Do you have questions like “Is it possible for a consultant to transfer to a business company?” or “What are the reasons why transfers to business companies fail?”
This article addresses those questions in the following order.
- Advantages and disadvantages of consultants transferring to business companies
- Salary when a consultant transfers to a business company
- Skills valued in business companies and key points for a successful transfer
This article is useful for consultants who want to pursue a different career path. Please read to the end.
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Are Many Consultants Transferring to Business Companies?
Consultants have a wide range of career paths. In particular, transferring to a business company is one of the most popular career choices for consultants.
Consultants with advanced business skills tend to be well evaluated, and their experience can work in their favor when transferring to a business company.
Additionally, consultants work across a variety of industries. It is not uncommon for consultants to develop an interest in a client’s industry and then transfer to a business company in that field.
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Career Paths Other Than Business Companies
In addition to transferring to a business company, the following career paths are available for consultants.
- Transfer as a professional (e.g., M&A, accountant, etc.)
- Transfer to another consulting firm
- Transfer to a foreign-affiliated company
- Start your own company
- Become a freelancer
The percentage of consultants who become managers is said to be around 30% of the total, and many consultants reconsider their careers at this stage.
Please refer to the following article for information on career plans for consultants.
Advantages of Consultants Transferring to Business Companies
Are there advantages for consultants who transfer to business companies? Let’s take a closer look below.
Involvement from Planning to Execution
At a business company, it is possible to be involved from planning through to execution.
Consultants are external resources who formulate strategies for clients, but the final decisions are made by the clients themselves.
Once the contract period ends, it is difficult to remain involved in the execution phase, and many consultants feel dissatisfied that they cannot experience the results of the strategy they helped create.
As an internal employee, you can be involved from planning to execution, making it easier to feel that you are genuinely contributing to the company.
Long-Term Involvement in the Business
Working at a business company allows for longer-term involvement in the business.
Projects handled by consultants typically have deadlines. Once a project ends, support for the next client begins, so it is not possible to focus on a single business.
However, at a business company, rather than short-term consulting support, you can be involved in the business over a medium-to-long-term period.
Easier to Achieve Work-Life Balance
Many consultants feel that business companies make it easier to achieve a work-life balance.
Consulting is a demanding job with many tasks. It is said to be especially intense at the beginning and end of projects.
However, business companies tend to offer more relaxed working styles. In recent years, more companies have been actively working on work-style reforms, creating a more employee-friendly environment.
The following article explains in detail why consulting is considered demanding.
Possibility of Being Involved in Management
The possibility of being involved in management is one of the advantages of transferring from consulting to a business company.
Consultants support the resolution of clients’ management challenges and can acquire specialized knowledge related to management.
Therefore, it is not uncommon to be hired for positions involved in corporate management, such as formulating management strategies and business plans.
If you can be involved in corporate management, you will likely achieve even greater growth than before.
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Disadvantages of Consultants Transferring to Business Companies
So, are there any disadvantages for consultants who transfer to business companies?
It Takes Time to Adjust to the Organizational Structure of a Business Company
Among those who have transferred from consulting to a business company, some feel they “can’t adapt to the organizational structure of the business company.”
The organizational structure of a consulting firm and a business company differ significantly, and there are many situations where the old ways of doing things no longer apply.
In particular, large, long-established business companies often retain strong unique rules and customs. As a result, consultants who are accustomed to rational, logic-based thinking may find themselves feeling stressed.
Job Level May Decrease
Be aware that transferring to a business company may result in a lower job level.
The consulting industry is one with a fast pace of growth. It is sometimes said that one year as a consultant is equivalent to three years at a business company.
As a result, many consultants take on managerial roles at a young age.
If you transfer to a business company with the mindset of the consulting industry, you may feel dissatisfied with your compensation and job responsibilities.
Specialized Knowledge Is Required
When transferring from consulting to a business company, keep in mind that specialized knowledge will be required.
Consultants work across a wide range of industries and projects, acquiring both specialized knowledge and broad general knowledge.
On the other hand, business companies require deep understanding of a specific field rather than broad knowledge.
For consultants who are accustomed to constantly inputting knowledge across a wide range of areas, narrowing the scope of involvement may leave them feeling unfulfilled.
Possibility of Transfers and Relocations
At a business company, there is a possibility of departmental transfers and relocations.
In a consulting firm, transfers and relocations are rare. However, when working at a large business company, departmental transfers and relocations may be required.
For those who wish to deepen their expertise within the same department, the working style at a business company may not be a good fit.
