Salary Inflation Trends In Management Consultant Recruitment

Looking after current employees and attracting new recruits – What consultancies need to do to address salary inflation.

It’s no secret that we are seeing significant salary inflation across all industries, and it’s been particularly noticeable in the world of management consulting recruitment over the past 12-18 months.

Common causes for salary inflation

Increases in base salary, big bonuses and retention bonuses amongst other offerings have been more and more prevalent and have impacted salary inflation.

Addressing salary inflation

Given that recruitment for consultancy roles is currently very competitive, we’re sharing a few ideas on how best to address salary inflation in your business.

Increase base salary for job roles

We’re seeing increases of around 10-20%, and even more, on base salaries across the majority of businesses. If you want to retain existing, and attract new people then there is no getting away from the fact that you are going to have to offer more on base. Those that are staying stagnant or even matching inflation are getting left by the wayside.

Clear contract signing bonuses for new hires

Where once primarily seen at strategy consultancies, we’re seeing signing bonuses become more popular across all types of consultancies. It may be that you have to make that upfront payment to secure the person that you want.

Regular Bonus pay for existing employees

All consultants look forward to their year-end bonus, they’ve really earned it after all! If you’ve had a very successful year then share some of that success with your employees. Consultants talk and if they hear of their peers elsewhere having a bumper year and they are not seeing the same then they will be unhappy. Consider paying bonuses 6-monthly or quarterly, this will have the added effect of avoiding a yearly outflux on bonus payment day. Leavers are inevitable for a whole host of reasons but are much easier to manage if they are spread out across the year.

Match London salaries regardless of location

A lot of companies will be happy for their consultants to work remotely post-pandemic. This means that people can earn London salaries wherever they are based and the reality is that you will likely have to match this wherever your home office is. People could easily jump ship and join a London based business while working remotely and take home the higher salary associated with it.

Offer strong employee perks

It’s not all about the cash, you need to compete on benefits too. Pension, healthcare, dental, maternity and paternity leave, part-time working, unlimited holiday, a home-working budget. You don’t have to offer everything but our clients that are most successful with their recruitment tend to offer the majority of these add-ons.

Salary inflation business costs

How am I going to pay for this you may ask? Well, the reality is that card rates may have to increase or perhaps offer lower discounts. There is a lot of demand for consulting services currently and we are definitely seeing it becoming more of a seller’s market.

Consultants are problem solvers; you will find a way! If you have any questions or comments about this, or any general management consultancy recruitment enquiries, then please get in touch. If you are looking for a management consulting recruiter, learn more about the way we work at Ascent Professional Services. To learn more about the team at Ascent, view our About us page, alternatively, you can read more recruitment advice written by our team of management consultancy recruitment experts.