The consulting industry is experiencing a period of significant transformation, characterized by stagnant compensation and technological disruption, according to the latest annual Consulting Salaries Report released by Management Consulted.
Based on data from over 4 million readers, customers, and consulting firms, the report highlights critical trends reshaping the sector. First-year consultants with undergraduate degrees can expect base salaries around $112,000, while MBA graduates might command up to $192,000 – figures that have remained unchanged for two consecutive years.
Artificial intelligence emerges as a pivotal factor driving these changes, enabling consulting firms to enhance productivity and accomplish more with reduced staffing. This technological efficiency is directly contributing to the plateau in compensation levels, reflecting a broader shift in workforce dynamics.
Market demand remains robust, with particularly strong interest in specialized verticals including supply chain management, cloud technologies, and healthcare consulting. However, firms are strategically adapting their recruitment approaches, increasingly prioritizing pre-MBA hires to maintain operational margins.
The report suggests that consulting industry trends serve as a predictive indicator for broader economic patterns. Productivity and hiring strategies first implemented in consulting frequently cascade into recommendations for global corporations, making these insights particularly valuable for understanding potential economic trajectories.
Despite potential macroeconomic recovery in 2025, significant challenges persist. Persistent inflation and high interest rates could constrain industry growth opportunities. The labor market shows no immediate signs of returning to the aggressive hiring and compensation expansion seen in recent years.
These findings underscore the consulting industry's ongoing adaptation to technological disruption, economic uncertainty, and evolving workforce expectations. As artificial intelligence continues to reshape professional services, organizations must remain agile and strategic in their talent and technological investments.
