salary benchmarking report 2013 - top …€¢ the demographics of the survey’s respondents and...

Salary Benchmarking Report 2013

A comprehensive study of remuneration levels within the IT & Management Consulting sectors

Sponsored by

http://www.top-consultant.com/

http://www.mindbench.com/

Contents

18B Charles Street, Mayfair, London, W1J 5DU ©2013 Top-Consultant.com. All rights reserved.

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• Introductory remarks

• The Demographics of the Survey’s Respondents and Top-Consultant.com’s

Consulting Readership

• Overview of Consulting Salaries and Trends

• Salary Benchmarking Data: 2007 vs 2009 vs 2011 vs 2013

• Salary levels by Seniority and Type of Consulting

- Junior Consultants

- Senior Consultants

- Managers

- Senior Managers/ Principals

- Partners

• Commentary provided by Mindbench

• About our sponsors

• Contact us

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Introductory Remarks


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This is the fifth edition of this biannual report and is built on data gathered from 734 respondents through the late summer of 2013. I extend my thanks to all those who contributed. The report includes basic salary, bonus levels and benefits individually reported by level of seniority across the management consultancy profession, with break-out data for different areas of consulting. Continuing the format of the 2011 report, this year’s findings are compared closely with results from previous surveys to better illustrate the changes to reward that practicing consultants have faced through the recession. The 2011 report evidenced an improving situation over the reward stagnation that many consultants had recorded in 2009 with pay rises recovering and more consultants receiving bonuses and promotions.

The headline findings this year indicate that matters haven’t moved on significantly since then. The junior to mid seniority levels continue to be squeezed most with the frequency and sizes of pay rises and bonuses remaining low. My reading of the data is that the pick-up in hiring across the profession before the Eurozone crisis was reflected in the 2011 results but since then the pace of reward growth has fallen back. The significant increase in activity across the profession that we are now seeing has not yet filtered through to consultants’ pockets but with many consulting firms now ramping up recruitment and struggling to meet headcount targets better times must be to come. Let’s hope so. Bryan Hickson – Managing Director Top-Consultant.com






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Sponsor

Mindbench - the leading specialist recruitment firm for management consultancy

www.mindbench.com


The Demographics of the Survey’s Respondents and Top-Consultant.com’s Consulting Readership


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734 responses for this survey were collected during July and August of 2013. Respondents’ Profile Conducting this survey has allowed us to collect demographic data about our readership that may be of great interest to recruiters seeking to attract consulting staff through Top-Consultant.com. Of note is the fact that 86% of the respondents are currently employed as Management Consultants and the results presented in this report are based on the data submitted only by those who are currently employed within the profession and excludes data from those looking to move into consulting. Whilst most responding consultants were from the full-service global brands such as Accenture, Deloitte, EY and PwC, niche and top-tier firms such as McKinsey & Company, Bain, Booz & Co, A.T. Kearney were also represented.

As job titles through the consulting profession vary depending on the employer for clarity we use the following definitions throughout the report: Junior Consultant – 1-3 years’ consulting experience Senior Consultant – 3-5 years’ consulting experience Manager – 5-9 years’ consulting experience Principal – 9-12 years’ consulting experience Partner – no definition required!




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Seniority It is interesting to record that Top-Consultant.com’s reach is significant into all levels of seniority. Of note was the marked increase in responses from Partners this year.

Consulting Type We asked respondents to identify the primary type of consulting work that they undertook, giving interesting insights into the types of consultants recruiters can reach through Top-Consultant.com.

Business Transformation

/ Change Management,

29%

Strategy, 22% Project /

Programme Management,

16%

Business Process

Improvement, 15%

Technology, 12%

HR Consulting, 4%

Outsourcing, 2%

Junior Consultant /

Consultant, 11%

Senior Consultant,

14%

Manager, 19%

Senior Manager / Principal, 28%

Partner, 28%




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Sector Similarly respondents were asked to record the industry sectors that they specialise in. Multiple choices were allowed hence the total exceeds 100.

