Cookie and Privacy Settings

This website uses cookies to enable essential functions like the user login and sessions. We also use cookies and third-party tools to improve your surfing experience on preplounge.com. You can choose to activate only essential cookies or all cookies. You can always change your preference in the cookie and privacy settings. This link can also be found in the footer of the site. If you need more information, please visit our privacy policy.

Data processing in the USA: By clicking on "I accept", you also consent, in accordance with article 49 paragraph 1 sentence 1 lit. GDPR, to your data being processed in the USA (by Google LLC, Facebook Inc., LinkedIn Inc., Stripe, Paypal).

Manage settings individually I accept
expert
Expert with best answer

Sidi

99% Recommendation Rate

426 Meetings

4,129 Q&A Upvotes

USD 449 / Coaching

9

What is average salary increase yearly in top consulting firms?

I am wondering as I am working in a boutique consulting firm and the pay rise for me last time was 5% but I had worked about more than half a year that time. What would be a standard one in the industry ?

I am wondering as I am working in a boutique consulting firm and the pay rise for me last time was 5% but I had worked about more than half a year that time. What would be a standard one in the industry ?

9 answers

  • Upvotes
  • Date ascending
  • Date descending
Best Answer
Book a coaching with Sidi

99% Recommendation Rate

426 Meetings

4,129 Q&A Upvotes

USD 449 / Coaching

Hi!

Having worked for several years at both McKinsey and BCG I can comment on these two firms.

It differs a little bit across regions. But as a general observation, at McKinsey, contrary to BCG, there is a historic structure of giving pay raises within a certain seniority level, based on performance rating. At BCG however, the salary is flat throughout a specific seniority level. So as a consequence, McKinsey pay starts a little bit lower, and then rises beyond the level of BCG. It also means that the jumps from one career level to the other are bigger at BCG. On the more senior career levels (AP/Principal and upwards), McKinsey pay structurally rises beyond BCG pay in most markets (especially driven by the part that depends on Firm performance, which was amazingly high over the last 10 years or so).

Cheers, Sidi

Hi!

Having worked for several years at both McKinsey and BCG I can comment on these two firms.

It differs a little bit across regions. But as a general observation, at McKinsey, contrary to BCG, there is a historic structure of giving pay raises within a certain seniority level, based on performance rating. At BCG however, the salary is flat throughout a specific seniority level. So as a consequence, McKinsey pay starts a little bit lower, and then rises beyond the level of BCG. It also means that the jumps from one career level to the other are bigger at BCG. On the more senior career levels (AP/Principal and upwards), McKinsey pay structurally rises beyond BCG pay in most markets (especially driven by the part that depends on Firm performance, which was amazingly high over the last 10 years or so).

Cheers, Sidi

Book a coaching with Emily

100% Recommendation Rate

58 Meetings

2,137 Q&A Upvotes

USD 189 / Coaching

Hey there,

It really depends on the firm and the region/country.

Like Sidi mentioned, BCG used to have this same pay per level structure, e.g. 1st year consultant and 2nd year consultant are paid the same salary, and only get salary increase when consultant gets promoted to Project Leader. Same for PL to Principal. During my time there, I got the same pay within the 2-year windows. However, recently BCG SEA has changed that to a year-on-year pay increase. Although the year-on-year increase in the role would be much smaller compared to the increase when you get the promotion. I know that Bain SEA has been giving year on year increments as well nowadays.

When you get promoted, in the previous pay scheme, it would be almost 50% from Associate to Senior Associate, 33% from Senior Associate to Consultant, 25% from consultant to PL, 20% from PL to Principal. The % is higher for junior roles because the base is smaller.

Best

Emily

Hey there,

It really depends on the firm and the region/country.

Like Sidi mentioned, BCG used to have this same pay per level structure, e.g. 1st year consultant and 2nd year consultant are paid the same salary, and only get salary increase when consultant gets promoted to Project Leader. Same for PL to Principal. During my time there, I got the same pay within the 2-year windows. However, recently BCG SEA has changed that to a year-on-year pay increase. Although the year-on-year increase in the role would be much smaller compared to the increase when you get the promotion. I know that Bain SEA has been giving year on year increments as well nowadays.

