HR leaders just aren’t finding what they’re looking for in university graduates anymore – at least, thats what the data suggests… Photo by Mapbox on Unsplash

• 89% of HR leaders avoid hiring recent grads, citing a lack of job-ready skills and high training costs, while graduates feel unprepared and regretful about their degrees, finds a new study from Workplace Intelligence, sponsored by Hult International Business School.
• Employers now prioritise tech and AI skills over traditional ‘soft’ or ‘human’ skills, prompting universities to adopt methods like Challenge-Based Learning and integrate AI into curricula.
• Employers and universities must work together to better prepare grads and bridge the education-employment gap.

At some point after graduating, most students find themselves stuck in a familiar cycle: doom-scrolling through LinkedIn, getting ghosted by jobs they didn’t really want in the first place and getting rejected from the ones they do. Reminiscing about the glory days of student life and most significantly, wondering when, if ever, they will be able to use the degree they worked so hard to achieve by being granted that mystical wish every graduate yearns for: a job.

NEETs – that is, young people aged 16 to 24 who are “not in employment, education, or training,” have recently become a prevalent topic in the media, posing a conundrum while everyone tries to understand: why are there just so many of them?

Is it that young people, discouraged by their economic standing, are opting out of the labour force by choice, as some may believe? Or,  perhaps there is something else going on which is holding them back from entering the world of work. 

Why are leaders avoiding hiring graduates?

A new Workplace Intelligence survey, sponsored by Hult International Business School, reveals why the pipeline between education and employment seems to have broken down. The study looked at 800 HR leaders and 800 recent graduates who had received an undergraduate degree within the past three years.

According to the results, 89 percent of HR leaders say they are actively avoiding hiring recent graduates.

This is a shocking number which comes down to a number of factors. Most significantly, over half of HR leaders believe recent graduates do not have the right skill sets for the workplace, but they don’t want to train them. This means that these former students are left in the lurch.

Their undergraduate education has failed to equip these individuals with the expectations of this current job market, and HR leaders are choosing quick and cheap options to fill the job openings. Since 53 percent of HR leaders believe it is too costly to train recent graduates, they would rather use AI to do the job, recruit a former employee to fill the position, or even just leave the role unfilled. 

Many recent graduates, at the receiving end of this shift, share the dissatisfaction shown by the HR leaders, agreeing that their degree left them unprepared, lacking in guidance, and regretting their choices.

“The traditional undergraduate curriculum has not kept pace with an evolving global workplace, and the chasm between what’s being taught and what employers need has become more apparent,” said Martin Boehm, EVP & Global Dean of Undergraduate Programs at Hult International Business School.

“Schools need to prepare students in new ways, with a focus on building both the skills and mindsets needed for continuous learning in a rapidly changing world.”

The survey highlights the immense dissatisfaction shared by recent graduates and HR leaders, with both groups agreeing that universities are failing to equip students adequately to join the workplace, and should be held responsible.

Therefore, what can universities do to help bridge the growing gap between higher education and workplace readiness? 

What do employers want?

These results of the survey show that HR leaders just aren’t finding what they’re looking for in university graduates anymore. This could partly be due to the rising demand for technology, IT and AI skills.

The most recent Future of Jobs report from the World Economic Forum has predicted that the need for traditional skills such as team-work and time management is rapidly declining, while AI and Machine Learning Specialists will have a job growth of around 40% by 2027.

Because of this, perhaps, for the sake of their students, more universities should implement Challenge Based Learning and AI in the curriculum. According to new research from GMAC, 78 percent of global business schools are doing just this. By doing so, students will be well-equipped to navigate the ever-changing job landscape.

Employers are still searching for new talent, with 98 percent of HR leaders stating that they’re struggling to find it. The thing is, the current definition of ‘talent’ is constantly changing. Modernised education on the assets needed for the job market of today will allow graduates to stay talented, regardless of what is asked of them.

But higher education benefits employees in other ways…

However, it’s crucial that HR leaders remember that higher education offers many benefits beyond building the hard skills needed for the workplace. University study helps to socialise young people, inspiring curiosity, creativity, and critical thinking.

In fact, a recent study from The University of Malaysia found that possessing so-called ‘soft skills’ such as communication, teamwork, adaptability and problem-solving significantly enhances a graduate’s employability.

Employers should recognise that plenty of the skills which studying a degree helps to cultivate are still infinitely valuable, and undeniably transferable. With training, expectation setting, and robust feedback, HR leaders will help graduates to onboard effectively, and allow them to shine.

By meeting in the middle in this way, employers can turn NEETs into ‘AEETS’ (young people who ARE in Education, Employment or Training).

By, Ella Coates

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