Given consulting firms will not spend as much on travel going forward, will they increase our salaries?

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That's a cute rookie question.

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Why would a firm increase our compensation because we are traveling less? As was pointed out in a previous post, clients pay for most of the travel. I do not see the correlation. In the case of work from home, I can see justification for a monthly stipend to reimburse for the additional cost of utilities and the fact that we have had to convert some of our personal living space into workspace

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LOLOLOLOLOLOLOLOLOLOLOLOLOLOLOL

likefunny

D1 is prob a partner.

likefunnysmart

For the record: it is the client who pays for travel...

likesmart

This might be the most naive question I’ve ever heard and I used to work with elementary school children

likefunny

Less analysts flying means more money for my business class trips. I hope you wfh too so we can absorb office rental costs into our pay. #truth

likefunny

Consultant 1, yes it does. I’ll be able to semi-retire sooner. I have my eye on a couple of high end villas in Spain.

likeuplifting

If by salary you mean partner dividends, then yes!

If anything, your pay should be cut because you no longer have to travel as much!

likefunny

Yes because everyone knows paying your employees less means a more productive and motivated work environment!

Stop caring only about the bottom line and start caring about your peoples’ quality of life.

Most likely our salaries will lower, in fact - we may actually start paying Deloitte (tm) taxes

likesmart

Well since expense overhead has nothing to do with fees generated for your time, no. And since fees also don’t directly impact your salary but rather a competitive market rate..... no.

How are you in a leading consulting firm advising major institutions?

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Fees are costs incurred by clients. Clients will demand more if goes down. Greater demand for consultants will tend to push wages. You’re a jerk and you’re a bad thinker

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Clients pay for travel. Do you seriously have no idea how engagements work? Wow

likesmart

I understand the question is flawed however the logic is there to increase salary. Client saves 15% on paying for travel fees, consultant shop raises hourly wages by XX% bc client likely will pay more bc already saving, then consultant shop pays worker a bit more!

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Travel fees are typically a separate line item that are billed in addition to professional fees, not as part of professional fees. The client is not going to pay higher professional fees because we are not travelling, So the firm is not going to collect more money. The firm will bill the same for professional fees regardless of travel.

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No

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The real question is should the salary be increased since we are working more hours? Yes. Will our salary be increased? No

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Plot twist.....With reduction of travel and add of WFH, they COLA adjust to home zip code and reduce salaries...

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That is more likely

Not all projects are pass through expenses.

Fixed T&E % of fees are generally net positive for the firm. Capped per diems are generally net negative for the firm.

I would argue that signifiant travel is one of the reasons consultants are generally paid more than their industry counterparts. If working from home because the new normal, I could see salaries come down.

smart

When you say pay comes down I assume you mean that pay raises will become stagnant as opposed to cutting people’s salaries?

🤣😂🤣 man sure can dream.

Insert Drake lyric here

workin on the weekend like usual

likefunny

Let’s discuss the pros and cons of capitalism...

It’s called Time and Expense...plz fix

In defense of OP, there are significant amounts of money spent by firms internally on travel that’s not reimbursed by the client as a pass through. Everything from travel for training, client pitches, workplace conventions, etc. this may be what the OP is referring to.

Part of why I joined consulting is I enjoy the travel and I saw per diems and hotels as a monetary benefit. I saved a lot on money on food and actually didn’t even have a permanent address since I was on the road so much. If salaries lower I will definitely be looking for another career

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