Suppose it’s tough being mistaken? Simply wait till you’re proper.
That’s the dilemma dealing with Administration Consulted. In its 2024 Consulting Salaries Report, Administration Consulted projected “gradual progress” within the consulting business, the place demand would “outpace” provide for open roles. Because of this, corporations would have “little incentive to spice up pay.”
Quick ahead to the 2025 Consulting Salaries Report and Administration Consulted grew to become the basic Cassandra. The previous yr performed out as grim as predicted: stagnant pay and scaled again advantages. Neglect the roaring 20s – as in 2021 and 2022— the place corporations stockpiled expertise and 10% year-over-year pay will increase have been the expectation. Now, lean-and-mean is the business mantra, as corporations navigate by the aftershocks of financial recession, international uncertainties, and technological disruptions.
In its newest report, Administration Consulted spells out points that buffeted consulting in 2024. That begins with scandals and lawsuits. In December, for instance, McKinsey forked over $650 million {dollars} to settle claims over its companies to Purdue Pharma. In Australia, PwC generated headlines over allegedly advertising non-public authorities tax data to purchasers. Such incidents produced a notion downside in an business the place work is anticipated to be clear and confidential. That doesn’t depend the hiring freezes and delayed begin dates that dogged new graduates and profession changers alike.
Regardless of the negativity, Administration Consulted strikes a extra optimistic tone on this yr’s report. “Look under the floor, and you will notice that the affected person is more healthy than at first look. Demand for consulting companies continues to develop, headcounts are larger than they have been one yr in the past (though headcount progress was slower than historic averages), and beginning advisor compensation is >20% larger than 5 years in the past.”
Somewhat Pollyannish? Possibly – however unevenness is the brand new regular for an business accustomed to a ‘sky is the restrict’ outlook. Now, in keeping with the 2025 Consulting Salaries Report, turnover has slowed with extra consultants staying in place. To chop prices, corporations have tapped into new methods to spice up productiveness with out including headcount. True to type, the burden was usually shouldered by junior consultants.
“Companies flexed their muscular tissues in a loosening labor market by eliminating beginning wage will increase,” the report reads. This was made potential by the commensurate slowdown in Huge Tech and Finance, but additionally in Fortune 1000 inside technique practices – [that] have been additionally impacted by cost-cutting.”
Bain consultants heading to an engagement. Photographer: Roger Kenny.
A DEEP POOL OF DATA
Simply how a lot did corporations flex? In an e-mail to P&Q, Namaan Mian, Administration Consulted’s Chief Working Officer, famous that over 90% of corporations froze beginning base salaries in 2024. It was the second consecutive yr that pay freezes have hit this threshold. Such trending offers a determined benefit to bigger corporations in keeping with the report.
“The full comp hole between the highest corporations and everybody else stays giant. Whereas most corporations stored base salaries flat this yr, the highest corporations (who drive outsized business progress) nonetheless provide dramatically larger variable compensation, extra beneficiant advantages, and fewer journey. With extra engaging comp and life-style perks, there could also be much less causes than ever for high candidates to decide on smaller corporations.”
At its core, the 2025 Consulting Salaries Report solutions the age-old query: How a lot are completely different consulting corporations paying up entrance to MBAs and undergraduates – and what forms of perks are included in every agency’s package deal. Since 2008, Administration Consulted has been cataloging a firm-by-firm record of bases, bonuses, and advantages. This yr, it covers pay for 124 consulting corporations, damaged out between two teams MBA/PhD and Undergraduate/Grasp’s diploma holders. As an entire, Administration Consulted boasts over 4 million customers between its verified web site guests for reviews and podcasts, together with shoppers of its case interview and resume prep companies and consulting coursework. In some circumstances, these populations present Administration Consulted with pay gives from their corporations. Different occasions, the information comes immediately from consulting corporations.
One differentiator for the 2025 Consulting Salaries Report: The numbers are primarily based strictly off 2024 responses. In contrast to information from sources like Glassdoor, PayScale or Certainly, Administration Consulted doesn’t common its pay towards the earlier yr. Because of this, it’s extra dependable and up-to-date. Pay information can be represented in U.S. {dollars} for consistency.
