consulting firms

McKinsey and Company Salaries and Bonuses

By Lea Remini 15 August, 2023 3 mins read

If you're looking for an excellent salary that's competitive with other companies in the same industry, McKinsey and Company might be a good place to start. Find out more about the average salary and bonuses, as well as where your office is located. Apart from the salary information, you will also find out about the company culture and how they reward employees.

Average salary

McKinsey and Company's average annual salary is $402,000, although it can vary greatly. The highest-paid employees earn around $240,000 per year, while the lowest-paid employees earn about $18,000. Salaries for partners at the firm range from $199,000 to over $1 million. A partner's compensation can vary depending on how they perform and whether they receive project commissions.

Associates can earn as much as $154,000 annually. They can also be called Project Leaders, and their salaries can climb as high as $220,000. Performance bonuses, profit-sharing, and bonus opportunities can help increase associate salaries. Associate status can be achieved in three to six years.

Salary progression

McKinsey's and the company's salary structure is fascinating. Employees can begin at the lowest level as a junior associate and move up to higher tiers. As their career advances, they can be promoted to senior associates and earn a base income of $5 million. As they climb up the ladder, they'll receive bonuses that typically equal 90% of what they earn as a performance bonus.

McKinsey consultants' salary rises and falls depending on their role. As the company grows and you take on more challenging work, you will likely earn a higher salary. An entry-level salary for a consultant is $108,000 to $116,000 annually. This is an average salary. For a better salary, those with a master's or doctorate in management can consider becoming project managers.

Bonuses

When it comes to company bonuses, McKinsey isn't the worst of the bunch. Its signing bonus to MBAs has almost doubled, from $25,000 the year before to $30,000. Bain, for example, also contributes $7,500 to its 401k plan, and BCG places a portion of its profits in the 401k of each new undergrad. BCG, on the other hand, does not reveal its bonus. However BCG recently increased its MBA signing incentive to $30k, in order to keep up with technology companies.

McKinsey's bonus pays more than other companies in the consulting sector. McKinsey & Company, for example, pays a consultant at Goldman Sachs $50k more than an associate at McKinsey & Company. The gap between consulting firms versus banks has increased to more that $100k annually. McKinsey & Company gives a $10,000 bonus to graduates who relocate to the firm.

Offices

McKinsey's offices and other company offices can be found in South Boston's Innovation District. They have 200+ consultants working in these offices and are well-known for their progressive atmosphere. Boston is a city with a rich culture, and an environment that encourages innovation. Housing costs are higher than the national average, however. There are many choices if you are considering moving to Boston.

McKinsey and Company has offices throughout the world. The office environment in each city is unique. Each office offers a unique culture and specialization. It is important to find one that best suits your needs.

Levels

The company has a clear hierarchy, with levels ranging from Associate Consultant to Partner. McKinsey's traditional career path is to start as an Analyst, and then work your way to Partner. As you progress from entry to senior roles, your focus will be on data gathering, analysis, and delivering presentations. Associate Consultants will require a graduate level degree, but the firm has other roles that are open to those who don't have one.

Bain is similar in size to McKinsey, but McKinsey boasts a more formal culture. The company takes its work very seriously and tends to have longer working hours. Because it might appear unprofessional to clients, the company doesn't give employees logo gifts. Both companies offer similar compensation, although McKinsey is more prestigious and has a larger alumni network.

FAQ

Do I need legal counsel?

Yes! Yes! Many consultants create contracts without consulting clients. This can cause problems later on. What happens if the client cancels the agreement prior to the consultant's completion? Or what happens if a consultant fails to meet the deadlines in the contract?

To avoid any potential problems, it is best to consult a lawyer.

What is the difference of a consultant versus an advisor?

A consultant is an advisor who gives information on a particular topic. A consultant provides solutions to problems.

Consultants work directly with clients to help them reach their goals. Advisors advise clients indirectly via books, magazines, lectures and seminars, etc.

What can I count on from my consultant to help me?

Within a few days of selecting your consultant, you can expect to hear back. They will often ask about your company's mission, goals and products. After receiving this information, they will prepare a proposal outlining their scope of work, estimated timeline, fees, deliverables and milestones.

If everything is in order, then the parties will enter into a written contract. The terms of the contract will depend on the type of relationship between the two parties (e.g., employer-employee, employer-independent contractor).

If all goes according to plan, the consultant will begin working immediately. He/she will have immediate access to your internal documents, resources, and you'll be able to access his/her skillset and knowledge.

You shouldn't assume, however, that every consultant is an expert in all areas. It takes practice, effort and practice in order to be an expert in any area you consult. Don't expect your consultant know everything about your company.

Statistics

According to statistics from the ONS, the UK has around 300,000 consultants, of which around 63,000 professionals work as management consultants. (consultancy.uk)
On average, your program increases the sales team's performance by 33%. (consultingsuccess.com)
According to IBISWorld, revenues in the consulting industry will exceed $261 billion in 2020. (nerdwallet.com)
WHY choose me: Why your ideal client should choose you (ex: 10 years of experience and 6-week program has helped over 20 clients boost their sales by an average of 33% in 6 months). (consultingsuccess.com)
"From there, I told them my rates were going up 25%, this is the new hourly rate, and every single one of them said 'done, fine.' (nerdwallet.com)