Since the brief recession at the start of the 2020 pandemic, consultants have benefited from a surge in demand from businesses seeking advice on digital transformation and M.&As companies restructure their businesses following the coronavirus crisis.
The increasing pressure on companies to reduce their environmental impact has also benefited management consultancies, which are rapidly building businesses that provide advice and strategies. A study by Source Global found that 1 in 5 companies had to turn down jobs because they didn’t have enough staff with the right skills.
The decision by three of the most prestigious consultancies to boost salaries highlights the pressure the financial services industry faces to attract new hires. Last year, several large Wall Street banks, including JP Morgan Chase and Citigroup, increased salaries for junior bankers.
Corporate law firms are also embroiled in an aggressive wage war. Consultants are improving salaries and other benefits in response to increasing competition in a “very hot talent market,” said Keith Bevans, partner and head of consultant recruitment at Bain. .
“The competition we face is more pervasive than ever,” says Bevans. “We are looking for someone on campus who is interested in big tech, who is interested in other consulting firms, who is thinking of starting their own company or a search fund, or who is privately investing in his equity. I’ve met people who are thinking of investing in
Companies are also improving benefits such as parental leave. In a statement to the Financial Times, McKinsey said: “Compensation remains important, but considerations such as clear career growth opportunities, flexibility and purpose are needed to attract, retain and develop talented colleagues. Our research shows that it is important.”
The company has received about 1 million applications for 10,000 job openings in the past year, despite criticism that it is playing a role in “accelerating” the sale of addictive opioids in the U.S. .
Job seekers now pay more attention to other benefits, but salary is “arguably the biggest factor” in attracting new graduates, management advises students seeking employment in industry・Naman Mian, Chief Operating Officer of Consulted said.
McKinsey, Bain and BCG’s new hire pay increases this year were the second largest in the past decade, he said. Czerniawska said it took the consulting firm about four years to recover its profit margins after the big wage hikes at the turn of the 20th century.
Despite the “volatile economic wave,” Mian said, companies continued to hire with the long-term in mind.
New hires with a bachelor’s or master’s degree but without an MBA also receive a six-digit salary packet. Base salaries for recent graduates joining Bain and McKinsey in the United States will rise 12% to $112,000 a year, according to people familiar with the raises.
Their counterpart, who will join BCG in the United States, has received an offer of $110,000, according to a person who saw the job posting from BCG. BCG, Bain and McKinsey declined to comment on their salaries.
Employer salaries vary by region and are significantly lower in most countries outside the United States. The company doesn’t disclose profits, but many partners are paid seven-figure sums annually.
financial times
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