Tier 1 vs Tier 2 Consulting Firms: Key Differences Explained

When exploring a career in consulting, one of the first questions candidates ask is about the difference between Tier 1 vs Tier 2 consulting firms. While Tier 1 firms such as McKinsey, BCG, and Bain dominate global strategy consulting, Tier 2 consulting firms like Oliver Wyman, Kearney, and Roland Berger also offer strong opportunities with industry specialization and international reach. Understanding how these tiers differ in prestige, salaries, expertise, and career paths can help you make the right choice. In this article, we will explore what defines each tier, the firms included, and the major differences that matter for your career.

TL;DR - What You Need to Know

• Tier 1 vs Tier 2 consulting firms differ in prestige, global presence, salaries, and selectivity.
• Tier 1 firms (McKinsey, BCG, Bain) lead global strategy projects, while Tier 2 consulting firms focus on specialized industries and regions.
• Salaries at Tier 1 consulting firms are higher, often starting above $100,000, with faster progression to partner-level compensation.
• Both tiers offer strong career paths, but Tier 1 provides broader exit opportunities and larger support networks.
• Acceptance rates are 1 to 3 percent at Tier 1 vs 5 to 15 percent at Tier 2, reflecting competitiveness.

Which consulting firms are considered Tier 1 and Tier 2?

Tier 1 consulting firms include McKinsey & Company, Boston Consulting Group (BCG), and Bain & Company, often referred to as MBB. Tier 2 consulting firms typically include Oliver Wyman, Roland Berger, Kearney, L.E.K. Consulting, and Accenture, each with international reach and industry specializations.

Tier 1 consulting firms

• McKinsey & Company – Known for global strategy projects across industries with offices in more than 65 countries.
• Boston Consulting Group (BCG) – Recognized for expertise in innovation and long-term competitive advantage.
• Bain & Company – Distinguished for private equity consulting and strong collaborative culture.

Tier 2 consulting firms

• Oliver Wyman – Strong in financial services, risk management, and healthcare.
• Roland Berger – A leading European strategy firm with deep industrial expertise.
• Kearney – Focuses on operations, procurement, and strategic management.
• L.E.K. Consulting – Noted for healthcare, private equity, and data-driven strategy work.
• Accenture – A global professional services firm with emphasis on technology and operations strategy.

These firms represent the most common classification, though the exact tiering can shift depending on geography and industry focus.

What are the key differences between Tier 1 vs Tier 2 consulting firms?

Tier 1 vs Tier 2 consulting firms differ mainly in global presence, salaries, prestige, career opportunities, and selectivity. Tier 1 firms like McKinsey, BCG, and Bain dominate high-profile strategy projects worldwide, while Tier 2 firms such as Oliver Wyman or Kearney are respected but often specialize in certain industries or regions.

Size and presence

• Tier 1 firms operate in more than 60 countries and hundreds of cities worldwide.
• Tier 2 firms maintain strong global networks but with fewer offices and more regional focus.

Salaries and benefits

• Entry-level consultants at Tier 1 firms often earn over $100,000 annually, rising to seven figures at the partner level.
• Tier 2 salaries are competitive but slightly lower, with progression varying by firm.

Career opportunities

• Both tiers follow a similar career ladder from entry-level analyst to partner.
• Tier 1 offers additional knowledge and research centers, giving consultants structured support and broader exit options.

Expertise and industries

• Tier 1 covers nearly all industries and geographies.
• Tier 2 firms build reputations for excellence in niches such as financial services, healthcare, operations, or procurement.

Support networks

• Tier 1 maintains extensive global alumni and knowledge-sharing networks.
• Tier 2 networks are strong but smaller in scope.

Acceptance rate

• Tier 1 acceptance rates are typically 1 to 3 percent.
• Tier 2 acceptance rates range from 5 to 15 percent, still competitive but less restrictive.

How do salaries and benefits differ between Tier 1 and Tier 2 firms?

Tier 1 consulting firms generally offer higher salaries and faster progression compared to Tier 2 consulting firms. Entry-level roles at McKinsey, BCG, and Bain exceed $100,000 annually, while Tier 2 firms like Oliver Wyman or Roland Berger pay slightly less but still remain highly competitive within professional services.

Salary ranges

• Tier 1:
  • Entry-level: $100,000 to $147,000
  • MBA/Associate: $200,000+
  • Manager: $300,000 to $400,000
  • Partner: Up to $1M+
• Tier 2:
  • Entry-level: $75,000 to $134,000
  • MBA/Associate: $150,000 to $224,000
  • Manager: $250,000 to $340,000
  • Partner: $500,000 to $700,000

Benefits

• Tier 1 packages often include performance bonuses, relocation support, and global training programs.
• Tier 2 benefits are comparable, though global training and perks may be less extensive.

