Strategy firm Bain delays new starters by up to 10 months

Bain waited until September 27 to inform the 2024 start group of the extent of the delay. The recruits had expected to start in the first quarter of 2024, but were instead asked last month to fill in a survey to choose from three possible start months of May, August or October.

Substantial delay

For those finishing university in 2023, this means there could be a delay of up to 10 months before they begin working and earning money from Bain.

The firm, like its strategy rivals, has its pick of top graduates and experienced candidates each year. This means recruits have either declined or opted out of alternative employment options to take up the Bain offer, only to be now left in a situation where they cannot plan extended travel or other temporary employment arrangements until next year.

Bain has not offered the 2024 new starters any compensation for the delay, despite offering its 2023 cohort graduates $5000 to defer their starting date by three months. McKinsey also offered a “small bonus” to its Australian and New Zealand graduates to delay their starting date by up to two months this year.

Bain has historically paid incoming bachelor’s degree graduates about $130,000 per year, a similar rate to McKinsey and BCG. This means each month of delay costs junior new starters about $11,000 in pre-tax earnings.

The firm’s 2024 starters typically signed letters of offer and employment agreements which said their start date would be agreed upon in writing next year. However, the expectation of many in the cohort was they would be told much earlier and would begin by March 2024 at the latest.

Bain’s Australian managing partner, Peter Stumbles, declined to comment when contacted by The Australian Financial Review. Separate requests for comment went unanswered by Bain’s media representatives in Australia, Britain and the US.

Bain pays US MBA graduates to defer

In April, weakening demand led to Bain and McKinsey delaying the start dates of their US MBA recruits from this year to 2024. The Wall Street Journal said Bain offered MBA recruits up to $US40,000 ($63,300) for the delay.

Two months earlier, in February, McKinsey announced it would cut 20 non-consulting roles, or about 3 per cent of its local workforce, and KPMG Australia confirmed that about 2 per cent of its 10,000-strong staff, or roughly 200 roles, would be cut. Embattled big four firm PwC has also cut staff this year.