Takin’ a nap year… Deloitte, KPMG, BCG, McKinsey, and Bain have delayed many Class of 2023 hires’ start date to 2024 as the consulting firms wait for business to pick back up. In the meantime, firms are doling out one-time $10K paychecks (KPMG) or $2K monthly stipends (Deloitte) to sidelined hires. Some firms even offer recs on how the consultants-to-be should spend their time. Deloitte suggests volunteering through its partnership with AmeriCorps, while Bain is reportedly giving $40K to MBA hires that work for a nonprofit, $30K to those who learn a new language, and $20K to folks who become yoga teachers or learn how to paint.
Over-consulted: Firms hired aggressively during the pandemic to meet growing demand for their tell-you-what-to-do services. But since then, cost-cutting corps are pausing or canceling projects.
Firms have a five-year plan… and they don’t wanna redo their PowerPoints. The consulting sector needs experienced workers ready to take on projects when demand returns. Delaying start dates keeps talent in the pipeline without bringing employees on full time, an alternative to starting hires who, with few projects to go around, could be left “on the bench.” One new hire at Ernst & Young told Bloomberg they haven’t had a project to work on for 9 of the past 12 months.
Diverting one pipe can change the whole flow… Consulting firms dominate the recruiting booths at top colleges. They hired nearly half of last year’s MBA grads from Yale, Dartmouth, and the University of Virginia. But industries beyond consulting also depend on these firms hiring talented grads: lots of early-career consultants get a few years under their belt and take that expertise to join finance and tech firms.