Aktuelle InSights

By Philip Thomas - Data Integrity Manager

Vencon Research observes a wide variety of partner remuneration models across the consulting market. Designing or optimising a model can be a complex task, requiring consideration of factors far beyond the typical starting point of competitive total income.

Partner compensation models are often shaped—or limited—by a firm’s structure. For example, public firms are not able to offer full profit-sharing compensation packages to their partners, while private firms may be able to lean more heavily on a cash-based, full profit-sharing approach.

Despite structural differences, most models aim to achieve the same goals: being competitive enough to attract and retain talent, and robust enough to remain sustainable and fair over time.

What separates an average model from a strong one is not simply what components are offered or how much partners earn—but rather why each component exists and how it is designed to support the broader aims of the firm.

Hallmarks of Success

The following are the key indicators Vencon Research considers fundamental to competitive and robust partner remuneration models:

Fairness across the partner group

Perceived fairness is critical to maintaining trust and morale. Remuneration structures should be transparent and consistently applied.

Incentivisation of both personal and firm performance

Partners should be encouraged to succeed as individuals while benefiting from collaboration and shared firm success.

Encouragement of both short- and long-term thinking

Effective models strike a balance between rewarding immediate results and promoting sustainable growth.

Robust link between performance and variable payout

Variable components should be clearly tied to measurable outcomes. Partners who perform well should feel appropriately rewarded, and those who do not should not be surprised by the outcome.

Alignment between pay, role, and financial contribution

Remuneration should reflect the scope of a partner’s responsibilities and their impact on firm performance.

Clarity and communication

Partners are more motivated when they understand how the model works and what is required to progress. Clear expectations reduce uncertainty and build long-term confidence.

Retention and buy-in mechanisms

These mechanisms help secure mid- to long-term commitment by aligning partner interests with the firm’s future direction.

Recognition of partner risk

Partners who hold equity or invest financially in the firm take on significant personal risk. If applicable, models should acknowledge this by offering appropriate upside and protections—reinforcing a genuine ownership mindset.

Why Getting It Right Matters

To what extent a partner remuneration model meets the above criteria deserves serious consideration. Falling short in any of these areas can negatively impact firm performance and increase the risk of dissatisfaction or attrition among partners.

Vencon Research’s Advisory services work closely with clients to design tailored partner compensation models that align with each firm's unique structure, strategy, and ambitions—ensuring the key principles outlined above are not only met, but built in from the start.

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By Yogendra Balayar - Senior Associate Data Integrity

Compensation strategies in consulting often focus on client-facing positions, but administration and support teams play a critical role in keeping firms running efficiently. These roles—ranging from reception and office management to recruiting, design, and internal research—are diverse, and compensation practices can vary widely. Without reliable data, it’s difficult to know whether pay levels are competitive or appropriate.

Vencon Research’s Administration & Support Staff Survey provides firms with detailed, market-based insights to support compensation planning and evaluation for these roles. The survey covers a broad range of support functions and job levels, helping firms make well-informed decisions across their internal operations.

Why Benchmark Support Staff Compensation?

1. Attracting Talent

Support roles need to be filled by capable, reliable professionals—and competitive compensation is key to attracting them. Benchmarking shows what similar roles are paid elsewhere, making it easier to set realistic salary ranges.

2. Retaining Skilled Staff

Good employees are hard to replace. Monitoring compensation trends helps firms stay aligned with the market and reduce the risk of losing valuable team members to better-paying offers.

3. Planning and Managing Budgets

Understanding what comparable roles cost across the industry supports more accurate and sustainable budgeting. Benchmarking also helps firms plan for changes, such as adjustments during reviews or promotions.

4. Demonstrating Fairness

When employees see that their compensation is based on objective market data, it fosters transparency and trust. Firms that benchmark regularly are better equipped to explain and justify their pay structures.

How Vencon Research Supports Better Compensation Decisions

To help consulting firms make informed, market-aligned decisions around support staff pay, Vencon Research offers a dedicated Administration & Support Staff Survey. The survey is designed to reflect the realities of internal roles within consulting—providing comprehensive, reliable data that goes beyond job titles to capture the actual scope and structure of support positions

Detailed Compensation Data

The survey provides a comprehensive view of compensation components: base salaries, bonuses, total cash, and applicable market-specific allowances. Results are broken down by role, level, and geography.

Accurate Role Matching

Job titles alone often don’t reflect the real responsibilities behind a role. The survey includes a structured job matching process that looks at actual tasks and reporting lines to ensure valid comparisons across firms.

