Salary Benchmarking Report 2015
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1 Salary Benchmarking Report 2015 A comprehensive study of remuneration levels within the Management Consulting sector Sponsored by
2 2 CONTENTS INTRODUCTORY REMARKS OUR SPONSOR SURVEY DEMOGRAPHICS 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 3 CONTENTS INTRODUCTORY REMARKS OUR SPONSOR SURVEY DEMOGRAPHICS 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. 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. 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 ) Bryan Hickson Managing Director Top-Consultant.com
4 4 CONTENTS INTRODUCTORY REMARKS OUR SPONSOR SURVEY DEMOGRAPHICS Mindbench the leading specialist recruitment firm for management consultancy
5 5 CONTENTS INTRODUCTORY REMARKS OUR SPONSOR SURVEY DEMOGRAPHICS The Demographics of the Survey s Respondents and Top-Consultant.com s Consulting Readership 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. Whilst most responding consultants were from the fullservice 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: Junior Consultant 1-3 Senior Consultant 3-5 years consulting experience years consulting experience Manager 5-9 years consulting experience Principal Partner 9-12 years consulting experience no definition required!
6 6 CONTENTS INTRODUCTORY REMARKS OUR SPONSOR SURVEY DEMOGRAPHICS The Demographics of the Survey s Respondents and Top-Consultant.com s Consulting Readership Seniority It is interesting to record that Top-Consultant.com s reach is significant into all levels of seniority. Partner, 28% Senior Manager / Principal, 34% Junior Consultant / Consultant, 9% Senior Consultant, 12% Manager, 17% 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. HR Consulting, 4% Technology, 14% Business Process Improvement, 13% Project / Programme Management, 16% Outsourcing, 2% Business Transformation / Change Management, 30% Strategy, 21%
7 7 CONTENTS INTRODUCTORY REMARKS OUR SPONSOR SURVEY DEMOGRAPHICS The Demographics of the Survey s Respondents and Top-Consultant.com s Consulting Readership Sector Similarly respondents were asked to record the industry sectors that they specialise in. Multiple choices were allowed hence the total exceeds 100. Public Sector Energy & Utilities Retail / Consumer Goods Financial Services (Retail FS focus) Telecoms, Media& Entertainment Why not advertise for consulting candidates on Top-Consultant.com? 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 Click here to find out more Healthcare & Pharma Transportation Automotive / Aerospace Financial Services (Investment Distribution / Logistics 0% 5% 10% 15% 20% 25% 30% 35%
8 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 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. 180, , , ,000 TOTAL REMUNERATION BY LEVEL (nb. The data of more senior partners whose remuneration is ~ 800k is not collected in this survey.) 100,000 80,000 60,000 40,000 20,000 Bonus Benefits Basic Salary 0 Junior Consultant Senior Consultant Manager Senior Manager / Principal Partner
10 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 Percentage who received a pay rise as part of a promotion in the last year Percentage receiving no bonus Average bonus for those who received one Percentage receiving no pay rise Average pay rise for those who received a pay rise 0.0% 10.0% 20.0% 30.0% 40.0% 50.0%
11 11 COMMENTARY OVERVIEW DATA.1 Salary Benchmarking Data: 2015 vs 2013 vs 2011 vs 2009 vs Data Basic Salary Basic + Bens Basic + Bens + Bonus Average bonus for Average pay rise for those who Percentage those who received received a pay rise receiving no pay rise 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, % 47.2% 12.2% 32.1% 49% Senior Consultant 55,461 59,361 62, % 45.2% 8.0% 34.3% 44% Manager 75,356 82,966 89, % 23.2% 10.7% 24.2% 32% Senior Manager / Principal 98, , , % 32.8% 8.4% 23.7% 23% Partner 136, , , % 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, % 61.8% 7.1% 41.8% 29% Senior Consultant 