MBB PAY STALLS OUT
Consulting pay could have remained flat in 2024, however that doesn’t imply there weren’t huge variations in compensation between ranges of training and corporations of alternative. Take high of the market pay. In accordance with Administration Consulted information, MBAs can count on to high out at $192,000 in base. By the identical token, their efficiency bonus and signing bonus can attain $63,000 and $35,000 respectively. That’s a serious improve over bachelor’s diploma holders who landed consulting jobs in 2024. Beginning out, their base hit $112,000 on the excessive finish – or $80,000 lower than their MBA counterparts. And there was an analogous drop-off in efficiency bonus ($30,000), and signing bonus ($5,000).
When you suppose high-end pay begins with the MBB – McKinsey & Firm, Bain & Firm, and the Boston Consulting Group – guess once more. On the undergraduate degree, Alvarez and Marsal pays $50,400 greater than Bain & Firm in base and bonuses to begin. On high of that, Accenture Technique, OC&C, and CapOne Technique hires outearn Bain bachelor’s diploma hires too – a minimum of in base beginning out. The development performs out equally amongst newly-minted MBAs coming into consulting. Amongst whole compensation, Kearney tops all comers, with Alvarez and Marsal once more besting Bain & Firm.
Amongst MBAs within the MBB, Bain hires earned probably the most in whole compensation on the max degree. Right here, Bain MBAs pulled in $285,000. Boston Consulting Group hires maxed out at $270,000, with McKinsey reaching $267,000. That mentioned, for all three corporations, these numbers haven’t budged over the previous three years. To place this hunch in perspective, from 2022-2023, Bain MBA hires watched their high-end pay leap from $246,000 to $285,000. Over that very same interval, BCG and McKinsey MBA hires loved comparable will increase ($248,000 to $270,000 and $250,000 to $267,000 respectively). To place it one other manner, had compensation momentum continued unabated over the previous three years, Bain MBAs could be amassing $383,500 within the first yr, not $285,000. And the numbers could be $320,900 and $299,000 for BCG and McKinsey respectively on the high finish. That’s fairly a distinction!
Nonetheless, every MBB agency gives one thing a bit completely different for MBAs of their beginning pay packages. The bases begin at $192,000 at Bain and McKinsey, with BCG coming in barely decrease at $190,000. Equally, all three corporations provide signing bonuses as much as $30,000. Nevertheless, efficiency bonus seems to be a differentiator among the many MBB corporations. McKinsey caps its efficiency bonus at $40,000, whereas Bain and BCG hit $63,000 and $60,000 respectively. Bain additionally gives 25 days of PTO in comparison with 19 (McKinsey) and 15 (BCG) for MBA s out of the gate. In contrast to Bain and BCG, McKinsey contains 50% 2nd yr tuition reimbursement for returning interns in its package deal. BCG contributes extra, dollar-wise, than Bain to a 401K ($11,875 vs. $8,000). For these re-locating, BCG solely budgets $6,000 to cowl a brand new rent’s price, far lower than Bain ($8,000 for below 400 miles; $15,000 for over 600 miles) or McKinsey (as much as $10,100). In different phrases, the worth of the beginning package deal varies relying on what a brand new rent values.
Swap over to bachelor’s diploma hires and the MBB follows an analogous sample. Bain and McKinsey begin this phase out with a $112,000 base, barely larger than BCG at $110,000. Every MBB agency gives a $5,000 signing bonus, although McKinsey’s $18,000 efficiency bonus lags behind each Bain (As much as $22,500) and BCG ($22,000). True to type, Bain gives extra PTO days (20) than McKinsey (19) or BCG (15). McKinsey compensates re-location as much as $10,000 (in comparison with $6,000 and $5,000 at BCG and Bain respectively). On the subject of retirement, Bain chips in as much as $6,050 in comparison with $4,400 in profit-sharing at BCG (and McKinsey committing as much as 7.5% in certified comp). Bain and McKinsey additionally put aside $5,000 every for a housing allowance for undergraduate hires.