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Salary When a Consultant Transfers to a Business Company
Consulting is a profession with a high salary level. The consulting industry is performance-based, and those with the skills and ability can reach an annual salary of 10 million yen even at a young age.
Below is an estimated annual salary by position within a consulting firm.
| Position | Average Annual Salary |
|---|---|
| Analyst | Approx. 5–6 million yen |
| Consultant | Approx. 6–10 million yen |
| Senior Consultant | Approx. 8–12 million yen |
| Manager | Approx. 10–15 million yen |
| Senior Manager | Approx. 15–20 million yen |
| Director / Principal | Approx. 20 million yen |
| Partner | Approx. 20–30 million yen |
As shown, consultant salaries are relatively high, and it is not uncommon for salaries to decrease upon transferring to a business company.
If you place importance on salary, it is recommended to focus on job listings at companies with higher compensation and to consider how much benefit the transfer would bring.
Consultant Skills That Can Be Applied at a Business Company
What consultant skills can be applied at a business company?
Below, we introduce the skills you should highlight when making a career change.
Logical Thinking
Logical thinking refers to the skill of understanding complex matters simply and drawing conclusions in a structured way.
While logical thinking may not be as highly valued in business companies as in consulting firms, it is still recognized as an important skill in the business world.
For example, individuals with strong logical thinking skills are expected to play roles such as proposing appropriate solutions to management challenges.
Furthermore, the ability to explain things clearly is useful for energizing communication within a team and when presenting to senior management.
Critical Thinking
Critical thinking is a way of thinking that seeks to identify the essence of things rather than accepting them at face value.
With critical thinking, it becomes possible to approach matters logically based on data rather than through bias-driven approaches.
For example, in a long-established business company, improvements to workflow may be overlooked and have become habitual.
With critical thinking, it is possible to identify bottlenecks in workflows without missing them and lead to improvements.
Problem-Solving Ability
Problem-solving ability refers to the skill of taking action toward resolving issues.
Consultants play a role in supporting the resolution of clients’ management challenges, and through this experience, they can develop problem-solving skills.
At a business company, these skills will be valuable when proposing optimal solutions to internal challenges and driving the initiatives needed to resolve them.
Documentation Skills
Documentation skills refer to the ability to capture key points and clearly organize information into written documents.
Consultants frequently create materials for client proposals. The documentation skills developed through this work will also be valuable at a business company.
Communication Skills
Communication skills are an essential skill for consultants.
Consultants have many opportunities to interact with a wide range of people, including clients, project members, and specialists. As a result, through consulting experience, it is possible to develop advanced communication skills.
Communication skills can be applied in any industry or job type.
Please refer to the following article for information on the skills required of consultants.
Key Points for Consultants to Successfully Transfer to a Business Company
Here, we introduce the key points for consultants to successfully transfer to a business company.
Obtain Qualifications Related to Your Target Industry
If specialized knowledge is required in the industry you are considering, think about obtaining relevant qualifications. Having qualifications allows you to objectively demonstrate your skills and knowledge. Below, let’s look at examples of qualifications that are useful when transferring to a business company.
MBA
An MBA (Master of Business Administration) is a degree (not a qualification) awarded to those who complete a master’s program at a business school or graduate school.
It provides a broad range of business-related knowledge including management strategy, marketing, financial analysis, and data analysis, making it useful even in business companies where collaboration across departments is common.
Small and Medium Enterprise Management Consultant (SME Consultant)
The SME Consultant (中小企業診断士) is a national qualification based on the Small and Medium Enterprise Support Law. It certifies skills as a specialist in diagnosing the management challenges of small and medium enterprises and providing advice.
Obtaining this qualification strengthens the skill of identifying management challenges and connecting them to solutions, which will also be valued when transferring to a business company.
TOEIC / TOEFL
TOEIC and TOEFL are qualifications for demonstrating English proficiency. With globalization accelerating today, there are many situations where collaboration with global companies or communication with clients in English is required.
Having a high TOEIC or TOEFL score or experience working in English makes it easier for your potential to be recognized when transferring to a business company.
Deepen Your Understanding of the Target Industry
In addition to improving your skills, it is also important to build knowledge about your target industry.
For example, knowledge about industry trends, challenges, and the competitive landscape. Keep up with the latest news and read industry publications to input industry knowledge.
During interviews, how well you understand the industry may also be checked. However, for consultants who frequently gather information, industry research may not feel like much of a burden.
Research the Company
Along with industry research, make sure to thoroughly research the target company as well.
If your knowledge of the company you want to transfer to is lacking, you may come across as having low motivation or poor information-gathering skills.
