Little joy in consultants' pay packets

Senior associates and principal consultants in boutique firms have pocketed the biggest pay rises this year, but money remains tight with projected increases failing
to materialise, according to the latest Management Consultancy salary survey.

The study reveals that the same small firm that last year reported paying a basic annual average salary of £104,000 to its senior associates reported that the figure had risen to around £112,000 in 2005 ­- a gain of more than double the average.

Senior associates and principal consultants made the largest gains, but only took home 3% more than in 2004. Recent graduates saw a small improvement of 1.6% while, surprisingly, consultants with two to four years’ experience saw the smallest rise with 0.6%.

In cash terms the average basic annual salary of senior associates and principal consultants rose by more than £2,000 while a senior consultant’s rose by £1,700.

The biggest surprise was that the salary projections made a year ago never actually came to fruition. In 2004 the industry projected a round of increases at the start of 2005 and another review at the end of June, but this has failed to occur in the majority of firms.

The trend of firms keeping a very tight grip on payroll now appears to be the norm, but the study also found that many are thinking more about discretionary bonuses.

The firms predict that 2006 salaries will increase but with senior associates again taking the lion’s share, with almost £5,000 more than this year. Graduates are projected to earn just £1,250 extra in 2006.