Support for Multi-Function Roles

Support staff frequently handle responsibilities across more than one function. The survey allows for incumbents to be matched to multiple sub-functions when necessary, reflecting the way these roles actually operate.

Career Level Consistency

Instead of assuming equivalence based on titles, roles are matched based on skill level, responsibility, and decision-making scope. This results in more accurate level-to-level comparisons across firms.

Additional Insights

The report also covers non-compensation elements such as overtime pay, vacation days, and year-on-year salary movement. These data points help provide a broader understanding of employment practices in support functions.

International Coverage

Data is collected from consulting firms across a range of markets, including the US, UK, Middle East, and selected emerging markets. This global perspective is especially useful for firms with cross-border operations.

Confidential and Reliable

All data is gathered directly from HR professionals or firm leadership and treated with full confidentiality. No firm- or individual-level data is disclosed in the reporting.

A Structured Approach to Support Staff Pay

For consulting firms, the Administration & Support Staff Survey offers a clear and reliable basis for setting and reviewing compensation across non-consulting functions. With accurate job matching, robust data coverage, and detailed reporting, firms gain the insight needed to make better decisions—whether the goal is attracting new hires, retaining experienced staff, or aligning internal structures with the wider market.

Vencon Research helps consulting firms make informed, data-backed decisions on compensation—across both client-facing and internal roles. From accurate job matching to reliable benchmarking, our surveys provide the depth and clarity firms need to navigate compensation planning with confidence. To find out how our data can support your firm, contact us or visit our website.

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By Irina Kvirikadze - Senior Manager Data Integrity Lead

Skill-Based Pay (SBP) can be a compelling approach to compensation, but it isn't a universal fit. Not every organization will benefit from shifting away from traditional models, and success depends heavily on context, structure, and execution. The purpose of this article is to provide a clear, balanced overview of SBP—what it is, when it works, and what to consider before implementation. Whether you're exploring it for the first time or reassessing your current compensation strategy, this guide is designed to help you make informed decisions.

Skill-Based Pay (SBP) represents a significant departure from traditional compensation models that reward employees based on job titles, seniority, or set responsibilities. Instead, SBP focuses on rewarding employees for the skills they acquire and apply, encouraging continuous learning and aligning more closely with the dynamic needs of businesses.

This approach is particularly relevant in fast-paced and innovation-driven sectors like technology, consulting, and finance, where the demand for specialized skills changes rapidly. Organizations adopting SBP can respond more quickly to market shifts, attract top talent, and reward employees who demonstrate the capabilities most critical to success.

What Makes Skill-Based Pay Work: Features and Benefits

Skill-Based Pay (SBP) is a dynamic compensation model that aligns rewards with the evolving competencies employees bring to an organization. It promotes competency-focused compensation—rewarding verified skills over traditional job titles or tenure—and fosters flatter organizational structures through broader pay bands and greater mobility. Moreover, the transparent, objective criteria of SBP may reduce bias, promote fairness, and enhance organizational agility, enabling companies to quickly adapt to technological advancements and changing market demands.

Below are some of the core features and advantages that make skills-based pay an effective compensation model.

Dynamic Salary Structure

• Employees earn a base salary with additional skill-based components, adjusted as they acquire and demonstrate relevant skills.

Competency-Focused Compensation

• Pay is linked to specific skills, certifications, and expertise rather than job roles, allowing employees with high-demand skills to earn more.

Flatter Organizational Structure

• SBP reduces rigid hierarchies and broadens pay bands, fostering a more agile workforce.

Strategic Alignment

• SBP directly ties compensation to critical skills (technical, strategic, or leadership) that drive business performance, ensuring pay structures support operational and strategic goals.

Talent Attraction & Retention

• Attracts top talent by offering competitive pay for high-demand skills.
• Empowers employees to control their career growth by developing skills that align with personal and organizational objectives.

Adaptability & Pay Equity

• Enables companies to adapt quickly to market changes and technological advancements.
• Reduces biases (gender, ethnicity) by establishing clear, measurable pay criteria, promoting equitable compensation.

Why Skill-Based Pay May Fall Short: Key Challenges and Pitfalls

SBP presents several challenges that organizations must navigate to ensure its effective implementation. First, the operational complexity of SBP demands a well-defined skills framework, standardized evaluation criteria, and continuous management. Additionally, there is a risk of misalignment when skills that do not directly drive strategic outcomes are rewarded, potentially wasting resources on niche capabilities that add little value to business performance. External benchmarking is another significant challenge, as the value of skills can vary widely between industries and regions. For example, in the consulting industry, a project management certification such as PMP may carry significant value in a strategy consulting firm, where it supports the delivery of complex, large-scale transformation projects.