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Public Sector, 31%

Telecoms, Media&

Entertainment, 28%

Energy & Utilities, 28%

Financial Services (Retail Financial Services focus),

27%

Retail / Consumer

Goods, 27%

Healthcare &

Pharma, 20%

Financial Services (Investment

Banking/Capital Markets focus),

18%

Distribution / Logistics, 15%

Automotive / Aerospace, 14%

Transportation, 12%




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http://recruiters.top-consultant.com/uk/clientcentre/choosepackage.aspx


Overview of Consulting Salaries and Trends


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Below we present the aggregate data for the UK consulting industry, illustrating the average packages for those at the entry-level are around £44k after a couple of years of employment and can rise to an average of £168k for those who have worked their way up to Partner.

On the following pages we present core survey data from the 2007, 2009, 2011 and 2013 reports detailing the changes to the size and frequency of pay rise, bonus and promotion awards over the last 7 years.

£0

£20,000

£40,000

£60,000

£80,000

£100,000

£120,000

£140,000

£160,000

£180,000

JuniorConsultant

SeniorConsultant

Manager SeniorManager /Principal

Partner

TOTAL REMUNERATION BY LEVEL

Bonus

Benefits

Basic Salary


Salary Benchmarking Data: 2007 vs 2009 vs 2011 vs 2013 Little change in basic + bens + bonus has been recorded in last 2 years

18B Charles Street, Mayfair, London, W1J 5DU ©2013 Top-Consultant.com. All rights reserved. 9

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2013 Basic Salary Basic + Bens

Basic + Bens + Bonus

Average pay rise for those who received a pay rise

Percentage receiving no pay rise

Average bonus for those who received one

Percentage receiving no bonus

Percentage who received a pay rise as part of a promotion

Junior Consultant / Consultant £38,669 £42,943 £44,645 5.3% 61.8% 7.1% 41.8% 29%

Senior Consultant £54,362 £58,678 £63,074 4.6% 37.6% 10.7% 26.0% 39%

Manager £69,801 £80,654 £85,678 3.7% 42.5% 9.6% 27.6% 29%

Senior Manager / Principal £95,191 £106,149 £115,744 3.9% 48.8% 12.2% 20.9% 14%

Partner £133,364 £148,597 £168,745 7.1% 46.7% 22.4% 37.1% 15%

Weighted Averages: 4.9% 46.0% 20.3% 27.1% 20.7%

2011



Manager £68,839 £75,028 £81,895 4.8% 37.5% 10.0% 25.0% 35%


Partner £124,596 £137,697 £167,950 9.4% 48.5% 24.3% 33.8% 10%


2009



Manager £74,642 £81,378 £90,344 3.6% 47.1% 12.0% 30.2% 19%


Partner £135,684 £148,923 £177,190 1.5% 53.8% 20.8% 57.5% 11%


2007



Manager £66,000 £72,072 £79,662 5.3% 23.2% 11.5% 30.9% 32%


Partner £123,600 £136,578 £167,602 7.6% 31.1% 25.1% 22.6% 17%



Salary Benchmarking Data: 2007 vs 2009 vs 2011 vs 2013 Pay rises have been quite high for those who have received them…


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Manager £69,801 £80,654 £85,678 3.7% 42.5% 9.6% 27.6% 29%


Partner £133,364 £148,597 £168,745 7.1% 46.7% 22.4% 37.1% 15%


2011



Manager £68,839 £75,028 £81,895 4.8% 37.5% 10.0% 25.0% 35%


Partner £124,596 £137,697 £167,950 9.4% 48.5% 24.3% 33.8% 10%


2009



Manager £74,642 £81,378 £90,344 3.6% 47.1% 12.0% 30.2% 19%


Partner £135,684 £148,923 £177,190 1.5% 53.8% 20.8% 57.5% 11%


2007



Manager £66,000 £72,072 £79,662 5.3% 23.2% 11.5% 30.9% 32%


Partner £123,600 £136,578 £167,602 7.6% 31.1% 25.1% 22.6% 17%



Salary Benchmarking Data: 2007 vs 2009 vs 2011 vs 2013 …but the number of consultants receiving no pay rise is at a record high especially amongst Junior Consultants


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Manager £69,801 £80,654 £85,678 3.7% 42.5% 9.6% 27.6% 29%


