2007 salary report

8/8/2019 2007 Salary Report

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Salary Benchmarking Report 2007

18b Charles Street | Mayfair | London | W1J 5DU | +44 (0) 207 667 6880

A comprehensive study of remuneration levelswithin the IT consulting

and management consulting sectors
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The report you are about to read is the most comprehensive study into consultancyremuneration levels and trends that we have ever produced. Its also quite unlike anythingweve seen produced by any other commentators on the consulting market.

Over the past weeks we have collected detailed survey responses rom 1,660 consultants, arecord level o participation (in itsel an indicator o how anxious consultants are to ensurethey are not missing out on the remuneration ront).

This record level o response means that, or the rst t ime, we are able to break out data orseveral types o consulting including strategy consulting, programme management, ITconsulting and change management. So this year, more than ever be ore, both employeesand employers will be able to benchmark how their salary levels stack up against thoseo the competition. Our thanks go to all those that took part and to the new team at Top ITconsultant.com who supported the regular Top-Consultant.com team and helped us

to generate over 400 responses rom IT consultants alone.

Within this report you will nd basic salary, bonus levels and bene ts al l individuallyreported by level and by type o consulting. We have also had a large enough response toproduce aggregate data or the US market, which can be ound towards the back o thisreport. It has taken a great deal o time to distil all this data into what I hope is an insight uland in ormative report. I trust it proves a valuable resource and would appreciate you

orwarding on a copy to any riends or colleagues you eel would be interested in thendings.

Tony Restell Co-Founder and Director Top-Consultant.com Top ITconsultant.com

Introductoryremarks
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Top-Consultant.coms Consulting Salary Report 2007

View the latest global opportunities in consulting at Top-Consultant.com and TopITconsultant.com

Table o contents Introductory remarks Table o contents Initial observations Overview o UK consulting salaries and trends Breakdown o results by type o consulting

- Strategy consulting remuneration- Business trans ormation / change management remuneration- IT consulting remuneration- Programme and project management remuneration

- Business process improvement remuneration Breakdown o results by level o seniority- Junior Consultants- Senior Consultants- Managers- Principals- Partners

Factors contributing to the trends being seen in the UK market

Hygiene actors Are career moves entirely about the money? The US perspective Salaries and trends in the North American market

Appendix 1 Demographics o our consulting readership Contact details or recruiters wishing to discuss recruitment campaigns
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Overview o UK consulting salaries and trends
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Throughout this report, we use the ollowing de nitions when re erring to consulting grades:

Junior Consultant - de ned as having 1-3 years consulting experience

Senior Consultant - de ned as having 3-5 years consulting experience

Manager - de ned as having 5-9 years consulting experience

Principal - de ned as having 9-12 years consulting experience

Partner - no de nition required!

Below we present the aggregate data or the UK consulting industry, illustrating that average packages or those at theentry-level rungs are around 40k a ter a couple o years o employment; while those committed to working their way up toPartner can expect to earn 168,000 on average.

Junior Senior Manager Principal Partner Consultant Consultant

BASIC SALARY

BENEFITS

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Overviewo UK

consultingsalaries and trends

180,000

160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0

Total remuneration by level - UK

Source: Top-Consultant.com Consulting Salary Report 2007

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CONSULTING INDUSTRY AVERAGE UK

Below we present a breakdown o the aggregated data or the UK consulting industry. On sub-sequent pages, the same breakdowns are presented or various types o consultants (strategy

consultants, change management consultants, etc.).

Please note that throughout this report we state total remuneration (Basic + Bens + Bonus) incorpo-rating the average bonus o those that received a bonus. Those that received a bonus should there orecompare their remuneration with these gures; those that did not receive a bonus should comparetheir remuneration with the gures in the column marked Basic + Bens.

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Level within Firm Basic salary Basic + BensBasic + Bens+ Bonus

Average payrise for thosewho receiveda pay rise

Proportionreceivingno pay rise

Junior Consultant 37,000 39,405 42,735 5.7% 28.1%

Senior Consultant 52,000 56,576 61,464 5.4% 4.4%

Manager 66,000 72,072 79,662 5.3% 23.2%

Principal 88,200 97,196 109,103 4.9% 20.2%

Partner 123,600 136,578 167,602 7.6% 31.1%

Level within Firm

Proportion whowere promotedin last year

Proportionreceiving nobonus

Average bonusfor those whoreceived a bonus

Junior Consultant 9.0% 50.7% 37.7%

Senior Consultant 9.4% 36.6% 29.6%

Manager 11.5% 30.9% 31.8%

Principal 13.5% 23.2% 23.6%

Partner 25.1% 22.6% 17.4%


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Overviewo UK

consultingsalaries and trends

To present as detailed an assessment o the market as possible, we contacted a number o specialist consultancy recruitersto gain a better understanding o the trends coming out o the salary survey. Here we present some o the key messagesemerging rom the recruitment market or consultants, be ore turning to our assessment o the gures within speci c con-sulting areas such as strategy consulting, IT consulting and change management.

