Continue career vs MBB
Hi all, seeking UK view in particular please:
*I’m 14 years in to banking career at top bank in UK (not in IB) - broad background. Previously top ranked university.
*Easy job, I’m a high performer, amazing WLB, £150k all in income.
*Now questioning next step - 2 options:
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Continue in same career - promotion now available for roughly £180k all in. If I stay, can reach earning potential of £1m+ in 15 yrs.
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Alternatively, get into MBB as experienced hire in to engagement manager/senior manager role at roughly £180k all in now (I’ve been headhunted to interview, let’s assume I get the job subject to passing etc). I hear that if you’re good enough, you move much more quickly and can be partner within 5-7 yrs with salary £600k+.
Here are positives/negatives with each option:
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Positives: Amazing work life balance, I know job well, secure job (very low chance of redundancy), high salary if you get to the top but will have to wait until early 50s and many things need to go right for you to land this. Negatives: very few roles up each step with fierce competition. Promotions typically proportional to number of yrs experience and less about output/merit. Can be old fashioned people/approach to things.
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Positives: you move quickly if you’re good. Potential for high salary sooner and it’s not 1 job in 1,000 as you see in commercial banking. Much smarter people to work with who are dynamic/less old fashioned. Negatives: people seem to start at consulting and then go in to industry whereas I’d be doing the opposite - is this wise? Lots of travel when I have plans to start family soon. No job security as hiring/firing is cyclical. Need 50-100+ hours of case practise etc and may still not get job.
Would welcome input please.
Based on the most helpful WSO content, here are some insights to help you weigh your options:
Continuing in Your Current Banking Career:
Positives: - Work-Life Balance (WLB): You already have an amazing WLB. - Job Security: Very low chance of redundancy. - Familiarity: You know the job well and are a high performer. - Long-Term Earnings: Potential to reach £1m+ in 15 years.
Negatives: - Promotion Dynamics: Promotions are often based on years of experience rather than merit. - Competition: Fierce competition for very few roles at each step. - Work Environment: Can be old-fashioned in terms of people and approach.
Moving to MBB Consulting:
Positives: - Career Progression: Faster movement if you’re good, with potential to become a partner within 5-7 years. - Earnings Potential: Higher salary sooner, with partner roles offering £600k+. - Work Environment: Smarter, more dynamic colleagues.
Negatives: - Career Path: Transitioning from banking to consulting is less common and might be seen as unconventional. - Travel: Significant travel requirements, which could be challenging if you plan to start a family soon. - Job Security: Consulting has cyclical hiring and firing patterns. - Preparation: Requires extensive preparation (50-100+ hours of case practice) with no guarantee of securing the job.
Considerations:
Your decision should align with your personal and professional priorities, considering both the immediate and long-term implications of each path.
Sources: Q&A: MBB, BB S&T+IB, Top MBA, US/Global, Who wants a better life? I want to help., Which Bank for Career Bankers?, Checking in 6 years later [IB to MBB transition], BB Analyst Impacted By Layoffs - Looking for Insight
Appreciate the bot clarity.
Keen also to hear from anyone that’s been through similar? Thanks
Just a quick question - is it confirmed that engagement managers in London are making £180k all in?
Also with partners, is £600k what they make? Thanks!
Have you heard different?
Honestly, option 1 sounds pretty good if you enjoy the work and can indeed reach that earning potential down the line.
My main piece of advice (being a bit ahead of the level at which you might join at MBB): make sure that you (a) know what you are getting yourself into/ understand what the work entails (day to day work, performance/ trajectory expectations, industry focus) and (b) have your mind clearly set on making it to partner.
Expanding on these:
(a) The work will likely be quite different in terms of activities, client relationships, team dynamics, and possibly/ likely industry and capability focus. Do your research and talk with current employees at the company about their day-to-day and broader work at their employer to feel comfortable that you can deliver based on what you learn and can thrive personally in this (new) environment.
(b) Joining at the junior leadership level (EM, PL, SM, whatever term is being used) means you will have to decide within 2 years whether you are interested in pushing for a partner promotion, assuming you perform at the appropriate level of course. If you want to go for it, great - joining made sense and you likely have a bright yet demanding future ahead of you until it happens. If you are not interested in it, then you will end up leaving after ~2 years, likely heading back to your former industry given this is where your main strengths will lie. That two year MBB gap will not be bad per se, but it probably raises some questions if not contextualized appropriately (e.g., "was X not good enough?", "is X really sure about a future in commercial banking?"). The exception here would be to lateral into a great position in commercial banking after a few years if such a position opens up, but that tends to be relatively rare based on what I have seen/ heard.
Final points: I would not worry too much about case prep. It's a slight downside of the application process, but you can manage given your WLB and is somewhat enjoyable once you get the gist of it. Travel is more annoying, especially given you think about starting a family, but you can likely find projects within the UK to limit that (especially if you live close to London). That would be something you could discuss with HR to mitigate once at the company, but usually you trade off another element (e.g., less interesting project) to get your preference.
As always, these are personal opinions and take these as N = 1 on top of the other opinions you hear and thoughts you have. Wishing you success and the best of luck if you decide to go the consulting route!
As someone who jumped from industry to consulting in banking, albeit at a more junior level, I would say take the leap if i) you want to spice up your career track and take on more challenging and faster pace work; ii) you want to accelerate your learning; iii) you are willing to take a significant hit in WLB; iv) (this one is harder to determine) you see yourself staying for >2 years
At face value, the higher expected value is at your current role if your numbers are accurate considering that most people leave even if their intention was to stay
The issue is that I’m in industry and, it’s one role managing 1,000+ that pays the equivalent to a partner in consulting.
To get the top job needs lots of luck, patience to wait for the present person in role (and all those after them) to retire (few leave - why would you leave such a high paying job with amazing WLB), and being in with the right people. Simply being good enough and outputting the best work, even if you are top in the company for output, often doesn’t translate to promotions.
Whereas in consulting, there is a partnership model and whilst of course; luck, patience and networking are key, it is more expected that if you’re good enough, you’ll get to partner as there are more partner jobs going than the 1 equivalent role in industry.
Talk to people in consulting and get reality check on WLB - can be brutal
Thanks - would you please expand on this?especially about the travel please. PM me if easier.
I’ve spoken to a few and they acknowledge long weekday hours, but rarely work on weekends, which I like.
But I think everyone focusses on hours too much and not enough on the negatives of travel. I would rather do longer hours in one location, than less hours but with frequent travel. One of the reasons I didn’t got for consultancy at the start of my career was the continuous travel, and I hear it doesn’t get any less at EM level or above.
You would be joining at a role above me and so I can only attempt to describe what I’ve seen and heard from the people I work closely with.
- EM lifestyle varies with the study they are on, you may be pulling 50 hr weeks, you may be pulling 80+. Assuming you work in FIG (financial services), it will probably be closer to 70.
- AP and junior Partners often have worse lifestyles. Weekend work is not unusual here. You do have agency over when you work, but you will probably need to work 65-80 hrs regularly (towards the higher end when you start off).
A couple of additional points:
1) I’d cut off 5-10 hours from my range if you are joining BB. There are more layers and anecdotally I think wlb is better there. Id be surprised if you are joining McK given our attitude towards / experience of experienced hires above ASC level.
2) Consulting, more than industry roles, are about sponsorship. You need to become the go to guy/ gal for a SP because otherwise you won’t have work and you will be CTLed. You’ll need to hit the ground running faster the higher your level because expectations will be higher. You live and die by your sponsors - and so you’ll need to work doubly hard to prove yourself to generate sponsors since homegrown talent will have an advantage over you here.
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