Strategy Simplified S22E8: Flat Base Pay, Rising Stakes – What 2026 Salary Data Signals for Consulting Recruiting
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Jan 30, 2026 Discussion of why starting base pay is flat and what structural shifts drive that trend. Exploration of how firms move compensation into bonuses, benefits, and faster skill development. Analysis of AI, smaller teams, and new delivery models reshaping performance expectations. Breakdown of differences across firm types, geographies, and what candidates and universities should focus on.
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Base Salaries Have Hit A Structural Ceiling
- Starting base salaries are frozen across entry levels and this reflects a structural reset in consulting economics.
- Firms are prioritizing margin discipline and reinvesting into capabilities rather than broad base increases.
Productivity Gains Shrink Junior Cohorts
- AI and automation are permanently increasing output per consultant and reducing the need for large junior cohorts.
- Firms keep junior hiring steady but not proportional to business growth, shifting incentives toward efficiency.
Prepare Early To Differentiate Yourself
- Prepare more thoroughly to break into consulting because the bar for entry is rising and selectivity is increasing.
- Aim to differentiate early on skills since variable comp will widen the spread between average and top performers.