In contrast, the same certification may hold less monetary weight in a smaller, operations-focused consultancy that places greater emphasis on technical expertise or industry-specific knowledge. As a result, Skill-Based Pay (SBP) offers a more objective and tailored compensation structure for many consulting firms, aligning pay more closely with the specific capabilities that drive value in different business contexts.

Lastly, the rapid obsolescence of so-called “hot” skills means that what was once a premium capability can quickly become commonplace or outdated, necessitating frequent reviews and adjustments to compensation structures to avoid overpaying for skills that no longer provide a competitive advantage. Below is the summary some of the key challenges for skills-based pay structure.

Operational Complexity and Employment of Skills

• Implementing a skill-based pay system requires a well-defined skills framework and standardized evaluation methods across the organization.
• Consistency in how skills are assessed and rewarded is essential to ensure fairness and transparency.

Misalignment Risk

• Rewarding skills that are not directly tied to business outcomes or KPIs can lead to inefficiencies and reduced ROI on talent investment.
• Inaccurate skill evaluations may result in unfair compensation, leading to employee dissatisfaction and trust issues.

Cost and Compensation Structure Challenges

• Skill-based pay can increase payroll costs, particularly when compensating for highly specialized or niche skills.
• Organizations may face challenges in determining the appropriate pay structure—whether to incorporate skill premiums into the base salary, offer it as a separate variable component, or use a hybrid approach.

Difficulty in Market Benchmarking and Alignment

• Skills may be valued differently across industries and regions, making external benchmarking difficult. For instance, firms in India might be much more flexible in offering or “taking away” skill-based pay as opposed to e.g. France where labour law is much more stringent.
• This model may be more suitable for industries like tech, where certifications, programming languages, and skill levels are more clearly defined and aligned with market rates.

Shifting Value of Skills

• So-called "hot skills" can quickly become standard or outdated as market demands evolve rapidly; static SBP models risk irrelevance.
• Companies may struggle to adapt compensation structures in real time, risking overpayment for now-common skills or underpaying for newly in-demand capabilities.

Implementation Roadmap

If your organization finds that Skill-Based Pay aligns with its goals, here are key steps to adopt the model in its early stages.

Making SBP Work

Skill-Based Pay is an innovative compensation model that promotes agility, equity, and competitiveness by aligning rewards with employees' actual capabilities. Its advantages—including improved talent retention, stronger alignment with strategic goals, and reduced bias—make it an attractive option for modern, forward-looking organizations. When implemented through a structured roadmap, SBP can help companies build a skilled, adaptable, and future-ready workforce.

But its success depends on more than intent. SBP is particularly effective in sectors like technology and consulting, where skill sets are clearly defined and closely tied to value creation. Still, the model requires a solid foundation: a clear skills framework, alignment with strategic and legal considerations, transparent governance, and thoughtful change management. Without these elements in place, the long-term effectiveness and fairness of SBP may be compromised.

For companies considering this model, the key is careful evaluation. SBP can be a powerful tool—but only when it genuinely supports broader performance and organizational goals.

At Vencon Research, we work closely with consulting firms to design and benchmark compensation structures that align with business goals, including models like Skill-Based Pay. Our compensation expertise and tailored benchmarking services ensure your pay strategy reflects the actual value of skills within your market and organization. If you're considering SBP or refining your current approach, we can help you navigate the complexities and make compensation a real driver of performance.

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Tariffs are often viewed through the lens of international trade policy, but their downstream effects reach deep into professional services—consulting included.

Recent rounds of tariff introductions and revisions, particularly by the United States, have added another layer of global economic uncertainty. While consulting firms may not import or export physical goods, they operate within the broader systems shaped by such policy shifts.

As tariffs alter client behaviour, restructure supply chains, and reshape corporate priorities, they also impact demand for consulting services and influence compensation dynamics within the industry.

Disruption Triggers Demand—But Not Evenly

Historically, tariffs trigger uncertainty and disruption. For consultants, disruption often translates into opportunity. Clients facing increased costs due to tariffs seek advice on how to restructure operations, identify alternate suppliers, localize production, or navigate cross-border regulations. Strategy and operations practices typically see an uptick in demand in these periods.

However, the benefits are not evenly distributed. Boutique firms that rely heavily on clients in trade-sensitive industries may feel the pinch if those clients pause discretionary spending. Conversely, larger firms with diversified client bases and deep expertise in supply chain or trade compliance may see growth.

Services and Tariffs: Not Immune, Just Indirect

Consulting services themselves are rarely subject to tariffs. Most trade policies target physical goods, not expertise. Still, the consulting industry is affected indirectly. Tariff-driven cost increases or supply chain disruptions can shift client spending priorities—sometimes delaying projects, other times accelerating demand for advisory support. In more complex trade disputes, regulatory barriers to delivering services across borders may also emerge, though this remains uncommon.

