so much firms can cut. 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.
The M&A activity revealed two basic patterns. Large firms acquired boutique strategy houses in lieu of (or in addition to) organically building their own (ex: AlixPartners acquiring Galt & Co.). Strategy firms acquired specialist players to continue to move further downstream into supply chain, sustainability, digital, and implementation work (ex: McKinsey acquiring Material Economics).
What do you get when you put it all together?
The Gap Between Top Firms and the Rest is Widening…
Established consulting firms drove a lion’s share of the overall industry growth through organic and inorganic means. This in turn allowed them to increase max compensation through performance bonuses and profit sharing, as well as extend lifestyle perks like unlimited PTO. 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.
…and the Staff are Staying Busy…
As demand for services increases and travel demand remains depressed, consultant utilization has risen to all-time highs.
…but There’s Still a Need for More Talent
Increased utilization and a tight labor market have led to an unprecedented rate of exits from the industry in the last 12 months. Combine that with the fact that consulting firms were already understaffed for the increased demand they are experiencing, and 2022 promises to be a banner year for consulting hiring.
Still, with more eager candidates than ever before chasing the prestige and rising pay of a consulting job, the consulting job market remains incredibly competitive.
How has this impacted consulting salary trends?
After a 1-year blip, consulting salaries restarted the upward trajectory we have become accustomed to. In the 14 years we have been covering salaries, this is the 13th year that starting salaries increased.
While most historical consulting salary increases were in the 2-4% growth range, this year’s increase was closer to 10%, signaling the effects of a tightening labor market and increased demand. However, this increase was still lower than the increase we saw in 2019.
Following a trend from the last 3 years, consulting firms have continued to increase hiring of specialists (bonus points if you have technical expertise), experienced hires, and candidates from non-target schools.
In fact, just 19% of McKinsey’s most recent intake was made up of direct MBA hires, and the firm hired analysts from over 370 universities. Still, targets drove most hiring, so if you’re from a non-target school, network now and apply early.
Below are salary figures for those joining management consulting positions in 2022. The data comes from our interview prep clients who received written job offers and firm representatives. The salary data is for those recruited straight from an undergraduate, master’s, MBA, or PhD program or those that were hired at the same level. All salary figures are in U.S. dollars unless otherwise stated.
This is the only originally sourced data available in the industry. Everyone else uses ours or uses outdated or arbitrarily averaged Glassdoor salary data, PayScale salary information, or Indeed salaries. Use or republication of this data is prohibited without the express written consent of Management Consulted.
All of the data and our expanded insights are included in the full downloadable report – get a copy for free below.
Salaries for Incoming Undergraduate & Master’s Full-Time Hires
Overall, salaries for incoming undergraduate & master’s students have risen significantly after staying stagnant last year. When comparing consulting roles to those in industry at the same level, there are few better options when it comes to total comp. If compensation is the most important factor in your firm preferences, look at firms like Alvarez & Marsal, Galt & Co., Deloitte, McKinsey, Strategy&, BCG, Bain, Accenture Strategy, and Altman Solon. However, we recommend considering other factors in your search as well, including exit opportunities, firm culture, travel, and more.
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Salaries for Incoming MBA & PhD Full-Time Hires
Starting salaries for incoming MBA & PhD hires are rising again after staying stagnant last year for the first time in a decade. Still, outside of finance, post-MBA compensation packages are the highest in consulting out of any industry. While Big Tech continues to compete with consulting for top talent, consulting continues to offer faster promotion cycles, broader industry exposure, and a better path to business leadership. The highest paying firms at the post-MBA/PhD level are AlixPartners, Strategy&, EY-Parthenon, McKinsey, Accenture Strategy, BCG, Altman Solon, OC&C Strategy, Bain, and Oliver Wyman.
Internships are a standard 10 weeks in the United States (early June through first or second full week of August) but the range is 8-12 weeks in Canada and the EMEA. Monthly internship salaries are typically prorated based on starting salaries for new hires. Here are 2022 internship salaries:
Undergraduate & Master’s Program Internship Salaries
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Management Consulting Salary Insights
Management Consulting Bonuses
Full-time consulting offers are nice, but bonuses have the potential to take your comp from good to great. Generally, consulting full-time hires receive signing bonuses, relocation bonuses, end-of-year performance bonuses, and more. Consulting interns are less likely to receive bonuses, although some firms do offer relocation or signing bonuses.
More firms are starting to offer returning interns a larger signing bonus than full-time counterparts who interned somewhere else. The most extravagant of these include MBA second-year tuition coverage plus signing bonuses (here’s looking at you, Deloitte).
When analyzing these bonuses, there are 5 things you should keep in mind:
Value base salary more than signing and relocation bonuses. Your salary during your 2nd (and sometimes 3rd) year at the firm is often a function of your initial base salary. All else held equal, we would recommend choosing a base salary of $82,000 with a $5,000 signing bonus over base salary of $80,000 with a $7,500 signing bonus.
On your offer letter, the listed maximum amount of the performance bonus typically goes to the top 5-10% of performers. Average performers often receive bonuses closer to half of the maximum amount, while poor performers typically only receive a small bonus if any. Also, firms that pay overtime may choose not to offer a performance bonus.