What career opportunities exist in Tier 1 and Tier 2 firms?

Both Tier 1 and Tier 2 consulting firms offer structured career paths from entry-level analyst to partner, with some differences in support and exit opportunities. Tier 1 firms provide additional knowledge centers and broader global networks, while Tier 2 firms offer strong growth within specialized industries.

Career growth

• Traditional ladder: Analyst → Consultant → Manager → Partner.
• Tier 1 adds supporting roles such as research and knowledge centers.
• Tier 2 emphasizes client delivery and industry specialization.

Exit opportunities

• Tier 1 alumni often transition into leadership at Fortune 100 companies, private equity, or start-ups.
• Tier 2 alumni move into senior roles within their industries of focus, such as finance, healthcare, or operations.

Which industries and expertise areas define Tier 1 vs Tier 2 firms?

Tier 1 consulting firms cover nearly all industries globally, while Tier 2 firms are known for their specialized expertise. MBB handles strategy across every sector, while Tier 2 firms often dominate niches such as financial services, procurement, healthcare, and industrials.

Tier 1 expertise

• Full industry coverage: technology, finance, healthcare, consumer goods, energy.
• Strong reputation in corporate strategy and transformation.

Tier 2 expertise

• Oliver Wyman: financial services, risk management.
• Roland Berger: automotive and industrial goods.
• Kearney: operations and procurement.
• L.E.K.: healthcare and private equity.
• Accenture: technology, digital transformation, and operations.

How selective are Tier 1 and Tier 2 consulting firms?

Tier 1 consulting firms have acceptance rates of 1 to 3 percent, making them among the most competitive employers globally. Tier 2 consulting firms are also selective but typically admit 5 to 15 percent of applicants. This difference reflects brand prestige, client demand, and the size of each firm’s applicant pool.

Factors influencing selectivity

• Tier 1: Larger applicant pool, strong brand recognition, global reach.
• Tier 2: Competitive within industries but slightly less intense overall.
• Both require strong problem-solving, analytical skills, and structured interview preparation.

Which is better: Tier 1 or Tier 2 consulting firms?

Tier 1 consulting firms are generally considered better for global prestige, top salaries, and broad exit opportunities, while Tier 2 consulting firms are attractive for industry specialization, slightly higher acceptance rates, and strong career growth in niche areas. The better choice depends on your career goals, lifestyle preferences, and target industries.

When Tier 1 may be better

• You want global recognition and a fast track to leadership.
• You seek broad exit opportunities in private equity, Fortune 100, or start-ups.
• You prefer exposure to high-level corporate strategy projects.

When Tier 2 may be better

• You want expertise in industries like finance, healthcare, or operations.
• You value slightly less competitive hiring while still accessing global clients.
• You prefer a balance of challenging work and manageable lifestyle.

Frequently Asked Questions

Q: Is PwC tier 1 or tier 2?
A: PwC is generally considered a Tier 2 consulting firm, not Tier 1. Unlike MBB consulting firms that dominate global strategy, PwC is part of the Big 4 with strong capabilities in operations, implementation, and industry expertise.

Q: Is Accenture Tier 1 or Tier 2?
A: Accenture is usually classified as a Tier 2 consulting firm. While it has a global consulting presence and works with Fortune 500 client projects, it focuses more on technology and operations consulting than the strategy-driven Tier 1 consulting firms. 

Q: Is KPMG a Tier 2 consulting firm?
A: Yes, KPMG is considered a Tier 2 consulting firm. As part of the Big 4, it competes in management consulting and advisory but does not have the same selectivity, consulting firm acceptance rate, or prestige as Tier 1 consulting firms like McKinsey, BCG, or Bain.

Q: What is a Tier 4 consulting firm?
A: A Tier 4 consulting firm typically refers to smaller, niche firms that serve local markets or specialized industries. Unlike Tier 1 vs Tier 2 consulting firms, Tier 4 firms may focus on regional clients, lower consulting firm salaries comparison, and more targeted expertise.

Q: What is the most respected consulting firm?
A: The most respected consulting firm is often seen as McKinsey & Company, widely considered the top of Tier 1 consulting firms. Alongside BCG and Bain, McKinsey is known for global consulting presence, competitive career paths, and strong exit opportunities in consulting.