Regional Compensation Pressures

Tariffs often prompt companies to shift operations regionally, particularly from high-tariff geographies to more favourable ones. This movement affects the distribution of consulting demand geographically. For example, an uptick in demand for consultants in Mexico or Southeast Asia might follow tariffs targeting Chinese goods, as companies explore alternative manufacturing hubs.

This regional shift can create compensation pressure, especially for firms trying to retain experienced consultants in high-demand markets. While global firms may have the flexibility to adjust pay bands across offices, many still benchmark compensation by region or country. In those cases, benchmarking data needs to be updated more frequently to remain accurate during volatile trade shifts.

Compensation Structures Adapt to Market Volatility

Volatility brought on by tariffs and related trade policy changes may lead consulting firms to revisit their compensation structures. In periods of uncertainty, firms may emphasize performance-based bonuses over fixed salary increases, particularly at senior levels. Incentives tied to utilization, client retention, or business development become more prominent as firms aim to reward adaptability and revenue resilience.

On the recruitment side, firms may also shift their hiring strategies—favouring professionals with trade policy or supply chain backgrounds, which can place upward pressure on compensation for niche skill sets.

Tariffs as a Benchmarking Variable

For firms benchmarking compensation, tariffs are an indirect but relevant factor. While they don’t directly alter pay, they influence the conditions under which consultants operate—demand for specific services, client industries under pressure, and regional reallocation of work. When reviewing benchmarking data, consulting firms should consider whether tariff changes or anticipated policy shifts might be distorting demand in certain functions or geographies.

At Vencon Research, we’ve seen clients request more granular cuts of benchmarking data during periods of trade disruption. Understanding compensation trends not just by role, but by industry served or region of operation, becomes essential to ensure alignment with shifting market realities.

If you're re-evaluating your compensation strategy or want a clearer picture of where the market is heading, Vencon Research can help. We specialize in compensation benchmarking tailored to the consulting industry—so you can make informed decisions, no matter how the trade winds shift. Get in touch now.

By Gunjan Kalwani - Senior Associate, Data Integrity

The consultant experience as an employee is shaped by multiple factors, from career progression and financial incentives to work-life balance and organizational culture.

Vencon Research’s Consultant Salary Survey not only provides detailed salary structures but also examines career-related aspects such as time-based remuneration, career progression, sign-on bonuses, and other factors that significantly influence employment decisions in a competitive market. These insights are included in the accompanying presentation format of our survey as standard.

Career Progression: Mapping the Path Forward

Career progression in consulting follows a structured advancement through different roles, characterized by increasing responsibility, skill development, and experience over time. Aligning career progression with both company growth and employee expectations is essential for attracting ambitious talent and retaining high performers.

While many professionals follow a standard promotion timeline, others may progress at faster or slower rates depending on performance and business needs. Vencon Research’s Consultant Salary Survey captures all three career tracks—fast, typical, and slow—to provide companies with a clearer view of industry norms. Firms can use this data to assess whether their career progression structure aligns with competitive benchmarks and industry best practices.

Beyond broad career tracks, Vencon Research also offers detailed breakdowns by individual career levels, helping firms compare their career progression models with those of their competitors and refine their talent development strategies.

Time-Based Remuneration: Understanding Pay Progression Over Tenure

Time-based remuneration progression tracks how salaries evolve based on tenure, offering valuable insights even if compensation is not strictly linked to time spent at a particular level. This data helps organizations understand historical pay trends, benchmark against industry standards, and identify potential inequities in pay structures.

While Vencon Research’s salary surveys primarily benchmark roles based on responsibilities rather than tenure, time-based remuneration insights are available to provide additional context on how salaries change over time within the industry.

Graduate Starting Salaries: Setting Competitive Entry-Level Pay

Starting salaries are a crucial factor in attracting top graduates and early-career professionals. These salaries vary based on factors such as educational background, geographical location, and market demand. Competitive starting salaries ensure firms can secure the best talent while avoiding the risks of over- or underpayment.

Vencon Research’s Salary Survey includes detailed insights into starting salaries at the entry level for candidates with Bachelor’s, Master’s, and MBA degrees, helping firms refine their recruitment strategies and compensation packages.

Sign-On Bonuses: A Key Talent Attraction Tool

Sign-on bonuses serve as financial incentives to entice new employees to join a company, often structured as a lump-sum payment with a payback period if the employee leaves within a specified timeframe. These bonuses can be particularly influential in consulting, where firms compete for high-calibre candidates.

