Top story: EY delays start dates for new grads

New grads get their start dates delayed. Again.

EY has postponed the start dates for approximately 200 new hires at its elite strategy unit, EY-Parthenon, due to a business slowdown in the U.S., particularly in mergers and acquisitions (M&A) and private equity. These recruits, who were set to begin next month or in January 2025, have now been informed that their start will be delayed until mid-2025. The slowdown has caused revenue growth in EY-Parthenon’s advisory sector to lag expectations since the firm’s fiscal year began in July.

This delay comes amid broader challenges faced by the Big Four accounting firms—EY, PwC, Deloitte, and KPMG—as well as specialist consultancies like McKinsey, in predicting future demand for consulting services. While the pandemic spurred rapid growth for the consulting sector, that demand has sharply slowed since. Fiona Czerniawska, CEO of Source Global Research, noted that while the U.S. consulting market has shown some growth, it remains slower than anticipated, with firms observing strong pipelines but delayed execution.

EY-Parthenon’s decision to defer start dates for a second consecutive year follows a broader industry trend where firms are adjusting hiring practices to balance capacity and demand. Many firms, including EY-Parthenon, have recently absorbed previous recruitment cohorts that also faced delayed start dates. To support affected recruits, EY will provide stipends ranging from $12,000 to $35,000, depending on their degree level and original start date. The firm has also reduced the number of internship positions for next summer, aiming to bring its hiring strategy back in line with market conditions.

Despite the current market challenges, consulting firms are maintaining graduate recruitment efforts, although starting salaries have remained flat over the past two years. This trend has persisted because demand for consulting roles still exceeds supply, particularly as competing sectors like banking and technology offer similarly subdued salaries. However, optimism remains that the market will rebound. Industry leaders, such as KPMG’s U.S. CEO Paul Knopp, are hopeful for a stronger 2025, especially as clarity around interest rates could fuel increased private equity activity, a critical driver of consulting demand.

Read more here.

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