by Chirag Sharma on June 25
Mckinsey & company is a global management consulting firm with a revenue of $10.9 billion (as of 2019). It assists Leading Businesses, Governments and Non-government organisations. It is the largest and most prestigious of the ‘Big Three’ management consultancies (MBB), the world’s three largest strategy consulting firms by revenue. This is the result of their early and continuing success in upholding extremely high standards. Anybody aiming towards consulting and getting to join Mckinsey is a dream come true for them.
Traditional progression at Mckinsey from bottom to top is-
1.Analyst 2.Associate 3.Engagement manager 4.Associate partner 5.Partner
Every firm has a different name for the same type of role, the difference is merely in naming. In most consulting firms moving from one position to another takes 2 to 3 years. In Mckinsey, it normally takes two years.
Responsibilities at each level
1.Analyst (McK & ATK) / Associate (BCG & Bain) Undergrads enter the firm at this level. They handle smaller work fields like— gathering data/information, analysing it and delivering it via presentation and support their senior consultants. They are guided by Associates and managers.
2. Associate (McK & ATK)/consultant (BCG & Bain) MBA grads enter the firm at this level. They own a functional area of a project. They oversee the work of analysts and develop the project deliverables of their specific stream. From the associate level, consultants interview candidates.
3. Engagement manager (McK)/case team manager (BCG)/manager( Bain)/project manager (ATK) They are responsible for planning, executing and delivering a project. Their work includes leading teams, coordinating with all project stakeholders (clients) and resolving issues. They are expected to participate in internal events and assist business development opportunities.
4.Associate partner(McK)/junior partner(Bain)/principal(BCG & ATK) They are in charge of selling projects to clients. They own the project delivery and manage numerous projects at once.
5.Partner They are less involved in the everyday execution of a project. Their main focus is on high-level strategy. A big part of their work is dedicated to selling consulting assignments to both existing and new partners.
Salary of consultants at Mckinsey
The salary of consultants depends on various factors such as— their job location, the firm they are working with and the post they are working on.
In a huge firm like Mckinsey pay starts a little bit lower and then rises beyond the level of BCG.
Salary at Mckinsey in the USA
At the undergraduate level – The base salary is $83000 plus a performance bonus of $ 18000 max plus a signing bonus of $5000 plus relocation assistance up to $10000.
At MBA level and for experienced candidates – The base salary is $152500 with a performance bonus of $35000 max plus a signing bonus of $25000 plus relocation assistance up to $9000.
Salary at Mckinsey in Europe
At the undergraduate level, the base salary is € 50000 plus a bonus ranging from €1000 to €2000. At the Masters level, the base salary is €70000 plus a bonus of €12000 plus a company car. ( Mckinsey company car policy is not that great. ). At the MBA or PhD level, the base salary is €105000 plus a bonus of €20000 plus a company car.
Salary at McKinsey compared to a bit lower firms in terms of revenue
In firms like Roland Berger and Simon Kucher & partner, the starting salary at the undergraduate level may be higher than that of the Mckinsey but at higher levels, Mckinsey has impressive salaries to offer. In Europe, Roland Berger offers a base salary of €58000 to an undergraduate with up to a 10% bonus. At the MBA level, it offers a base salary of €80000 plus a bonus of 15% plus a company car. ( Roland Berger has the best company car policy in the industry ). Whereas Simon Kucher offers a base salary of €45000 to undergraduates with a bonus which ranges from 5 to 10 per cent. At the MBA level, it offers a base salary of €65000 with a bonus of 15% and no company car is provided. There is no actual data of the salary provided by these companies in the US. This may be because Roland Berger and Simon Kucher do not have a strong foothold in the USA.
(NOTE: This salary data is of 2019 and data of salary in Europe is verified but the data of salary in the US is taken from Google and isn’t verified.)
Salaries at Partner level
At the level of Junior Partner/ associate partner salaries can range from $500000 to $ 1 million ( it varies a lot). At the level of Senior Partner or Partner, salary can range from 1 million dollars to 5 million dollars. At the partner level bonus varies a lot which makes the salary bracket at this level much bigger. For instance, the base salary at the partner level range from $200K to $500K, depends you are a senior or junior but the bonus can range from $200K to $ 5 million. This bonus relies on various factors such as – • How much business a partner brings in. • company’s performance and the role he played. • His/Her contribution to the firm like in the events, programmes etc.
In the end, salaries provided by the firms at the undergraduate level doesn’t matter, what matters is that, either the firm is providing you with a long term benefit or not. Though salary is an important aspect of a job, people should also look at other aspects such as work-life balance, the lifestyle it offers and the work culture of the company. At last, it’s about what kind of life you want to make out of that job. Mckinsey has achieved higher scores in areas of — overall rating, career opportunities, compensation & benefits, senior management, culture & values, CEO approval and positive business outlook but some firms offer better work-life balance than Mckinsey. There is no doubt Mckinsey is one of the most well-recognised brands in the world and having Mckinsey name on your resume is all someone would want.
Frequently asked questions
Q1. Is it faster to make it to the partner or director level at MBB? Ans- It depends on various factors: 1. Unwavering focus & commitment 2. Your clear expertise and client network 3. Team fellowship I.e. junior people are eager to work with & for you 4. Solid channel of work and this will happen depending upon geography, demand, economy etc. If you get it all right it will roughly take you 12-15 years from analyst to partner at MBB.
Q2. What’s better for my future consulting career: masters or MBA? Ans- There are three options after someone completes his/her bachelors – 1. Go for masters and then consulting and potentially an MBA later 2.Go for consulting work experience and then do an MBA and continue consulting 3. Go for a non-consulting work experience and then do an MBA option 1 can be a great option. You can do a MIM in strategy management from a reputed university and then can apply for the consulting firms and if in future you would want to do an MBA then usually the firm you are working with will bear your expenses. Option 2 can be a bit challenging as it is very difficult to get a job in consulting after my bachelors and without prior work experience but it’s not impossible. you can try for the job if you get it you are good to go if not you can opt for masters. Option 3, however, makes it more difficult for you to join a consulting firm, as there are fewer openings for MBA’s compared to new graduates and only for top selected MBA. The cost of an MBA is also much higher than that of Masters ( like MIM or MSc in management).
Q3. Does Mckinsey offer internships? Ans- yes Mckinsey do offer internships. There are a business analyst and associate internships among others. For those who are currently pursuing a degree. The typical timing for internships at Mckinsey is 10 weeks in summer and there are also opportunities to intern for fewer weeks during spring or fall. This timing varies around the world and based on your position as well as your current background. Interns work on a client engagement as a full member of the Mckinsey team.