Management Consulting Salary Tools Key Terms

Learn key terms to help you determine what to look for in management consulting salary tools

By Tara McClendon, Freelance Writer/Editor Tara McClendon

With management consulting salary tools, key terms can help you determine whether or not you need to use a specific tool. Key terms can cover things like the cost of living, competitive analysis and average salary. By understanding how these key terms relate to the management consulting industry, you'll be able to determine the salary you should offer entry-level employees, the rate of increase for salaries and factors such as bonus targeting.

Cost of living

The amount of money it takes to live in a specific geographic area is the cost of living. It affects business management consultants salaries, because employees expect higher salaries in cities where it costs more to live. Knowing the cost of living in your city or geographic area can help you determine the appropriate starting salary for your consultants.
Try: PayScale offers a chart listing the salaries for business management consultants by geographic area. The cities with higher salaries indicate a higher cost of living.

Performance-based management consulting salary

Performance-based management consulting salary tools help you reward the employees who perform the best. Whether you want to determine how this type of system can help you or you want to examine the features of the system, a tool specializing in this factor can help.
Try: Salary.com provides an overview of performance-based management consulting salary systems.

Average management consultant salary

When you look for management consultant salary tools, you'll want to find one that allows you to compare your salary to the average. This can help you determine your starting salary, as well as the rate of increase for consultants who remain with your business.
Try: SalaryList.com provides a tool that tells the average management consultant salary. It includes locations with the averages, so you can take into account geographic region.

Business management consulting competitive analysis

A competitive analysis is a way for you to compare your salary to the ones offered by your competitors. Knowing how much your competitors pay their consultants helps you to be able to offer a competitive wage. You can also use the information to ensure that a consultant doesn't pick your competitor over a few thousand dollars' difference.
Try: Glassdoor.com allows you to compare your business to competitors in the field. You can get a basic competitive analysis for free or sign up with the company to get a custom report.

Bonus targets

Some business management consulting firms like to use bonuses as part of their salary. The bonus rewards top performers, and the company only pays out the bonus if employees meet bonus targets.
Try: Laserbeam Software.com features a program that can help business management consulting firms establish bonus targets.

Compensation firm

A compensation firm works with your business to determine an appropriate salary plan for your business management consultants. When you outsource the work to a firm, it takes over the job of compiling information from salary tools to help you best determine salary.
Try: Pearl Meyer and Partners provides executive level salary consulting for a wide variety of businesses, including business consulting.