54,362 58,678 63, % 37.6% 10.7% 26.0% 39% Manager 69,801 80,654 85, % 42.5% 9.6% 27.6% 29% Senior Manager / Principal 95, , , % 48.8% 12.2% 20.9% 14% Partner 133, , , % 46.7% 22.4% 37.1% 15% Weighted Averages: 4.9% 46.0% 20.3% 27.1% 20.7% 2011 Data Junior Consultant / Consultant 37,005 39,292 42, % 48.6% 8.7% 44.4% 51% Senior Consultant 54,649 59,108 65, % 30.2% 11.5% 38.7% 38% Manager 68,839 75,028 81, % 37.5% 10.0% 25.0% 35% Senior Manager / Principal 93, , , % 37.8% 12.1% 29.1% 23% Partner 124, , , % 48.5% 24.3% 33.8% 10% Weighted Averages: 5.6% 39.1% 12.5% 32.7% 31.2% 2009 Data Junior Consultant / Consultant 40,622 42,877 47, % 40.4% 10.2% 40.7% 25% Senior Consultant 57,403 62,037 68, % 43.1% 10.7% 40.3% 16% Manager 74,642 81,378 90, % 47.1% 12.0% 30.2% 19% Senior Manager / Principal 97, , , % 41.9% 14.1% 32.6% 15% Partner 135, , , % 53.8% 20.8% 57.5% 11% Weighted Averages: 3.5% 45.5% 13.8% 39.1% 16.3% 2007 Data Junior Consultant / Consultant 37,000 39,405 42, % 28.1% 9.0% 50.7% 38% Senior Consultant 52,000 56,576 61, % 4.4% 9.4% 36.6% 30% Manager 66,000 72,072 79, % 23.2% 11.5% 30.9% 32% Senior Manager / Principal 88,200 97, , % 20.2% 13.5% 23.2% 24% Partner 123, , , % 31.1% 25.1% 22.6% 17% Weighted Averages: 5.6% 20.4% 13.1% 32.6% 28.4%
12 Salary levels by Seniority and Type of Consulting Sponsored by
13 13 REMUNERATION OUR SPONSOR - MINDBENCH TALK TO TOP-CONSULTANT 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. 50,000 45,000 40,000 35,000 Junior Consultants' Remuneration Bonus Bens Basic Salary 30, 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 14 REMUNERATION OUR SPONSOR - MINDBENCH TALK TO TOP-CONSULTANT Remuneration by Function 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. The average percentage bonus recorded by Junior Consultants at 12.2% is higher now than it has been for any of our previous surveys. 55,000 Junior Consultants' Remuneration By Function 14.0 Average Percentage Bonus For Those Who Received One 50, ,000 40,000 35,000 Bonus Bens Basic Salary ,000 Average Strategy PPM Business Trans BPI IT/Tech
15 15 REMUNERATION OUR SPONSOR - MINDBENCH TALK TO TOP-CONSULTANT Senior Consultants Senior Consultants prospects on the other hand appear less positive. For the fourth time our survey has shown that average total reward at this level of seniority has fallen it now stands at a little over 62k which is up only slightly on the 2007 figure. What s more, average bonuses for those that received them are falling, and the percentage of respondents that received any bonus or pay rise at all have also fallen. One fillip for Senior Consultants, however, is that just under 44% received a pay rise as part of a promotion the highest figure ever recorded for this grade. 70,000 65,000 60,000 55,000 Senior Consultants' Remuneration Bonus Bens Basic Salary 50, 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%
16 16 REMUNERATION OUR SPONSOR - MINDBENCH TALK TO TOP-CONSULTANT Remuneration by Function 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. Average pay rises for Senior Consultants have stagnated at 4.7% of basic salary. 75,000 Senior Consultants' Remuneration By Function 7.0 Average Pay Rise For Those Who Received A Pay Rise 70, ,000 60,000 55,000 Bonus Bens Basic Salary ,000 Average Strategy PPM Business Trans BPI IT/Tech
17 17 REMUNERATION OUR SPONSOR - MINDBENCH TALK TO TOP-CONSULTANT Managers Average total reward for Managers has increased 4% from the 2013 figure to just over 89k. This is the third rise recorded in succession. More Managers are enjoying pay rises and bonuses. In fact Manager is the seniority level most likely to receive a bonus in consulting. However, the amounts received by way of bonuses and pay rises have not yet returned to 2007 levels. 95,000 90,000 85,000 80,000 75,000 70,000 Managers' Remuneration Bonus Bens Basic Salary 65,000 60, Average pay rise for those who received a pay rise 4.8% Percentage receiving no pay rise 23.2% Average bonus for those who received one 10.7% Percentage receiving no bonus 24.2% Percentage who received a pay rise as part of a promotion in the last year 32.3%
