IB vs management consulting - Which one is overhyped?
Most would say that both get significantly glazed, but I will say that IB has gradually become much more of a punching bag on this forum due to a variety of factors ranging from poor job market to really irritating group cultures, but I think it’s worth exploring which actually provides the skills necessary to have the most opportunities with one’s career. Of course, ib gets compensated better than consulting, but most consulting firms provide benefits and have less intense hours that many would say makes up for the fact that they have smaller bonuses/lower base comp. So in general, what it comes down to is which career field provides the most versatility if you end up wanting to leave banking or consulting entirely. I know it largely depends on what you want to do, but I always was under the impression that a banker can more easily transition into a consulting role vs a consultant trying to transition into IB, but I feel as though that isn’t the case anymore with the rise of MBB being significantly hyped by C-Suites at even banks — Jamie Dimon started his career at BCG, many politicians started their careers at MBBs and then went on to private equity or C-suite roles before entering politics. For me my take is this: Investment banking provides the better skills early on, but consulting (only if you’re at an MBB +/- a few T2 firms) can provide the network that will give you options down the road. (Personally don’t believe the bullshit about learning about the operational efficiency in consulting because I know way too many people who start out at MBBs that are borderline brain dead when you put simple financial statements in front of them). But I will say if you ask an MBB consultant about any type of non-finance-heavy related topic, they will be able to discuss that topic in pretty significant depth.
consulting is for banking rejects
My school's career advisor's first words to anyone who strikes out of IB are "Get casing."
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Buddy once you get an MBB offer, then you can start glazing it.
Bankers salty about better hours, higher pay, and more interesting work consultants get to do
I worked at an EB for 2 years and made $195k and $225k in my first and second year, respectively. My friends in consulting made less than $140k both years for hours that were better, but not that much better (65-70 vs 80) plus travel. Not worth it IMO.
Just so you know, most consultants aren't allowed to fly first class for domestic flights under like 6 hrs, and they're forced to stay at shitty Marriots when traveling. My older sister was in consulting. The money is decent, but she was still pulling 60-70 hrs a week not including travel which adds another 10+ hrs of time you lose each week.
Also, since the MBBs are benching half the junior staff and counseling people out, the unbenched half have been forced to take on the extra workload as one of the cost-cutting measures implemented last year, meaning wlb has gotten even worse for MBB. Can't speak to how big 4 is handling things though
Anecdotal but 75% of kids I know that went to consulting couldn’t get a BB/EB offer
I think both are equally prestigious. A good chunk of top minds in my ex MBA cohort have gone to consulting and I expect them to be thought leaders in their respective fields one day.
I would say consulting is more overhyped. Recruitment for IB as a lot more merit based compared to consulting. Breaking into consulting is even more prestige oriented (relatively) than IB, where the school is such a huge factor in getting any looks (although it still is for both) . At least for IB there are strong finance programs sending kids every year which makes it more attainable. The barriers for getting into consulting at a top firm give it that high status, which could cause it to become overrated. Also top pay in IB > top pay in MC.
Consulting is for the people who don’t have the stomach and the resilience to survive in IB
bro why
Both are massively overhyped in both undergrad and MBA programs, it's amazing the amount of students (especially international) I see who only recruit for banking and consulting because those are the only two options they're aware of based on what their clubs told them. One of my friends literally failed to get a return offer for the BB she interned at, and she's freaking out because the only other option she's been told about is consulting but she doesn't want to travel every week.
I am starting to see more people try to hop on the VC/startup bandwagon though, though it's nearly impossible to go straight into VC out of undergrad without family connections.
Unfortunately at the MBA level, a lot of the cool corporate / startup jobs 3-5 years post MBA are often given to ex-bankers/consultants not the people who jumped straight to industry (of course this is assuming pre-MBA job wasn't in consulting or IB).
Came to this realization as a '24 MBA grad. Wasn't considering consulting at graduation but now I am after doing a ton of networking calls confirming that it might be a necessary evil for the type of roles I eventually want later on.
lol that’s a fucking lie. Outside of Corp Dev/Corp Strat a banker/consultant isn’t outdoing someone who’s been in tech their whole career. You guys cap wayyyy too much on this app
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Ex-MBB here
I think Consulting is overhyped. Unless you get partner (and most won't make it), most consultants end up in corporate strategy roles, a lot of which are dead-ends. Yes, you can have a good career in strategy (many directors/VPs make 250-400k), but you're still in a back office role.
On top of that, it's not as glamorous as it seems: people aren't getting the projects they want, struggles in getting staffed, "up or out" culture, BS rating systems, fluffy projects where you add little value.
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Easier said than done... a lot of people get stuck in strategy (either because they enjoy it or they are unable to make the switch)
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