How Much Money Will You Make as a Management Consultant?

The total value of the consulting sector is said to be around $250 billion, making it one of the largest markets in the professional services industry. And within this sector, management consultants are increasingly sought after.

As businesses compete to outdo one another, it is no wonder that management consultants are not only in high demand, but also well paid. Here is a breakdown of the salary of a management consultant.

Average management consultant salary

Before getting into the salary breakdown of a management consultant at different stages of their career, let’s look at the average management consultant’s salary. In the United States, the average management consultant salary is $87,436, although it does vary from one state to another.

The average annual salary of a management consultant also depends on their specialty. For example, a risk management consultant in the United States makes an average of $106,941 per year. The average annual salary of a financial consultant is $74,666 per year.

Entry-level salary

According to the comprehensive guide for management consulting salaries, the average entry-level base pay for a management consultant working in a top firm is $83,500. Performance bonuses are about $15,775. Signing bonuses are an average of $5,000 for entry-level management consultants.

Management consultants with MBAs salary

The value of a management consultant with an MBA is much more than management consultants without one.

An MBA graduate can earn an average of $149,000 at a top firm. While the signing bonus of a fresh graduate is $5,000, the signing bonus of an MBA holder is roughly $25,000. MBA graduates may also receive higher performance bonuses—currently $37,000 on average.

Senior management consultant salary

The national average salary of a senior management consultant in the United States is $120,178. However, salaries range from $106,578 to $135,649. Again, this will depend on the state you work in, the companies you work with, and your education and experience.

Why management consultants are highly paid?

A common question is why management consultants are paid such ridiculously high salaries.

A management consultant or a management consultancy can help an organization become more productive and efficient. Management consultants can help organizations reach their corporate goals – even during the toughest financial crises. Being experts in their field, management consultants are privy to management skills and trends the most companies may not be privy to.

A management consultant is extremely valuable to an organization. They can help an organization improve its productivity, company image, and other aspects of the business. They have the expertise to identify current problems and potential risks, and then help organizations to overcome them by laying out clear-cut plans and goals.

The tasks of a management consultant include developing, recommending, and implementing improvements in an organization to make it more successful than it already is. Recommendations and implementing improvements are also made to help organizations get out of big problems they find themselves in.

A big part of a management consultant’s job is also to train clients on business development processes.

Besides the above reasons, even junior consultants do most of the work that companies pay big money for. They have to convince corporate executives to trust their strategies. Consultancies, on their part, hire the brightest as they are the most sought-after.

Insurance for management consultants

Management consultants and management consulting firms should consider purchasing Professional liability insurance. It covers the costs of legal claims of negligence, misrepresentation or mistake filed against a management consulting company and its employees.

Very often, a client will require that you are insured with Professional Liability insurance for management consultants before hiring you. However, a policy can help you manage unexpected bills even if you’re not required to have cover.

BizInsure makes it easy to compare quotes and purchase insurance online. Visit our website or give us a call to protect your management consulting business today.

Sometimes, clients might experience failure because of the advice given to them by their consultant. When this happens, the client often files a case against the consultant as well as the business organization the consultant works for. The client could accuse the consultant of negligence, miscommunication, omission, error, or improper services.

 

*As with any insurance, coverage will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this guide is general only and should not be relied upon as advice. The number of quotes provided varies between products, occupations and other underwriting factors determined by the insurers.

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