Partner £133,364 £148,597 £168,745 7.1% 46.7% 22.4% 37.1% 15%


2011



Manager £68,839 £75,028 £81,895 4.8% 37.5% 10.0% 25.0% 35%


Partner £124,596 £137,697 £167,950 9.4% 48.5% 24.3% 33.8% 10%


2009



Manager £74,642 £81,378 £90,344 3.6% 47.1% 12.0% 30.2% 19%


Partner £135,684 £148,923 £177,190 1.5% 53.8% 20.8% 57.5% 11%


2007



Manager £66,000 £72,072 £79,662 5.3% 23.2% 11.5% 30.9% 32%


Partner £123,600 £136,578 £167,602 7.6% 31.1% 25.1% 22.6% 17%



Salary Benchmarking Data: 2007 vs 2009 vs 2011 vs 2013 Average bonuses at Junior Consultant to Manager levels remain low


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Manager £69,801 £80,654 £85,678 3.7% 42.5% 9.6% 27.6% 29%


Partner £133,364 £148,597 £168,745 7.1% 46.7% 22.4% 37.1% 15%


2011



Manager £68,839 £75,028 £81,895 4.8% 37.5% 10.0% 25.0% 35%


Partner £124,596 £137,697 £167,950 9.4% 48.5% 24.3% 33.8% 10%


2009



Manager £74,642 £81,378 £90,344 3.6% 47.1% 12.0% 30.2% 19%


Partner £135,684 £148,923 £177,190 1.5% 53.8% 20.8% 57.5% 11%


2007



Manager £66,000 £72,072 £79,662 5.3% 23.2% 11.5% 30.9% 32%


Partner £123,600 £136,578 £167,602 7.6% 31.1% 25.1% 22.6% 17%



Salary Benchmarking Data: 2007 vs 2009 vs 2011 vs 2013 And promotions have dipped again following a rise in 2011


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Manager £69,801 £80,654 £85,678 3.7% 42.5% 9.6% 27.6% 29%


Partner £133,364 £148,597 £168,745 7.1% 46.7% 22.4% 37.1% 15%


2011



Manager £68,839 £75,028 £81,895 4.8% 37.5% 10.0% 25.0% 35%


Partner £124,596 £137,697 £167,950 9.4% 48.5% 24.3% 33.8% 10%


2009



Manager £74,642 £81,378 £90,344 3.6% 47.1% 12.0% 30.2% 19%


Partner £135,684 £148,923 £177,190 1.5% 53.8% 20.8% 57.5% 11%


2007



Manager £66,000 £72,072 £79,662 5.3% 23.2% 11.5% 30.9% 32%


Partner £123,600 £136,578 £167,602 7.6% 31.1% 25.1% 22.6% 17%



Salary levels by Seniority and Type of Consulting


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Junior Consultants


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Average pay rise for those who received a pay rise 5.3%

Percentage receiving no pay rise 61.8%

Average bonus for those who received one 7.1%

Percentage receiving no bonus 41.8%

Percentage who received a pay rise as part of a promotion in the last year 29.1%

£30,000

£35,000

£40,000

£45,000

£50,000

£55,000

Average Strategy PPM BusinessTrans

BPI IT/Tech

JUNIOR CONSULTANTS' REMUNERATION BY FUNCTION

Bonus

Bens

Basic Salary

The percentage of Junior Consultants who received no pay rise has risen to 61% this year; it was 48% when we last ran the survey. Bonus frequency and size remain low at this seniority level and pay-rises gained through promotion have dropped from 51% to just 29%. Junior Consultants who focus on strategy consulting average just over £50k reward with this figure falling to just under £39k for those who specialise in Business Process Improvement consulting.


Senior Consultants


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£50,000

£52,000

£54,000

£56,000

£58,000

£60,000

£62,000

£64,000

£66,000


BPI IT/Tech

SENIOR CONSULTANTS' REMUNERATION BY FUNCTION

Bonus

Bens

Basic Salary






The average pay rises for those Senior Consultants who received them was the lowest on record at just 4.6% and over a third of consultants at this level received no pay rise. Bonuses averaged 10.7% for those who received them, largely unchanged from the 2011 figure. IT/Technology focused Senior Consultants enjoy the highest reward levels averaging £64,932


Managers


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Average reward for Managers has increased 4.6% from the 2011 figure to £85,678. Pay rises for those who received them (57.5%) have dropped back in this survey to 3.7% which is the lowest percentage of any seniority level. Strategy focused Managers can expect the highest rewards while Business Transformation Managers receive the lowest.

