Seeking advice - future salary impact if I move back to emerging markets now

salary
New answer on May 24, 2020
9 Answers
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Anonymous A asked on May 20, 2020

Hi, I would like to seek your advice. I am currently based in a developed market where the salary is very high. However, during my job search, I did not manage to find a consulting role in the developed market. I found a boutique consulting firm job in an emerging market instead, which pays quite low (emerging market standard), and would be a stepping stone to consulting firms. I believe I could learn the transferable skill and will enjoy the job.

However, here's my concern:

I'm wondering whether consulting firms' (MBB / Tier 2) salary is decided in a structured way (location & ranking, for example), or is it negotiated and will be benchmarked against the previous position? I am worried that if I take this role that doesn't pay well, would it impact my future salary at consulting firms if I manage to get an offer? Would the firms lowball me because my salary at the boutique was low? (p.s. I will be applying for experienced hire roles in the future)

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Anonymous updated the answer on May 21, 2020

Hey there,

You don't need to worry about that. If you get in MBB, your salary is not based on your past payslip, but it is based on the company pay structure which is based on the role level and country/region. MBB would not lowball you.

Best,

Emily

(edited)

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Axel
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replied on May 21, 2020
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Hi!

Your salary is calculated based on your role and which office you are working in. Your previous position will only have a bearing on which level/role you enter at (e.g. associate, manager, etc.).

There is pretty significant regional variation in salaries between offices, where working in the Singapore office would offer a significantly higher salary for the same role as in the Kuala Lumpur office for example. This applies especially to junior positions.

In your case, your future salary when joining MBB will depend on what office you apply to and what level you are able to enter at.

I hope that is useful!

A

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Clara
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replied on May 21, 2020
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

In MBB, salary is region-specific. The window for negotiation is little.

Hope it helps!

Cheers,

Clara

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Anonymous replied on May 23, 2020

Dear A,

Yes. Your salary will be negatively impacted if you go back to emerging markets, because overall salary base for these locations is a way lower. In general, companies have pretty standardized salary bands for different positions starting from junior consultant and so on. However, if you manage to switch from your boutique company to MBB or Tier2 firm in the future, your salary will significantly increase. And if you would be able to make a step towards MBB or Tier2 in developed countries. This will substantially increase your salary. Throughout my consulting career I have managed to double my salary within just 5 years.

If you need any specific advice or tips for that, feel free to reach out.


Best of luck,

André

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Francesco
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replied on May 21, 2020
#1 Coach for Sessions (4.000+) | 1.500+ 5-Star Reviews | Proven Success (➡ InterviewOffers.com) | Ex BCG | 9Y+ Coaching

Hi there,

your previous job salary won’t impact your salary for a defined position in MBB. The difference in salary is only related to the position you join and the office you apply to. Thus, you can join the boutique without worries related to that.

Best,

Francesco

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Ian
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replied on May 20, 2020
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Hi there,

To specifically answer your question about MBB pay - this is region specific. I.e. the region you apply to, not where you are applying from.

For example, an MBB Consultant in the same role in the NYC office will receive the same salary whether they applied from Kenya or from Germany.

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Anonymous replied on May 21, 2020

Hi there,

Consulting companies have almost fixed compensation schemes for all new joiners regardless of background. (if you join as a consultant, you will get paid similarly to other consultants in that office).

Best of luck

Khaled

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Nirmit
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replied on May 21, 2020
I will get you an offer|McKinsey Senior EM|Offers from MBB|100+ interviews at McKinsey|Recruiting Lead|Experienced hire

Hi,

Your MBB salary will not be benchmarked against your previous position. The salary of a particular position in that geograpy will be the same, irrespective of your comp previously.

Thanks,

Nirmit

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Robert
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replied on May 24, 2020
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Hi Anonymous,

Your salary will not depend on your previous income directly - it will be defined by your role and region.

Hope that helps - if so, please be so kind and give it a thumbs-up with the green upvote button below!

Robert

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