Deloitte picture
BREAKING DOWN THE BIG 4
Complete compensation has additionally flatlined among the many Huge 4 – Ernst & Younger, KMPG, Deloitte, and PwC – over the previous three years. In the course of the interval, you’ll discover top-end whole MBA compensation locked into the identical bands as 2023 and 2024: Deloitte Consulting ($204,000), EY Consulting ($242,000), KPMG Consulting ($210,000), PwC Technique& ($280,000) and PwC Consulting ($245,000). Amongst bachelor’s diploma hires, that very same three-year pay lull continued at Deloitte Consulting ($107,500), EY Consulting ($90,000), KPMG Consulting ($110,000), PwC Technique& ($132,000), and PwC Consulting ($102,000).
In accordance with the 2025 Consulting Salaries Report, consulting corporations pursued methods that tried to paper over the bottom play restrictions, equivalent to lifting caps on efficiency bonuses. Ultimately, the pay hunch mirrored administration restoring the steadiness of energy after years of catering to increasingly-empowered expertise.
“Many corporations are utilizing depressed raises as a software to extend attrition,” Administration Consulted explains. “With slowdowns in conventional exit sectors (e.g., company technique, PE), corporations aren’t apprehensive about an excessive amount of expertise leaving directly.”
That is mirrored within the enticements deployed by a number of Huge 4 corporations of their packages. For MBAs, EY Consulting and EY-Parthenon each characteristic limitless PTO, with the latter additionally offering efficiency bonuses as much as $52,500. KPMG Consulting additionally doles out as much as 30 days of PTO, together with relocation reimbursement as much as $10,000. These 30 days of PTO additionally apply to bachelor’s diploma holders, who obtain above-average $10,000 sign-on bonuses. At EY-Parthenon, except for limitless PTO, undergrads additionally gather a $50,000 retention bonus after three years of service.
Subsequent Web page: Intern and Profession Pay
Colleagues meet within the London workplace. Greater than 76 nationalities are represented at McKinsey workplaces throughout the UK
INTERN PAY
When it comes to whole money for MBAs, Kearney leads the pack at $288,800 on the excessive finish, edging out Alvarez and Marsal ($287,500). Amongst undergraduate hires, Alvarez and Marsal is the dominant participant at $190,000 beginning out. Let’s simply say Alvarez and Marsal isn’t afraid to spend money on its expertise. Amongst undergraduates, efficiency bonuses can rise as excessive as $51,000 – not counting a $10,000 sign-on bonus. For MBAs, Alvarez and Marsal efficiency bonuses ranges from $52,500-$87,000 within the first yr – each of which might exceed what graduates can earn at MBB corporations.
That’s the price of competing in administration consulting – and plenty of boutique corporations bathe new hires with advantages past the standard pay parameters. For MBAs, Allman Salon covers tuition as much as $80,000 over two years, whereas ZS Associates reimburses second-year tuition (together with offering as much as $17,400 for cost-of-living changes). Together with a $35,000 sign-up bonus, Accenture Technique tacks on one other $17,500 for returning interns (with Oliver Wyman dangling a $15,000 early sign-on bonus on high of one other $30,000 bonus). Kearney will go as much as $16,000 for relocation, whereas OC&C Technique Consultants gives $800 as a wellness reimbursement yearly. In flip, Accenture arms out 15% reductions on inventory to bachelor’s diploma hires. At Cornerstone Analysis, that very same inhabitants enjoys relocation perks that covers 100% of transferring bills and all dealer charges.
Earlier than new hires can take pleasure in such perks, they need to show their worth throughout internships. Right here, Administration Consulted provides an array of information. Overlaying 10 weeks of internship pay, the 2025 Consulting Salaries Report displays a variety of compensation fashions. Amongst MBB corporations, MBAs can count on pay that stretches from $36,358 (BCG) to $40,000 (Bain Firm). As an entire, NERA Financial Consulting pays probably the most at $43,250 (plus a $1,250 sign-on bonus). Nevertheless, this doesn’t cowl the potential for extra time. For instance, KPMG Consulting pays $66 an hour – which rises to $99 an hour with extra time. As well as, Accenture Technique can pay as much as $5,000 for interns to relocate, whereas ZS Associates will embrace a $5,000 sign-on bonus for interns. At GEP Worldwide, MBA interns may even gather a $2,500 efficiency bonus.
