Consulting remains a highly sought-after career path for MBA graduates, fueled by a robust demand for their skills across various sectors. A top-tier MBA is increasingly becoming an essential credential for aspiring leaders aiming for senior and mid-management positions within major consulting firms.
Leading strategy consultancies have significantly ramped up their recruitment efforts. For example, McKinsey & Company hired over 500 MBA graduates in 2005, with plans for further expansion in 2006. Other prominent firms like Booz Allen Hamilton, Boston Consulting Group (BCG), Bain & Company, and IBM Consulting each recruited over 100 MBAs in 2005, also anticipating increased hiring in the subsequent year. In contrast, larger banks hired considerably fewer MBAs, with numbers from the technology and industrial sectors being even lower.
The 2005 TopMBA.com Recruitment and Salary Survey indicated a substantial 35% surge in demand for MBAs within the consulting sector in just twelve months (June 2004-June 2005). This upward trend reflects the resurgence of the consulting market after an earlier downturn. During that period, many consultants pursued MBAs, and now, as the market rebounds, consulting firms are actively seeking these MBA graduates who possess prior consulting experience.
Notably, an increasing number of MBA graduates are being hired from backgrounds outside of traditional consulting. Cambridge University’s Judge Business School reported that in 2005, only 13% of those entering consulting post-MBA had prior experience in the field. Similarly, at INSEAD Business School in France, the proportion of graduates hired into consulting from diverse backgrounds, such as industry, rose from 36% to 47% within a single year (2003-2004). This shift signifies that consultancies are placing greater value on the diverse experiences and expertise that candidates from non-consulting backgrounds bring, especially as the average age and professional experience of MBA students increase. The need for consultants with specialized skills and knowledge, often acquired outside the consulting profession, is also on the rise.
The UK market is particularly attractive to MBA graduates. Its strong economy and policies aimed at attracting highly skilled migrants make it the most popular destination in Europe for MBA job seekers. In 2005, the UK attracted 23% of INSEAD students overall, and a remarkable 37% of those choosing to remain within Western Europe. France followed with 18%, and Germany with 8%.
Consulting remains a lucrative career choice for MBA graduates. The 2005 annual report from the London Business School revealed that consulting positions offered higher average earnings than those in finance or industry, averaging £65,000 per year before bonuses. This figure compares favorably to the £58,000 average for finance sector jobs and £55,000 for industry positions. Employees also received an average annual bonus of £25,000 and a sign-on bonus of approximately £10,500. Companies are further incentivizing top graduates with various perks, including company cars and all-expenses-paid outings.
However, the primary motivation for MBA graduates choosing consulting is not solely high salaries. According to students, the appeal lies in the career and lifestyle options that consulting provides – the opportunity for stimulating and varied roles with diverse avenues for professional growth.