When you get promoted, in the previous pay scheme, it would be almost 50% from Associate to Senior Associate, 33% from Senior Associate to Consultant, 25% from consultant to PL, 20% from PL to Principal. The % is higher for junior roles because the base is smaller.

Best

Emily

Book a coaching with Ian

100% Recommendation Rate

233 Meetings

19,874 Q&A Upvotes

USD 289 / Coaching

Hi there,

Rise year-on-year isn't really there (unless they adjust everyone's salary as an explicit decision).

Salary increase is dependent on promotions (which occur every 2-4 years). Promotions generally result in a 30-60k increase (depending on role jump as well as country).

Also, not to be forgotten are yearly bonuses, which are around 15-35% of base salary - note, these are mostly gone this year due to COVID.

Hi there,

Rise year-on-year isn't really there (unless they adjust everyone's salary as an explicit decision).

Salary increase is dependent on promotions (which occur every 2-4 years). Promotions generally result in a 30-60k increase (depending on role jump as well as country).

Also, not to be forgotten are yearly bonuses, which are around 15-35% of base salary - note, these are mostly gone this year due to COVID.

Book a coaching with Khaled

100% Recommendation Rate

14 Meetings

1,053 Q&A Upvotes

USD 189 / Coaching

Hi there,

Consulting firms don't give yearly salary increase - Consultants get a raise whenever they get a promotion. Different companies have very different career ladders and every region has different salary ranges.

In Dubai, the jump from one level to another (below project manager level) is around USD 20-30k per year. Once you hit PM, the pay raise is around 30-50k per year.

I hope this helps.

Best,

Khaled

Hi there,

Consulting firms don't give yearly salary increase - Consultants get a raise whenever they get a promotion. Different companies have very different career ladders and every region has different salary ranges.

In Dubai, the jump from one level to another (below project manager level) is around USD 20-30k per year. Once you hit PM, the pay raise is around 30-50k per year.

I hope this helps.

Best,

Khaled

Book a coaching with Cesare

1 Meetings

11 Q&A Upvotes

USD 149 / Coaching

Hi!

15% to 25% increase in base, depending on how fast you are progressing, and your seniority (tends to slow down a bit going forward, also because progression become slightly slower in terms of pure notches).

Bonus also depend on your performance, but usually is calibrated so as, given the advancement (say 1 notch), it stays relatively constant as a % of your base. Tends to be a bit higher when you change label (e.g. analyst to associate, to manager etc.) but it really depends on company and geography beyonf these general info I have provided.

Hope it helps!

best

cesare

Hi!

15% to 25% increase in base, depending on how fast you are progressing, and your seniority (tends to slow down a bit going forward, also because progression become slightly slower in terms of pure notches).

Bonus also depend on your performance, but usually is calibrated so as, given the advancement (say 1 notch), it stays relatively constant as a % of your base. Tends to be a bit higher when you change label (e.g. analyst to associate, to manager etc.) but it really depends on company and geography beyonf these general info I have provided.

Hope it helps!

best

cesare

Hello

Based on my experience and assuming that gross salary for a junior consultant (e.g. BCG associate) is 100€ (excluding bonus)

  • Associate : 100€
  • Senior Associate : ~135€
  • Consultant : ~170-175€
  • Project Leader : ~260€
  • Principal : ~295€

So for MBB, the gross salary of a Principal can be ~3x the gross salary of an associate. Gaps for bonuses are bigger depending on performance, tenure, ...

Hope it helps.

David

Hello

Based on my experience and assuming that gross salary for a junior consultant (e.g. BCG associate) is 100€ (excluding bonus)

  • Associate : 100€
  • Senior Associate : ~135€
  • Consultant : ~170-175€
  • Project Leader : ~260€
  • Principal : ~295€

So for MBB, the gross salary of a Principal can be ~3x the gross salary of an associate. Gaps for bonuses are bigger depending on performance, tenure, ...

Hope it helps.

David

(edited)

Book a coaching with Clara

100% Recommendation Rate

55 Meetings

14,173 Q&A Upvotes

USD 229 / Coaching

Hello!

Totally disagree with previous answer.

