Utilization/Staffing/Billable Hours
Wondering what the staffing system is like at other consulting firms like MBB and Accenture. How much are you staffed vs on the bench percentage wise? What’s the process like for getting onto a project? For junior employees
In my time in consulting, seemed like the utilization rate was generally in the 70s, except maybe some down years following the recession when it dropped to high 60s. Rarely was I fully on the beach cause our projects were shorter lived than some other groups. In general though, we were far less busy than i have been since switching to IB
70-80% is pretty typical. At most firms there is a traditional staffing model and formal process to get placed on a project. In reality it depends on your relationships and reputation at the firm. The partners want to do good work so that the next project sells itself. They also want to staff folks that can operate independently so that they can continue to persue business development.
For McKinsey, this is VERY tenure dependent. First year analysts are on the bench WAY more than any other tenure/role. I would say in the first 7-8 months, you'd likely be on the bench 20% of the time. I heard afterwards you're lucky if you even get a few days on the bench. This is because a 7-8 month analyst is the same price as a 1.5 year analyst but is less experienced. So once analysts hit the 1 year mark and can be a bit more self driven/independent, they are highly sought after. To get onto a project: in the early months of your role, you have a staffing manager who is incentivized to keep you staffed (e.g., not on the bench) who helps connect you to projects. Afterwards, you'll have a network of people who know you and would connect you to projects.
I would say the optimal rate is around 70%. Under 50% then you are costing money to your firm and there is a problem. Over 80% then all consultants are busy and the firm might have staffing problem issues. That’s why I think global staffing is better than staffing by office