business consulting

Negotiating Consulting Salaries at New York

By Barbara Thomas 10 April, 2023 2 mins read

There are many different salaries for consultants. Some companies are known to pay top dollar for highly skilled employees. While it is possible to negotiate the amount of your offer, you should not expect a big raise. There are still some things you should keep in mind when trying to negotiate the best deal.

Base salary

If you're considering a career in consulting, you may be interested in the base salary for this profession. This average annual salary ranges from US$51,769 to US$149,770. EY offers a salary of approximately US$172.465 to senior consultants in New York. A senior consultant at EY attends multiple training sessions and receives numerous tools and methodologies for their work.

Although consulting salaries rise rapidly in top companies, it is important to realize that they often include a lifestyle boost. Compared to the average worker, consultants at top firms tend to receive a 12-20% pay bump and enjoy a better work-life balance. Although it can be extremely rewarding, consultants in the financial service industry can often see increases of up 30%.

Performance bonus

A performance bonus is a major part of a consulting salary. This bonus is significant and can vary depending on industry and firm. Some bonuses are more predictable then others. A top-tier salary bonus is roughly 60%. You will make less than six hundred dollars per annum below this level.

If you're a recent MBA graduate, you might be tempted to start at a top consulting firm. After all, the compensation at these firms can be very attractive. Firms can offer up to $90,000. This is for a $190,000. Performance bonuses may be up to 15% of your base salary.

Profit sharing

The consulting industry has enjoyed steady year-over-year increases in compensation over the past decade, as many firms have increased total compensation and perks such as profit sharing. Many firms have also increased base salaries and added signing bonuses as well as maximum performance bonuses. Many have also added perks such as unlimited PTO and profit sharing.

Level of employee

The type of job and experience of each individual will determine the range of salary offered by different consulting firms. Deloitte is one example of a consulting firm that has a fixed salary structure. However, it's possible to negotiate higher salaries. If you have relevant experience, you can ask your recruiter for salary information. Based on the role you are playing, you might be able to negotiate a better base salary or sign-on bonuses.

FAQ

What skills are necessary for consulting?

A consultant should have strong analytical skills as well as interpersonal skills. This is because you could be asked questions or not know what you are doing. It is important to learn how to quickly solve problems and manage people.

You also need to have excellent communication skills. Most clients expect an answer within 24 hours. If they don’t hear back, they assume that you aren’t interested. It is important to keep them updated and make sure they fully understand the situation.

Why should consultants be hired?

There are many reasons why you might need to hire consultants:

An organization might have a particular problem or project that requires solving
You want to improve or learn new skills.
You'd like to work in conjunction with an expert in a specific field
The task is yours alone.
You feel overwhelmed by all the information and don’t know where to begin.
You can't afford to pay someone full-time

You can find good consultants by word of mouth. Ask around to see if you know any good consultants. Ask someone you already know to recommend a consultant.

You can use online directories such as LinkedIn to find consultants in your local area.

How does consulting differ to freelancing

Freelancers, who are self-employed and provide services to clients without the need for employees, are independent contractors. They usually charge an hourly rate based on how much time they spent on a project. Consultants work for companies and agencies that employ them. They are often paid monthly or annually.

Consultants often have more flexibility, while freelancers can choose to work when they want and set their own rates. However, consultants often have better benefits, such as health insurance, vacation days, sick leave, retirement plans, etc.

What types of contracts exist for consultants?

Standard employment agreements are signed by most consultants when they are hired. These agreements detail the length of the consultant's contract with the client, the amount he/she is paid, and other important details.

Contracts specify the area of expertise that the consultant will specialize in and the amount they will be paid. For example, the agreement may say that the consultant will provide training sessions, workshops, webinars, seminars, etc.

Other times, the consultant simply agrees to complete specific tasks within a specified timeframe.

In addition to standard employment agreements, many consultants also sign independent contractor agreements. These agreements allow the consultant to work independently but still receive payment for his/her efforts.

How did modern consultancy become possible?

The first consultants were accountants who helped companies manage their finances. They became known as "accounting consultants." This was because they had become very skilled at managing financial information. The role soon expanded to include other areas, including human resources management.

The term "consultant" came from the French word for "to advise." It was used by businessmen to describe someone who could offer advice on how to run an organization. The word consultant is still used by most business owners to refer to any kind professional advisor.

Statistics

67% of consultants start their consulting businesses after quitting their jobs, while 33% start while they're still at their jobs. (consultingsuccess.com)
On average, your program increases the sales team's performance by 33%. (consultingsuccess.com)
Over 62% of consultants were dissatisfied with their former jobs before starting their consulting business. (consultingsuccess.com)
Over 50% of consultants get their first consulting client through a referral from their network. (consultingsuccess.com)
According to IBISWorld, revenues in the consulting industry will exceed $261 billion in 2020. (nerdwallet.com)