Headline trends in the UK market

-- Overall upward pressure on salaries has been minimal this last year, averaging just 4.5% across the industry

-- Where good pay rises have been seen, they have been targeted mostly at new hires or counter-o ers rather than appliedacross the board or existing employees

-- The rising cost o living means that negotiations with new joiners have got more aggressive, with candidates increasinglylikely to push or a rise or a guaranteed bonus payment when switching employer

-- Where good o ers are secured, they will very o ten result in a counter o er

-- At the company-wide and industry level, what rms can pay overall is closely related to the ee rates they can achieve. Themodest gains in remuneration this year are directly related to the di culties rms have had in securing work at higher eerates and with atter margins

-- Firms turning to fexible bene ts to try and make packages more appealing without necessarily costing more. Plus theyare hoping to appeal to more junior candidates on the employee experience ront rather than the remuneration ront

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Overviewo UK consultingsalaries and trends

Overall upward pressure on salaries has been minimal this last year,averaging just 4.5% across the industry

As the opening data in this report has shown, those consultants that received a pay rise this last year achieved a 6% rise and once we allow or the 26.5% that received no rise then the industry average is only 4.5%. This appears at odds with amarket where candidates are clearly in short supply and where we might expect pay rates to be being considerably hiked.However Mike Allen o The Mars Partnership con rms this is indeed whats happening in the UK market:

We continue to nd signi cant demand rom our consulting clients or senior hires. Whilst de-mand remains high and appears to be driven by strong pipelines, the market remains undamen-tally candidate driven with most candidates seeming to enjoy a number o choices in the event o a potential move. Surprisingly however we have not yet seen this translate into high upward pressureon salaries.

Where good pay rises have been seen, they have been targeted mostly at new hires orcounter-o ers rather than applied across the board or existing employees

The low average gures are explained by diverging treatment o di erent types o consulting sta . Increased salary budgetsseem to be being targeted at securing new hires and at unding counter-o ers or those on the verge o leaving, rather thanbeing applied to sta across the board. Don Leslie o Beament Leslie Thomas comments on that in todays market:

Were seeing a shortage o candidates with several years o consulting experience under their belt.Tis is in part due to the slowdown in graduate recruitment that we saw in consulting earlier thisdecade - and in part due to City employers having lured many o these experienced consultantsout o the industry. o ensure a success ul recruitment outcome at these experienced hire levels,weve had reports o rms attracting new hires with 20% rises in basic salaries or with guaranteed bonuses or the rst year o employment. Tese initiatives are targeted at new hires though - soexisting employees dont seem to be bene ting to the same extent.

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This assessment would seem to tally with the data showing that over a quarter o all consulting sta received no pay risethis last year. It also ties in with the experiences o HR teams at consulting rms, when packages are being negotiated withpotential new joiners

The rising cost o living means that negotiations with new joiners have got more aggressive, withcandidates increasingly likely to push or a rise or a guaranteed bonus payment when switchingemployer

We asked Joy Matthews o DMW Group to describe the situations they have aced when negotiating with candidates inrecent months. Joys experiences closely match the patterns Don expressed above:

We agree wholeheartedly that the market is indeed tight: consultancies are recruiting keenly,candidates have multiple options when deciding where to move next and thus negotiation about remuneration comes to the ore, in a way it didnt a year ago.We have also ound that the o er process sometimes involves negotiations around pension con-tribution, holiday entitlement or a sign on bonus - again this wasnt a eature o our recruitment process a year ago.

Ian Pye , Partner at recruitment rm SBCS, suggests that aggressive behaviour on the part o candidates is the inevitableresult o the rising cost o living in the UK:

Tere seems to be a bit o shove and counter shove going on in the sector just now with consul-

tants wanting more money to move and rms trying to resist it as much as they can. I suppose the rms managed to get salary expectations down to an acceptable level over the previous year or twobut now nd themselves potentially having to pay more as the cost o living in the UK continues tosoar. With interest rates at 5.75% and mortgage debt as high as it is, the odd 10K or so wouldnt go amiss!

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Where good o ers are secured, they will very o ten result in a counter o er

A trend that has been reported to us by many recruiters is the re-emergence o the counter-o er. Thats to say that anemployer will try to deter an employee rom resigning to join a competitor by o ering them an improved package as an

enticement to stay. Barry Hofman , Head o Human Resources at Charteris plc , believes that counter-o ers are a majorconcern in the current market:

Counter o ering is a real issue or us, but more importantly it damages everyone and there areno winners: ormer employers get a potentially disillusioned employee to stay, agencies dont maketheir hires, new employers incur more costs and employees end up pricing themselves out o themarket and just putting o the inevitable.

Whilst now quite common practice, counter o ers are no guarantee as Michelle Flynn o Conchango explains:

Some companies are throwing big money at candidates in the orm o counter o ers. Most can-didates are however aware o the reasons behind this, and so are not tempted. Everyone is so busythat i they have made the e ort to attend an interview, they tend to be serious about their search.

