Representative image of a job interview.
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Mumbai: Attrition rates continue to remain an area of concern among MBA graduates, especially among the entry-level jobs for top-tier campuses, a study said on Wednesday.
Deloitte Touche Tohmatsu India LLP (Deloitte India)'s latest campus workforce trends 2024 study revealed that attrition remained a significant challenge, especially among MBA graduates.
Overall, pan-India attrition rates for infants (new recruits), one- and two-year-old employees for top-tier campuses are 21 per cent, 26 per cent and 28 per cent, respectively, it noted.
However, these rates are slightly lower for tier II and III campuses at 19 per cent, 21 per cent and 25 per cent, respectively, said the report.
"This year's study reveals a critical need for organisations to rethink their retention strategies, especially for MBA graduates, where attrition rates are alarmingly high. Innovative practices are no longer optional but essential for retaining top talent in a competitive market," Deloitte India Director Neelesh Gupta said.
The study further revealed that currently, four of every five executives favour decisions on hiring, pay, promotions, among others, based on skills over job history or network, citing reduced bias and improved fairness, he said.
"Thus, there is a need for educational institutions to equip students with the multifaceted skills to succeed in the digital age," he added.
Despite higher attrition rates, 70 per cent of organisations actively seek MBA graduates, reflecting their importance in business success and a 5.2 per cent CAGR in compensation over five years.
Meanwhile, the study found that the year-on-year compensation has declined for the first time in five years across tiers of MBA talent and in the top 10 tiers for M.Tech and B.Tech.
This is reflected in a 26 per cent decline in pre-placement offers (PPOs) across degrees and a 33 per cent reduction in campus placement budgets, it stated.
This shift suggests a focus on a more thorough skills assessment and a strategic reallocation of resources for streamlined hiring practices.
The study also revealed that the internship and pre-placement offers (PPOs) intake by organisations reduced by an average 10 per cent and 26 per cent, respectively.
Deloitte India campus workforce trends 2024 study is based on a comprehensive survey, encompassing data from over 190 organisations and 500 campuses.
The study further revealed distinct location preferences for different disciplines include Bengaluru, Hyderabad and Chennai and they have emerged as the top destinations for engineering graduates.
In contrast, for students pursuing management degrees, the top three preferred locations are Bengaluru, Delhi and Mumbai, it said.