EY, one of the Big Four firms, recently notified recent graduates, initially slated to commence work in the autumn, that their start dates would be pushed back to July or August 2024. This delay, almost a year later than expected, is attributed to evolving business conditions and EY’s assessment of its business needs.
EY-Parthenon, a prestigious brand within EY’s advisory arm, specializing in CEO counsel, restructuring, and M&A deals, is among the sectors impacted. The advisory arm alone accounts for 9,000 of EY’s global workforce of 395,000. Reports suggest that start dates for new recruits in other parts of the advisory business have also been affected.
The broader context reveals that EY and its competitors are grappling with challenges stemming from a prolonged slide in M&A activity and a slowdown in consulting work. The firm had previously announced layoffs, with a focus on the advisory business.
EY-Parthenon had initially postponed start dates for its 2023 recruits around the same time as the layoffs in April, informing graduates that they would not be needed until December or February 2024. The recent communication from EY-Parthenon indicates an acceleration of start dates for some, but further deferral for others. The firm emphasized the significance of early experience, expressing confidence that a July start date would provide better opportunities for growth, development, and progression within the practice.
Insights from industry experts shed light on the factors contributing to these delays. Namaan Mian, Chief Operating Officer of Management Consulted, pointed out that EY-Parthenon’s heavy focus on strategy and transactions work, coupled with a slowdown in dealmaking and lower utilization rates for current consultants, has led to the extended start dates.
Conclusion: EY’s decision to once again postpone start dates for new hires highlights the ongoing challenges faced by professional services firms navigating an uncertain economic landscape. As the industry grapples with shifts in M&A activity and consulting demand, firms are adjusting their strategies to ensure sustained growth and development. The impacts on recent graduates underscore the importance of adaptability and resilience in the face of evolving business conditions.
Original Article Source: Financial Times – Link to the original article
