Comp/Culture/Hours etc at Tier 2 Consulting Firms?
I am curious if anyone can comment on what comp/culturelifestlye and hours are like at Tier2 consulting firms(ATK,OW,Deliotte S&O, Strategy&.etc) post mba or past the 2-3 year entry level all the way up to partner level.
Do the hours/pay etc equal around the same amount at MBB firms for engagment mangers and beyond?
Same smart people from the same schools as MBB.
Hours and travel are the same.
Office culture can vary, but all are variations on the same theme.
Post-MBA comp right out of the gate is the same, but the trajectory changes in total comp, base vs bonus ec. Big 4 tends to pay a little less in total comp than an OW, and places like EY-Parthenon and LEK pay very well.
Arguably MBB has the "best" exits but people exit Tier 2 firms do very well if they have a great track record at the firm doing things that are in high demand. Ex, graduates from a top 10-15 MBA program, works at a Tier 2 firm and works their way up to EM (1 promotion) after 4-5 years and then exits. That person will have a lot of good options at top companies, tech firms, etc.
Hours are the same for all T2s just like the MBB - tough.
Pay for post-MBA is the same for MBB and T2s - plenty of numbers out there. At the EM level, marginally higher at MBB, maybe even the same depending on the T2 in question.
Post-EM, till Partner, it really depends on the T2 (see above poster's comment on OW) but from what I hear, in general, the MBB on average pay more assuming you're making an apples to apples comparison on titles. Varying titles in the industry actually make it painful to make accurate comparisons. However, I will caveat with the following:
1) Office location - In the ME for instance, the pay for S& and some of the other T2s including OW are in-line with the MBB and in some cases I've heard of higher comp numbers for T2 than MBB - depends on year, performance, practice, etc. The comp is similar because bill rates in the region are quite comparable and in some cases T2s bill higher than the MBB.
2) Practice - If you're in a "hot" practice at a T2 raking in serious revenues, then there's a good chance you're going to get paid quite a bit - especially at the partner level. Comp for these folks will be comparable to MBB averages and higher in some cases. There was a T2 consulting partner in the ME who got paid a very low 8 figure bonus a few years ago for selling an insanely large project. Also heard of some partners at the Big 4 pulling in huge numbers. Obviously, this is the exception, not the rule.
I've also heard for Partners, YoY volatility in comp is higher at T2s.
With regards to your ME comments:
T2 pay more than MBB over here until Principal level (up to 30% depending on the level) and some have very generous extra benefits (e.g. school tuition for up to 2 kids paid). This is not due to higher rates though (which in fact are sometimes half of those of M&B) but more the fact that attracting talent to the region is difficult in general, and in competition to MB(B), you need to compensate the more significant brand gap within the region (There is a huge difference in perception here, more extreme than Europe, whereas in the US the picture is more balanced out from what I hear)
Your comp. should not differ between practices, most firms have a mechanism to even out pay and until Partner level, bonus ranges are fixed and tied to your/company performance, not practice performance. The example of the 8 figure bonus is due to the compensation structure of that T2 firm which gives a sales commission to each partner (which apparently is in talks to change now after that specific person was able to get an insane payday).