Can you believe it? We’re already racing into February! As we embrace 2025, the marketplace for strategic talent, particularly former management consultants, continues to evolve. TS Recruitment is excited to share insights, celebrate successes, and look ahead to a year filled with possibilities.
2024: A Year of Change and Opportunities
Last year was a transformative one for the consulting industry, with many large firms facing significant headwinds. Consultants across the globe saw fewer high-quality projects, slower career progressions, and reduced compensation growth, conditions that pushed many to explore opportunities outside traditional consulting roles.
For example, McKinsey promoted its smallest partner class in years, advancing only 200 employees, a 20% drop from 2023 and well below 2021 levels. With McKinsey’s global workforce having grown by 50% since 2021, competition for senior roles has become fiercer than ever. Similar trends emerged across the Big Four: EY UK partners experienced a 5% decline in payouts, while PwC offered early retirement packages to senior staff.
Amid these challenges, TSR Strategy Practice was proud to help numerous consultants transition into impactful line roles in 2024. These success stories showcase the growing demand for strategy expertise in corporate environments, where former consultants are thriving and driving tangible change.
Compensation and Candidate Priorities
Globally, 2024 was one of the slowest years for consulting compensation growth in over a decade. However, South African consulting firms took aggressive steps to retain talent, offering substantial raises to younger consultants even outside of traditional promotion cycles. Despite these efforts, corporate roles still offered higher salaries and better benefits, reflecting the enduring demand for strategic thinkers in diverse industries. It is important to note that salaries offered to consultants joining corporates are often underwhelming but that the significant upside has been in bonus and incentives earned by previous consultants in SA corporates.
Interestingly, non-monetary factors have taken center stage for many candidates. Priorities like work-life balance, company culture, and location are often the deciding factors when compensation alone doesn’t align with expectations.
Building New Paths for Consultants
The challenges of the past two years: fewer high-quality projects, slower promotions, and stagnant pay, have made corporate opportunities more attractive than ever. At TSR, we specialise in helping consultants pivot into Private Equity, broader corporate roles, or entirely new industries.
Here’s to a Renewed and Prosperous 2025
TSR is dedicated to empowering consultants through career transitions, helping them unlock their potential in industries that recognize and value their expertise.
We’re excited to announce the upcoming launch of a blog series that will spotlight how former strategy consultants have excelled in roles beyond their consulting firms. This series will underscore the adaptability of their skill sets and reaffirm TSR’s commitment to facilitating meaningful transitions into diverse and unique sectors.
Through these blogs, we’ll showcase inspiring journeys of consultants who have successfully entered unconventional industries. One standout example features a consultant we placed into an entirely new business field—a transformative journey we’ll highlight in an upcoming article.
Stay tuned throughout the year for more success stories, actionable insights, and exciting opportunities to explore!
Remember to subscribe to my newsletter for future insights.