At the company-wide and industry level, what rms can pay overall is closely related to the eerates they can achieve. The modest gains in remuneration this year are directly related to the di -culties rms have had in securing work at higher ee rates and with atter margins

Recent gures rom the MCA have highlighted that although industry growth rates remain robust, rms have ound it ex-tremely di cult to reverse the ee rate declines that took place during the downturn earlier this decade. As a consequence,margins on consulting work have been squeezed considerably reducing the pot available to und generous pay rises orbonus rounds.

Howard Bailey , Head o Recruitment at Detica , con rms that ee rates are the crux o the problem:

Clearly, theres a close correlation between the ee rate you can charge clients and the salaries youcan a ord to pay consultants.

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His rm Detica is an example o a consultancy that sees giving employees choice over how they are remunerated as a keydi erentiator such that the ocus is not entirely on the absolute level o a package but also its composition:

Where exible bene ts come into their own, is or every employee to be able to choose what ad-

ditional bene ts, i any, are appropriate to their li estyle. For some that might mean simply taking the exible allowance and increasing base salary, and or others, it might mean investing in taxe cient schemes or uture earnings or additional comprehensive insurances as an example.

Firms are turning to fexible bene ts to try and make packages more appealing without necessarilycosting more. Plus they are hoping to appeal to more junior candidates on the employee experi-ence ront rather than the remuneration ront

Others in the industry also see these fexible salary packages and other hygiene actors as an e ective means o increasing

employee satis action with their remuneration. Darren Franks , Associate Director at Eutopia Solutions , comments:

In an e ort to di erentiate themselves, organisations have begun to o er comprehensive salarysacri ce and bene ts packages to attract candidates. In addition to this, companies are also paying more attention to their overall recruitment process it stands to reason that the more candidate riendly the recruitment process, the more attractive the company becomes to the prospective employee.

Victoria Hammond o Mott MacDonald also stresses that the whole employee experience can be used to attract more junior candidates, rather than having a total reliance on remuneration:

In the current employee driven market we recognise that in order to attract and retain both expe-rienced consultants and new talent, we must o er competitive nancial packages that include at-tractive per ormance pay incentives, but also demonstrate commitment to our sta . Whilst moreexperienced consultants are still primarily driven by core salary, their colleagues in the develop-ment stage are inspired by a variety o opportunities and projects, the ability to move into di erent sectors, achieving a healthy work li e balance and continual pro essional development.

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Breakdown o results by type o consulting


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Breakdowno resultsby type o consulting

Our 2006 report was very well received within the industry but since its publication we have requently been asked i wecould break out the data by specialist consulting area. For the 2007 report we set out to achieve a higher response rate,such that we would have enough data-points to provide meaning ul gures or a number o specialist consulting areas.

The 2007 edition reports average data or the UK consulting industry, plus speci c ndings or ve major areas o consult-ing: strategy, business trans ormation / change management, business process improvement, programme / project man-agement and IT consulting.

It will come as little surprise to most that strategy continues to lead the eld in terms o remuneration. Below we can seethat basic salaries within strategy are higher than in any other area and this is true also or total remuneration, as the ol-lowing pages will demonstrate. However there are signi cant di erences by type o consulting - and business trans orma-tion / change management consultants in particular do also seem able to attract a premium in the market.

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INDUSTRY AVERAGE

160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

Basic salary levels - UK


STRATEGY

BUSINESSTRANSFORMATION

BUSINESS PROCESSIMPROVEMENT

PROGRAMME/PROJECT MANAGEMENT

IT CONSULTING


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STRATEGY CONSULTING UK

These strategy consulting gures are based on responses rom 132 UK strategy consultantsincluding signi cant numbers rom A.T. Kearney, Accenture, Arthur D. Little, Bain & Company,

Booz Allen Hamilton, Boston Consulting Group, McKinsey & Company, OC&C Strategy Consul-tants, Oliver Wyman, PRTM, Roland Berger and Spectrum Strategy Consultants.

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Level within frm Basic salary Basic + BensBasic + Bens+ Bonus





Manager 70,900 75,012 84,513 6.0% 32.3%

Principal 103,400 113,326 129,870 5.2% 20.8%

Partner 140,500 149,071 189,394 8.3% 27.3%

Level within frm






Manager 13.4% 29.0% 32.3%

Principal 16.0% 12.5% 25.0%

Partner 28.7% 18.2% 4.6%




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BUSINESS TRANSFORMATION / CHANGE MANAGEMENT CONSULTING UK

These business trans ormation / change management gures are based on responses rom212 UK consultants including a signi cant proportion rom Accenture, Atos Consulting, Bear-

ingPoint, BT Global Consulting, Capgemini, Ernst & Young, Hedra, IBM, KPMG, PA Consultingand Serco Consulting.

