Consulting Salaries in the United States 2024

Base Salary

The base salary is the most important component of your entire consultant salary. This will determine the salary of your first year(s) at the firm. So, even if you get offered a higher signing bonus at another firm, we recommend you take a look at the base salary first, as this will be your continuous flow of income.

Annual Performance Bonuses

In addition to a base salary, management consultants get offered a substantial performance bonus. This bonus can be based on one or multiple of the following factors, which you can or cannot control directly:

• Your own personal performance
• The profitability of the firm
• The number of projects sold
• Peer feedback

Some of these factors you can directly control (e.g. your own performance), but some of the factors are not directly in your control. The profitability of the firm or the number of projects sold can depend on external factors such as industry demand or economic/health crisis (as we have seen during the COVID pandemic).

Because of this, it is important that you ask about the performance bonus and what could potentially affect it. To get some statistics, we recommend asking how many people actually receive that top tier of the performance bonus structure and what the rest of the staff receives. Typically, average performers receive bonuses closer to half of the maximum amount. A 65% performance bonus sounds great, but what are your chances of actually getting the bonus?

It is also interesting to know when you will be eligible for performance bonuses – if it is at the end of the calendar year or fiscal year. Depending on when you start your job and if you will just miss this payout, this could make a substantial difference in your salary. And it could be a great opportunity to negotiate a signing bonus.

Signing Bonus (One-time)

A lot of consulting firms offer an attractive signing bonus for new and high-potential hires. While it is not common to negotiate a base salary in management consulting, some firms are more flexible with the signing bonus. If you have another offer, you could potentially leverage this to negotiate a higher signing bonus. It can be the case that even consulting interns get paid signing bonuses.

Some consultancies have payback policies on their signing bonuses in order to motivate their consultants to stay with them long enough. Depending on when you leave the company, you might have to pay back a percentage of that bonus or even the full amount. Please note that it doesn’t make a good impression to ask directly about the payback policy because it makes it seem as if you don’t plan to stay long in the company. Simply read the terms and conditions of your offer letter.

Relocation Bonus

Some consultancies also offer relocation bonuses, even to interns. This bonus depends on your and your office’s location. The further you live away from the office, for example, if you live in a distant city, state, or country, the larger your relocation bonus will be. If you have to move cross-country and are not getting a relocation bonus, you can use this opportunity to negotiate a higher signing bonus.

Relocation bonuses and signing bonuses are usually paid out soon after you sign your contract. Sometimes they are paid out only after your start date, or even in increments over several years. The payment method varies among companies.

Other Benefits

Besides the previously mentioned salary components, a lot of consulting firms offer additional benefits to their employees. This could be, for example:

• Health insurance
• Paid time off
• Technical equipment: company laptop, smartphone, video conferencing software, etc.
• Mobility benefits: Company car, local transport ticket, travel allowances
• Continuing education opportunities: Language course, training, certificates
• Additional benefits: Pension plan, childcare
• Well-being benefits: Canteen meals, meal allowance, fruit and drinks in the office, gym discounts
• Special benefits: Hotel chain discounts, discounts at selected retailers

These could be important factors to consider when deciding between different offers or jobs, as these benefits can have an additional effect on your health and happiness.

Furthermore, some firms sponsor undergraduate hires, who perform well on their job, their MBA at a business school, or another degree. Please note that in most cases, consultants have to work for the firm for a specific amount of time after completing their studies – or pay back the cost of the degree.

What Are the Top Paying Consulting Firms in the United States?

Top consulting firms like McKinsey, Bain, and the Boston Consulting Group are known for offering generous salaries to their employees. Similarly, the Big Four accounting firms - Deloitte, PwC, EY, and KPMG - also provide highly competitive compensation packages. However, boutique consulting firms that specialize in niche industries may offer even higher pay along with unique growth opportunities that are not available in larger firms. When considering a career in consulting or accounting, it's important to research different firms and their compensation packages to find the best fit for your skills and goals.

Let’s take a look at the management consultant salary of full-time hires with undergraduate and master’s degrees in the North American market.