18 18 REMUNERATION OUR SPONSOR - MINDBENCH TALK TO TOP-CONSULTANT Remuneration by Function 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. 32% of respondents received a pay rise as part of a promotion in the last 12 months. 100,000 Managers' Remuneration By Function Percentage Who Received A Pay Rise As Part Of A Promotion In The Last Year 95,000 90,000 85,000 80,000 75,000 70,000 Bonus Bens Basic Salary , ,000 Average Strategy PPM Business Trans BPI IT/Tech
19 19 REMUNERATION OUR SPONSOR - MINDBENCH TALK TO TOP-CONSULTANT Senior Managers / Principals While not quite back to 2009 levels, the total reward that Senior Managers / Principals can expect to receive has increased once again. It now stands at a little over 119k on average. Principals are most likely to receive a bonus of all the seniority levels but the value of those bonuses is falling. 125, , , , , ,000 95,000 90,000 85,000 80,000 Principals' Remuneration Bonus Bens Basic Salary Average pay rise for those who received a pay rise 4.6% Percentage receiving no pay rise 32.8% Average bonus for those who received one 8.4% Percentage receiving no bonus 23.7% Percentage who received a pay rise as part of a promotion in the last year 23.2%
20 20 REMUNERATION OUR SPONSOR - MINDBENCH TALK TO TOP-CONSULTANT Remuneration by Function 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. As a Principal, if you are paid a bonus you can expect 8.4% of your basic salary on average. This figure is down from the 2009 high point figure of 14.1%. 130,000 Principals' Remuneration By Function 16.0 Average Bonus For Those Who Received One 125, , , , , ,000 95,000 90,000 85,000 80,000 Average Strategy PPM Business Trans BPI IT/Tech Bonus Bens Basic Salary
21 21 REMUNERATION OUR SPONSOR - MINDBENCH 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. 200, , ,000 Partners' Remuneration Bonus 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. 140, ,000 Bens Basic Salary 100, Average pay rise for those who received a pay rise 5.5% Percentage receiving no pay rise 46.7% Average bonus for those who received one 22.7% Percentage receiving no bonus 38.5% Percentage who received a pay rise as part of a promotion in the last year 13.6%
22 22 REMUNERATION OUR SPONSOR - MINDBENCH TALK TO TOP-CONSULTANT Remuneration by Function Partners Partners who specialise in IT/Technology earn the largest reward, unlike any of the other levels of seniority. 22.7% of basic salary is what Partners can expect to earn as a bonus, if they are fortunate enough to receive one. 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. Partners' Remuneration By Function Average Bonus For Those Who Received One 220, , , , , ,000 Bonus Bens Basic Salary ,000 Average Strategy PPM Business Trans BPI IT/Tech
23 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 If you are a candidate interested in discussing your options please upload your CV at If you are a client and potentially interested in hiring for your team please contact our Managing Director, Richard Stewart on richard@mindbench.co.uk We are proud to be associated with this salary benchmarking report and hope that its findings are useful for you.. Mindbench works internationally and we support recruitment initiatives through the UK, Europe, Middle East, Americas and Asia
24 24 REMUNERATION OUR SPONSOR - MINDBENCH TALK TO TOP-CONSULTANT Contact the team at Top-Consultant.com 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. Request a brochure Alternatively, please feel free to request a PDF brochure detailing our services. You may do this online by visiting this weblink. us Feel free to our Customer Services team with any questions you may have using this address customer.services@top-consultant.com. 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 or him on bryan@top-consultant.com.
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