I hear rumblings that hiring is slowing down but I also read articles like this.
Trying to assess what's going on as I'm putting together an application for a McK comms manager role, but I won't put too much time into it if hiring is dead.
Anyone know where in MBB hiring is slowing, what's still in demand, and does anyone have numbers to back it up or only anecdotes and their gut feelings? https://www.ft.com/content/678bc236-9008-4857-88b3-b7c875b7f965
Subject Expert
McKinsey, Bain and Boston Consulting Group have unveiled one of the biggest rounds of pay rises for new hires in more than two decades, as inflation, booming demand for advice and a tight labour market force the trio of consultancies to compete harder for talent.
The firms, which do not publicly disclose their pay scales, will increase annual base salaries for MBA graduates in the US from $175,000 to between $190,000 and $192,000, according to people familiar with the matter.
Top performers will be in line to receive more than $250,000 in their first year when performance-related and signing bonuses are included.
“The last time the consulting industry had this level of salary inflation was around the dot.com boom in 1999-2000,” said Fiona Czerniawska, chief executive of Source Global Research, a consulting sector analyst.
“Increasing salaries remains the most immediate and effective lever any professional service firm can pull if it wants to attract and retain high-calibre people,” she added.
Since a brief downturn at the onset of the pandemic in 2020, consultants have benefited from a surge in corporate demand for advice on digital transformations and M&A as companies reshape their businesses following the coronavirus crisis.
The mounting pressure on companies to reduce their environmental impact has also been a boon for management consultancies, which have rapidly built businesses to provide advice and strategy.
One in five firms had to turn away work because they did not have enough staff with the right skills, according to research by Source Global.
The decision by three of the most prestigious consultancies to push up pay underlines the pressure the financial services industry faces to attract new recruits. Last year, several major Wall Street banks, including JPMorgan Chase and Citigroup, lifted salaries for junior bankers. Corporate law firms have also been locked in an aggressive pay war.
Mentor
I mean, in reality, all of this is from BCGs decision making. The others wouldn’t have moved if BCG hadn’t moved first (they just are forced to follow). So it’s not an industry wide thing but a BCG specific thing. It could be either about talent retention at the company itself or competing for talent with other pipelines. Or a market signal to recruits so that your next crop of talent is the best.
Can someone post it here ?
Subject Expert
For MBAs, does this put MBB at, above, or below IB and FAANG offers? I’m not tracking where the other two industries are.
Consulting is always materially below IB and law (to a lesser extent) - but pretty much the next best. Not sure about big tech.