MBB give a yearly salary increase.

For instance, as a BA, the bonus you get in your 1st year is added in the basis salary for your 2nd year, as Senior BA.

Best,

Clara

Hello!

Totally disagree with previous answer.

MBB give a yearly salary increase.

For instance, as a BA, the bonus you get in your 1st year is added in the basis salary for your 2nd year, as Senior BA.

Best,

Clara

(edited)

Yes, this is mostly true for McKinsey. But interestingly not for BCG. This was a very pleasing surprise for me when I switched from BCG to McKinsey. :) — Sidi on May 11, 2020

Book a coaching with Vlad

97% Recommendation Rate

406 Meetings

11,395 Q&A Upvotes

USD 239 / Coaching

Hi,

There is a slight annual increase for a 2nd and a 3rd year in each role at least at McKinsey. However, that's less important.

What's more important is how fast you get promoted. Usually, you spend 1-3 years in each role and then you get promoted, which gives you a 1.5-2x increase in salary depending on the role.

Best

Hi,

There is a slight annual increase for a 2nd and a 3rd year in each role at least at McKinsey. However, that's less important.

What's more important is how fast you get promoted. Usually, you spend 1-3 years in each role and then you get promoted, which gives you a 1.5-2x increase in salary depending on the role.

Best

(edited)

Book a coaching with Thomas

100% Recommendation Rate

23 Meetings

466 Q&A Upvotes

USD 149 / Coaching

Your bonus changes a lot (and quickly) throughout the ranks. Where analysts tend to receive a ±10% bonus, as a post-MBA you are more likely to get 20-40%. The salary growth itself is steep as you get promoted.

Your bonus changes a lot (and quickly) throughout the ranks. Where analysts tend to receive a ±10% bonus, as a post-MBA you are more likely to get 20-40%. The salary growth itself is steep as you get promoted.

Related case(s)

MBB Final Round Case - Smart Education

Solved 16.4k times
MBB Final Round Case - Smart Education Our client is SmartBridge, a nonprofit educational institution offering face-to-face tutoring services. The client operates in the US. The mission of SmartBridge is to help as many students as possible to complete studies and prevent that they drop from the school system, in particular in disadvantaged areas. The client is considering starting operations for its services in the Chicago area. They hired us to understand if that makes sense. Due to the nonprofit regulation, SmartBridge should operate on its own in the market, without any partnership. How would you help our client?
4.6 5 561
| Rating: (4.6 / 5.0)

Our client is SmartBridge, a nonprofit educational institution offering face-to-face tutoring services. The client operates in the US. The mission of SmartBridge is to help as many students as possible to complete studies and prevent that they drop from the school system, in particular in disadvant ... Open whole case

Cutting Carbs - Divestiture in the Electrical Power Market

Solved 1.5k times
Cutting Carbs - Divestiture in the Electrical Power Market Our client is Energy England, one of northern England’s largest electric utility companies. They were created over the past decade through an aggressive series of mergers of existing utility companies each specializing in a single energy generation source. Recently, the CEO has embarked on an initiative to return to the core of the business. She is looking to increase free cash flow and cash reserves in order to prepare the business for evolving future trends.   The following can be verbally provided to interviewee if asked: Energy England is made up of assets across the energy-generation space. These include coal, gas, nuclear, and wind We are looking to divest from just one of our previous acquisitions (i.e one target is sufficient) There are no specific goals/metrics – the client trusts our judgement
4.3 5 26
| Rating: (4.3 / 5.0)

Our client is Energy England, one of northern England’s largest electric utility companies. They were created over the past decade through an aggressive series of mergers of existing utility companies each specializing in a single energy generation source. Recently, the CEO has embarked on an initi ... Open whole case

Bain 1st Round Case – BlissOttica

Solved 1.4k times
Bain 1st Round Case – BlissOttica Our client is a BlissOttica, an Eyewear Manufacturer that is looking to reach a 10% increase in profits. How would you help our client?
4.5 5 66
| Rating: (4.5 / 5.0)

Our client is a BlissOttica, an Eyewear Manufacturer that is looking to reach a 10% increase in profits. How would you help our client? Open whole case