Consultancies Freeze Graduate Pay

Top consulting firms are holding starting salaries steady, signalling a shift in the post-pandemic talent landscape. This decision comes amid concerns that AI-driven productivity gains could reduce the need for large numbers of junior consultants, impacting the traditional 'pyramid' staffing model. The freeze follows a period of significant salary increases, driven by intense competition for talent across sectors. The current market presents fewer opportunities and increased competition, as individuals seek stability amid uncertainty in investment banking and the tech industry. While starting salaries remain unchanged, overall compensation packages, including bonuses, can still reach substantial figures. Some firms have a history of occasionally maintaining consistent starting salaries, indicating that this is not entirely unprecedented.