Hi there,
I have a question regarding the tiers. Are Tier 2 companies just bigger than Tier 3 or are they actually better? Why are they seen as more prestigious? Why should you aim for Tier 2 instead of Tier 3? Just for the name or is the quality of work/ exit really that different?
Thank you!
(editiert)
Hi there,
1) Are Tier 2 companies just bigger than Tier 3 or are they actually better?
First of all, the definition of Tier 2 and 3 is quite fluid and also depends on the country and sector (some companies might be excellent in, say, healthcare but have a general reputation as Tier 3).
Some Tier 3 (eg Big 4) are bigger in size than Tier 2. Whether a company is “better” depends on several factors (which is also why the definition between tiers is fluid). In general, if a specific person would define a company as Tier 2 and another as Tier 3, it means they consider the Tier 2 company better based on their own criteria in some ways.
2) Why are they seen as more prestigious?
Usually it’s a combination of higher pay, more interesting/strategic projects, better exits.
3) Why should you aim for Tier 2 instead of Tier 3? Just for the name or is the quality of work/ exit really that different?
Given most people stay in consulting 2-3 years, exits are probably a very relevant element. Besides that, the nature of work and pay are usually better/higher.
You can find more on a comparison between firms and related criteria below:
▶ Top 15 Consulting Firms by Revenues and Prestige
Best,
Francesco
Great question!
It's a combination of factors.
Size, yes.
Brand, yes.
Exit opportunities, yes.
Tier 3 is usually bundled up with smaller, boutique-type firms. Basically, if you and a few other friends start a firm (a legit one), you'll soon be considered a boutique firm that is in Tier 3.
To get to Tier 2 would take decades of activity and impactful work.
In you're interested in the industry and want to do further reading, these few articles might be useful:
Best,
Cristian
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Hi there!
Tier 2 companies are generally bigger and have a better reputation as you anticipated. The reputation is due to a variety of reasons, such as their wide expertise, selective hiring process & strong business network. This means that they are more likely to be hired by the largest and most prestigious companies. And, as a consequence, working for one of them will likely give you better exit opportunities.
As anticipated, Tier 2 also normally have more resources and expertise, which allows them to offer a wider variety of services. On the contrary, Tier 3 companies tend to specialize more.
Finally, in order to attract the best talent, Tier 2 companies are more likely to offer you a higher compensation package (salary + benefits).
Happy to help in case you have any more doubt,
Best,
Francesca
Hi Francesca, Thank you for your answer! But do you think it is hard to change jobs between tier 3 and 2 if you decide to go with Tier 3 initially? Thank you
(editiert)
I am not gonna lie. If you have a good CV, it is surely easier to start directly in Tier 2 instead of going to Tier 3 and then moving up, also considering that consulting firms like to train their own employees (while I was working in Bain I hardly saw someone in the leadership team that was not hired as a junior). However, you can still do the change at a later stage, it is not impossible. What you can do to increase your chances is to specialized in a sector that you particularly like and use it as a strenght point when you want to make the switch. Of course, an internal referral will always help, so make sure you do some networking with your target Tier 2 employees before applying in order to get it.
Hi there,
Size is correlated with quality but it is not causal of quality.
If it company is good and has built its brand, it will generally get more work and therefore grow.
That said perception of quality is often just as important as reality.
Example: I would 100% hire Appian to implement my IT system over Deloitte. And, I would actually hire one of the smaller offshoots of Appian over Appian (the good private companies).
So, your “better” question isn't specific enough to truly answer (depends on how you define "better).
That said, for your career (brand recogniztion, network, etc.), yes, Tier 2 is generally “better” than Tier 3. BUT quality of work is often better at boutique firms (because they have to compete)
Hello,
Tier 2s tend to be seen as more prestigious / stronger brand names than Tier 3s, though to be honest this categorization is very loose, and perceptions of companies can vary between regions.
Tier 3s tend to be smaller than Tier 2s - a lot of them are boutique firms - but this doesn't necessarily have to be the case.
Because generally Tier 2s have more brand name recognition and prestige than Tier 3s, exit opps correspondingly tend to be better.
However, I always recommend that candidates apply widely - don't limit yourself to Tier 2s if the goal is to end up in consulting.
Hi,
In addition to what the other coaches have mentioned, the one thing that differentiates Tiers typically is pricing. I say this having been involved in commercial discussions / pitching to clients. The pricing is a proxy of quality of work/outcome.
Happy to chat more in detail on this, I spent some time at a T2 as well as at MBB.
