What are bonuses so low in consulting?

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Feels like you’re asking why the partners give away any of the profits since they are taking the risk. Good question

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So much risk to be making 500K+/year....

When is what, why, how then?

likefunny

Because instead of asking "Why" you are asking "What" and due to that lack of detail the time spent by leaders in reviewing, editing, checking, etc is more than time spent selling which results in lower revenue and hence smaller bonuses :)

likefunny

What are you comparing to? Industry entry job are typically like 2pct so ?

Compared to every Fortune 100 company, which is majority of the companies consulting serves has better bonuses than consulting.

Comparing to banks and financial services

Banking / finance bonuses are significantly larger than other industries to properly incentivize risk/reward.

At a (relatively) low level, an increasingly large portion of your bonus becomes deferred cash / equity to incentivize appropriate levels of risk taking. If most of TC was comprised of salary, there would be little incentive to take risk and if most of TC was non deferred cash bonus, you would have people YOLOing again

I came from industry the bonuses are so much higher in consulting imo. I was also in sales on a salary so it really depends what specifically in industry you’re comparing to consulting

Need a Partner to chime in!

The consulting model is to build practices and skills needed in marketplace. They give you that in return for less pay.

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