The details of this section will vary wildly based on\nregion, time, economy, firm size, role and a million other factors, but I\nwanted to create some high-level buckets you can plan around. Most of these are\nopinions from the perspective of working in North America, but the processes\nand structures will exist in most countries in similar capacities. <\/p>\n\n\n\n
When it comes to compensation prior to even the interview\nprocess, remember to always do your research online to get a more accurate\npicture of what other consultants in similar roles are reporting. There are\nmany websites that share salary ranges, reviews and possible interview\nquestions which can be very valuable when looking for a new job. If you are\nentering consulting and are completely new to the field, with little to no\nexperience, you are probably applying for the role of core entry-level consultant.\nCompensation can usually range anywhere around fifty to sixty thousand dollars\na year right out of university. If you are lucky and the market is hot, you may\nbe able to score a signing bonus as well that could potentially range from two\nto ten thousand dollars. Just remember, a signing bonus is considered income\nand will be taxable at the end of the year. Remember this before you blow more than\n75% of your bonus on celebrating your new job. <\/p>\n\n\n\n
The standard insurance benefits for a consulting role will\ninclude health care, dental care, vision, short-term disability and long-term disability.\nAll the costs associated with insurance are rarely covered solely by your employer,\nbut rather the cost is split between you and your employer where they pay the\nlarger percentage and your cost portion will be deducted out of the bi-weekly\npaycheck. For benefits, you will be required to select the type of plan(s) when\nyou are hired. After this, you will only be able to make changes during the\ninsurance company\u2019s enrolment periods that usually occurs once a year for a few\nweeks, so choose wisely. Contact your HR or reach out to your provider to get\nall the information you require to ensure you get the right plans that fit you\nand your health needs.<\/p>\n\n\n\n
On your first day, you will also be required to fill out a W-4\nwhich can look complicated and overwhelming. The W-4 is a form that allows your\npayroll team to know how much money to withhold from your paycheck to cover year-end\ntaxes owed. You will be asked to check off your allowances. The more you\nselect, the less money will be withheld from your paycheck. However, if you do\nnot withhold enough throughout the year, you may be on the hook for paying a\nlarge amount come tax season. Consult with your HR representative if you have\nany questions. The default best practice is to plan to have enough withheld so\nyou do not have more to pay at the end of the year, while not having too much\nwithheld to where you could have had that cash on hand for expenses and\ninvestments.<\/p>\n\n\n\n
As you gain more experience, your pay will grow as well.\nThis will be highly dependent on your performance reviews, the firm\u2019s financial\nperformance and your decision to switch jobs. You should shoot for an average of\nbetween 3-10% pay increases every year. It is very common to break six figures\nwithin five-eight years of consulting, but you may also need to change firms\nevery few years to get a better opportunity to negotiate a higher salary if\nyour compensation bumps stalls out. I know job hopping can be frowned upon, but\nthere is a difference between being loyal to a firm that respects you and pays\nyour worth vs. one you are loyal to and is stunting your financial and personal\ngrowth.<\/p>\n\n\n\n