Hi there,

Q: Should I be worried as well for the full-time cycle? McKinsey is my top choice, but I'm also giving up residency for consulting and it's a bit scary that if I do take their “placeholder offer”, there's a chance I can be without a job next summer.

I would not worry now about this now.

1. First, I would apply to several firms and see which offers you get.
2. If you get a McKinsey offer and it is a "placeholder offer" (might not be), consider the opportunity cost at that stage. If the opportunity cost is high, you could negotiate the offer with them to increase security or choose a different offer.

Personally, I never heard of MBB or Tier 2 (Strategy&, RB, OW, Kearney) rescinding an offer due to a lack of need for consultants (while I heard that for other consulting firms during COVID - although before the offer was signed). 

In general, rescinding a signed offer would create a major reputational issue (even in case they can legally do that) and I see this as unlikely for a few reasons:

• It could have legal consequences for the firm if the offer was signed, depending on the country.
• If they have staffing issues, it makes more sense for them to ask to join later than to cancel the offer, as eventually they will need consultants. If that happens, it would be up to you to accept the later starting date or withdraw.
• In the extreme case that they have structural issues (ie not expect to grow anymore for a while) and are unable to postpone the starting date (which is very unlikely for a top consulting firm), I believe they would rather adopt the strategy to hire and layoff people after the probation period, to avoid the reputational and possible legal issue.

Best,

Francesco

Hi there, 

It's indeed a difficult situation at the moment. 

Firms like McKinsey are doing this now not because they'd want to withdraw offers, but rather because they don't want to be tied to a certain start date. In short, they want to make less of a promise. 

So yes, there is a tiny probability that you could get an offer and it might actually not work out in the end or they might delay the starting date by longer than you expected. The probability is very small however. Somebody with your background could probably find an alternative job rather easily. 

Aside from this, I'd recommend you apply as broad as possible. Sharing with you a guide here on how you can do that effectively to improve your chances of getting several offers:

• Maximising your chances of getting a consulting job during an economic downturn

Best,
Cristian

This is an extremely valid concern and the reality is that the market is so weird right now, companies want to hire but they also don't want to be left with a huge overhead if things go south.

There is a small chance you can be without a job next summer. That being said if you have an MD from a target school, getting a new job or getting into residency is not going to be an issue. So yes it is risk but the odds are very strongly in your favor.

Best,

Udayan

Your concerns are valid.  You should discuss this with Mckinsey, and depending on their answer you should have a backup plan (or even consider McKinsey as your non-reliable backup plan).