Given a choice what would you choose, a banking career, or a consulting career? And if you already are a working professional in the banking sector, should you quit your job for a consulting career?
However, both have their pros and cons, but after careful comparison between the two, we would suggest you go for a consulting career because of the added work flexibility and monetary benefits it has for you in-store.
Here we are stating the differences and similarities between the two type of financial careers:
Consultants Enjoy a Better Work-Life Balance
Consultants usually do not have to work on weekends and enjoy a fairly better work-life balance in comparison to private equity professionals and investment bankers. However, they do work hard during the weekdays, and the common myth about financial consultants that they leave the office after 7 pm is completely untrue. On average, consultants work 70-hours a week at the best private equity consulting firms, which is a norm.
As a banking consultant, you visit the client’s office from Mondays till Thursdays. Your client may be leaving at 6 in the evening, but your work does not get over until 10 or 11 in the night. Mostly, consultants need to relocate to the client’s local offices after 6 in the evening for work, or they move to the nearest hotels to get the work completed by late night. You can expect to be working while your way back home on Thursday evenings.
Financial Consulting is Highly Lucrative
Compared to a career in private equity as an associate or analyst that pays really well, a consultant in the private equity domain will usually make more than them. Remunerations in equity research vary considerably, depending on the performance of your team, your own performance, and the size of the organization. However, there is very less (10-15% of base salary) paid to consultants in equity research in the form of bonuses, still, they make big in base remunerations.
No Hierarchy Exists in Consulting
As opposed to the structured hierarchy in private equity firms, as a consultant, you will work under a project leader, or in better words, – “with project leaders”. You will also deal with the partners working on the project by conversing with them on conference calls, and one-to-one meetings. Your capabilities as a consultant will be judged basis these interactions, and so is your financial valuation.
Equity research within the banking domain has been found the least hierarchical. Herein, the MD will be sitting next to you, and hence you can have a lot of informal conversations with the top management at renowned global banks. Moreover, in the equity research division of banking, your financial evaluation will be directly related to the inputs received from the individuals you work within your day-to-day life.
Consulting, as a career option, offers you more diversity in work as you take on to many diverse projects simultaneously.
More Luxury is Extended to Consultants by the Banks
The work-life of a financial consultant at the banks is highly luxurious in comparison to regular private equity jobs. In contrast to the place of work of the private equity investment professionals and investment bankers who work from the designated office spaces, consultants often travel international in style and stay at 5-star hotels while at work. Added to that, since consulting, as a profession, is growing rapidly, you may get promoted faster than you have ever imagined. Moreover, as a consultant, you will often be invited for business dinners and lunches at high-end lavish restaurants located across the world.
By now, if you have already decided to become a financial consultant in the banking domain, we wish you all the luck in the world for your future endeavors!