Why do Big 4 in Australia have relatively low (junior/mid-level) salaries? In the US, the Big 4 seem to pay better than boutiques, but in Australia it seems to be the reverse; I hear that grad salaries for boutiques like Quantium or Oliver Wyman are at least 10k more than what a Big 4 offers.

And the second question is, why do people stick around for the lower salaries and longer working hours at a Big 4 when boutiques offer better compensation and working conditions? What am I missing?

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Bigger market, bigger clients - also we get things like Medicare, super, longer annual leave, sick leave, parental leave etc which isn’t mandatory in the US

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They have far less staff, charge far more than big 4 and less overheads - in turn bigger profit margins and better salaries.
The only potential downside is that it’s harder to get into and you can be cut far quicker if needed. Big 4 ultimately have a bunch of ‘meat and potato’ flavoured engagements with gov etc that keen bringing in a healthy stream of work at lower rates.

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Way more spots at B4 compared to smaller but higher paying shops for one

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Same in NZ. B4 pay around 10 to 15k less than smaller firms but the name on your CV can get you places

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The interview process to get an offer is brutal at Oliver Wyman (grad and experienced hire), and they can afford to pay better as they take relatively higher.

In return, their skill set tends to be more developed, will be deployed to more complex projects with smaller teams that have been sold out for high amounts, and work longer hours. The better question would be if the boutiques pay better per hour worked.

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Different market, the US is much bigger

Oh okay, that explains it then, I'm not too familiar with the US market.

They are known brands. Great for long-term career prospects as long as the firm avoids a PwC scandal…

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