Scratching the 7-year itch, public to private sector

We’ve just finalized the annual Planning Salary Survey, and while salaries have increased and the demand for remote work and other benefits has fluctuated, one statistic remains consistent: public sector salaries outpace private sector salaries up until the 7-to-7.5-year mark. Beyond that point, the average private sector consultant begins to earn more than their public sector counterpart.

Whenever we release this survey, we see a wave of candidates looking to jump from one side to the other to maximize their earning potential. But it’s never as simple as it seems. Here’s a breakdown of how career stages differ between the public and private sectors and the key factors to consider.

Juniors: You’re Paid Despite What You Don’t Know

At the junior level, you’re still learning.? For consultancies, this means your charge-out rate is low, you’re less efficient, and you require oversight from senior staff to review and refine your work. This eats into company profits.

In contrast, public sector roles tend to have a larger volume of similar tasks. They can show you how to do something once and assign you repetitive tasks where you’ll become efficient. Additionally:

• Public sector salaries are less tied to immediate productivity, allowing more room for training and development.
• Ebb and flow of work: While a consultancy’s quiet periods often trigger productivity reviews or concerns, the public sector can use these times to teach and develop staff.
• Support: Public sector roles often come with better and more consistent support structures.

Takeaway: Consultancies still need juniors to handle cost-efficient tasks that clients won’t pay senior rates for. However, public sector juniors typically earn more as well as having structural support and training opportunities.

Mid-Level: You’re Paid for What You Know

At this stage, demand for mid-level planners is at its peak in consultancies. You have specialized knowledge, are efficient in your work, and don’t cost as much as senior staff. This makes you a valuable asset.

Your expertise now extends beyond technical knowledge to include consulting skills, such as managing invoices, crafting development arguments, and beginning to influence outcomes. However, this expertise can lead to pigeonholing—consultancies often focus on what you’re good at to maximize profits, leaving less room for you to explore new skills.

In contrast, public sector roles offer more opportunities for skill diversification.? For example, its easier to move between statutory to strategic in local government, whilst there is also more scope for acting management roles arise due to flatter structures and frequent leadership vacancies.

That said, transitioning to a private sector senior role often requires prior private sector experience. Consulting demands specific client-facing skills that are typically mastered during these mid-level years.

Takeaway: While the pay gap narrows at this stage, public sector roles provide greater diversity. However, if your long-term goal is a senior consulting position, honing your consulting skills now is crucial.

Senior Level: You’re Paid for Who You Know and How You Think

At the senior level, salary growth is less about technical expertise and more about your ability to:

1. Solve complex problems: Clients seek out senior consultants for their critical thinking and innovative solutions, which require autonomy and diverse experience gained during your mid-level career. Internal self-promotion is often necessary to secure these growth opportunities.
2. Bring in work: Winning work isn’t about flashy salesmanship; it’s about reputation. Clients trust consultants with a proven track record of delivering results. Personal branding plays a huge role here, built through consistent networking, committee involvement, and exposure over time.

Seniors lacking either of these abilities often plateau in their roles and may transition to public sector jobs, where people management and political skills are more valued.

For public sector seniors moving into consultancy, challenges include:

• Reputation: Will clients view you as a facilitator or bureaucrat? A history of rejecting key projects (even if made politically above your head) may create hurdles.
• Proven ability to win work: Developers might know you from your regulatory role but converting that relationship into consulting work is unproven.
• Role shift: Public sector seniors often manage people and politics, while consulting focuses primarily on project delivery.

Takeaway: Success at the senior level in consulting depends heavily on reputation and a track record of results. Public sector planners considering a move to consultancy should weigh the significant shift in role focus carefully.

Overall: The Grass Isn’t Always Greener

While the roles of public and private sector planners share similarities, they differ in execution. Consultants are accountable to developer briefs, while council planners answer to councilors’ decisions. Consultants avoid the public interface but face high client expectations, while public sector planners handle challenging community interactions.

Ultimately, the $5K–$10K salary difference often becomes secondary to job satisfaction. Success stems from finding the role that aligns with your strengths and career aspirations.

For those weighing a move between sectors or simply evaluating their earning potential, I’m always happy to have a confidential chat.

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