Hiring of entry-level graduates falls in FY24 as companies scale back

Internships, lateral hires, and recruitment for CAs and CFAs grew, but MBA and diploma holder hiring saw the least growth in FY24 compared to FY23

India’s corporate companies either froze or reduced their intake of fresh hires in FY24, according to the Campus Study Report 2024-25 by Aon, as mentioned by The Economic Times.

Now in its 13th edition, the report is based on a survey of over 250 organisations examining their campus hiring trends. While there was an uptick in internships, lateral hires, and recruitment for specialised roles such as Chartered Accountants (CA) and Chartered Financial Analysts (CFA), hiring for MBA graduates and diploma holders saw the smallest growth compared to FY23.

The report quoted Roopank Chaudhary, partner and head of reward solutions in India, as saying that campus recruitment provides organisations with a strategic opportunity to develop a diverse, highly skilled, and future-ready talent pool. “However, the campus hiring market in India is undergoing a rapid transformation due to the changing expectations of the candidates, the evolving skill requirements of the organisations, and the impact of the global slowdown,” he said.

According to the study, compensation trends for campus hires remained relatively flat across different tiers and qualifications, with certain areas experiencing a decrease in fixed pay. Companies emphasised performance-based rewards through variable pay, which ranged between 11 per cent and 13 per cent.

Over 90 per cent of surveyed companies offered MBA graduates a combination of incentives, including joining bonuses along with variable pay.

In the past financial year, intern recruitment saw an uptick, with over 80 per cent of companies extending pre-placement interviews or offers to interns upon the completion of their programs. Despite this, early attrition among MBA and tech graduates has surfaced as a challenge, with competitive compensation cited as the leading factor, according to the report.

In terms of diversity, most companies still do not prioritise hiring interns from diverse communities beyond gender, with 85 per cent reporting no initiatives in this area. On the positive side, 49 per cent of organisations are investing in areas like health and wellness, continuous feedback, learning and development, and recognition programs to enhance employee wellbeing and performance, the report mentioned.

The study also identified the key factors driving early attrition, including unequal pay, job mismatches, and challenges in maintaining work-life balance.