Salary Benchmarking Report 2015

(1)

Report 2015

A comprehensive study of remuneration levels

within the Management Consulting sector

(2)

• Introductory remarks

• The Demographics of the Survey’s Respondents and Top-Consultant.com’s Consulting Readership

• Commentary provided by Mindbench

• Overview of Consulting Salaries and Trends

• Salary Benchmarking Data: 2015 vs 2013 vs 2011 vs 2009 vs 2007

• Salary levels by Seniority and Type of Consulting

 Junior Consultants

 Senior Consultants

 Managers

 Senior Managers/ Principals

 Partners

• About our sponsors

• Contact us

(3)

This is the fifth edition of this biannual report and is built on

data gathered from thousands of respondents. Thanks to

all those who contributed.

The report includes basic salary, bonus levels and benefits

individually reported by level of seniority across the

management consultancy profession, with break-out data

for different areas of consulting. Continuing the format of

previous reports, this

year’s findings are compared closely

with results from previous surveys to better illustrate the

changes to reward that practicing consultants have faced

through the recession and in the growth years since then.

This is the most buoyant hiring market that we have seen

for nearly a decade (as evidenced in this

year’s

‘

Management Consultancy Recruitment Channel Report

’)

INTRODUCTORY REMARKS

OUR SPONSOR

SURVEY DEMOGRAPHICS

and we ourselves have seen this reflected in the number of

consultancies

who’ve been returning to Top-Consultant

over the last year. Within this context, the findings of this

salary report are particularly interesting in that they show

how remuneration strategies have been adapted to

counter a market in which making hires

– and retaining

staff

– have become increasingly weighty problems to

manage.

I hope you find this an interesting and useful resource.

Bryan Hickson

– Managing Director

(4)

Mindbench

the leading specialist recruitment firm for management consultancy

INTRODUCTORY REMARKS

OUR SPONSOR

SURVEY DEMOGRAPHICS

(5)

592 responses for this survey were collected during August

and September of 2015, adding to the thousands of data

points

we’ve previously collected that allow us to show

compelling trend data for the sector.

Respondents’ Profile

Conducting this survey has allowed us to collect

demographic data about our readership that may be of

great interest to recruiters seeking to attract consulting

staff through

Top-Consultant.com

. Of note is the fact that

89% of the respondents are currently employed as

Management Consultants and the results presented in this

report are based on the data submitted only by those who

are currently employed within the profession and excludes

data from those looking to move into consulting.

INTRODUCTORY REMARKS

OUR SPONSOR

SURVEY DEMOGRAPHICS

Whilst most responding consultants were from the

full-service global brands such as Accenture, Deloitte, EY and

PwC, niche and top-tier firms such as McKinsey &

Company, Strategy&, PA Consulting and Towers Watson

were also represented.

As job titles through the consulting profession vary

depending on the employer, for clarity we use the following

definitions throughout the report:

The Demographics of the

Survey’s Respondents

and Top-Consultant.com’s Consulting Readership

Junior Consultant

– 1-3 years’ consulting experience

Senior Consultant

– 3-5 years’ consulting experience

Manager

– 5-9 years’ consulting experience

Principal

– 9-12 years’ consulting experience

(6)

Seniority

It is interesting to record that Top-Consultant.com’s reach

is significant into all levels of seniority.

INTRODUCTORY REMARKS

OUR SPONSOR

SURVEY DEMOGRAPHICS

The Demographics of the

Survey’s Respondents

and Top-Consultant.com’s Consulting Readership

Junior Consultant / Consultant, 9% Senior Consultant, 12% Manager, 17% Senior Manager / Principal, 34% Partner, 28%

Consulting Type

(7)

Sector

Similarly respondents were asked to record the industry

sectors that they specialise in. Multiple choices were

allowed hence the total exceeds 100.

INTRODUCTORY REMARKS

OUR SPONSOR

SURVEY DEMOGRAPHICS

The Demographics of the

Survey’s Respondents

and Top-Consultant.com’s Consulting Readership

Why not advertise for consulting candidates on

Top-Consultant.com?

0% 5% 10% 15% 20% 25% 30% 35% Distribution / Logistics

Financial Services (Investment… Automotive / Aerospace

Transportation Healthcare & Pharma Telecoms, Media& Entertainment Financial Services (Retail FS focus) Retail / Consumer Goods Energy & Utilities Public Sector

Our low-priced advertising packages allow you to

see for yourself the types of results that

recruiters are experiencing by placing their job

listings on Top-Consultant.com

(8)

COMMENTARY

OVERVIEW

DATA.1

Commentary by Mindbench

Over the last two years we have witnessed a significant turnaround in the prospects for management consultants in terms of both increased hiring levels and moderate increases in consulting salaries.