£60,000

£65,000

£70,000

£75,000

£80,000

£85,000

£90,000


BPI IT/Tech

MANAGERS' REMUNERATION BY FUNCTION

Bonus

Bens

Basic Salary


Senior Managers / Principals


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£80,000

£85,000

£90,000

£95,000

£100,000

£105,000

£110,000

£115,000

£120,000

£125,000

£130,000


BPI IT/Tech

PRINCIPALS' REMUNERATION BY FUNCTION

Bonus

Bens

Basic Salary






Average reward has grown only marginally in this poll since 2011 levels for Principals – up just 0.4% to £115,744. Excepting Junior Consultants, Principals were most likely not to have received a pay rise in the last year. Average bonuses are steady at 12.2% and this is the seniority level where consultants are most likely to receive a bonus (79.1%).


Partners


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£100,000

£110,000

£120,000

£130,000

£140,000

£150,000

£160,000

£170,000

£180,000

£190,000

£200,000


BPI IT/Tech

PARTNERS' REMUNERATION BY FUNCTION

Bonus

Bens

Basic Salary






Average total reward has, once more, risen only slightly over 2011 levels – up just 0.47% to £168,745. For the 53% of Partners who received a pay rise, 7.1% was the highest enjoyed across all levels. Bonuses were highest at 22% of salary but 37% of Partners received no bonus. Partners of PPM practices can expect highest rewards and BPI focused Partners the lowest. Please note that while there are of course Partners earning more than £200k - £300k, as well as a small number of Senior Partners earning £800k+, these consultants don’t typically take part in surveys.


Commentary by Mindbench


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Average salary levels for management consultants at all levels haven’t increased significantly in the UK for 6 years. During the recession firms’ profit margins were under pressure and it was hard to justify salary increases. At the same time, the more junior consultants have experienced additional salary pressure with so many talented graduates looking for a relatively small number of roles. The effects of general inflation (and of rising London house prices) on the cost of living over this extended period is significant, and management consulting has become less lucrative than some other options available. Industry salaries are in many cases no longer lower than what is being offered by the consultancies, and can potentially give better work-life balance. We have for example witnessed major banks developing their own consulting divisions

and offering roles with similar base salaries but better bonus’ and benefits than consultancy firms would offer at the same salary. We have also witnessed increased interest by management consultants in relocating overseas in many cases for the better salaries on offer – either to larger economies which are experiencing better growth such as the US and Germany, or to fast growing emerging economies with lower tax such as Switzerland, the USA or Singapore. With the UK economy now returning to moderate growth, and hiring by consulting firms starting to pick up, we could expect tangible increases in consultants’ salaries over the coming years. Richard Stewart Managing Director Mindbench October 2013


Whether you are a Manager considering your options, a graduate who is new to the industry, or a Partner considering how to grow your team, Mindbench could help you realise your objectives..


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Sponsor

- M

indbench

• Mindbench is the leading specialist recruitment firm for the management consultancy sector

• We partner over the long term with our consulting clients which include the top strategy consulting firms, the “Big 4”, and boutique specialist firms

• We support FTSE 100, private equity, government departments and charities and companies in hiring consulting talent on a permanent or project basis

• We cover all consulting functions and sectors, from Consultant to Partner grades

• Mindbench works internationally and we support recruitment initiatives through the UK, Europe, Middle East, Americas and Asia

If you are a candidate interested in discussing your options please upload your CV at www.mindbench.com If you are a client and potentially interested in hiring for your team please contact our Managing Director, Richard Stewart on [email protected] We are proud to be associated with this salary benchmarking report and hope that its findings are useful for you..

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mailto:[email protected]

Contact the team at Top-Consultant.com


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onsultant

Find out how your firm could attract consulting hires by: • Advertising on our websites • Advertising in our consultancy-

focused publications • Accessing our CV databases • Running bespoke careers events • Posting your news to our readers • Have us generate leads for your

services. Call to speak to one of our team For more information on Top-Consultant’s services or if you have any questions about the data in this report please contact Bryan Hickson on 0207 667 6880 or email him on [email protected].

Request a brochure Alternatively, please feel free to request a PDF brochure detailing our services. You may do this online by visiting this weblink. Email us Feel free to email our Customer Services team with any questions you may have using this address [email protected].







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salary benchmarking report 2013 - top …€¢ the demographics of the survey’s respondents and...

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