Did you know that the number of Management Consultants in the United States has increased every year since 2012, with the number reaching 734,000 consultants in 2020? Moreover, the revenue generated through management consulting has shown consistent growth since the 2010s, in both the U.S. and globally. So naturally, with the management consulting market thriving all over, it becomes worthwhile to initiate a conversation about consulting salaries and the scope of a career in management consulting.
Number of Management Consultants employed in the U.S (2012-2020)
But, what exactly is a management consulting? What does a Management Consultant do? You will find answers to all those questions, including management consulting salaries, related job roles, and the factors that affect the compensation.
Read on to find out!
What is Management Consulting?
Have you ever wondered what organizations like McKinsey & Company, The Boston Consulting Group, and Bain & Company exactly do? What’s common between all these top organizations is that they are management consulting firms. The list, however, is not exhaustive. Other eminent names in the management consulting arena include Deloitte, PricewaterhouseCoopers, Booz Allen Hamilton, EY, Accenture, and the like.
In simple terms, a management consulting firm helps clients solve problems by giving professional advice. It helps organizations improve business performance, identify potential risks, overcome challenges, maximize growth, and create value. In other words, management consulting involves the identification of solutions to various business problems and suggesting change implementation. While the well-known and big firms cover a vast lot of industries and offer IT consulting, strategy consulting, and operating consulting (among others), smaller firms focus on specific sectors such as design consulting and healthcare consulting.
What do Management Consultants do?
Management consultants most often deal with the C-suite level executives of organizations and help them boost the operations and overall performance. The consultant guides the company’s plan of action to achieve business objectives or helps in drawing up a strategy before the commencement of projects. The consultant’s job begins with interviewing employees and data collection to understand the client’s business. Depending on their level and expertise, consultants may also be responsible for data analysis and sharing actionable insights with the company.
Most consultants focus on a single area of expertise, for instance, management consulting. Overall, there are six types of consultancy roles one can lead. These include:
- Management Consultant
- Strategy Consultant
- Operations Consultant
- Human Resource Consultant
- Financial Advisory Consultant
- IT Consultant
Management Consulting Salaries in the U.S.
Becoming a management consultant requires a Bachelor’s degree in business or a related field such as finance, management, or analytic studies. Besides, candidates with certification, work experience, and the requisite skillset stand a better chance of being taken aboard by employers. Apart from that, soft skills such as interpersonal, critical thinking, and analytical skills, organizational skills, and management abilities are necessary to become a consultant.
The salary of Management Consultants in the U.S. depends on several factors, mainly:
Let’s take a look at each of the factors and how it impacts consulting salaries.
Average Base Salary of Management Consultants in the U.S.
In the United States, the average base salary for a Management Consultant is $US 88,463 per year.
|Base salary||US$ 61,000 – US$ 144,000|
|Bonus||US$ 2,000 – US$ 22,000|
|Profit-sharing||US$ 988 – US$ 14,000|
|Commission||US$ 4,000 – US$ 45,000|
|Total pay||US$ 61,000 – US$ 167,000|
Management Consultant Salary By Location
Management consulting salaries differ by location. Given below is the average salary of Management Consultants in the top 5 cities of the U.S.:
|City||Average Salary (per year)|
|Washington, DC||US$ 83,876|
|New York, NY||US$ 94,468|
|Chicago, IL||US$ 88,432|
|San Francisco, CA||US$ 107,513|
|Atlanta, GA||US$ 92,644|
Management Consultant Salary By Experience
Depending on your experience and the stage of your career (entry-level, early career, mid-career, experienced, late-career), you will be paid differently as a Management Consultant. Check out the details below:
|Career Stage||Years of Experience||Average Total Compensation (per year)|
|Entry-level||Less than one year||US$ 70,583|
|Early-career||1-4 years||US$ 81,782|
|Mid-career||5-9 years||US$ 102,079|
|Experienced||10-19 years||US$ 125,017|
|Late-career||More than 20 years||US$ 127,286|
Management Consultant Salary By Skillset
Management consulting salary is significantly affected by the individual’s skillset. Given below is a list of popular skills and how they affect the salary of a Management Consultant.
Popular Management Consultant Skills and their Impact on Salary
|Skill||Average Salary (per year)|
|Consulting Management||US$ 91,902|
|Project Management||US$ 91,592|
|Business Strategy||US$ 95,388|
|Business Analysis||US$ 88,015|
|Process Improvement||US$ 88,815|
Other popular management consulting skills that significantly impact the salary include Cloud Computing, Mergers and Acquisitions, Data Management, Product Marketing, Artificial Intelligence (AI), Logistics, Pricing, Team Leadership, Performance Management, and Database Management & Reporting.
Management Consultant Salary By Employer
Given below is a list of some of the chief recruiters of Management Consultants and the salary package they offer:
|Employer||Average Salary (per year)|
|Booz, Allen, and Hamilton||US$ 77,032|
|KPMG, LLP||US$ 84,399|
Other Consulting Job Roles
Besides Management Consultant, there are five other job roles open in the consulting sector. Given below are Strategy Consultant salary, Operations Consultant salary, HR Consultant Salary, Financial Advisory Consultant salary, and IT Consultant salary in the U.S.
|Role||Average Base Salary (per year)|
|Strategy Consultant||US$ 89,594|
|Operations Consultant||US$ 136,867|
|HR Consultant||US$ 61,326|
|Financial Advisory Consultant||US$ 66,377|
|IT Consultant||US$ 86,236|
What Should You Do Next?
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Further Your Management Consulting Career with upGrad
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To Wrap It Up
Businesses will always run into problems and require professional expertise to clean out the mess – a job that only Management Consultants can do. To tackle that, consulting firms offer functional expertise, objective opinion, and on-demand brains – qualities that only Management Consultants can embody.
A career in management consulting is rewarding, both in terms of professional advancement and payscale. With globally eminent organizations like Accenture, Deloitte, PricewaterhouseCooper, and the like among the top recruiters of Management Consultants, the field holds significant promise in the years to come.