Salaries at McKinsey, BCG, and Bain

McKinsey, BCG, and Bain are generally known for their highly competitive salary packages, with a total compensation of up to $170,000 per year. Looking at the total salary entry-level consultants can earn, Bain is followed by BCG and then McKensy. McKinsey and Bain are offering the highest base salary. However, Bain and BCG clearly lead the field in terms of performance bonuses of up to $22,500. If paid time off is important to you, Bain is the company that offers most with 20 days.

Salaries at the Big Four Accounting Firms

Salaries at the Big Four consultancies, namely Deloitte, PricewaterhouseCoopers (PwC), Ernst & Young (EY), and KPMG, are highly competitive and reflect the prestige and demanding nature of these firms. Compensation packages at the Big Four typically encompass base salaries, bonuses, and additional perks, varying based on factors such as geographic location, level of experience, and specialization. Deloitte offers the highest salary up to $95,000 for entry-level positions, followed by KPMG with a Base Salary up to $90,000. PwC and EY are quite comparable with a base salary of around $85,000 - not surprisingly, as these companies are competing for the same talents and must keep pace with salary developments of their competitors.

Salaries at Tier 2 and Boutique Consultancies

Tier 2 and boutique consultancies are oftentimes not top of mind for candidates seeking a career in management consulting. However, their salary level is quite comparable. Among Tier 2 and boutique consultancies, Accenture, Oliver Wyman, and Kearney offer some of the highest salaries. Accenture provides a competitive range of $92,000 to $100,000, with bonuses up to $40,000. Oliver Wyman offers salaries from $154,000 to $231,000, with potential bonuses up to $18,700, and Kearney stands out with a salary range of $168,000 to $252,000, accompanied by potential bonuses up to $15,000. These companies also provide various additional perks, making them noteworthy options for candidates considering a career in management consulting.

The Most Prominent Tier 2 and Boutique Consultancies

Other Interesting Boutique Consulting Firms

Which Factors Influence the Salary of a Management Consultant in the US?

The management consultant's salary is dependent and influenced by a couple of different factors. Firstly, educational background and qualifications, such as an MBA from a prestigious institution, can command higher pay scales. Additionally, years of experience within the industry and the specific firm contribute to salary levels, with senior consultants earning more than entry-level counterparts. The geographical location of the firm and cost of living in that area also impact salaries, as consultants in high-cost cities typically receive higher compensation packages. Furthermore, specialized skills and expertise in particular industries or sectors can lead to higher earning potential, as can performance bonuses tied to project success. Overall, a combination of education, experience, specialization, and location collectively shape the salary structure within management consulting.

How Do Consulting Salaries Differ by Academic Background?

If you are an entry-level consultant, your academic background, i.e. your level of education and your university may have an impact on your salary. MBA students will receive a significantly higher salary than students with a master’s degree or bachelor’s degree.

Top consulting firms such as McKinsey, BCG, or Bain only recruit top talents from prestigious target schools such as Harvard, Stanford, or Yale. MBA students from Wharton or Princeton will also receive a higher offer than students from Tuck, MIT, or Columbia. The difference can be up to 10k USD per year. Here is a list of management consultant salaries of MBA full-time hires from different universities.

How Do Consulting Salaries Differ by Career Level?

The management consultant's salary highly depends on the career level. Typically, entry-level consultants earn lower salaries compared to senior consultants who have accumulated several years of expertise and held leadership roles. The growth of salaries in consulting is also influenced by career progression and performance evaluations. As you gain more experience and take on greater responsibilities, you can expect a salary increase of 10-20% at top consulting firms each year. Additionally, when promoted to the next career level, your salary increase can be a lot higher, even up to a 100% increase.

If you are an experienced hire and are applying to top brands like MBB, in most cases, your best chance to negotiate your offer is to negotiate the level at which you enter the firm or the possibility of a fast-track promotion. Many experienced hires can skip the first career level and directly start as (Senior) Consultants, or quickly get that promotion after starting at the entry-level. Please note that salaries at every entry level are pretty set and standard and in most cases not negotiable.

Career levels and positions vary between different consultancies, so it is important to understand the different roles and positions. For MBB, we have summarized them for you below:

Let’s take a look at the different career levels and their respective salaries.

