| | Yet again consulting
salary increases have
failed to meet many
consultants'
expectations. Our
recruiter survey, which
was undertaken, last
month, has revealed that
base salaries increased
by just 5% on average
this year. This paltry
rise is only just above
the 4.4% of RPI and much
lower than the rise in
the cost of housing in
London.
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The low increases in
pay have not been
mitigated by big
bonuses. The median
firm in our survey paid
an average bonus of just
10-15% and 69% of
recruiters reported
average bonus payments
of 15% or less. As a
consequence, low total
remuneration has risen
to become the number one
reason, stated by
consultants, for wishing
to change employer in | |
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| | exit interviews.
With city firms
paying bonuses of fifty
million, investment
banking envy is, not
surprisingly, rife.
Many threads on our
forum comment on the
ever widening gulf
between city and
consulting salaries. As
one poster put it "IB
can pay 2-3 times my
current salary. It's
almost a no-brainer
surely?".
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This envy isn't
contained just to
banking. Consultants
are painfully aware that
GPs are earning over
£100k and that the
hourly rate of drivers
on the tube is now
considerably higher than
the equivalent hourly
rates of most
associates.
With the market
growing strongly and pay
rates failing to keep up
with expectations, | |
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| | attracting candidates
into the industry has
become a real challenge.
Most recruiters believe
that meeting their
recruitment targets will
be difficult or very
challenging this year.
Perhaps they could make
it easier, as the Tories
call it, by sharing some
of the proceeds of
growth with their
employees.
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