Salary Benchmarking Report 2013

(1)

Salary Benchmarking

Report 2013

A comprehensive study of

remuneration levels within the IT &

Management Consulting sectors

(2)

• Introductory remarks

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

Consulting Readership

• Overview of Consulting Salaries and Trends

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

• Salary levels by Seniority and Type of Consulting

- Junior Consultants

- Senior Consultants

- Managers

- Senior Managers/ Principals

- Partners

• Commentary provided by Mindbench

• About our sponsors

• Contact us

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(3)

Introductory Remarks

Introd

uctory R

ema

rks

This is the fifth edition of this biannual

report and is built on data gathered from

734 respondents through the late summer

of 2013. I extend my 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 the 2011 report,

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.

The 2011 report evidenced an improving

situation over the reward stagnation that

many consultants had recorded in 2009

with pay rises recovering and more

consultants receiving bonuses and

promotions.

The headline findings this year indicate

that matters haven’t moved on

significantly since then. The junior to mid

seniority levels continue to be squeezed

most with the frequency and sizes of pay

rises and bonuses remaining low.

My reading of the data is that the pick-up

in hiring across the profession before the

Eurozone crisis was reflected in the 2011

results but since then the pace of reward

growth has fallen back. The significant

increase in activity across the profession

that we are now seeing has not yet

filtered through to consultants’ pockets

but with many consulting firms now

ramping up recruitment and struggling to

meet headcount targets better times

must be to come. Let’s hope so.

Bryan Hickson – Managing Director

(4)

Our S

p

onsor

Mindbench

- the leading specialist recruitment firm for management consultancy

(5)

The Demographics of the Survey’s Respondents and

Top-Consultant.com’s Consulting Readership

Surve

y

Demog

rap

hi

cs

734 responses for this survey were

collected during July and August of 2013.

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 86% 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.

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, Bain, Booz & Co, A.T. Kearney

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:

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)

The Demographics of the Survey’s Respondents and

Top-Consultant.com’s Consulting Readership

Surve

y

Demog

rap

hi

cs

Seniority

It is interesting to record that

Top-Consultant.com’s reach is significant into

all levels of seniority. Of note was the

marked increase in responses from

Partners this year.

Consulting Type

We asked respondents to identify the primary

type of consulting work that they undertook,

giving interesting insights into the types of

consultants recruiters can reach through

Top-Consultant.com.

Business

Transformation

/ Change

Management,

29%

Strategy, 22%

Project /

Programme

Management,

16%

Business

Process

Improvement,

15%

Technology,

12%

HR Consulting,

4%

Outsourcing, 2%

Junior

Consultant /

Consultant, 11%

Senior

Consultant,

14%

Manager, 19%

Senior Manager

/ Principal, 28%

Partner, 28%

(7)

The Demographics of the Survey’s Respondents and

Top-Consultant.com’s Consulting Readership

Surve

y

Demog

rap

hi

cs

Sector

Similarly respondents were asked to record

the industry sectors that they specialise in.

Multiple choices were allowed hence the total

exceeds 100

.

Why not advertise for

consulting candidates on

Top-Consultant.com

?

Our low-priced advertising

packages allow you to see

for yourself the types of

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experiencing by placing

their job listings on

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here

to find out more

Public Sector,

31%

Telecoms,

Media&

Entertainment,

28%

Energy &

Utilities, 28%

Financial Services

(Retail Financial

Services focus),

27%

Retail /

Consumer

Goods, 27%

Healthcar

e &

Pharma,

20%

Financial Services

(Investment

Banking/Capital

Markets focus),

18%

Distribution /

Logistics, 15%

Automotive /

Aerospace, 14%

Transportation,

12%

(8)

Overview of Consulting Salaries and Trends

Ov

er

vi

ew

Below we present the aggregate data for

the UK consulting industry, illustrating the

average packages for those at the

entry-level are around £44k after a couple of

years of employment and can rise to an

average of £168k for those who have

worked their way up to Partner.

On the following pages we present core

survey data from the 2007, 2009, 2011

and 2013 reports detailing the changes to

the size and frequency of pay rise, bonus

and promotion awards over the last 7

years.