Growth has occurred in all sectors including public sector, and at all levels of the organisation from Graduate to Partner. Whereas during the recessionary period, operational improvement, cost reduction and supply chain were the main areas still hiring, now all functional areas - including the areas normally associated with growth such as strategy, innovation, marketing and HR consulting are also showing significant volumes of recruitment.

The “Big 4” and larger firms have been scaling through acquisition as well organic growth, and recent and newly established consultancies serving specific niches are showing bullish optimism and hiring for long term growth.

As the impact of digitisation in the wider economy gathers speed, candidates with

advanced analytical, programming and digital skills are in particular demand. Consultancies are creating or expanding their digital and analytics divisions and are competing fiercely with banks, industry and internet businesses for the best candidates with these profiles, boosting salaries overall.

Graduates and candidates in the early to mid-stages of their career now have many more options available to them than during the recession, and candidates overall are in a better position in terms of career advancement and salary negotiations. Internationally there is also a sustained growth in demand – and a willingness to hire candidates coming from other countries, particularly into Germany, Switzerland, the US, Middle East and Asia.

We expect this busy period to continue whilst the economy expands and consultants serve the changing needs of clients in the digital era.

Richard Stewart,

Managing Director

Mindbench

(9)

COMMENTARY

OVERVIEW

DATA.1

Overview of Consulting Salaries and Trends

Below we present the aggregate data for the UK consulting

industry, illustrating the average packages for those at the

entry-level are around £45k after a couple of years of

employment and can rise to an average of £170k for those

who have worked their way up to Partner.

(nb. The data of more senior partners whose remuneration is ~£800k is not collected in this survey.)

£0 £20,000 £40,000 £60,000 £80,000 £100,000 £120,000 £140,000 £160,000 £180,000 Junior Consultant Senior Consultant Manager Senior Manager / Principal Partner

TOTAL REMUNERATION BY LEVEL

(10)

COMMENTARY

OVERVIEW

DATA.1

Overview of Consulting Salaries and Trends

The following core survey data from the 2007, 2009, 2011,

2013 and 2015 reports details the changes to the size and

frequency of pay rise, bonus and promotion awards

recorded over the last 9 years.

Weighted Averages 2007 to 2015

0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

Average pay rise for those who received a pay rise

Percentage receiving no pay rise Average bonus for those who received

one

Percentage receiving no bonus Percentage who received a pay rise as

part of a promotion in the last year

(11)

COMMENTARY

OVERVIEW

DATA.1

Salary Benchmarking Data: 2015 vs 2013 vs 2011 vs 2009 vs 2007

2015 Data Basic Salary Basic + Bens

Basic + Bens + Bonus

Average pay rise for those who received a pay rise

Percentage

receiving no pay rise

Average bonus for those who received one

Percentage receiving no bonus

Percentage who received a pay rise as part of a promotion in the last year Junior Consultant / Consultant £39,695 £42,495 £45,795 8.0% 47.2% 12.2% 32.1% 49% Senior Consultant £55,461 £59,361 £62,261 4.7% 45.2% 8.0% 34.3% 44%

Manager £75,356 £82,966 £89,066 4.8% 23.2% 10.7% 24.2% 32%

Senior Manager / Principal £98,858 £109,438 £119,148 4.6% 32.8% 8.4% 23.7% 23%

Partner £136,968 £151,568 £170,568 5.5% 46.7% 22.7% 38.5% 14%

Weighted Averages: 5.2% 38.0% 13.2% 30.1% 26.8%

2013 Data

Junior Consultant / Consultant £38,669 £42,943 £44,645 5.3% 61.8% 7.1% 41.8% 29% Senior Consultant £54,362 £58,678 £63,074 4.6% 37.6% 10.7% 26.0% 39%

Manager £69,801 £80,654 £85,678 3.7% 42.5% 9.6% 27.6% 29%

Partner £133,364 £148,597 £168,745 7.1% 46.7% 22.4% 37.1% 15%

2011 Data

Manager £68,839 £75,028 £81,895 4.8% 37.5% 10.0% 25.0% 35%

Partner £124,596 £137,697 £167,950 9.4% 48.5% 24.3% 33.8% 10%

2009 Data

Manager £74,642 £81,378 £90,344 3.6% 47.1% 12.0% 30.2% 19%

Partner £135,684 £148,923 £177,190 1.5% 53.8% 20.8% 57.5% 11%

2007 Data

Manager £66,000 £72,072 £79,662 5.3% 23.2% 11.5% 30.9% 32%

Partner £123,600 £136,578 £167,602 7.6% 31.1% 25.1% 22.6% 17%

(12)

and Type of Consulting

(13)