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Manager 65,100 71,805 80,008 5.8% 15.7%

Principal 93,700 102,883 115,532 4.8% 19.3%

Partner 135,400 152,054 187,258 9.1% 35.3%

Level within frm






Manager 12.6% 31.4% 39.2%

Principal 13.5% 24.6% 17.5%

Partner 26.0% 23.5% 23.5%




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IT CONSULTING UK

These IT consulting gures are based on responses rom 437 UK based IT consultants includ-ing a signi cant proportion rom Accenture, Atos Origin, BearingPoint, Capgemini, CSC, De-

loitte, Detica, EDS, Fujitsu, IBM, LogicaCMG, Oracle and PA Consulting.Our thanks go to the team at Top ITconsultant.com or their assistance in generating theseresponses rom IT consultants.

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Manager 63,600 70,087 75,811 4.3% 24.6%

Principal 79,600 87,799 96,873 4.9% 19.3%

Partner 111,500 122,762 146,957 6.1% 26.3%

Level within frm






Manager 9.0% 31.6% 28.1%Principal 11.4% 29.8% 22.8%

Partner 21.7% 31.6% 26.3%




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PROGRAMME & PROJECT MANAGEMENT UK

These programme & project management gures are based on responses rom 99 UK basedconsultants including a signi cant proportion rom Accenture, Atos Consulting, Avail Consult-

ing, Chaucer Consulting, Deloitte, Detica, Ernst & Young, PA Consulting. Pcubed and Pricewa-terhouseCoopers.

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Manager 62,400 67,891 76,939 4.6% 27.3%

Principal 80,300 89,294 99,090 4.2% 28.6%

Partner 116,600 128,960 153,212 7.3% 37.5%

Level within frm






Manager 14.5% 36.4% 42.4%Principal 12.2% 19.1% 28.6%

Partner 20.8% 18.8% 31.3%




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Breakdown o results by level o seniority


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JUNIOR CONSULTANTS UK

More than one in three Junior Consultants received a promotion in the last year. Bonuses aver-aged 3,330 or the minority who did receive a bonus, while pay rises at this level averaged

5.7% or those that received a raise. The tables below show how junior consultants within thevarious types o consulting practice ared in the last year.

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Sector Basic salary Basic + BensBasic + Bens+ Bonus



Strategy Consulting 40,300 42,355 47,191 6.3% 46.4%

Programme & 40,600 42,955 46,649 8.5% 13.3%Project Management

Business Transformation 37,200 40,362 43,375 5.8% 45.5%

Industry average 37,000 39,405 42,735 5.7% 28.1%Business Process 37,000 39,405 42,587 4.5% 9.5%Improvement

Sector




IT consulting 35,600 37,736 40,548 5.2% 23.5%

Strategy Consulting 12.0% 42.9% 39.3%

Programme & 9.1% 46.7% 20.0%Project Management

Business Transformation 8.1% 59.1% 27.3%

Industry average 9.0% 50.7% 37.7%

Business Process 8.6% 33.3% 28.6%Improvement

IT consulting 7.9% 50.0% 55.9%




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SENIOR CONSULTANTS UK

Almost one in three Senior Consultants received a promotion in the last year. Bonuses aver-aged 4,888 or the ~2/3 o employees who did receive a bonus, while pay rises at this level

averaged 5.4% or those that received a raise. The tables below show how senior consultantswithin the various types o consulting practice ared in the last year.

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Industry average 52,000 56,576 61,464 5.4% 24.4%

Business Process 48,900 53,203 57,262 4.7% 21.1%Improvement

Sector




IT consulting 52,600 56,966 61,016 5.2% 22.0%










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MANAGERS UK

Just under one in three Managers received a promotion in the last year. Bonuses averaged7,590 or the ~2/3 o employees who did receive a bonus, while pay rises at this level aver-

aged 5.3% or those that received a raise. The tables below show how managers within thevarious types o consulting practice ared in the last year.

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Sector




IT consulting 63,600 70,087 75,811 4.3% 24.6%










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PRINCIPALS UK

Just under a quarter o Principals received a promotion in the last year. Bonuses averaged11,907 or the ~3/4 o employees who did receive a bonus, while pay rises at this level aver-

aged 4.9% or those that received a raise. The tables below show how principals within thevarious types o consulting practice ared in the last year.

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Sector




IT consulting 79,600 87,799 96,873 4.9% 19.3%






IT consulting 11.4% 29.8% 22.8%




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PARTNERS UK

Just over 17% o Partners received a promotion in the last year. Bonuses averaged 31,024 orthe ~3/4 o partners who did receive a bonus, while pay rises at this level averaged 7.6% or

those that received a raise. The tables below show how partners within the various types o consulting practice ared in the last year. A small minority o Senior Partners received remu-neration that was a multiple o the gures below.