Entry-level Consultant Salaries

Entry-level consultants at top consulting companies like McKinsey & Company, BCG, and Bain offer competitive salary packages to attract top talent. In addition to base salaries, entry-level consultants may also receive performance bonuses and benefits. It's worth noting that starting salaries in consulting tend to be higher than average salaries in other industries. This makes consulting an appealing career path for undergraduates and business school graduates looking to maximize their salary figures in their first year.

Depending on the experience you have gained throughout internships, your grades, and the prestige of the university you are coming from, your base salary as entry-level consultant first-year out of Undergrad/Master’s program starts at $70,000.

Entry-level consultant salary first-year out of Undergrad/Master’s program:

Base: $70,000-$90,000
Signing Bonus: $5,000-$15,000
Performance Bonus: $4,000-$16,000 (5-20%)

As an MBA or PhD, expect elevated salary levels, with base salaries around $200,000, competitive signing bonuses, and a performance bonus ranging from $10,000 to $40,000, subject to individual and firm performance. Note that these figures are approximate and can vary based on company policies.

Entry-level consultant salary first-year out of MBA/PhD program:

Base: $190,000-$210,000
Signing Bonus: Competitive, varying based on the consulting firm
Performance Bonus: up to $60,000, contingent on individual and firm performance

Manager/Project Leader Salaries

Managers and project leaders, who have gained a few years of experience in the consulting industry, earn higher salaries compared to their entry-level counterparts. These salaries are determined based on the consultant's track record and performance evaluations, with bonuses and benefits often included. Depending on the performance of projects that you are a part of, performance bonuses will continue to grow. Most performance bonuses range between 25%- 30% of your base salary.

Advancing to a mid-level position is seen as a sign of growth and expertise within the field. Notable consulting firms like Deloitte, PwC, and EY offer competitive salaries at the mid-level. This enables consultants to maximize their career paths and leverage their business school and undergraduate experiences.

At this point, your base salary will range between $120,000-$150,000 in top consulting firms. Most project managers are industry veterans with years of experience and in-depth knowledge of problem-solving skills.

Manager/Project Leader Salary (2-3 years out of MBA/PhD)

Base: $120,000-$150,000
Performance Bonus: up to $30,000 (contingent on individual and firm performance)

Associate Principal/Senior Project Leader Salaries

Associate principals and senior project leaders with extensive experience and leadership roles earn higher salaries due to their specialized knowledge and skills, which are highly valued by consulting firms like Accenture, KPMG, and McKinsey. Salaries for senior management can vary based on the consulting firm and location. Additionally, performance bonuses and benefits are common.

Associate Principal/Senior Project Leader Salary (4-5 years out of MBA/Ph.D.):

• Base: $150,000-$180,000
• Performance Bonus: up to $40,000, contingent on individual and firm performance

Partner Salary

Project managers may become partners of a consulting firm. At this level, you will most likely own a portion of the firm’s stock. Therefore, the performance of your entire firm will directly determine how much you can make within a specific timeframe. You may also receive bonuses from the projects that you participate in as a partner.

Junior Partner/Principal (6-8 years out of MBA/Ph.D.) program:

• Base: $200,000-$250,000
• Bonus: $50,000-$100,000, or more, contingent on individual and firm performance

Senior Partner/Director (10+ years out of MBA/Ph.D.) program:

• Base: $250,000-$350,000
• Bonus: $100,000-$200,000

How Do Consulting Salaries Differ by Location

Some consulting firms offer different base salaries depending on the office, others have one salary level across all regions. Typically, McKinsey, BCG, and Bain offer the same salary at each office for each career level, so it only makes a difference regarding the level you are hired at. Other consulting firms, such as Big 4 firms, offer different salaries for different offices. They take into account the cost of living in different offices and adjust the salary accordingly. This means that higher pay is not necessarily better if the cost of living is equally elevated.

The salaries for consultants in the United States can differ significantly depending on their location. For instance, cities such as New York and San Francisco offer higher salaries due to their high cost of living. In contrast, smaller cities or regions may have lower salaries but a lower cost of living. Consultants working in high-cost areas may receive relocation benefits or allowances to compensate for the increased expenses.

Moreover, demand for consultants can vary depending on the region, which can impact salary figures. When considering a career as a consultant in the United States, it's critical to factor in how location affects earning potential. Understanding the regional differences in salary structures can help you make informed decisions about where to work and what compensation package to expect. Additionally, staying up to date on industry trends and job market insights can help you negotiate your salary effectively and maximize your earning potential as a consultant.

