Consulting grads are getting a measly $5,000 as their jobs are pushed back by almost a year

• Ernst & Young has delayed the start date of some its new graduate hires for the second time.
• Candidates will receive a one-time payment of $5,000 to compensate for the delay.

Ernst & Young has delayed start dates for new hires to its strategy consulting arm, making them wait almost a year in total, the Financial Times reported Wednesday.

Some recent graduates who were initially expecting to join Ey-Parthenon in Autumn have had their start dates delayed twice, and won't be working with the firm until July 2024.

This is due to "emerging business conditions and our assessment of our business needs," according to an email from EY's campus recruiting department viewed by the FT.

The email said that it would be speeding up start dates for some hires but delaying others: "Your early experience in the practice is important for setting you on a strong trajectory, and we believe that you'll have a better opportunity to grow, develop and progress in the practice with a July start date."

The new hires will receive a one-time $5,000 payment to compensate for the delay, the email added.

Business Insider reached out to EY for comment but did not immediately hear back.

Some graduates are disappointed and concerned by the delays.

Especially given that this is the second time that some of these hires will have had their start date pushed back, meaning that many will now be starting almost a year later than planned.

One EY hire, who had already signed a lease for accommodation when he received the offer, told the FT: "What sucks is delaying it twice, instead of just delaying it for a whole year initially."

"We could have planned something entirely different, such as an extra year of school or finding a better internship or job. Instead, we have been stuck in this in-between place," they added.

Over on Reddit, some users who say they were meant to start their jobs at EY shortly are worried about how they're going to find employment during the gap.

"Might as well start looking for part-time employment between then and now to earn money. Delaying for nearly a year seems outrageous," one user wrote.

Another Reddit post said: "What are the chances of EY just rescinding offers after TWO start delays? That's my fear."

On April 17, the company announced it was laying off 5% or 3,000 people from its US workforce, which would largely affect its consulting arm.

Delaying the start dates of grads is not only a cost-saving measure but also to ensure that new hires have work to do when they join.

A number of its competitors, including Deloitte, Accenture, and Bain, have made similar moves as business has slowed down due to changing market conditions, Bloomberg reported in August.