Comment: Emerging Trends in Graduate Employment: Implications for Higher Education

The business world is undergoing rapid transformation, driven by digitisation, sustainability, and evolving ethical standards, World Economic Forum (2023). This shift is most evident in the graduate employment landscape within accountancy, finance, and general business sectors. As traditional roles are phased out and artificial intelligence (AI) and automation take centre stage, there is a critical need for education systems and professional bodies to align their training with the demands of the contemporary business environment, Ward (2025). This article explores emerging trends in graduate employment and recruitment, particularly within the Big Four accounting firms, and presents recommendations for higher education institutions and industry stakeholders.

Introduction

The 21st-century workplace is no longer shaped by the industrial-age model of manual labour and rigid hierarchies. Instead, it is defined by technological responsiveness, sustainability, and innovation. Within the fields of accountancy, finance, and business, organisations are increasingly moving away from traditional operational models toward dynamic, ethical, and technology-driven approaches. This revolution is profoundly changing the nature of graduate recruitment and employment, Krithivasan (2025).

Decline of Traditional Graduate Roles

Recent trends reveal a pronounced decline in graduate recruitment for traditional entry-level roles, particularly within accounting and finance. Prominent examples include the news about reduced hiring by the Big Four accounting firms; Deloitte, PwC, EY, and KPMG; who have increasingly automated many entry level functions using AI and robotic process automation, (RPA), ACCA (2024). The purpose for these shifts is obvious, to respond to the market demands including cutting down of costs, enhance efficiency, and improve decision-making processes. It is interesting to note that PWC is now leading in the retail of generative AI technologies to businesses such as ChatGPT, PWC (2024).

What was once a predictable pipeline of graduates into foundational roles has become disrupted, creating anxiety among recent graduates and university leavers. This has implications not only for employability but also for the design of business education programs.

The Rise of the Diamond-Shaped Career Model

Traditionally, career progression in firms was modelled in a pyramidal form with numerous entry-level operational employees including graduates feeding into fewer mid-level tactical roles, and even fewer strategic senior-level positions. This hierarchical structure has stood test of the time and as it ensured there is bigger base in employment to embrace all new and less experienced people to progress through the experiential ladder, CIMA (2024).

Today, professional bodies such as the ICAEW have observed a shift from the pyramid model of employment towards a new diamond-shaped model, which reflects fewer junior positions, a broadening mid-level specialist and managerial roles, and narrower executive/strategic level role, ICAEW (2023).

Within the new diamond-shaped career model, firms are increasingly looking for multi-skilled professionals who can operate in cross-functional roles requiring digital literacy, critical thinking, and adaptability. The implication is clear: graduates need more than technical proficiency; they must have a collection of soft and digital skills including extensive awareness of ethical and sustainability issues relating to business they want to work in.

Whilst the diamond-shaped employment model may seem the ultimate model given the direction in which business operations is heading, there is the risk that it is being overgeneralised. The diamond model may not be beneficial for all business types and sizes especially small-medium sized businesses whose structures may not be well-defined and may not have the capabilities to embrace the new model yet, Jackson, et al (2021). Besides, mid-level jobs may not be the best suited for young graduates no matter how much practical their education may seem. The diamond-shape may lead to workforce stagnation at the mid-level positions, creating discomfort and frustration for those in disadvantaged backgrounds and those with ambition to get to the top of the diamond.

Overview of the transformational entry level roles

Professional Bodies Response

Professional bodies such as ACCA, CIMA, and ICAEW are proactively restructuring their qualifications to meet these new realities. The ACCA, for example, has embedded digital and sustainable business practices into its curriculum, ensuring students obtain exposure to contemporary business tools and ethics, ACCA (2023). Similarly, CIMA has integrated strategic case studies with a strong emphasis on real-time data analysis and decision-making.

In similar manner, the ICAEW has restructured its curriculum to ensure new generation professionals are useful to meet the needs of modern business operational requirements. Consequently, the ICAEW have embedded workplace data analytics software within their exams. 'The next generation ACA enables the highest ethical and professional standards and is leading the way in technology, sustainability and ethics', ICAEW (2025)

These reforms are designed to bridge the skills gap between traditional academic preparation and the evolving workplace. However, for these changes to be effective, collaboration with higher education institutions is essential.

Crucial Transformation Required in Higher education

Although professional bodies are adapting at fast pace, higher education providers appear to be trailing. Program specifications and learning outcomes in many business and finance degrees still reflect legacy models, prioritising technical content over strategic and digital capabilities. This misalignment risks producing graduates ill-equipped for the jobs of the future.

The transformation in graduate employment patterns should serve as a wake-up call for educators and policymakers. To remain relevant and competitive and to prepare graduates for a fast-evolving job market, the following strategic actions are recommended:

Curriculum Overhaul: Align business and finance programs with emerging trends such as AI, ESG (Environmental, Social, and Governance), and data analytics.

Industry Partnerships: Develop joint programs and internships with firms adapting to the diamond-shaped model. For example, REDBULL has signed up with ICAEW to train their new intakes. ICAEW (2025).

Career Services Redesign: Empower students with the necessary skills and knowledge to effectively plan and navigate their careers, especially in today's dynamic and nonlinear professional landscape.

The future of work in business and finance demands recalibration of graduate training. As AI and automation reshape recruitment and operational models, the burden is on universities and professional bodies to work mutually, ensuring the next generation of professionals are prepared not just to survive but to succeed.

References

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