How do Consulting Salaries Differ by Focus Area

The consulting industry is segmented into several areas. The management consultant's salary can vary depending on which subset of consulting the employee is placed in. Please note that the following values are rough averages to give you an idea of the salary differences for each industry. The brand (MBB vs. tier 2/3 firms) impacts the salary range you will find yourself at.

Salaries in the consulting field can vary depending on the specific area of expertise. Different fields such as strategy, management, and IT offer different salary ranges. Strategy consultants, involved in corporate planning and decision-making, can earn very high salaries and are mainly employed at top consultancies such as McKinsey, BCG, and Bain. Management consultants often earn competitive salaries due to their broad expertise in various industries. IT consultants, specializing in technology solutions, can command high salaries, especially in tech-driven industries. The demand and market value for different consulting specializations play a significant role in determining salary ranges.

Strategy Consultant Salaries

Strategy consultants, involved in corporate planning and decision-making, have the potential to earn lucrative salaries. The salary figures for strategy consultants are influenced by several key factors, including the reputation of the consulting firm, location, and years of experience. Top consulting firms like Bain, McKinsey, and BCG offer competitive salaries to attract top talent in the field. In addition to base salaries, performance bonuses and benefits are common in this career path. Most strategy consultants hold advanced degrees and possess specialized knowledge, which contributes to their higher pay.

Management Consultant Salaries

Management consultants, providing strategic advice to businesses, earn competitive salaries that depend on various factors. These factors include the reputation of the consulting firm, location, and experience level. Management consulting firms such as Deloitte, Accenture, and Oliver Wyman offer attractive management consultant salaries, along with performance bonuses and benefits. In order to maximize salary figures, management consultants can focus on their career path and consider obtaining additional certifications or pursuing business school opportunities. This can lead to career progression and increased earning potential in the field.

IT Consultant Salaries

IT consultants, specializing in technology solutions, have the potential to earn lucrative salaries based on factors such as experience, expertise in specific technologies, and the reputation of the consulting firm. IT consultants who specialize in high-demand areas like cybersecurity and data analytics can command even higher salaries. Consulting firms that place a strong emphasis on IT, such as Accenture and Deloitte, offer competitive salary packages to attract top talent. Additionally, advanced degrees and certifications can further boost IT consultant salaries, providing a promising career path in this field.

Financial Consultant Salaries

Financial consultants advise clients on a range of financial matters, including financial analysis, risk management, capital budgeting, and investment strategies. Their salaries are often quite comparable to other consulting areas, based on the specialized skills and expertise the job requires.

Risk Consultant Salaries

Salaries in risk consulting reflect the specialized expertise and value that consultants bring to organizations in identifying, assessing, and mitigating various forms of risk across industries. Especially when serving clients in sectors with heightened regulatory scrutiny or complex risk profiles, bonuses and profit-sharing arrangements make up a significant component of the risk consultant’s salary. However, salaries of risk consultants generally tend to be slightly lower compared to those of strategy consultants. Nevertheless, while there may be differences in salary levels between risk and strategy consultants, both fields offer rewarding career paths with great opportunities for professional growth and advancement.

HR Consultant Salaries

Generally, salaries in HR consulting tend to be lower than salaries in strategy or management consulting. HR consulting typically involves a different set of skills focused on areas such as talent management, organizational development, and employee relations. While HR consulting remains essential for businesses, the demand may not be as consistently high or as directly tied to revenue generation, leading to comparatively lower salary levels.

Salary Trends in the Consulting Industry

Consulting has become a highly sought-after profession in the United States, leading to a surge in demand for consultants and driving salaries up. Compared to other professions, consultants earn higher base salaries due to their specialized knowledge and expertise that they bring to businesses. Performance bonuses are also common in this industry, encouraging consultants to provide exceptional results. However, factors such as years of experience, career path, and specialization can affect a consultant's salary. Leading consulting firms such as Deloitte and Accenture offer attractive compensation packages as they compete for top talent in the industry. The rise in demand for consultants is attributed to organizations' need for expertise in areas like digital transformation, process optimization, and strategic planning. Furthermore, many companies are turning to consultants for guidance on navigating the challenges posed by the pandemic. The dynamic nature of the consulting industry makes it an exciting and rewarding career path for those with a drive to succeed.

