This resulted in record revenues for many consulting firms and a continuous wave of M&A activity, leading to double-digit growth in the industry. However, this growth is not without potential dangers. Future margins are at risk, as companies continue to increase salaries without a proportional increase in project rates. Until now, margins have been protected by a decrease in operating costs (that is, even so, companies can only cut a limited amount).
The potential outcome? Without the traditional increase in pricing power that industry consolidation entails, we may see companies begin to reduce project teams or prioritize hiring cheaper talent that they have studied before the MBA in the next decade.
Consultantshelp clients solve complex problems that may be impeding growth and limiting their final results. Determining the management consultant salary you can expect to receive, or more strictly, the salary of a strategy consultant, is probably one of the determining factors when deciding which firms to apply to. The COVID-19 pandemic caused a major wage freeze in the consulting industry, as participants reduced costs, ending the generous wage increases of previous years.
This graphic shows how consultants' salaries can vary depending on where they are in the United States. These are some of the main MBA programs in which consulting firms hire staff and the first-year consulting salary figures associated with these MBA programs. The competitive compensation of new employees is due to their ability to present information, knowledge and advice, because management consultancies basically sell information and advice to customers. Risk consultants have the primary function of identifying exposures to losses and proposing appropriate mitigation measures.
Financial consultants address challenges related to accounting practices, risk management, taxes, and other monetary issues. While big technologies continue to compete with consulting for the best talent, consulting continues to offer faster promotion cycles, broader exposure in the industry and a better path to business leadership. While most of the consulting firm's historic wage increases were in the growth range of 2 to 4%, this year's increase was close to 10%, indicating the effects of the tightening of the labor market and the increase in demand. As demand for services increases and demand for travel remains depressed, the use of consultants has reached record highs.
If you're thinking about becoming a management consultant or are planning the next step in your career, find details about the position, career path and salary trajectory of a management consultant.