Deloitte: Campus Workforce Trends 2024 Report
Attrition, particularly among MBA graduates, remains a significant challenge. Top-tier campuses report 1-year and 2-year attrition rates of 21 percent, 26 percent, and 28 percent, respectively. These rates are slightly lower for Tier 2 and Tier 3 campuses.
Deloitte Touche Tohmatsu India LLP (Deloitte India) has released its comprehensive study on campus workforce trends for 2024, providing valuable insights into attrition rates, hiring strategies, and the evolving landscape of entry-level job markets.
The study, which gathered data from over 190 organizations and 500 campuses, indicates a steady growth in campus compensation at a 5.2% CAGR across various degrees over the past five years, despite a reduction in placement budgets.
Key Findings:
- Salary Trends: For the first time in five years, projected salaries for management students (MBA) are expected to drop by 5 to 10 percent across tiers, mirroring a similar decline in salary expectations among campus students.
- Performance-Based Pay: There has been a 250 basis point increase in variable pay over the past year, signaling a shift towards a higher performance orientation by employers.
- Internships and PPOs: The average intake of internships has decreased by 10 percent, with pre-placement offers (PPOs) dropping by 26 percent annually. Campus hiring budgets have also seen a 33 percent reduction.
- Skill-Centric Hiring: Organizations are focusing on specific skills and competency clusters within educational streams when selecting talent. In-demand skill segments include AI/ML in engineering, social selling in management, and computational biology in pharma.
Retention Challenges:
Attrition, particularly among MBA graduates, remains a significant challenge. Top-tier campuses report 1-year and 2-year attrition rates of 21 percent, 26 percent, and 28 percent, respectively. These rates are slightly lower for Tier 2 and Tier 3 campuses.
Innovative retention strategies:
To address high attrition rates, leading organizations are adopting flexible work arrangements, performance-based incentives, and targeted career development programs.
Dr. Neelesh Gupta, Director at Deloitte India, emphasizes the critical need for organizations to revamp their retention strategies, particularly for MBA graduates. He advocates for innovative practices as essential tools for retaining top talent in a competitive market.
Industry-Academia Partnerships and AI Integration:
The report highlights the growing significance of industry-academia partnerships in creating a competitive workforce and fostering a knowledge-based economy. It also points out the transformative impact of Gen AI on talent management practices, making recruitment more inclusive, unbiased, and skill-oriented.
Diversity and Inclusion Progress:
Notable advancements have been made in workplace gender equality and diversity hiring. Female campus hiring has increased, and there is a rise in initiatives supporting the hiring of differently abled individuals and those with diverse gender identities.
Location Preferences:
The survey reveals distinct location preferences among different disciplines. Engineering graduates favor Bangalore, Hyderabad, and Chennai, while management students prefer Bangalore, Delhi, and Mumbai.
Conclusion:
Deloitte’s Campus Workforce Trends 2024 report sheds light on the dynamic shifts in campus hiring, underscoring the importance of skills, adaptability, and innovative retention strategies in today’s job market. The integration of AI and strong industry-academia partnerships are poised to shape the future of work and talent management.
Stay tuned, to PropleManager.co.in for further updates on the evolving workplace paradigm.
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