Tracking sign-on bonus trends through benchmarking allows companies to assess whether their offerings remain attractive relative to competitors, ensuring they maintain a strong recruitment advantage.

Referral Incentives: Encouraging Employee-Driven Recruitment

Financial incentives for employee referrals reward current staff for recommending qualified candidates, helping firms reduce recruitment costs and improve hiring quality. However, ensuring these incentives strike the right balance between motivation and budget efficiency is key.

Benchmarking referral incentives allows firms to fine-tune their programs to maximize effectiveness while maintaining cost control.

Overtime Policy and Time Off in Lieu: Balancing Workload and Compensation

Overtime compensation policies vary widely across consulting firms. Some companies pay overtime at an enhanced rate, while others offer Time Off in Lieu (TOIL), allowing employees to trade extra hours worked for additional paid leave.

Comparing these policies with industry standards helps firms identify potential gaps or inefficiencies, ensuring their approach remains competitive and supports employee satisfaction.

Beyond Compensation: Additional Career-Related Factors

Other aspects such as internship programs, utilization rates, and revenue targets also serve as valuable benchmarks for assessing industry trends and identifying areas for growth. These factors influence not only individual job satisfaction but also the broader organizational culture – all of them are included in our reports.

Long-term success in consulting isn’t just about securing clients—it’s about developing and retaining talented professionals who can drive the firm’s vision forward. Offering transparent career progression and effective incentive structures reduces turnover and strengthens employer branding. Regularly reviewing and benchmarking these policies and keeping them in view when benchmarking compensation ensures they remain relevant, competitive, and aligned with evolving workforce expectations.

Download a sample report to get a full picture of our benchmarking data.

Vencon Research provides the insights consulting firms need to attract and retain top talent. Contact us today to learn how our benchmarking reports can help you refine your compensation strategy and stay ahead of the curve.

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By:
David Warren - Partner Emeritus
‍Erwin Harbauer - Managing Director

The German management consulting market remains one of Europe's most resilient and dynamic, continuing to reflect the country's position as the continent’s largest economy.

As of March 2025, the sector has continued its post-pandemic recovery, reaching an estimated market volume of € 47.7 billion, with a modest 1.1% growth rate, down from an average of 3% since 2020. Demand is largely driven by digital transformation, energy consulting, and sustainability initiatives, as businesses navigate stringent EU and local German environmental regulations and the shift to renewable energy. Industry leaders such as Roland Berger, McKinsey & Company, and Accenture dominate, leveraging their expertise to help companies manage geopolitical uncertainties and economic volatility.

Digital Services Take Centre Stage

Digitalization remains a core focus, with firms seeking advisory support to integrate AI, big data, and cloud computing to enhance operational efficiency and resilience amid supply chain disruptions and rising energy costs. Consulting firms are expanding digital service offerings through partnerships with tech giants and in-house innovations. Additionally, remote and hybrid work models—solidified during the pandemic—are reshaping service delivery, optimizing costs while maintaining client engagement.

Competition and Regulation Reshape the Market

Competition in the German consulting market is intensifying. Homegrown firms like Roland Berger and Simon-Kucher retain strong footholds, while global players such as BCG, Bain & Company, and the Big Four continue expanding. Niche consultancies specializing in ESG / EES and regulatory compliance are also gaining traction, particularly in response to EU directives like the Non-Financial Reporting Directive. However, challenges persist, including talent shortages and fee pressures, driving firms to ramp up recruitment efforts—evidenced by BCG and McKinsey’s plans to hire hundreds of consultants annually.

Outlook: Growth with Challenges Ahead

Looking ahead, the market is poised for continued growth, albeit retaining the current low rate, with projections suggesting it could reach € 50.2 billion by 2030. Key drivers include the ongoing digital and green transitions and the resilience of Germany’s industrial sector. However, risks such as inflation, geopolitical instability, and the country’s continued economic slowdown may temper expectations. To stay competitive, consulting firms are expected to deepen their focus on innovation, sustainability, and client-centric solutions, ensuring their relevance in this evolving business landscape.

Vencon Research specializes in compensation benchmarking for strategy consulting firms, providing data-driven insights to help firms make informed decisions on pay structures and market positioning. With a focus on accuracy and industry-specific analysis, Vencon Research ensures consulting firms stay competitive in an evolving market.

Stay Informed with the Latest Insights: For the most up-to-date market trends, benchmarking data, and strategic insights tailored to the consulting industry, explore Vencon Research’s latest reports. Contact us to learn how our data-driven approach can help your firm navigate the evolving consulting landscape.

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