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Junior Consultants

Of all the grades we survey for these reports, the outlook for Junior Consultants seems most favourable. While total reward has not quite recovered to 2009’s high-point, Junior Consultants’ average total reward has grown for the third survey running and now stands at just under £46k. Pay-rises gained through promotion have also grown steadily with a leap since the last survey to 49% from 29% which perhaps indicates that retention through promotion is a policy that is being prioritised by firms. £30,000 £35,000 £40,000 £45,000 £50,000 2007 2009 2011 2013 2015 Junior Consultants' Remuneration

Bonus Bens

Basic Salary

Average pay rise for those who received a pay rise 8.0% Percentage receiving no pay rise 47.2% Average bonus for those who received one 12.2% Percentage receiving no bonus 32.1%

Percentage who received a pay rise as part of a promotion in

the last year 49.1%

(14)

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Junior Consultants

Strategy Consulting is, once more, the best rewarded functional specialism for Junior Consultants. In fact the ranking of comparative rewards across the different areas that we survey remains unchanged from the 2013 survey.

Remuneration by Function

£30,000 £35,000 £40,000 £45,000 £50,000 £55,000

Average Strategy PPM Business Trans

BPI IT/Tech

Junior Consultants' Remuneration By Function

Bonus Bens

Basic Salary

(15)

Average pay rise for those who received a pay rise 4.7% Percentage receiving no pay rise 45.2% Average bonus for those who received one 8.0% Percentage receiving no bonus 34.3% Percentage who received a pay rise as part of a promotion in the last year 43.8%

£50,000 £55,000 £60,000 £65,000 £70,000 2007 2009 2011 2013 2015 Senior Consultants' Remuneration

Bonus Bens

Basic Salary

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TALK TO TOP-CONSULTANT

Senior Consultants

(16)

Average Pay Rise For Those Who Received A Pay Rise

£50,000 £55,000 £60,000 £65,000 £70,000 £75,000

BPI IT/Tech

Senior Consultants' Remuneration By Function

Bonus Bens

Basic Salary

REMUNERATION

OUR SPONSOR - MINDBENCH

TALK TO TOP-CONSULTANT

Senior Consultants

The difference in comparative rewards for Senior Consultants specialising in different areas is markedly more pronounced this year. Strategy Consultants command the highest rewards followed by those in IT/Technology.

Remuneration by Function

(17)

£60,000 £65,000 £70,000 £75,000 £80,000 £85,000 £90,000 £95,000 2007 2009 2011 2013 2015 Managers' Remuneration Bonus Bens Basic Salary

REMUNERATION

OUR SPONSOR - MINDBENCH

TALK TO TOP-CONSULTANT

Managers

(18)

Percentage Who Received A Pay Rise As Part Of A Promotion In The Last Year

£60,000 £65,000 £70,000 £75,000 £80,000 £85,000 £90,000 £95,000 £100,000

BPI IT/Tech Managers' Remuneration By Function

Bonus Bens

Basic Salary

REMUNERATION

OUR SPONSOR - MINDBENCH

TALK TO TOP-CONSULTANT

Managers

The differences between the average total rewards received by Managers with different functional specialisms is significantly more pronounced this time. Strategy specialists lead the pack and earn on average £96k, whereas Managers who specialise in Business Process Improvement earn on average £75k.

Remuneration by Function

(19)

£80,000 £85,000 £90,000 £95,000 £100,000 £105,000 £110,000 £115,000 £120,000 £125,000 2007 2009 2011 2013 2015 Principals' Remuneration Bonus Bens Basic Salary

REMUNERATION

OUR SPONSOR - MINDBENCH

TALK TO TOP-CONSULTANT

Senior Managers / Principals

(20)

Average Bonus For Those Who Received One

£80,000 £85,000 £90,000 £95,000 £100,000 £105,000 £110,000 £115,000 £120,000 £125,000 £130,000

BPI IT/Tech

Principals' Remuneration By Function

Bonus Bens

Basic Salary

REMUNERATION

OUR SPONSOR - MINDBENCH

TALK TO TOP-CONSULTANT

Senior Managers / Principals

Once more, Strategy specialists at Principal level can expect to earn the greatest rewards. IT/Technology consultants will earn least on average.

