What is a Management Consultant?
What is a management consultant? A management consultant is a person who finds different ways to improve an organization’s productivity. In addition, the consultant advises the organization’s managers on how they can cut costs and increase revenue. Although some consultants work for an individual company, most are hired on a contractual basis. They can even specialize in certain areas within the field. For instance, some may focus on inventory management or regrouping corporate structures. In addition, they can also focus on a specific industry. Some possible industries include healthcare and telecommunications. Besides that, the government has numerous departments that hire consultants to analyze financial data and recommend organizational changes. A management consultant is also known as a management analyst.
Degrees and Experience Needed
In order to become a management consultant, candidates must have a bachelor’s degree from an accredited school. Candidates should also consider obtaining a master’s degree to increase their job prospects. Since companies prefer to hire people with experience, having a degree is essential. According to United States Bureau of Labor Statistics, 28 percent of management consultants have a master’s degree. Majoring in business administration looks great on a resume. Some other areas of study to consider include accounting, economics, management and engineering. Most organizations hire people who have experience; therefore, they usually look for those who have backgrounds in human resources, information technology and management. Besides having analytical and communication skills, candidates must also be good at problem-solving and time management. Self-confidence is another important quality.
How Much Does a Management Consultant Make?
On average, a management consultant makes $78,160 per year. The lowest 10 percent only earn an average of $43,900 per year; however, most of these consultants are just getting started in the field. More experience leads to additional pay. In fact, the top 10 percent of management analysts earn more than $138,790 per year. Not only does experience lead to higher pay, but education also results in a higher salary. Consultants who have a master’s degree are paid higher than people who only have a bachelor’s degree. A person’s geographical region also plays a role in his or her salary. For instance, consultants usually earn more money in bigger cities. A person working in New York or Tokyo is likely to earn more than a consultant who is working in a small town in Kansas.
Future Prospects
The job outlook for management consultants is very good. In fact, employment is expected to grow nearly 22 percent by 2020. Compared to other jobs, this growth rate is extremely fast. Since many organizations are looking for ways to control expenses and improve efficiency, there is a demand for management consultants. As the government tries to reduce its deficit, additional management consultants are going to be needed. Besides that, many organizations are expanding to the international market. As a result, more management consultants are needed to help the organizations form a strategy plan. Hopefully this information has helped those who were wondering what is a management consultant.
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