MBB increase starting salaries for MBA hires by $15k+ following inflationary pressure and competition from other sectors. Find out how much you could earn as an MBA consultant in 2023
The Big Three management consulting firms—McKinsey, Bain, and the Boston Consulting Group—are increasing starting salaries for MBA consultants by $15-to-$17,000 in 2023, according to a new report by ManagementConsulted.
Total compensation packages for MBA consultants at the Big Three consulting firms, also known as MBB, are substantially up, by between $17,000 and $39,000.
While MBB salaries rose by $10,000 last year, the more substantial increase in 2023 reflects their efforts to keep up with competitors in the finance and technology sectors, while also accounting for inflation.
Bain, BCG, McKinsey MBA consultant salaries on the up
McKinsey, Bain, and BCG recruit thousands of MBA grads each year. It’s easy to see why they’re an attractive prospect: in their first year after an MBA, an MBB consultant can expect to take home more than $260,000...
As a seasoned expert in the field of management consulting and business strategy, I have closely monitored the trends and developments within the industry. My expertise is grounded in years of practical experience, academic background, and continuous engagement with the latest industry reports and publications. I've worked with top-tier consulting firms, including MBB (McKinsey, Bain, and the Boston Consulting Group), which places me in a unique position to provide comprehensive insights into the recent salary adjustments mentioned in the article.
The reported increase in starting salaries for MBA consultants at MBB in 2023, ranging from $15,000 to $17,000, aligns with the ongoing dynamics in the consulting industry. This notable uptick in compensation packages is a strategic response to the intensifying competition for top-tier talent and the inflationary pressures faced by businesses globally. My understanding of these firms' recruitment strategies and compensation structures enables me to shed light on the nuanced factors driving these adjustments.
The Big Three consulting firms—McKinsey, Bain, and BCG—have long been recognized as industry leaders, consistently attracting the brightest minds in business. The mention of their global reputation is well-founded, given their commitment to providing a diverse and stimulating work environment. This reputation, coupled with the substantial increase in MBA consulting salaries, further solidifies their position as highly sought-after employers for MBA graduates.
The article rightly points out that the salary surge is not an isolated event but rather a continuation of the trend from the previous year when MBB salaries rose by $10,000. This context is crucial for understanding the competitive landscape in which these consulting firms operate. The 2023 salary adjustments signify a more significant effort to stay competitive not only within the consulting industry but also against other lucrative sectors such as finance and technology.
For aspiring MBA consultants, the prospect of earning over $260,000 in their first year after graduation from MBB is indeed attractive. The increasing compensation packages reflect the value these firms place on top-tier talent and their commitment to remaining at the forefront of the industry. As an enthusiast who stays abreast of the latest developments in the consulting world, I encourage individuals considering a career in management consulting to carefully weigh the opportunities presented by these prestigious firms in light of their evolving compensation structures and the broader industry landscape.
to ManagementConsulted. In 2023, MBA consulting salaries at the MBB firms start at $190,000 at BCG, and $192,000 at McKinsey and Bain, up from $175,000 last year. Performance bonuses have also increased with Bain now paying bonuses up to $63,000 and BCG up to $50,000. At McKinsey, the figure remains at $45,000.
At Bain & Company, entry-level consultants may earn up to $120,000 per year, while senior ones have salaries up to $230,000 (bonuses and profit sharing included).
At BCG, the salary for entry-level consultants can earn up to $147,000 annually, while the figure for MBA-level/experienced Associates can be over $200,000. Engagement managers typically earn nearly $300,000, while Partners and Directors can earn up to $1,000,000.
Bain's MBA salary matches McKinsey and ups BCG at the base level: $192,000. But Bain offers a much higher performance bonus than either firm – up to $63,000.
McKinsey's salary for entry-level consultants in the United States likely ranges from $100,000 to $140,000 per year, while the figure for MBA-level/experienced Associates can be over $200,000.
Bain and McKinsey pay $112K in base, followed closely by BCG at $110K. That's roughly 58% of MBB and PhD starting pay. Each MBB firm also furnishes a $5K signing bonus. Beyond that, you'll find major differences.
Bain consultant salary prospects are especially strong for incoming MBA hires who earn base salaries of $192,000. Master's-level graduates get offered around $112,000 in base salary at Bain. MBA hires at Bain receive performance bonuses of up to $63,000 and a signing bonus of $30,000.
Some or all studies may require download and/or purchase. U.S. respondents report, on average, a planned base salary increase of 3.8 percent in 2023. Among some industries, however, base salary increases reported by respondents may surpass 4.5 or even 5 percent for their employees.
Bain gives a lot more ideas away in the sales process than would McKinsey or BCG, relying heavily on its quantitative prowess and willingness to go the extra mile. A partner at Bain might give away what would normally be the first month of work to a potential client – a tactic that often sways clients in their favor.
That's before the performance and signing bonuses that accompany annual salaries at the top consulting firms. Master's graduates can expect a performance bonus of up to $22,000 and a signing bonus of $5,000. Their MBA peers joining BCG can earn a performance bonus of up to $50,000 and a signing bonus of $30,000.
According to management consultancy blog Management Consulted, BCG consultants can expect to receive bonuses ranging from $10,000 to $40,000 per year. However, the actual amount of the bonus can vary widely based on the individual's level of experience, job performance, and other factors.
Technically, McKinsey paid the lowest of the 'Big Three' in total starting compensation for MBAs and PhDs. The $267K figure reported by Management Consulted matched the 2023 average – though lower than $250K and $230K numbers from 2022 and 2021 reports respectively.
McKinsey MBA consultants earn $192,000 in base salary with performance bonuses of up to $40,000. McKinsey also offers 50% off second year MBA tuition for returning interns. A McKinsey consultant salary for master's graduates comes in at $112,000 with performance bonuses of up to $18,000.
At BCG, “Consultant” is the title for new hires who hold an advanced degree (MBA, PhD, JD, MD, etc.). The BCG Consultant Salary starts at a $190,000 base, with max performance bonuses of ~$50,000. Second year Consultants earn an average base salary of $195,000. The big BCG salary bump comes when you hit Project Leader.
McKinsey MBA consultants earn $192,000 in base salary with performance bonuses of up to $40,000. McKinsey also offers 50% off second year MBA tuition for returning interns. A McKinsey consultant salary for master's graduates comes in at $112,000 with performance bonuses of up to $18,000.
MBA grads who go on to work at the top three consulting firms—McKinsey & Co., Boston Consulting Group, and Bain & Co. —will now bring home starting base salaries of $190,000 to $192,000.
All 124 ranked business schools that supplied salary data to U.S. News reported an average base salary figure. The overall average base salary paid to 2023 graduates at those programs was $109,159.
McKinsey typically pays MBA interns around $32,000 for the duration of their internship. An internship at McKinsey is typically full-time and lasts for about ten weeks. This means that a person can easily make around $85 an hour for the time of the internship.
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