Remuneration by Function

(21)

£100,000 £120,000 £140,000 £160,000 £180,000 £200,000 2007 2009 2011 2013 2015 Partners' Remuneration Bonus Bens Basic Salary

REMUNERATION

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TALK TO TOP-CONSULTANT

Partners

£170k is the average total reward enjoyed by respondents at Partner level, a figure that has been relatively constant, 2009 aside. Unsurprisingly, Partners who received a bonus over the last 12 months enjoyed the highest percentage of their basic salaries of all the seniority grades.

(22)

Average Bonus For Those Who Received One

£100,000 £120,000 £140,000 £160,000 £180,000 £200,000 £220,000

BPI IT/Tech

Partners' Remuneration By Function

Bonus Bens

Basic Salary

REMUNERATION

OUR SPONSOR - MINDBENCH

TALK TO TOP-CONSULTANT

Partners

Partners who specialise in IT/Technology earn the largest reward, unlike any of the other levels of seniority.

Please note that while there are of course Partners earning more than £200k - £300k, as well as a small number of Senior Partners earning £800k+, these consultants don’t typically take part in surveys.

Remuneration by Function

(23)

REMUNERATION

OUR SPONSOR - MINDBENCH

TALK TO TOP-CONSULTANT

Whether you are a Manager considering your

options, a graduate who is new to the industry, or a

Partner considering how to grow your team,

Mindbench could help you realise your objectives..

• Mindbench is the leading specialist recruitment firm for the management consultancy sector

• We partner over the long term with our consulting clients which include the top strategy consulting firms, the “Big 4”, and boutique specialist firms

• We support FTSE 100, private equity, government departments and charities and companies in hiring consulting talent on a permanent or project basis

• We cover all consulting functions and sectors, from Consultant to Partner grades

• Mindbench works internationally and we support recruitment initiatives through the UK, Europe, Middle East, Americas and Asia

If you are a candidate interested in discussing your options

please upload your CV at

www.mindbench.com

If you are a client and potentially

interested in hiring for your team

please contact our Managing Director,

Richard Stewart

on [email protected]

We are proud to be associated with this salary

(24)

Salary Benchmarking Report 2015

Report 2015

A comprehensive study of remuneration levels

within the Management Consulting sector

• Introductory remarks

• The Demographics of the Survey’s Respondents and Top-Consultant.com’s Consulting Readership

• Commentary provided by Mindbench

• Overview of Consulting Salaries and Trends

• Salary Benchmarking Data: 2015 vs 2013 vs 2011 vs 2009 vs 2007

• Salary levels by Seniority and Type of Consulting

 Junior Consultants

 Senior Consultants

 Managers

 Senior Managers/ Principals

 Partners

• About our sponsors

• Contact us

This is the fifth edition of this biannual report and is built on

data gathered from thousands of respondents. Thanks to

all those who contributed.

The report includes basic salary, bonus levels and benefits

individually reported by level of seniority across the

management consultancy profession, with break-out data

for different areas of consulting. Continuing the format of

previous reports, this

year’s findings are compared closely

with results from previous surveys to better illustrate the

changes to reward that practicing consultants have faced

through the recession and in the growth years since then.

This is the most buoyant hiring market that we have seen

for nearly a decade (as evidenced in this

year’s

‘

Management Consultancy Recruitment Channel Report

’)

CONTENTS

INTRODUCTORY REMARKS

OUR SPONSOR

SURVEY DEMOGRAPHICS

and we ourselves have seen this reflected in the number of

consultancies

who’ve been returning to Top-Consultant

over the last year. Within this context, the findings of this

salary report are particularly interesting in that they show

how remuneration strategies have been adapted to

counter a market in which making hires

– and retaining

staff

– have become increasingly weighty problems to

manage.

I hope you find this an interesting and useful resource.

Bryan Hickson

– Managing Director

Mindbench

the leading specialist recruitment firm for management consultancy

CONTENTS

INTRODUCTORY REMARKS

OUR SPONSOR

SURVEY DEMOGRAPHICS

592 responses for this survey were collected during August

and September of 2015, adding to the thousands of data

points

we’ve previously collected that allow us to show

compelling trend data for the sector.

Respondents’ Profile

Conducting this survey has allowed us to collect

demographic data about our readership that may be of

great interest to recruiters seeking to attract consulting

staff through

Top-Consultant.com

. Of note is the fact that

89% of the respondents are currently employed as

Management Consultants and the results presented in this

report are based on the data submitted only by those who

are currently employed within the profession and excludes

data from those looking to move into consulting.

CONTENTS

INTRODUCTORY REMARKS

OUR SPONSOR

SURVEY DEMOGRAPHICS