Attrition rates continue to remain high for MBA graduates: Study

Despite greater attrition rates, 70 per cent of firms actively seek MBA graduates, indicating their value for corporate success
Attrition rates continue to remain high for MBA graduates: Study
These rates are slightly lower for tier II and III campuses.EdexLive

According to a report released today, Wednesday, May 22, attrition rates among MBA graduates continue to be a source of worry, particularly for entry-level positions at top-tier universities.


The latest campus workforce trends 2024 study conducted by Deloitte Touche Tohmatsu India LLP (Deloitte India) reveals that attrition remains a serious concern, particularly among MBA graduates, PTI reports.


Overall, pan-India attrition rates for infants (new recruits), and one-year-old and two-year-old employees at top-tier campuses are 21 per cent, 26 per cent, and 28 per cent, respectively.


However, these rates are slightly lower for tier II and III campuses, with 19 per cent, 21 per cent, and 25 per cent, respectively, according to the study.


"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.


According to the study, four out of every five CEOs now prefer hiring, pay, and promotion decisions based on abilities rather than employment experience or network, claiming less bias and increased fairness, he added.


"Thus, there is a need for educational institutions to equip students with the multifaceted skills to succeed in the digital age," he added.


Despite greater attrition rates, 70 per cent of firms actively seek MBA graduates, indicating their value for corporate success and a 5.2 per cent Compound annual growth rate (CAGR) in remuneration over five years.


The analysis indicated that compensation for MBA talent has decreased for the first time in five years across all tiers, as well as in the top ten for MTech and BTech.


According to the report, there has been a 26 per cent decrease in pre-placement offers (PPOs) across degrees, as well as a 33 per cent decline in campus placement costs.


This shift implies a greater emphasis on a thorough skills assessment and a smart reallocation of resources to expedite hiring operations.

The report also showed that firms cut their intake of internships and pre-placement offers (PPOs) by an average of 10 per cent and 26 per cent, respectively.


The Deloitte India campus workforce trends 2024 analysis is based on a thorough survey that includes data from over 190 organisations and 500 campuses.

The study also showed diverse location preferences for other fields, including Bengaluru, Hyderabad, and Chennai, which have emerged as the top destinations for engineering graduates.


In contrast, Bengaluru, Delhi, and Mumbai are the top three favoured places for students seeking management degrees, according to the report.

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