For example, it is a good idea to check the company’s website in detail, and to review in-house newsletters, mid-to-long-term plans, and review sites.
It is also recommended to get a feel for the company culture through interviews and external events.
Prepare for the Selection Process
Once you have decided on the company you want to transfer to, put effort into preparing for the selection process.
Consultants are certainly a profession that tends to be well evaluated. That said, if you cut corners on application documents or interview preparation, you may end up being rejected.
For documents, you will basically need a resume and a work history. It is important to incorporate numbers and specific information to clearly convey what projects you have been involved in and what results you have achieved.
For interview preparation, you need to clearly explain why you are choosing a business company rather than consulting, and what you want to accomplish at that company.
Think About Your Future Career Path
Think ahead about your career after transferring to a business company.
A career at a business company does not necessarily lead to the career you ideally envision for the future. Imagine where you want to be in 5 or 10 years, and work backward to determine the career path you need.
Note that your career vision may also be asked about during interviews at business companies. Make sure you are prepared to clearly explain your career plan.
Use a Recruitment Agency
Make use of a recruitment agency to streamline your job search.
A recruitment agency can efficiently help you find job listings that match your needs from among the many available. For example, they can introduce you to job openings that match various conditions such as work style, business content, required skills, and location.
Some recruitment agencies also offer support beyond job introductions, such as interview practice, resume review, and career consultations.
Consult Next .jp provides job change support for experienced consultants. We have many non-public job openings, so please feel free to contact us.
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FAQ About Transferring to a Business Company
Here, we introduce frequently asked questions about transferring to a business company.
What are cases where a consultant’s transfer to a business company fails?
Not all consultants succeed when transferring to a business company. Some say they “regret the transfer” or “wish they had stayed in consulting.”
The following are cited as reasons why transfers to business companies fail.
- Salary dropped significantly
- Possibility of transfers and relocations
- Industry-specific knowledge and know-how are required
- Company policy or work style is not a good fit
- Pace of growth is slow
- Not being evaluated appropriately
In the consulting industry, where advanced skills are required, the pace of professional growth is fast.
On the other hand, many business companies place more emphasis on company growth rather than individual growth, and some former consultants feel there is no environment for them to grow.
What are the reasons consultants transfer to business companies?
Consultants who transfer to business companies choose this career path for a variety of reasons. Below is a summary of typical transfer reasons.
- Want to execute strategy as a principal stakeholder
- Want to work on a business from a medium-to-long-term perspective
- Want to enrich their work-life balance
- Want to take on a position with direct involvement in management
- Want to gain experience outside the consulting industry
The reason for transferring is almost always asked during the selection process, so make sure you can clearly explain why you decided to make the move.
What is the right age for a consultant to transfer to a business company?
There is no age limit for a consultant to transfer to a business company.
Consulting experience tends to be valued in other industries as well, and it often works in your favor during a job change regardless of age.
However, if you want to take on a role with no connection to your previous work, or if you are interested in an industry where your background cannot be directly applied, transferring as a second-career new graduate (第二新卒) may be advantageous. This is because hiring is based on potential, not just experience.
Is an IT consultant at an advantage when transferring to a business company?
For business companies with IT-related departments or those strengthening digitalization, experience as an IT consultant will likely be valued.
Specifically, you can apply your experience in areas such as researching management challenges, proposing business strategies, and operating internal systems.
Additionally, having strong language skills or programming skills will broaden your scope of activity at a business company and make your transfer even more advantageous.
Please refer to the following article for information on the work of IT consultants.
Is it possible to transfer from a business company to consulting?
Just as it is possible to transfer from consulting to a business company, it is also possible to transfer from a business company to consulting. Depending on the project, there may be opportunities to apply the perspective and skills developed at a business company.
For example, those with a business company background have the client’s perspective and can make proposals that address genuine needs. They also have experience as actual practitioners, making it easier to gain the trust of clients.
However, it will be necessary to become familiar with the frameworks and tools unique to consulting, which can be a challenging adjustment.
It is recommended to understand the disadvantages of aiming for consulting from a business company before making the transfer.
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Summary
In this article, we explained the advantages and disadvantages of transferring to a business company, the skills that can be applied, and the key points for a successful transfer, aimed at consultants considering a move to a business company.
A certain number of consultants do transfer to business companies. To avoid regret, it is important to understand the disadvantages as well, such as the possibility of a salary decrease and slower pace of growth.
Consult Next .jp accepts career consultations related to consultant job changes. We can propose a career plan that makes the most of your background, so please feel free to contact us.
