- New hires at some top consulting firms don't have enough work, a Wall Street Journal report says.
- The slowdown comes as some firms have even paid new recruits to delay their start dates.
New hires at consulting firms like Bain, Boston Consulting Group, and McKinsey, fresh out of business school, are usually saddled with work. They're often shuffling to and from the airport, busily brushing up presentations, and answering emails late into the night.
These days, though, some newbie consultants are getting paid just to bide time before their next project rolls around, a recent report by The Wall Street Journal says. The report included the perspectives of more than 30 current, former, and prospective consultants.
Amid uncertain economic conditions, there just doesn't seem to be enough work to go around, so consultants are using their free time for running errands, catching up on sleep, watching television shows, and even applying for other jobs, the Journal's report says. Many consultants call this time being "on the beach" or "on the bench." It's not a new concept in consulting, but it's apparently happening more — and for longer spells — amid the economic slowdown.
One consultant told the Journal he'd only had two client-facing projects since starting last fall and was filling the time by going for walks, buying groceries, napping, and streaming shows like Amazon Prime's "Fakes." Another consultant who was also hired around a similar time told the Journal she was prepping meals, spending time with family, and job hunting.
Those hired into consulting firms out of business school generally take home hefty six-figure salaries. About half of the MBA graduates from Yale, Dartmouth, and the University of Virginia last year were hired into consulting firms with a median salary of $175,000, the Journal noted.
And last year, the "Big Three" firms — Bain, McKinsey, and BCG — also announced they were increasing their base salaries from $175,000 to $190,000-$192,000 for graduates in the United States.
But the downtime — as well-compensated as it might be — isn't always as enjoyable as it might sound.
Some consultants seem to be getting anxious about how all this idle time could hinder their career trajectories.
The Journal reported that some early-career consultants said they were worried the slowdown would negatively impact their performance reviews, potentially throwing a wrench in their longer-term plans. Landing a job at a consulting firm isn't easy. For many ambitious graduates, consulting gigs can be a launchpad to other lucrative corporate roles or even a gateway to starting their own company.
Others are being encouraged to delay their start dates. Bain has offered to pay some new hires tens of thousands of dollars to work for a nonprofit, go on a safari, or become a yoga teacher — and push back their start dates with Bain.
The impasse that new hires face comes as consulting firms have laid off swaths of their workforces over the past year. In March, McKinsey cut approximately 3% of its workforce in an effort to downsize an employee base that had swelled in recent years.
Are you a recent hire at a consulting firm who's a lot of time "on the bench" in recent months? Or have you been paid to push back your start date? We want to hear from you. Email the reporter Lakshmi Varanasi at lvaranasi@insider.com.