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Sector




IT consulting 111,500 122,762 146,957 6.1% 26.3%






IT consulting 21.7% 31.6% 26.3%




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The consulting industry and its associated recruitment markets have been undergoing quite a trans ormation o late. The return o the Big 4; o shore providers moving aggressively into the UK market; rampant growth o new start-upconsultancies; commoditisation o consulting rms services. These are just some o the issues that have been challengingand unsettling our industry. To try and get a eel or the impact these are having on both recruitment and remuneration in

the UK market, we again spoke to expert recruiters in the area. They identi ed key actors as being:

-- The aggressive recruitment / retention practices o the Big 4

-- Mainstream consulting no longer competitive compared to contracting or a career with a small independent rm

-- FTSE in-house roles proving a major lure to consultants and putting upwards pressure on consulting salaryexpectations; Private Equity also adding to this pressure

-- Specialist areas o consulting seeing strong growth in remuneration, refecting acute hiring di culties in theseniche areas

On the ollowing pages we reproduce quotes rom a number o these experts in the hope o conveying to you the state o play in the UK market as at August 2007.

To set the scene, comments rom Iain McAdam o Digby Morgan rein orce the impressions given by Chris Sale atthe beginning o this report. The consulting market is without doubt booming rom a recruitment perspective butremuneration has not been keeping pace and this has made recruiters targets that much harder to ul l. McAdam tells us:

Page 27

Factorscontributingto the trendsbeing seenin the UKmarket

Generally I have not seen any signi cant increase in remuneration in the consulting market and certainly bonuses have not caught up with the levels that were being o ered at the turn o the mil-lennium. It seems consulting rms want to attract the best but are unwilling to push the envelope rom a compensation perspective to get the best candidates. In many ways consulting is lagging behind other sectors rom a remuneration perspective despite giving individuals a rougher deal rom a work/li e perspective.


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Factorscontributingto the trendsbeing seen inthe UK market With the Big 4 moving back into advisory and a seemingly endless stream o small niche consult-

ing start-ups, there is increasing pressure or rms to not only attract but also to retain their high per ormers. I am seeing an increased exibility in both salary and bonus amounts and total pack-age construction.

Mainstream consulting no longer competitive compared to contracting or a career with a smallindependent rm

One direction in which mainstream consultancies have been losing ground is the battle to keep their sta rom switching tocontract roles or leaving to orm or join a smaller independent rm. Raj C. Tulsiani , CEO o Green Park Interim & ExecutiveResourcing notes:

Tere is a continual drain o executive talent out o mainstream consulting as people move intomore lucrative independent consulting careers, or orm small specialist boutique consultancieswhere they have genuine long-term wealth creation opportunities.

Te main di culty around money is the contract market. People are o ered daily rates that aremassively above their worth, as the number o good people in the market is limited. Tis makes it hard to nd permanent sta , and a ects retention as the money is tempting. However, candidatesneed to keep their eyes open to the down alls o contracting.

Michelle Flynn , Recruitment Manager at Conchango , also sees the contract market presenting problems to consultancy

employers:

Page 28

This issue o the industry lagging behind other sectors will be heard again and again in this report to the point that onewonders how much longer the rms can continue without doing something drastic to reinvigorate pro t margins andthere ore their ability to boost remuneration levels.

Jonathan Krogdahl , who heads up the Consulting Sector or Futurestep , stresses that the attraction and retention o topper ormers is absolutely vital:


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Factorscontributingto the trendsbeing seen inthe UK market

FTSE in-house roles proving a major lure to consultants and putting upwards pressure on consult-ing salary expectations; Private Equity also adding to this pressure

Without question, the slow rate o growth o consulting earnings has allowed other areas to catch up and overtake the sec-

tor in terms o appeal to the best candidates. Simultaneously, end-clients o consulting rms have realised they can bypassconsulting ees or some internal projects i they can just bring the right sta on board. So at a time when consultancies arestruggling to up their packages, FTSE organisations nd they are able to extract more value rom these individuals andthere ore pay them more handsomely. James Howells, Managing Director o Imprint Search & Selection, con rms this trend:

Te demand or pro essionals with strategy consulting backgrounds to work within the commer-cial sector has continued to grow. F SE Plcs are looking to hire the most talented strategy consul-tants or their own executive management programmes as the quality, intellect, analytical abilityand interpersonal skills displayed by these individuals are ideal or many o these programmes.

In many cases, to secure this talent businesses are matching or exceeding the remuneration pack-

ages on o er rom consultancies and highlighting their work/li e balance credentials in order toattract the brightest individuals to these in-house roles.

Page 29

Kevin Fuller , Director o Strategy & Marketing at TDX Group , also believes that small rms can prove a lure to top candi-dates:

Te current market or top candidates with analytical, business leadership and client relationshipskills is extremely competitive. Such candidates now have the luxury and exibility o being able towork or any employer in the same way that, historically, a rst rate rm had the power to choosethe most exceptional candidates. Increasingly, high calibre candidates have the ability to choosebetween either top strategy consulting rms or ast growing start-ups such as DX Group.


