Global competition in recruitment since the pandemic has been intense across all industries. And consultancies are no exception. Demand for their services, particularly in technology and sustainability, has been unprecedented. So how are they responding to this need to grow their workforce and retain staff?
An obvious way is to raise pay. Last year, for example, consultancies McKinsey, Bain and Boston Consulting Group offered one of the largest rounds of pay rises for new MBA hires in the US for more than two decades, raising their annual base salaries from $175,000 to between $190,000 and $192,000.
However, “it’s a domino effect”, says Fiona Czerniawska, chief executive of Source Global Research, a consulting sector analyst. If one firm raises pay, they all have to, and there is a danger of an inflation spiral.