£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

Bonus

Benefits

Basic Salary

(9)

Salary Benchmarking Data: 2007 vs 2009 vs 2011 vs 2013

Little change in basic + bens + bonus has been recorded in last 2 years

K

ey

Fi

ndi

ngs

2013

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 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% Senior Manager / Principal £95,191 £106,149 £115,744 3.9% 48.8% 12.2% 20.9% 14% Partner £133,364 £148,597 £168,745 7.1% 46.7% 22.4% 37.1% 15%

Weighted Averages: 4.9% 46.0% 20.3% 27.1% 20.7%

2011

Junior Consultant / Consultant £37,005 £39,292 £42,507 4.6% 48.6% 8.7% 44.4% 51% Senior Consultant £54,649 £59,108 £65,412 6.4% 30.2% 11.5% 38.7% 38% Manager £68,839 £75,028 £81,895 4.8% 37.5% 10.0% 25.0% 35% Senior Manager / Principal £93,613 £103,875 £115,245 4.6% 37.8% 12.1% 29.1% 23% Partner £124,596 £137,697 £167,950 9.4% 48.5% 24.3% 33.8% 10%

2009

2007

Junior Consultant / Consultant £37,000 £39,405 £42,735 5.7% 28.1% 9.0% 50.7% 38% Senior Consultant £52,000 £56,576 £61,464 5.4% 4.4% 9.4% 36.6% 30% Manager £66,000 £72,072 £79,662 5.3% 23.2% 11.5% 30.9% 32% Senior Manager / Principal £88,200 £97,196 £109,103 4.9% 20.2% 13.5% 23.2% 24%

(10)

Salary Benchmarking Data: 2007 vs 2009 vs 2011 vs 2013

Pay rises have been quite high for those who have received them…

K

ey

Fi

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ngs

2013

2011

2009

2007

Junior Consultant / Consultant £37,000 £39,405 £42,735 5.7% 28.1% 9.0% 50.7% 38% Senior Consultant £52,000 £56,576 £61,464 5.4% 4.4% 9.4% 36.6% 30% Manager £66,000 £72,072 £79,662 5.3% 23.2% 11.5% 30.9% 32% Senior Manager / Principal £88,200 £97,196 £109,103 4.9% 20.2% 13.5% 23.2% 24% Partner £123,600 £136,578 £167,602 7.6% 31.1% 25.1% 22.6% 17% Weighted Averages: 5.6% 20.4% 13.1% 32.6% 28.4%

(11)

Salary Benchmarking Data: 2007 vs 2009 vs 2011 vs 2013

…but the number of consultants receiving no pay rise is at a record

high especially amongst Junior Consultants

K

ey

Fi

ndi

ngs

2013

2011

2009

2007

(12)

Salary Benchmarking Data: 2007 vs 2009 vs 2011 vs 2013

Average bonuses at Junior Consultant to Manager levels remain low

K

ey

Fi

ndi

ngs

2013

2011

2009

2007

Junior Consultant / Consultant £37,000 £39,405 £42,735 5.7% 28.1% 9.0% 50.7% 38% Senior Consultant £52,000 £56,576 £61,464 5.4% 4.4% 9.4% 36.6% 30% Manager £66,000 £72,072 £79,662 5.3% 23.2% 11.5% 30.9% 32% Senior Manager / Principal £88,200 £97,196 £109,103 4.9% 20.2% 13.5% 23.2% 24% Partner £123,600 £136,578 £167,602 7.6% 31.1% 25.1% 22.6% 17% Weighted Averages: 5.6% 20.4% 13.1% 32.6% 28.4%

(13)

Salary Benchmarking Data: 2007 vs 2009 vs 2011 vs 2013

And promotions have dipped again following a rise in 2011

K

ey

Fi

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2013

2011

2009

2007

(14)

Salary levels by Seniority

and Type of Consulting

(15)

Junior Consultants

R

emune

rati

on by Functi

on

Average pay rise for those who received a pay rise 5.3% Percentage receiving no pay rise 61.8% Average bonus for those who received one 7.1% Percentage receiving no bonus 41.8% Percentage who received a pay rise as part of a promotion in the last year 29.1%

£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

The percentage of Junior

Consultants who received no

pay rise has risen to 61% this

year; it was 48% when we

last ran the survey. Bonus

frequency and size remain

low at this seniority level and

pay-rises gained through

promotion have dropped from

51% to just 29%. Junior

Consultants who focus on

strategy consulting average

just over £50k reward with

this figure falling to just

under £39k for those who

specialise in Business Process

Improvement consulting.

(16)

Senior Consultants

R

emune

rati

on by Functi

on

£50,000

£52,000

£54,000

£56,000

£58,000

£60,000

£62,000

£64,000

£66,000

Average Strategy

PPM

Business

Trans

BPI

IT/Tech

SENIOR CONSULTANTS' REMUNERATION BY

FUNCTION

Bonus

Bens

Basic Salary

The average pay rises for those

Senior Consultants who

received them was the lowest

on record at just 4.6% and over

a third of consultants at this

level received no pay rise.