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Although we are not seeing huge hikes in salary, we are seeing some strategists maybe being takenat a level above where we would pitch them, there ore attaining a higher remuneration package asa result

This ght to lure strategy consultants is having a knock-on e ect on the availability o strategy consulting candidates andthere ore the roles they are able to secure as James Wood , Associate Director at Michael Warwick Nicholls Group , con-

rms:

As the current low cost o debt relative to achievable returns-on-equity uels signi cant leveraged buyout activity, PE houses and Hedge Funds are hiring more strategy consultants (with transac-tions advisory experience) to strengthen decision-making than we have seen in the past.

Nick Coppin o Holker Watkin believes that a similar t rend is being seen with consultants being hired into Private Equity,albeit on a smaller scale:

Page 30

Weve seen demand or strategic talent reach record levels - beyond the heady dot-com days o the late nineties. Coppin tells us.

Corporates are increasingly addressing growth agendas ollowing the success ul execution o cost saving initiatives during 2001-2003. Tis change in priorities eeds signi cant demand or in-

house strategic talent, most o whom are likely to come rom a leading strategy consultancy. Inter-estingly, weve seen a rise in the use o sign-on bonuses by our corporate clients to capture individu-als rom leading strategy consultancies or competing corporates.

Nick Coppin, a Principal at recruitment rm Holker Watkin , pinpoints strategy consultants in particular as being those ingreatest demand with FTSE organisations:

A strong consultant rom a Big 4 background in the executive compensation arena could expect toincrease their annual earnings potential by up to 75% in a move in-house to the right organisationin the right industry sector.

Matt Brooks, Manager at Frazer Jones Reward, con rms that in-house roles can o ten out-remunerate the packages o consulting rms:


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Page 31

Paul Rumball o WorkingAssets con rms a similar divergence in the FS market:

Tere has been a signi cant change in the market dynamics or Financial Services Consultants,that has been very noticeable over the last 12 months. Te issue is the demand or the limited pool o experienced technical and project/programme Consultants. Consultancies are obviously con-strained in what they can pay by what the Consultant can generate in ees. A typical consultant might generate 1,000 day times c220 days = 220,000. With overheads & pro t, the boutiqueConsultancy can, at a push, pay c150,000 all in. However a Bank (i the bene t o a project is asaving o 8 million) would be happy to pay way in excess o this; up to 200,000 all in. Tere isno Consultancy that can compete with that, hence the severe manning shortage. Tis is particu-

larly so in the Junior Manager (Junior VP) level, where there is an acute shortage o candidates.Tis shortage o quali ed people can be traced back to both Banks and Consultancies not hiring in4-6 years ago.

What we have seen is that salaries in particular unctions such as Financial Management and Programme Management are attracting a premium o up to 20% compared to other consulting colleagues. Tis is mainly due to the shortage o supply o quality individuals as many people areable to secure lucrative short term contracts in industry at the moment. We are also seeing premi-ums being paid or particular industry sectors - mainly all aspects o nancial services and tele-communications.

Specialist areas o consulting seeing strong growth in remuneration, refecting acute hiring di cul-ties in those niche areas

A number o recruiters we spoke with con rmed that particular niche areas were seeing remuneration gains that diverge

rom the broader pictures weve presented in this report. James Crawley , Practice Head at Huntress Executive Search highlights a couple o examples o this:


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View the latest global opportunities in consulting at Top-Consultant.com and TopITconsultant.comPage 32

Working across the entire consulting spectrum, we have noticed a void appearing between the Big 4 Advisory and traditional I / echnology Consultancies. Not only is the interview process moree cient with the Advisory rms, but salaries and packages are o en vastly superior. As i that wasnt enough, the Big 4 seem to be counter o ering anyone who is tempted to leave with lucrativesalary increases and even promotions. It appears that they wont rest until they have once morebecome a orce to be reckoned with, even i it means paying the best salaries in the market.

Last but not least, Alastair Paterson o Marks Sattin believes that anyone with the skills in demand by the Big 4 will standto do better than average in the current market:

While McKinseys in amous war or talent seems to have aficted all o the consultancy sector,one o the worst a ected areas has to be li e sciences. Te whole o the healthcare consulting arena

is su ering rom a serious shortage o talent with high demand rom rms and simply not enough good people to go around. Te main problem is that this is a discipline that routinely calls or acombination o classic consulting skills analysis, lateral thinking and good inter-personal and communication ability with strong academic backgrounds in the key sciences. And, as were all too aware, scienti c education, particularly in this country has proved singularly lacking when it comes to developing the kind o all-rounder that the pro ession needs. Te result is a constant bid-ding war or the best consultants, both nancially, in terms o escalating base salaries and bonusesand more generally in terms o a clearly de ned career path, work/li e balance measures, training,mentoring and sexy projects.

Li e sciences consultancy specialist Simon Jacob o Hanson Search believes theres a similar trend in play in his sector:Factorscontributingto the trendsbeing seen inthe UK market


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We asked our respondents I you were to change position in the near uture, to what extent would your decision be basedon the ollowing criteria? The higher the score or a actor, the more important it is in the decision process.