Not surprisingly, intern pay is much less for college students from undergraduate and grasp’s applications. Technique& and EY-Parthenon pay the best hourly charges at $49 and $45 respectively, a far cry from the $75 price paid by FTI Consulting and Mercer Administration and HR Consulting to MBAs. That mentioned, Alvarez and Marsal doles out $40 an hour to undergraduates, which climbs to $60 an hour with extra time. Amongst MBB corporations, the excessive is $22,500 (Bain) and low is $21,150 (BCG). Past the standard pay construction, PwC and West Monroe commit $3,000 to sign-on bonuses, whereas Bain & Firm and Mercer Administration and HR Consulting allocate $1,000 to relocation and housing respectively. For returning alumni of its Rising Future Leaders (GFL) program, the Boston Consulting Group distributes a $10,000 signing bonus.
Intensive coaching for BCG Summer season Consultants enhances their immersive “on-the-job” studying and mentorship
CAREER PAY IS LUCRATIVE…IF YOU CAN STICK IT OUT
Alas, there are holes within the 2025 Consulting Salaries Report – which Administration Consulting is fast to confess. For one, sign-on bonuses are a one-time type of compensation that artificially bumps first-year numbers. On the similar time, consultants hardly ever max out their efficiency bonuses. Typically, the ceiling is barely hit by 5%-10% of consultants. Much more, the pay trajectory has grown more and more unsure as corporations squeeze the brand new hires on the backside to raised tamp down prices. Much more, consulting is an up-or-out proposition, the place above-average performers look to hit an off ramp to maximise their earnings and common performers are gently prodded out of their roles to make room for top potentials.
“You sometimes obtain a pay improve when leaving, in addition to a bump in life-style,” in keeping with the report. “Within the U.S., the typical advisor who accepts an business place receives a 12-20% improve in pay and a greater work-life steadiness. These coming into the monetary companies business obtain a 30%+ improve in compensation—however work/life steadiness usually takes successful.”
What can consultants count on to earn after their first yr in a consulting agency? That depends upon how far they wish to go. In spite of everything, a consulting profession unfolds in particular phases, every with their very own milestones and elevated expectations. That’s one purpose why Administration Consulted plots out a “Wage Progress Trajectory” in its annual Consulting Salaries Report.
On this trajectory, Administration Consulted pays particular consideration to MBAs. It estimates a beginning base of $190,000 and efficiency bonus of as much as $60,000 for first-year graduates (not counting a one-time $35,000 signing bonus). Inside 2-3 years of beginning, MBAs are anticipated to maneuver right into a supervisor or mission chief function, which might pay a $220,000-$240,000 base accompanied by a efficiency bonus of $100,000-$140,000. Inside 5 years of incomes an MBA – offered efficiency stays stellar – a graduate needs to be elevated to an affiliate principal or senor mission chief function, which might pay anyplace from $275,000-$350,000 in primarily based together with $150,000-$250,000 in efficiency bonus. On the 6-8-year mark, in keeping with Administration Consulted, MBAs needs to be transferring into junior companion or principal roles, which pay $375,000-$450,000 in base on high of a bonus that may vary from $375,000-$575,000. After a decade, the hope is that MBAs will assume the mantle of senior companion or director, which pays a $500,000-$750,000 base and a bonus that may lengthen $500,000.
The caveat: Solely a small share ever make it to companion. Whereas corporations don’t disclose this data, you’ll discover MBB alumni pegging the quantity between 2%-5%. One other reality: an MBA delivers a definite benefit to producing larger earnings early in profession. In accordance with Administration Consulted, undergraduate and grasp’s hires common $110,000 in base and roughly $30,000 in efficiency bonus. Assuming a ten% pay improve – an anomaly on this market – a non-MBA can count on to earn $191,943 in base inside six years of commencement. Examine that to MBAs, who begin at a $190,000 base – probably after 4 years of labor and two years of enterprise college.
