Salary Benchmarking Report 2015 - Top- · PDF fileLongdene House, Haslemere, Surrey GU27 2PH...

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Salary Benchmarking

Report 2015

A comprehensive study of remuneration levels

within the Management Consulting sector

Sponsored by



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

CONTENTS INTRODUCTORY REMARKS OUR SPONSOR SURVEY DEMOGRAPHICS



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’)


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

Top-Consultant.com

http://www.top-consultant.com/top-consultant_2015_recruitment_channel_report.pdf











4

Mindbench the leading specialist recruitment firm for management consultancy


www.mindbench.com

http://www.mindbench.com/







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.


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

Partner – no definition required!

http://www.top-consultant.com/







6

Seniority

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

is significant into all levels of seniority.




Junior Consultant /

Consultant, 9% Senior

Consultant, 12%

Manager, 17%

Senior Manager / Principal,

34%

Partner, 28%

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,

30%

Strategy, 21% Project /

Programme Management,

16%

Business Process Improvement,

13%

Technology, 14%

HR Consulting, 4%

Outsourcing, 2%



7

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?

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

Click here to find out more

http://recruiters.top-consultant.com/uk/clientcentre/choosepackage.aspx



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


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

JuniorConsultant

SeniorConsultant

Manager SeniorManager /Principal

Partner

TOTAL REMUNERATION BY LEVEL

Bonus

Benefits

Basic Salary



10


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 apay rise

Percentage receiving no pay rise

Average bonus for those who receivedone

Percentage receiving no bonus

Percentage who received a pay rise aspart of a promotion in the last year

2007

2009

2011

2013

2015



11


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



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%




Salary levels by Seniority

and Type of Consulting

Sponsored by



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.

£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


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 BusinessTrans

BPI IT/Tech

Junior Consultants' Remuneration By Function

Bonus

Bens

Basic Salary

The average percentage bonus recorded by Junior Consultants

at 12.2% is higher now than it has been for any of our previous

surveys.

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2007 2009 2011 2013 2015

Average Percentage Bonus For Those Who Received One







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

15


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.



0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2007 2009 2011 2013 2015

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

16


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.








£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

17


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.



0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

2007 2009 2011 2013 2015

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

18


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.








£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

19


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.



0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

2007 2009 2011 2013 2015

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

20


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%.








£100,000

£120,000

£140,000

£160,000

£180,000

£200,000

2007 2009 2011 2013 2015

Partners' Remuneration

Bonus

Bens

Basic Salary

21


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.

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.



0.0

5.0

10.0

15.0

20.0

25.0

30.0

2007 2009 2011 2013 2015

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

22


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.


22.7% of basic salary is what Partners can expect to earn as a

bonus, if they are fortunate enough to receive one.



23


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

benchmarking report and hope that its findings are useful

for you..






mailto:[email protected]







24


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.

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].

Request a brochure

Alternatively, please feel free to request a PDF brochure

detailing our services. You may do this online by visiting

this weblink.

Email us

Feel free to email our Customer Services team with any

questions you may have using this address

[email protected].






http://recruiters.top-consultant.com/uk/clientcentre/solutions.aspx










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