Why are McKinsey salaries so low in London compared to New York? Given the global P&L of the firm, shouldn't the hourly rates of consultants be the same in both markets, which should mean that consultants should be paid the same?
hmmmm think about your statement again: "Given the global P&L of the firm".
Would you expect consultants in Vietnam to make the same amount as in Europe? Given consulting rates in Vietnam? (There's your answer)
In fact, wages across all industries are lower in Europe AND the UK (for those Brexiters). Remember, there are a lot of macroeconomic forces at play here. European works get far more job security/protection, far more holidays/annual leave, sick leave, better healthcare benefits, etc. etc. They also (generally) work far fewer hours and have less stress.
Like the old adage goes: you get what you['re] paid [for]! ;)
There isn't a one size fits all. Salaries differ not only between countries but also between cities within a country. There are many factors at play- labour productivity (perhaps most important factor), skills & demand for those skills, industries in that country, type of consulting service (strategy or technoloy) , economic and geopolitical factors, forex etc.
Hi,
Unfortunately, London is one of the lowest-paid offices. the reason is the local currency and the overall salaries in the UK. Believe me, the comp in tech, FS, and other sectors is also low there
Best
Thank you. But how come this pay 'methodology' doesn't apply to countries like the UAE. I've heard that MBB+ consultants in Dubai get paid the US equivalent of salaries for each job role.
Hi there!
It`s normal, that each country has a different economical and political situation, so salaries in the same companies can vary across the world.
Was it helpful?
GB
Salaries in the UK generally are abysmal compared to the US. This cuts accross multiple industries healthcare, tech, consulting etc etc
(edited)
There are slight variations between countries, and the UK conversion is not the lowest USD equivalent salary - my country, and maybe others, is lower in USD. However, the local job market and country-level living costs probably play a role.
