The movement to define new career paths, optimize work, and redesign roles is a global demand. Recently, consulting firms McKinsey, Bain, and Boston Consulting Group (BCG) offered one of the largest rounds of salary increases for new hires in more than 20 years, amid high inflation, strong demand for advisory services, and labor shortages in the market.

According to sources heard by the Financial Times, the firms, which do not publicly disclose their salary ranges, will increase the annual base salary for MBA graduates in the United States from $175,000 to between $190,000 and $192,000.

“Increasing salaries remains the most immediate and effective lever any professional service firm can pull if it wants to attract and retain high-caliber people,” said Fiona Czerniawska, chief executive of Source Global Research, to FT.

However, a number of studies have shown that when it comes to retaining employees, money may be the top factor, but it isn’t enough by itself (read more). Retention is the word of the hour for HR in large companies. 

A new survey by consultancy Willis Towers Watson (WTW), published by Valor, indicates that redefining employees’ career management is a priority for 46% of organizations. In addition, 40% are studying changes in the career development of their professionals, based on the allocation by skills, and three out of ten believe the jobs offered or the type of work performed will change significantly in the next three years. The survey heard 1,650 thousand companies from 54 countries.

“Traditional career management tools, which put everyone in a line, with specific dates for evaluation and promotion windows, do not account for recognizing talent and holding them more today,” Marcos Morales, executive director of work and rewards at WTW Brazil, told the newspaper.

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Source: Financial Times | Valor Econômico