Career Rocket Fuel: Can Management Consulting Leapfrog your Career?

A Newsletter from Aura Workforce Analytics

Management consulting has long been a coveted profession in the business world, known for its high-profile clients, lucrative salaries, and opportunities for rapid career advancement. As the global economy continues to evolve, the demand for strategic guidance from seasoned experts has only grown. This article aims to explore whether a career in management consulting can indeed act as a catalyst for one's professional growth and provide the means to leapfrog their career.

We leveraged the power of Aura to analyze the management consulting industry and its alumni to understand whether this career path can indeed expedite professional growth.

Demand for management consultants

The demand for management consulting services has consistently been on the rise, with the industry estimated to reach a global market size of ~$340 billion in 2024. Factors such as the increasing complexity of business operations and the growing need for digital transformation have contributed to this trend. As a result, the job market for management consultants has remained highly competitive, with top-tier firms attracting talent from the most prestigious educational institutions worldwide.

Considering annual new hires within the management consulting industry over the last 5 years, we can see a significant spike in hires between 2020 and 2021, going from 957K in 2020 to 1, 385K in 2021, a growth of ~45% as the global economy opened after the COVID-19 pandemic hit in 2020. We saw continued growth, albeit at a much slower rate of ~5% in 2022, followed by a steep decline of 45% in 2023 as many large economies experienced significant slowdowns.

Looking at which firms have led the way in terms of annual hires, Deloitte has held the largest share (2-3%) over the last 5 years, followed by PWC (2-3%), McKinsey & Company (2-3%), KPMG (2-3%) and Boston Consulting Group (2%) closing out the top 5. The rest of the market represented 81-87% of annual new hires, indicating a fairly fragmented market. Annual hires have ranged between 0-3% at firms in the top 10 list of share of hires, demonstrating the highly competitive nature of the Management consulting Industry.

Financial Rewards

Management consultants often enjoy higher-than-average salaries compared to their peers in other industries. Entry-level consultants can expect to earn approximately $70,000-$110,000 per year in the US depending on the firm, with experienced professionals earning well into the six-figure range. Moreover, as consultants progress in their careers, they can potentially see significant salary increases, with partners at top firms earning millions of dollars annually.

Career Progression

Management consulting offers a clear and structured path for career progression, with consultants typically starting as analysts or associates before advancing to manager, senior manager, and eventually partner levels. This fast-paced career trajectory allows consultants to develop expertise in various industries quickly and gain exposure to high-stakes projects that can accelerate their professional growth. Furthermore, many former consultants successfully transition to executive roles in leading corporations, leveraging their consulting experience to excel in diverse industries.

An analysis of the ratio of ex-management consultants across various leadership position types within organizations reveals that while it is not a necessity to have done consulting to land a senior position, it is certainly advantageous as the share of ex-consultants vs non-consultants is higher amongst leadership levels compared to the lower ranks of the organization. Amongst those in leadership, the Founder group has a greater concentration of ex-management consultants compared to C-suite and Top leadership (excl. C-suite). For more info on how to replicate the secrets of successful Founders, see our previous article here .

Skills Development

Consultants hone a wide range of skills that can prove invaluable throughout their careers. These include strategic thinking, data analysis, problem-solving, project management, and effective communication. By working on diverse projects across various industries, consultants can quickly develop a versatile skill set that can be applied to various roles and sectors, increasing their marketability and long-term career prospects.

Reputation Building

A career in management consulting can significantly boost one's professional reputation and network. Working with high-profile clients and collaborating with industry leaders, consultants can build a robust network of contacts that can lead to future job opportunities. Additionally, the prestige associated with working for a top-tier consulting firm can serve as a powerful credibility booster, opening doors to a wealth of career possibilities.

Drawbacks of pursuing a career in Management consulting

Despite its many advantages, a career in management consulting is not without its drawbacks. Long hours, frequent travel, and high-pressure work environments can lead to a challenging work-life balance. Additionally, the competitive nature of the industry can result in job insecurity, particularly for those who are unable to consistently meet performance expectations.

In conclusion, management consulting can undoubtedly act as a springboard for one's career, offering attractive financial rewards, rapid career progression, and opportunities for skill development and reputation building. However, it is important to consider the potential drawbacks and weigh them against the benefits to determine if a career in management consulting is the right path to leapfrog your career.

At Aura, we support the analysis of various types of industries and professionals, as used in this report, by making workforce data readily available, enabling comparison of relevant metrics between cohorts of companies & candidates to develop a deeper understanding of workforce trends and drive meaningful change.

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Caro-Joy Barendse

Project Manager, Aura

Note: All information mentioned in this report comes from publicly available data; if you believe the information on your company is incorrect, please reach out to us at aura@bain.com.