By Mik Bodnar - Business Development
Consulting firms are facing unprecedented competition for talent as tech companies and financial institutions lure top candidates with lucrative packages. Entry-level analysts, digital specialists, and data experts are increasingly weighing opportunities outside consulting, forcing firms to rethink compensation, career development, and workplace flexibility to attract and retain the best professionals.
Rising Salaries Reflect Market Pressure
The competition for talent between consulting firms and the tech and financial services sectors has intensified in recent years. Vencon Research data shows that consulting salaries, particularly for entry-level analysts and specialist roles, are being adjusted upward to remain competitive with the lucrative packages offered by technology companies and investment banks.
While consulting firms traditionally attracted graduates with the promise of diverse project exposure and rapid career progression, they now face direct competition for the same pool of quantitative thinkers, digital strategists, and subject matter experts who are equally sought after in fintech, data science, and corporate strategy roles. Boutique consultancies, unable to match the largest firms or banks on base pay, are differentiating through culture, flexibility, and work-life balance, positioning themselves as attractive alternatives for professionals seeking purpose and autonomy.
Roles Most Affected by Talent Mobility
The roles most likely to transition from consulting into tech and finance are entry-level analysts and mid-level managers with specialized expertise in areas like data analytics, cybersecurity, and financial modeling. Senior partners and managing directors, by contrast, tend to remain within consulting due to the unique equity and client-ownership structures of the profession.
Recruitment trends highlight how consulting, finance, and tech are converging on similar talent pools. We see this trend relfected in demand for benchmarking across sectors. Consulting firms are expected to increase full-time and internship hiring in 2025 after a slowdown in 2024, reflecting renewed demand for advisory services. Finance firms, meanwhile, are rethinking recruitment by broadening strategies to digital platforms and specialized networks to attract candidates with both technical and ESG expertise. Tech companies continue to lead in skills-based hiring, with focus on critical skills such as AI, data analytics, and cybersecurity, but consulting firms are also investing heavily in these candidates.
Across industries, flexible work arrangements and strong employer branding are now essential to attract candidates, with hybrid and flexible models becoming decisive factors in recruitment success.
Global Talent Hubs Intensify Competition
Geographically, the competition is most pronounced in global talent hubs such as the United States, the United Kingdom, Germany, and Singapore, where consulting firms, banks, and tech giants all recruit from the same elite universities and professional networks. In these markets, the challenge for consulting firms is not only to match compensation benchmarks but also to craft a compelling narrative of career development and cultural differentiation that resonates with a new generation of professionals.
Beyond pay, consulting firms can deploy non-financial levers such as hybrid work models, sabbatical programs, and transparent promotion criteria to appeal to talent who value stability and culture as much as compensation. Thus benefits packages are increasingly in focus, and we see a corresponding uptick in benchmarking for these non-financial rewards.
Compensation Remains a Central Battleground
Ultimately, compensation remains a central battleground. Tech and finance firms often lead with higher base salaries, equity participation, and performance bonuses, while consulting firms emphasize structured career paths, training, and international mobility. Strategies for consulting firms include raising entry-level packages to prevent attrition to tech startups or offering retention bonuses for mid-level managers with digital expertise.
For consulting HR leaders, the implication is clear: To compete effectively, market data must be used to identify critical pay gaps, selectively adjust pay scales for critical roles, and emphasize non-financial differentiators such as culture, flexibility, and career development. Partnering with a specialized benchmarking provider like Vencon Research can ensure your firm attracts and retains the right talent while staying ahead of industry trends.