UK SALARY DATA - OCTOBER 2022
This is the October 2022 salary data report from Consulting Point covering management consultantcy based in the UK.
The changes from the beginning of the year to now are notable across a variety of levels, and reflect the extraordinary combination of market conditions faced by the UK.
The following pages show the difference between what firms are offering and what consultants expect. We have also included the overall desired compensation.
Data Notes:
The summary data included in this report was taken from a subset of our global database of management consultants seeking new opportunities, consultancies offering positions, and our knowledge base of current pay grades for consulting firms.
The data covers 7,230 data points that have been subject to our normal data insights processing methodology to reduce/remove data outliers, converted (where needed) into a relevant currency and presented in simple infographic format.
More detailed insight is available to all engaged clients at any time by contacting your account manager.
SALARY EXPECTATION VS MARKET REALITY
The difference between the average salary offered of a management consultancy in the UK, and the amount required by a job seeking management consultant has never been more different or risen so fast.
The first bar on the chart shows the previous difference as measured in January 2022. The expectations of candidates nine months ago was much more in line with the client offering, showing that candidates were more aware of their accurate market rate.
The second show the current gap in October 2022, it is clear the shift is dramatic in both percentage and base salary expectations. This has been driven by companies offering inflated salaries for select roles to fill urgent requirements, with the wider market learning of these offers and expecting the same.
UK SALARY GAP - GBP
The temperature chart to the right clearly shows in percentage terms how the more junior grades, and therefore those earning the least, are the ones demanding the most dramatic increase in salaries in percentage terms. Consultant to Senior Manager grades are seeking a c.20% increase.
Percentage Increase Desired
UK SALARIES OFFERED
SALARIES BEING OFFERED BY UK CONSULTING FIRMS
Salary levels have broadly maintained since the start of the year as the increases implemented by the 'Big 4' have not yet started to take effect. This will result in a change by Q4 2022 / Q1 2023 when increased candidate demands in this segment will almost certainly be met by the majority of firms.
Typically the boutique segment of the market, when trying to compete with the larger firms, have not just relied on base salary increases, but have looked at a wide variety of elements that comprise their overall package design.
Note: The chart shows the average salary offered at the low end of the scale and the average salary offered at the high end of the scale.
Hover mouse over chart for details.
UK SALARIES OFFERED - GBP
UK SALARIES DESIRED
SALARIES DESIRED BY UK CANDIDATES
There is a significant expectation for increased wages in the lower half of the job grades in the UK at present. Consultants remain in high demand and are utilising this to negotiate bigger increases than were previously possible, waiting to see how the expected salary raises (or competing offers) land before making their decisions.
That said, those that are moving or considering their options during this extraordinary period are seeking double-digit percentage rises in the main and around the 20% mark between Consultant and Senior Manager grades.
This desired increase is mirrored in other regions including mainland Europe and the Middle East.
Note: The chart shows the average salary desired at the low end of the scale and the average salary desired at the high end of the scale.
UK SALARIES DESIRED - GBP
UK BONUS PAYMENTS
ANNUAL BONUS PAYMENTS
Percentage bonuses have largely remained stable this year, although we have seen a difference at the consultant and senior consultant grades, with companies using the variable elements as another method of competing for this talent.
This traditional bonus data should now be analysed alongside more in-depth alternative reward and compensation schemes that are not “like for like”, but are best compared holistically.
UK BONUS PAYMENTS - GBP
UK TOTAL COMPENSATION OFFERED
TOTAL ANNUAL COMPENSATION OFFERED
With the market being at its most competitive for a long time, companies are having to look at their wider offerings beyond basic salary, reflected in simple terms in the chart for total compensation below. More companies are paying out higher amounts on their bonuses, often due to the company performance element being more stable than previously.
Not covered in the below are the multitude of more subtle drivers such as wider benefits packages on offer, career trajectory, family flexible policies, and the overarching culture of the firm.
These are all of increasing importance to a candidate market that is continuing to look beyond the blunt offering of salary and bonus, and more at specific packages tailored to their individual situation.
Note: The chart shows the average total compensation offered at the low end of the scale and the average salary offered at the high end of the scale combined with the average low and high end bonus percentages. No value has been added to these total compensation figures for additional compensation packages over and above cash bonuses.
UK TOTAL COMPENSATION OFFERED - GBP
MORE INFORMATION, BETTER DECISIONS
SALARY BENCHMARKING
Using our extensive knowledge of the global remuneration offered and desired contained within our real-time TalentMetrics™ system for all grades of management consulting staff, we can provide our clients with the most up to date and accurate salary benchmarking services. We provide comprehensive analysis of pay scales, benefits, segment comparisons and cost of implementations of changes.
SALARY ALERTS
Our real-time TalentMetrics™ system is also available to monitor your pay scales and provide you with instant alerts and regular analysis of how your reward packages compare to the wider market, and more importantly, the current desired packages from the talent pool.
RISK ANALYSIS
Our real-time TalentMetrics™ system also contains data on successful career trajectories in consulting. We know how quickly people move through the grades from analyst to partner at various firms, in different countries and different service lines. We have job title/grade analysis across all major firms and we can combine this with reward data. This allows us to plot your current workforce against the successful industry averages (in real time) and provide unique insight in to your existing talent pool to help you plan for future success, growth and demand.
WOULD YOU LIKE TO KNOW MORE?
Position: Head of Reward
Expertise: Remuneration & Reward
Geographies: UK and EMEA
Richard heads up our Talent Intelligence Practice, bringing a wealth of knowledge as an HR professional with over 20 years of experience in both Business Partner and Remuneration roles. His approach is client focused and founded on trust-based relationships.
Richard’s primary emphasis will be to help our clients to make informed decisions about their remuneration position relative to the wider market, combining intelligence driven insights with extensive relevant datasets.
Are you looking at understanding your organisations current position or offering at the moment and would like to know more?
We would welcome the chance to understand how our data and experience of attracting, retaining and reward management consultants for the last 20 years could help you.
Position: Talent Intelligence Consultant
Expertise: Consulting & Talent Intelligence
Geographies: Global
Georgia is a skilled talent intelligence and executive search professional with a track record in successfully managing and delivering to requirements across global markets.
With her attention to detail, she is experienced in talent advisory and talent intelligence for management consultancies and beyond. Utilising this to become a trusted consultant on talent strategies and in developing long-term growth. Focused on helping clients to make informed decisions about their remuneration position, all to better retain, recruit and reward the right talent for management consulting clients.
Valuing building long-term relationships with both candidates and clients, Georgia partners with a number of global strategy and management consulting firms.