Bonuses averaged 10.7% for

those who received them,

largely unchanged from the

2011 figure. IT/Technology

focused Senior Consultants

enjoy the highest reward levels

averaging £64,932

(17)

Managers

R

emune

rati

on by Functi

on

Average reward for Managers

has increased 4.6% from the

2011 figure to £85,678. Pay

rises for those who received

them (57.5%) have dropped

back in this survey to 3.7%

which is the lowest percentage

of any seniority level. Strategy

focused Managers can expect

the highest rewards while

Business Transformation

Managers receive the lowest.

£60,000

£65,000

£70,000

£75,000

£80,000

£85,000

£90,000

Average Strategy

PPM

Business

Trans

BPI

IT/Tech

MANAGERS' REMUNERATION BY FUNCTION

Bonus

Bens

Basic Salary

(18)

Senior Managers / Principals

R

emune

rati

on by Functi

on

£80,000

£85,000

£90,000

£95,000

£100,000

£105,000

£110,000

£115,000

£120,000

£125,000

£130,000

Average Strategy

PPM

Business

Trans

BPI

IT/Tech

PRINCIPALS' REMUNERATION BY FUNCTION

Bonus

Bens

Basic Salary

Average reward has grown

only marginally in this poll

since 2011 levels for Principals

– up just 0.4% to £115,744.

Excepting Junior Consultants,

Principals were most likely not

to have received a pay rise in

the last year. Average bonuses

are steady at 12.2% and this

is the seniority level where

consultants are most likely to

receive a bonus (79.1%).

(19)

Partners

R

emune

rati

on by Functi

on

£100,000

£110,000

£120,000

£130,000

£140,000

£150,000

£160,000

£170,000

£180,000

£190,000

£200,000

Average Strategy

PPM

Business

Trans

BPI

IT/Tech

PARTNERS' REMUNERATION BY FUNCTION

Bonus

Bens

Basic Salary

Average total reward has, once

more, risen only slightly over

2011 levels – up just 0.47% to

£168,745. For the 53% of

Partners who received a pay

rise, 7.1% was the highest

enjoyed across all levels.

Bonuses were highest at 22%

of salary but 37% of Partners

received no bonus. Partners of

PPM practices can expect

highest rewards and BPI

focused Partners the lowest.

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.

(20)

Commentary by Mindbench

Pag

e

d

es

cri

p

tor

Average salary levels for management

consultants at all levels haven’t

increased significantly in the UK for 6

years. During the recession firms’ profit

margins were under pressure and it was

hard to justify salary increases. At the

same time, the more junior consultants

have experienced additional salary

pressure with so many talented

graduates looking for a relatively small

number of roles.

The effects of general inflation (and of

rising London house prices) on the cost

of living over this extended period is

significant, and management consulting

has become less lucrative than some

other options available. Industry salaries

are in many cases no longer lower than

what is being offered by the

consultancies, and can potentially give

better work-life balance. We have for

example witnessed major banks

developing their own consulting divisions

and offering roles with similar base salaries

but better bonus’ and benefits than

consultancy firms would offer at the same

salary. We have also witnessed increased

interest by management consultants in

relocating overseas in many cases for the

better salaries on offer – either to larger

economies which are experiencing better

growth such as the US and Germany, or to

fast growing emerging economies with lower

tax such as Switzerland, the USA or

Singapore.

With the UK economy now returning to

moderate growth, and hiring by consulting

firms starting to pick up, we could expect

tangible increases in consultants’ salaries

over the coming years.

Richard Stewart

Managing Director

Mindbench

(21)

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..

Our

Sponsor

-

M

indb

enc

h

• 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 benchmarking report and hope that its

findings are useful for you..

(22)

Contact the team at

Top-Consultant.com

Tal

k to

Top

-Consul

tant

Find out how your firm could attract

consulting hires by:

• Advertising on our websites

• Advertising in our

consultancy-focused publications

• Accessing our CV databases

• Running bespoke careers events

• Posting your news to our readers

• Have us generate leads for your

services.

Call to speak to one of our team

For more information on

Top-Consultant’s services or if you have

any questions about the data in this

report please contact Bryan

Hickson on 0207 667 6880 or email

him on

[email protected]

.

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Salary Benchmarking Report 2013