HOW MUCH DO FIRMS REALLY NEED MBAs?
That’s to not say MBAs will proceed to set the market like years previous. The 2025 Consulting Salaries Report notes that corporations are starting to succeed in the bounds of how a lot they’ll cost purchasers. To extend margins, corporations have already been pursuing inexpensive specialist and pre-MBA expertise. Notably, McKinsey’s MBA consumption was simply 20% of its hiring final yr, in keeping with Administration Consulted. This mirrors a bigger development in keeping with the report.
“First, full-time MBA hiring was extra impacted in 2024 than fulltime pre-MBA hiring. Second, whereas some corporations are sustaining the dimensions of their intern lessons, they’re adjusting the intern combine – rising the variety of undergraduate and specialty masters’ interns they’re hiring on the expense of MBA interns.”
The development additionally exposes an uncomfortable consideration, provides Namaan Mian. “Perceptions of the worth of an MBA are far and wide. The comp spectrum for MBA hires is broad, whereas it’s consolidated for undergrad hires. This tells me that the worth notion of an MBA diploma is combined. Companies traditionally pay MBAs twice as a lot, however don’t get twice the worth from them. This doesn’t fly in an efficiency-oriented surroundings. For this reason we’re seeing much less hiring from MBA applications and extra from undergraduate ones. This additionally will increase the necessity for strong coaching applications in any respect firms – you by no means “get what you’re paying for” with a brand new rent. Getting a return on funding in your expertise truly requires continuous funding.”
This shift additionally creates alternatives for boutiques and MBAs alike, provides Mian. “Smaller firms have a novel alternative to recruit “larger finish” expertise at decrease charges as the larger corporations scale back MBA hiring. This adjustments the forms of alternatives that candidates needs to be pursuing, but additionally adjustments the candidate profile that smaller firms can goal.”
AI: FRIEND OR FOE?
The consulting business can be dealing with down a number of disruptive forces. Mian factors to the expansion of in-house technique teams at organizations that beforehand relied closely on consulting corporations. Such operations may drain each income and expertise from high consulting corporations.
“The funding in inside technique groups throughout the Fortune 500 is notable by way of headcount and compensation,” Mian explains. “Firms are dedicating groups to work on the enterprise as an alternative of within the enterprise, and the implications are many. First, it places a downward strain on the charges consulting corporations can cost. Second, it opens up extra alternatives for candidates in search of consulting roles. Third, it gives a mannequin for companies of all sizes to not outsource technique work, enabling a nimbler method to ever-increasing adjustments.”
Not surprisingly, the shadow of synthetic intelligence additionally looms over the consulting business. For consulting corporations, AI gives extra strong performance to resolve issues. Much more, it provides corporations with higher enterprise alternatives as purchasers grapple with what AI means and how you can leverage it. Mian admits that AI will even lower into the necessity for expertise too.
“AI enablement is enabling consulting corporations to perform extra with fewer hires. Productiveness positive aspects, mixed with slower attrition, scale back the necessity for brand new hires and stall wage progress. We’re nonetheless within the early innings of AI adoption, however those that are gradual to discover AI enablement will fall exponentially additional behind.”
NO BIG TURNAROUND
What does 2025 maintain for the consulting business. The 2025 Consulting Salaries Report predicts that IPO and M&A piece will choose up, which can present extra engagements because it tempts proficient consultants to leap over to the monetary companies business. The report additionally projected progress in sectors like healthcare, provide chain, cloud companies, and technique and operations. Nonetheless, Administration Consulted expects compensation progress to stay “muted” for the reason that “white-hot” progress of the consulting business will stay within the rearview mirror – even because the workload grows in 2025.
“Advisor utilization will rebound,” in keeping with the report. “There’s a restrict to the short-term productiveness will increase that AI will carry to the consulting business. Because of rebounding demand and smaller headcount, we count on utilization to extend in 2025. This could result in decreased retention and a slight improve in hiring in 2026.”
To obtain the complete 2025 Consulting Salaries Report, which incorporates detailed pay data for 124 consulting corporations, click on right here.
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