Elite US consulting firms have raised starting salaries for new undergraduate and MBA recruits for the first time since 2022, driven by intensifying competition for graduates from technology and AI companies. According to Management Consulted, Mc Kinsey, Boston Consulting Group and Bain increased base pay for entry-level employees by between 4 per cent and 9 per cent. The largest increase applies to Boston Consulting Group, which previously lagged behind Mc Kinsey and Bain.
From next year, all three firms will pay a uniform base salary of $120,000 for undergraduates and $200,000 for MBA hires. Previously, Mc Kinsey and Bain paid $112,000 and $192,000 respectively, with BCG lagging by $2,000. Namaan Mian of Management Consulted noted that Big Tech hiring has picked up after lay-offs, while AI labs have become viable landing spots for new graduates.
The salary adjustments coincide with consulting revenue growth picking up, partially driven by AI implementation work. However, growth remains below the peak recorded post-pandemic. AI poses a long-term question mark for the industry by enabling clients to do more work in-house.
Eric Kutcher, Mc Kinsey's North American boss, said the firm plans to hire about 12 per cent more new consultants in 2027. Blair Ciesil of Mc Kinsey added that the firm does not wait for the market to define talent value. Source Global expects consulting sector revenue growth of between 5 per cent and 7 per cent in the next few years, driven by demand for data and technology skills.
Source: Financial Times Companies · Summarized by HeadlinesBriefing