Why can corporate strategy pay similar to consulting given that the workload is significantly lower?
(I see consultants exit to corp strategy with similar or even higher comp)
Hi there,
When you think about it, 1) Consulting companies “take a cut” when they sell you and your services and 2) Consulting companies can leverage their “benefit to you” in the form of career advancement, network, brand, training etc. as part compensation.
When you switch to corp strategy you're sacrificing #2 and therefore need more pay to compensate AND the company is now getting your services direct without a middleman, so to speak.
1. Hiring a consulting firm is much more expensive than hiring a consultant. Let me underline: way more expensive…
2. You specialize more, so your productivity after a while is not necessarily lower. Specialists are always more valuable than generalists.
3. Your career progression is actually lower. I.e., instead of getting 20% increases every year, you may move to a 5-10% increase year-on-year. Which means that after a couple of years you may be actually worse off (financially).
Expert case by