A more detailed assessment o these issues can be ound in our 2007 Retention Report . But rom the results below wecan already see that a number o actors rank close to salary when infuencing a consultants next choice o career move.Separate ndings are presented or Management Consultants and or IT consultants.

B o n u s a n d

o t h e r p e r k s

S k i l l s

m a t c h

P r o m

o t i o n

p r o s p e c t s

B a s i c

s a l a r

y

S t a f

n g

d e c i s i o n

s

i n u

e n c e

W o r k / l i f

e

b a l a n

c e

C o m p

a n y

p h i l o

s o p h y

5.5

5

4.5

4

3.5

3

Important decision criteria - Management Consultants


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Hygieneactors are

career movesentirelyabout themoney?

B o n u s a n d

o t h e r p e r k s

S k i l l s

m a t c h

P r o m

o t i o n

p r o s p e c t s

B a s i c

s a l a r

y

S t a f

n g

d e c i s i o n

s

i n u

e n c e

W o r k / l i f

e

b a l a n

c e

C o m p

a n y

p h i l o

s o p h y

5.5

5

4.5

4

3.5

3

Important decision criteria - IT Consultants

I n f u e n c e o n c a r e e r m o v e

d e c i s i o n

I n f u e n c e o n c a r e e r m o v e

d e c i s i o n

http://www.top-consultant.com/http://www.topitconsultant.com/http://www.top-consultant.com/2007_retention_report.pdfhttp://www.top-consultant.com/2007_retention_report.pdfhttp://www.top-consultant.com/http://www.topitconsultant.com/http://www.topitconsultant.com/http://www.top-consultant.com/


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Richard Harris o recruitment rm Mohawk Consulting reiterates the importance o hygiene actors:

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Hygieneactors are

career movesentirely aboutthe money?

Hiring rms need to be clear about what they are o ering that di erentiates themselves rom therest o the competition, particularly since remuneration alone is rarely the single dominant actor.

Di erentiators could include:

a wider choice o programmes o work; opportunities to work in new and di erent sectors; oppor-tunity to specialise; international opportunity; the chance to redress the level o time spent away rom home; the opportunity to increase/decrease amount o time spent on business development and bid work; opportunity to move urther towards strategy end; desire to ocus purely on deliv-ery; urther training and personal development; and so on. No rm is likely to be able to providecomplete exibility in all areas to all candidates, but they should be clear about the unique selling points o what a career with them can o er.

Matt Parkinson o Catalyst agrees that decisions are increasingly based on more than just money:

Remuneration will always be a key actor, but as potential recruits have a wider choice o employ-er, they are spending an increased amount o time discussing in more detail the type o work theywill be doing, to ensure it is o real interest to them


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The USperspective salaries& trends inthe NorthAmericanmarket

Page 3 5

As in the rest o this report, we use the ollowing de nitions when re erring to consulting grades:

Junior Consultant - de ned as having 1-3 years consulting experience

Senior Consultant - de ned as having 3-5 years consulting experience

Manager - de ned as having 5-9 years consulting experience

Principal - de ned as having 9-12 years consulting experience

Partner - no de nition required!

Below we present the aggregate data or the US consulting industry, illustrating that average packages or those at the en-try-level rungs are just over $70,000 a ter a couple o years o employment; while those committed to working their way upto Partner can expect to earn $200,000 on average.


BASIC SALARY

BENEFITS

$200,000

$180,000

$160,000

$140,000

$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

$0

Total remuneration by level - US


BONUS


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Page 3 6



CONSULTING INDUSTRY AVERAGE US

Below we present a breakdown o the aggregated data or the US consulting industry. Wesecured almost 200 responses to our survey rom US readers, making the results statistically

valid. We do not break down the results urther owing to insu cient data. However we wouldexpect that the lead enjoyed by strategy and business trans ormation consulting in the UK market would be similarly mirrored in the US market.

Please note that total remuneration (Basic + Bens + Bonus) incorporates the average bonus o thosethat received a bonus. Those that received a bonus should there ore compare their remuneration withthese gures; those that did not receive a bonus should compare their remuneration with the guresin the column marked Basic + Bens.

Level within Firm Basic salary Basic + BensBasic + Bens+ Bonus



Junior Consultant $60,500 $64,917 $71,148 6.7% 26.7%

Senior Consultant $75,200 $82,118 $88,736 6.8% 25.0%

Manager $89,500 $99,882 $109,190 6.3% 23.7%

Principal $122,500 $137,690 $156,678 5.6% 23.4%Partner $151,800 $167,132 $196,581 6.9% 40.0%

Level within Firm






Manager 10.4% 26.3% 31.6%

Principal 15.5% 29.8% 21.3%Partner 19.4% 28.6% 31.4%




12th October 2007 10:00 17:15






advert

T C l C l i S l R 2007


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Appendix 1:Demographicso our consulting

readership

Conducting this survey has allowed us to collect demographic data about our readership that may be o great interest torecruiters seeking to attract consulting sta through our websites. Here we present data or Top-Consultant.com and on the

ollowing page provide a similar overview or TopITconsultant.com.