Impact of Economic Changes on Consultant Salaries

During economic downturns, the consulting industry can experience lower demand, leading to reduced salaries for consultants. However, consultants with expertise in risk management may see an increased demand during these challenging times. On the other hand, global economic growth can have a positive impact on consultant salaries, opening up more job opportunities and potentially higher pay. It's important to note that market volatility can also influence consulting fees and project budgets. Additionally, consultants skilled in cost reduction strategies may be in higher demand during periods of economic uncertainty.

Future Predictions for Consultant Salaries

As the consulting industry continues to expand, consultant salaries in the United States are expected to rise. The growing demand for consultants with expertise in digital transformation and technology is projected to drive up salaries in these fields. Specialized consultants, such as those in data analytics or cybersecurity, may see their salaries outpace those of general consultants. Additionally, the rise of automation and artificial intelligence may have an impact on salaries for certain consulting roles. Consultants with global experience and language skills may have an advantage in commanding higher salaries as well.

How do Consultant Salaries in the US Compare to Other Professions?

Compared to other professions such as audit, finance, or even law and medicine, consulting salaries tend to be on the higher side. While salaries in consulting may be lower compared to those in investment banking or the tech industry, top-tier consulting firms such as McKinsey & Company and Bain offer attractive compensation packages. In addition, many consulting firms also provide lucrative benefits packages like bonuses, stock options, and retirement plans that can significantly enhance your overall compensation package.

Consulting is a lucrative field with high earning potential, especially for those who have an MBA degree. Consultants generally earn more than entry-level professionals in other business services positions, like business analysts or project managers. MBA graduates who join consulting firms can expect to start off with higher salaries. At top firms such as McKinsey and Bain, senior consultants can earn high six-figure salaries

Additionally, consulting salaries in major cities like New York and San Francisco tend to be higher than the national average. Consultants with expertise in niche industries or specialized skills have the potential to command even higher salaries. With more opportunities for career advancement and higher salaries, the consulting industry outshines many business services roles in terms of financial prospects.

How Much Do Consultants Earn After Their Exit?

After leaving a top consulting firm, consultants often experience a notable salary increase, accompanied by improvements in work-life balance. In the U.S., those transitioning to industry positions typically see a 12-20% pay raise, while those entering financial services may receive a 30%+ compensation boost, albeit with potential impacts on work-life balance.

Post-consulting earnings vary based on factors like industry choice. Corporate strategy and management roles often yield substantial increases, leveraging consultants' strategic skills. Advanced degrees, particularly MBAs, can open doors to higher-paying positions. Private equity and venture capital attract consultants, offering financial rewards for analytical expertise. Geographic location also influences earnings, with higher living cost cities often providing more significant salaries.

While the financial gains are considerable, it's crucial to consider the potential trade-offs, especially in industries known for demanding schedules. The decision to exit consulting involves balancing financial rewards with personal career goals and lifestyle priorities.

The Preparation for Your Career in Management Consulting

Like any other profession, the job as a consultant also has its disadvantages. But above all, the steep learning curve is one of the most important motivating factors for young graduates to enter consulting. The attractive exit options also play a significant role.

If you're in your degree program and want to get into consulting, then you should definitely sign up for PrepLounge, the world's largest case interview community. Here you will find everything you need to prepare for your case interviews. Discover all of our insider tips that will help you throughout every step of your job application journey in management consulting. You can browse through our articles to learn more about your application and case interview preparation via detailed guides.

Conclusion

To conclude, consultant salaries in the US vary based on several factors such as experience level, industry, and location. Entry-level consultants typically earn a lower salary, while mid-level and senior consultants command higher pay. Economic changes can also impact consultant salaries, so it is important to stay updated on industry trends. When comparing consultant salaries to other professions, consulting often offers competitive compensation, especially in the business services sector. Additionally, location plays a role in determining salaries, with certain cities offering higher pay due to cost of living and demand. Finally, some top-paying companies in the US for consultants include renowned firms in the consulting industry. Whether you are considering a career in consulting or evaluating your current salary, understanding the nuances of consultant salaries is crucial for making informed decisions.

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