Consulting ranks over Finance and Technology as the preferred post-MBA function, primarily from the high median base salary the role attracts. In addition to guaranteed compensation, the responsibility, travel & networking opportunities, and the interesting clients the consultants serve, balances the compensation vs. meaning conundrum that most professionals face in their career.
In this deep dive into career options in Consulting and top 20 MBA programs for a promising Consulting career, we cover:
• Opportunities in a Consulting Career and MBA
• Salary and Career Progression – Consulting Career (McKinsey vs. BCG vs. Bain)
• Consulting Hiring Trends in the United States
• Pandemic and Global Hiring Trends in Consulting
• Top 5 MBA Programs for Consulting Placement - Percentage
• Top 20 MBA Programs for Consulting Placement – Total Median Salary
Opportunities in a Consulting Career and MBA
Top MBAs with a stringent admission process and a customizable curriculum with emphasis on developing leadership, interpersonal and communication skills ensure that the professionals returning or entering the consulting industry have experienced a holistic personal and professional learning curve. The trend was only validated in the 2021 GMAC corporate survey confirming that 56% of the recruiters in consulting believe that a Business Graduate degree is essential to fast-track to a senior position in their organization, with 82% agreeing that the degree holders earn more than others.
Salary and Career Progression – Consulting Career (McKinsey vs. BCG vs. Bain)
For the 3 Big Cs - Bain & Company, BCG, and McKinsey – an entry-level role can earn a base salary of $85,000 and a total salary of up to $120,000 excluding relocation and signing bonus. The 3-5 year experience range when most candidates consider an MBA is when things get interesting. The base salary jumps to $165,000, and the total median salary, including performance and sign-on bonus, takes the total remuneration to a quarter of a million-dollar for MBA candidates entering a consulting firm from reputed programs.
| Experience | McKinsey | BCG | Bain |
|---|---|---|---|
| Undergrad | Business Analyst | Associate | Associate consultant |
| MBA | Associate | Consultant | Consultant |
| Intermediate (2-4 years) | Junior associate | Consultant | Senior Associate Consultant |
| Senior (4-6 years) | Associate | Consultant | Consultant |
| Middle management (6-10 years) | Engagement manager | Project leader | Case team leader |
| Upper management (10-15 years) | Associate principal | Principal | Principal |
| Executive (15+) | Partner | Partner | Partner |
What is the median earning potential for a McKinsey Consultant (Business Analyst to Partner)
At McKinsey, the transition is from Business Analyst to an Associate role that an MBA candidate typically receives to Engagement Manager to Associate Principal to Junior Partner/Principal and finally a partner role where the total median salary crosses 1.3 million USD.
| McKinsey | Base Salary | Bonus | Total Median Salary |
|---|---|---|---|
| Business Analyst | $85,000 | $20,000 | $105,000 |
| Associate | $165,000 | $65,000 | $230,000 |
| Engagement Manager | $252,000 | $60,000 | $312,000 |
| Associate Principal | $250,000- $320,000 | $120,000- $220,000 | $370,000 - $540,000 |
| Junior Partner/Principal | $350,000 - $450,000 | $350,000 - $550,000 | $700,000 - $100,0000 |
| Partner | $572,000 - $1,000,000 | $252,000 - $300,000 | $844,000 - $1,300,000 |
What is the median earning potential for a BCG Consultant (Associate to Partner)
At BCG, the candidate starts with an Associate role. The Consultant role that an MBA typically joins takes the total median base salary to $235,000 to $240,000 range. The growth to Project Leader, Principal, and finally a Partner role levels the playing field to a million USD as total median salary.
| BCG | Base Salary | Bonus | Total Median Salary |
|---|---|---|---|
| Associate | $85,000 | $21,800 | $101,800 |
| Consultant | $165,000 - $170,000 | $70,000 | $235,000 - $240,000 |
| Project leader | $247,000 | $74,100 | $291,100 |
| Principal | $255,000 | $70,000-$80,000 | $343,834 |
| Partner | $400,000 | $400,000 - $600,000 | $800,000 - $1,000,000 |
What is the median earning potential for a BAIN (Associate Consultant to Partner)
At BAIN, the salary of an Associate Consultant – the entry-level position is at par with the median base of McKinsey and BCG, with the total median crossing $105,000. For an MBA, the position offered is that of a Consultant that again attracts a $165,000 base salary with the total cross $230000, and the Partner role receives a neat $1.15 million USD as total salary.
| Bain | Base Salary | Bonus | Total Median Salary |
|---|---|---|---|
| Associate Consultant | $85,000 | $20,300 | $105,300 |
| Consultant | $165,000 | $66,250 | $231,250 |
| Case Team Leader | $248,000 | $62,000 | $310,000 |
| Principal | $250,000-$320,000 | $40,000 | $250,000 - $400,000 |
| Partner | $600,000 - $850,000 | $300,000 | $900,000 - $1,150,000 |
The top 3 consulting companies offer similar entry-level base pay ($85,000), with MBAs joining the organization typically attracting a strong $165,000 base salary.
