Hiring advice: what you need to pay

Hiring advice: what you need to pay

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Summary

Many of the 2,000+ employers who partner with us regularly ask us questions like – “What’s a reasonable package for this role?” or “How much should I pay this candidate”. We analysed data from 34,945 responses to answer those questions.

Many of the 2,000+ employers who partner with us regularly ask us questions like – “What’s a reasonable package for this role?” or “How much should I pay this candidate”. We analysed data from 34,945 responses to answer those questions.

When you consider hiring a new employee, pay is key to finding the right candidate. Through insight an analysis from our salary report that was released in January, we’ve highlighted some of the most important stats when considering hiring a consultant. 

What you need to pay

In all company types, the proportion of the value of total compensation made up by the ‘cash’ (i.e, basic salary + bonus) element, decreases with seniority. This is particularly stark in start-ups and private equity, where the majority of the value of compensation at senior levels is in equity. The trend is the same in corporates, but to a lesser extent.

Consulting averages 

Consulting earnings are on average £45-270k, depending on seniority and the type of consulting firm. At junior levels, corporates and consultancies pay better than start-ups. However, the opposite is true at senior levels in a start-up. This is driven by the value of equity. Up to Manager level, consulting pay exceeds corporate and start-up pay; eclipsed only by private equity. However, senior level consultants are paid between 10-30% less than their peers ‘in industry’ – both corporates & start-ups – as the value of share options kicks in.

Premium packages

The average senior analyst-level salary in a large consultancy is £52k. If you are a consultant with McKinsey, Bain or BCG, that number is even higher – closer to £60k. If you’re hiring a consultant for a start-up role, this might also look less attractive to senior analyst level consultants, as the average start-up salary is £31k, compared to £52k at the same level in a large consultancy.

Salary in start-ups

However, start-ups are a wildly popular exit choice. Just in the last month, 908 start-up applications were submitted on movemeon. An associate role will start at £46k compared to £77k and a managerial level position will pay on average £91k vs £109k per annum.

On movemeon, jobs in these industries are the most frequently posted types of opportunities. However regardless of the average wages at these levels in these industries, you need to be realistic about what you will be new employees. Some businesses in start-up stage would not be able to afford to pay the best salaries. However start-ups are an extremely popular option for consultants, we go more in-depth into popular industries here. 

If you’re interested in more about hiring, find out more here, or get in touch by emailing info@movemeon.com 

 

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