Home » US business news • US Employment News » Consulting giants McKinsey and Bain paying new staff not to start work

Consulting giants McKinsey and Bain paying new staff not to start work

By Nithya Bose in US business news, posted April 18, 2023

Consulting giants McKinsey and Bain are both paying their new MBA hires to not come to start their jobs until next year.

Bain told its new staff they would get $40,000 to work for a nonprofit or $30,000 to study a new language or join an educational program if they waited until April 2024 to actually start work.

The note also added that the firm will pay them $20,000 for becoming yoga instructors or for going on safari.

Many of McKinsey's new hires don't have start dates yet, several students with offer letters told the Wall Street Journal.

Those new hires will be brought in over a series of months, from graduation to February next year.

The company is currently in the process of laying off as many as 2,000 workers.

Despite the payments, the move is thought to bring anxiety to fresh grads and signals that these firms are experiencing wider economic challenges.

Sources said many MBA recruits at McKinsey don't yet have start dates.

The company, which is wiping out 2,000 jobs, said those new staff will be onboarded over a couple of months, soon after graduation through February 2024.

Accenture recently made a similar move when it delayed starting dates for selected candidates, pushing many not to join.

Extending start dates into next year represents a 180-degree turn for the consulting sector.

It grew rapidly during the pandemic as firms sought advice on recovering and modifying their operations.

On Monday, April 17, Ernst & Young announced around 3,000 job cuts, or less than five percent of its US workforce, after assessing the current economic climate.

In February, KPMG confirmed hundreds of layoffs at its consulting unit.

Keith Bevans, Bain’s global head of consultant recruiting, said postponing new consultant start dates by months “becomes more important when the economy is in a downturn.

“We try to encourage more people to start earlier when times are busy.”

Need Career Advice? Get employment skills advice at all levels of your career

Although Bain attempts to entice MBAs to explore new interests before starting their jobs, the firm is committed to ultimately placing them on the payroll.

A document for its recruits reads: “Go on an African safari or take a painting class!! Write a book or become a yoga instructor!!”

Mr. Bevans said asking volunteers to commit to a start date over a year later is a new practice for Bain.

The document adds some students had volunteered or were given start dates in January 2024 but will receive half the pay on offer for an April 2024 date.

Source: The Wall Street Journal

Follow us on YouTube, Twitter, LinkedIn, and Facebook.