Consulting Hiring Trends in the United States
The US and Europe jointly account for 80% of the $253 billion consulting industry, evenly split between them. 2021 kept the industry in a growth trajectory, mostly with digitization services that contributed significantly towards the 6.1% growth and maintaining a 1.8 million-strong workforce.
The American Consulting Dream – What Lies Ahead?
According to GMAC’s Corporate Recruiter Survey, the median annual base starting salary for MBAs at US companies is $115,000. The report also found that 94% of US recruiters are projected to hire MBAs compared to 86% in Europe and 73% in Asia-Pacific.
59% of the recruiters from the US think that the demand for MBAs will be stable over the next five years, with only 39% believing that there will be growth over the same period – a sign that perhaps the pivot to consulting, facilitated by top MBA programs, is reaching saturation.
Pandemic and Global Hiring Trends in Consulting
The pandemic has reshaped the world and the global consulting industry too. From $283 billion in 2019, the valuation shrunk to $251 billion. Inevitably the shrinkage of the industry immediately impacted hiring trends. In 2020, 92% of respondents were planning to hire MBAs, but only 80% did so. However, the overall global projections of hiring MBAs are back to pre-pandemic levels, at 91%.
Top 5 MBA Programs for Consulting Placement - Percentage
Yale School of Management earned the #1 rank for placing the most in the Consulting Industry – 37% joining external consulting while 8% remaining with internal/strategy consulting. Do note that 24% have pre-MBA experience in Consulting. Nevertheless, the 3% leadership was only challenged by Tuck at 42% and Darden at 41%, completing the 3 Best MBA programs for consulting placements. Kellogg and Ross completed the top 5 list.
| School | Consulting |
|---|---|
| Yale School of Management | 44.5% |
| Dartmouth College Tuck | 42% |
| Darden School of Business | 41% |
| Kellogg School of Management | 36% |
| Ross School of Business | 35% |
Top 20 MBA Programs for Consulting Placement – Total Median Salary
Despite an impressive percentage placed into Consulting when it came to remuneration, NYU Stern School of Business ($195,619) led the list with Harvard, Booth, Wharton, MIT, UCLA Anderson, Columbia, and even Johnson Graduate School of Management playing spoilsport against Darden and Yale. Only Tuck could withstand the competition and earned the unique ranking of #2 in % placed and in compensation as well for the consulting industry.
Kellogg and Ross put up a good fight at #4 and #5, where $195,000 was the number to beat as 7 top schools earned the same total median salary.
The Sign-on Bonus was a big factor for Stern ($30,619) and Johnson Graduate School of Management ($31,081) to feature in the top 10 list. For the latter, it compensated the base salary of $154,608. If you go beyond the top 10 and explore the 30 best MBA programs in the US, the median total salary in Consulting is $189,375.
| School | Percent of Total Hires | Median Total Salary |
|---|---|---|
| NYU Stern School of Business | 32% | $195,619 |
| Dartmouth College Tuck | 42% | $195,000 |
| Harvard Business School | 24% | $195,000 |
| Kellogg School of Management | 36% | $195,000 |
| Ross School of Business | 35% | $195,000 |
| Stanford Graduate School of Business | 15% | $195,000 |
| University of Chicago Booth School of Business | 34% | $195,000 |
| University of Pennsylvania Wharton Business School | 27% | $195,000 |
| MIT Sloan School of Management | 31% | $190,000 |
| UCLA Anderson School of Management | 25% | $190,000 |
| Columbia Business School | 34% | $188,750 |
| Yale School of Management | 45% | $187,500 |
| Johnson Graduate School of Management | 30% | $185,689 |
Related Service
- F1GMAT's Career Planning Service with Atul Jose, the Founding Consultant of F1GMAT (Choose your post-MBA Career and learn how to frame your goal)
- Ask Atul Jose (Free Initial Consulting)
Related Book
- Winning MBA Essay Guide (Top MBA Programs - Curriculum Analysis, Tips on Creating Authentic Narratives and over 120+ Sample Essays)
References