Respondents Pro le

O the 1,223 readers who responded to our management consul-tancy salary survey, it is very interesting to note that our greatestreach is into the levels spanning Senior Consultant, Manager andPrincipal. Recruiters o ten ask whether job boards remain a re-

source used primarily by more junior candidates and these guresstrongly suggest this is not the case!

Junior Consultant 17%Senior Consultant 22%Manager 24%Principal 22%Partner 15%

Also o note is the act that 91.4% o all respondents are currently

employed as Management Consultants. The results presented inthis report are based on the data submitted by those who are ac-tually currently employed within our industry and excludes salarydata or those looking to move into the industry.

We also asked respondents to identi y the primary type o con-sulting work they undertook (to enable segmentation o the

salary data). This provides interesting insights into the types o consultants that recruiters are most likely to be able to reach viathe Top-Consultant.com site:

Business Trans ormation /Change Management 27%

Strategy 25%Business Process Improvement 18%Project / Programme Management 16%Technology 7%

HR Consulting 4%Outsourcing 4%

Public Sector 33%Telecoms, Media & Entertainment 29%Energy & Utilities 25%Financial Services

(Retail Financial Services ocus) 23%Retail / Consumer Goods 23%Healthcare & Pharma 17%Financial Services

(Investment Banking / Capital Markets) 16%Automotive / Aerospace 15%Distribution / Logistics 13%Transportation 11%* multiple choices were possible and hence the total exceeds 100%



Level within frm

Consulting type

Sector *

T C l C l i S l R 2007
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Appendix 1:Demographicso our consulting

readership

Respondents Pro le

O the 437 readers who responded to our IT consulting salarysurvey, it is interesting to see a similar pro le to Top-Consultant interms o the levels o seniority that we reach. The levels spanningSenior Consultant, Manager and Principal are once again the bestrepresented:

Junior Consultant 16%Senior Consultant 25%Manager 25%Principal 23%Partner 10%

Also o note is the act that 89.0% o all respondents are currentlyemployed as IT Consultants. The results presented in this reportare based on the data submitted by those who are actually cur-rently employed within our industry and excludes salary data orthose looking to move into the industry.

We also asked respondents to identi y the primary type o con-sulting work they undertook. This provides interesting insightsinto the types o consultants that recruiters are most likely to beable to reach via the TopITconsultant.com site:

IT project / programme management 37.1%ERP consultant 18.1%IT strategy 14.0%Architect

(Enterprise / In rastructure / Technical) 11.9%Technical consultant 8.7%Systems analyst 3.9%So tware developer / programmer 3.4%IT security 2.1%

Database administrator 0.5%Web developer 0.5%

Telecoms, Media & Entertainment 35.7%Public Sector 35.2%Financial Services

(Retail Financial Services ocus) 26.1%Energy & Utilities 23.6%Retail / Consumer Goods 22.2%Financial Services

(Investment Banking/Capital Markets) 16.5%Healthcare & Pharma 14.7%Distribution / Logistics 14.4%Automotive / Aerospace 14.0%Transportation 9.2%

Conducting this survey has allowed us to collect some antastic preliminary demographic data about the emerging reader-ship o TopITconsultant.com. For clients wondering what types o IT consultants they can reach through this new site, the

ollowing data should provide a strong steer.



Level within frm

Consulting type

Sector *

* multiple choices were possible and hence the total exceeds 100%

T C lt t C lti S l R t 2007
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To nd out how your rm could attract consulting hires byadvertising on our websites or accessing our CV databases, please:

Call to speak with one o our team

Please call us on +44 (0) 207 667 6880 and ask or Graeme Underhillor Simon Bell i you are interested in recruiting IT Consultants; orBryan Hickson, Dawn Habijan or Sarah Nutton i you are interested inrecruiting Management Consultants.

Request a brochure

Alternatively, please eel ree to request a PDF brochure detailing ourservices. You may do this online by visiting the ollowing web links:

TopITconsultant.com or IT consulting hireshttp://www.topitconsultant.com/brochure.aspx

Top-Consultant.com or management consultancy hireshttp://www.top-consultant.com/UK/clientcentre/brochure.aspx

Email us

Feel ree to email our Customer Services team with any questions youmay have using the address [email protected] .

Contact details

http://www.topitconsultant.com/brochure.aspxhttp://www.top-consultant.com/UK/clientcentre/brochure.aspxhttp://www.theconsultancycareersfair.com/visitors/whyattend.aspxhttp://www.top-consultant.com/http://www.topitconsultant.com/http://www.theconsultancycareersfair.com/visitors/whyattend.aspxhttp://www.top-consultant.com/UK/clientcentre/brochure.aspxhttp://www.topitconsultant.com/brochure.aspx

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