The size of the relocation bonus is primarily driven by the distance from your university to the office location. If you live in the same city as the office, you are sometimes offered no bonus or a smaller bonus (~$2,000 in the U.S.). However, if you live in a distant state or country, you are typically offered the firm’s maximum relocation bonus amount.
Relocation and signing bonuses are commonly distributed soon after signing your contract. However, they may be distributed on your start date (e.g., at IBM GBS) or given in increments over several years (e.g., L.E.K.).
Bonuses are usually taxed. Uncle Sam loves your bonuses and will make sure to get his share. So don’t forget to account for taxes when planning your bonus spending (or saving). Taxes may be deducted when receiving bonus payments or they may be withdrawn from future paychecks, putting a small temporary dent in your future monthly income.
Salary Growth Along the Management Consulting Career Path
The salaries above are for full-time hires and interns coming straight from an educational program. Before deciding on a final offer, consider how your salary will grow across time. Often, our interview prep clients will receive slightly higher job offers in tech than in consulting. However, the salary growth in management consulting outpaces many industry positions. Because of that, the net income after a few years in consulting can exceed those in other industries, despite an initially lower base pay.
In top consulting firms, you can typically expect a 10-20% increase in your base pay and/or performance bonuses each year. Additionally, when promoted to the next level (usually every 2-3 years), the increase in your income is substantially larger. For instance, when promoted from Associate to Consultant at BCG, your base salary almost doubles. Here’s the potential salary growth trajectory of someone working at a top consulting firm (McKinsey, Bain, or BCG) in the U.S.:
Consultant Salary Growth Trajectory:
First-year out of Undergrad/Master’s program:
Signing Bonus: ~$5k
Performance Bonus: up to ~$30k
First year out of MBA/PhD program:
Signing Bonus: ~$30k
Performance Bonus: up to ~$45k
Manager/Project Leader (2-3 years out of MBA/PhD) program:
Associate Principal/Senior Project Leader (4-5 years out of MBA/PhD) program:
Junior Partner/Principal (6-8 years out of MBA/PhD) program:
Senior Partner/Director (10+ years out of MBA/PhD) program:
Keep in mind that most full-time hires will not make it to Partner. Many consulting firms have an “up-or-out” promotion structure – and many consultants choose to leave. Those who perform exceptionally are given the chance to be promoted, while poor performers are encouraged to seek employment elsewhere. 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. Regardless, salary growth is substantial for each promotion you receive at a consulting firm.
Salaries When Exiting Management Consulting
Although your salary increases relatively rapidly within a top consulting firm, you typically receive a pay increase when leaving, as well as a bump in lifestyle. In the U.S., the average consultant who accepts an industry position receives a 12-20% increase in pay and a better work-life balance. Those entering the financial services industry receive a 30%+ increase in compensation—but work/life balance often takes a hit.
Although your salary increases relatively rapidly within a top consulting firm, you typically receive a pay increase when leaving, as well as a bump in lifestyle.
Large Consultant Salary Variation Across International Offices
There is a large variation in management consulting salaries within firms across different countries. Management consulting salaries are highest in the U.S. due to the aforementioned competition with Silicon Valley and Wall Street. Compared to the rest of the world, the United Arab Emirates, Singapore, Switzerland, and Canada also boast relatively high consultant salaries. Most surprisingly, consultant salaries in London are relatively lower given its high cost of living.
Overall, consulting salaries are competitive within their country, often offering salaries 20%+ above the average for other professional service firms. If you accept a consulting offer in any country, you will likely be paid more than the average local employee with a similar tenure in professional service industries.
Small Consultant Salary Variation Across Domestic Offices
At McKinsey, Bain, and BCG, management consulting salaries are relatively flat across all offices within a country. This has two important implications. First, there is often little room for salary negotiation unless you are an experienced hire. Second, you can increase your take-home income by choosing an office location where the cost of living is lower (e.g. choosing Atlanta over San Francisco).
In other firms, salaries are sometimes adjusted to account for living costs. For example, a Big 4 consultant working in New York often receives a slightly higher salary than a Big 4 consultant in Dallas.
Consultant Salaries for Master’s and PhD Students
Many consulting firms offer master’s students the same positions as undergraduate students. Because of that, master’s students often receive the same compensation as undergraduates (Deloitte is a notable exception to this). However, when a master’s student applies for a relevant technical position (e.g. data scientist), they can receive more compensation than an undergraduate counterpart. Likewise, PhDs often (though not always) receive the same compensation as MBAs. This is important to note, as you should be applying for the position the firm wants to hire you for.
2022 Consultant Salary Summary
Overall, the state of the industry is strong. Both at the undergraduate/master’s level and post-MBA/PhD, management consultant salaries continue to stay competitive to rival Banking and Big Tech.
Overall, consulting salaries are highly competitive compared to other industries. One notable exception is finance, where salaries are higher but work-life balance is often worse. Technology firms also compete with consulting firms for talent. They often offer higher base salaries but the roles are more siloed and the promotion trajectory is slower.
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