This disparity is emphasised in a study that Hult International Business School recently sponsored, to better understand how universities are preparing learners for jobs. In total, 1,600 employees and HR leaders shared information about how young workers were faring in new roles – and the results were eye-opening.
Read more: How can we match the UK’s skills needs to rising demand?
Half of those surveyed were full-time employees who had achieved an undergraduate degree within the past three years. A full 85% of them said that they wished college had better prepared them for the workplace, and just 24% said they had all the skills they need for their current role. This should be a wake-up call to HR and talent leaders in charge of hiring and onboarding in companies of all sizes. How can you better understand the skill level of new hires? How can these employees be set up for success in their roles?
Not surprisingly, this skills gap is being felt by both sides. HR leaders made up the other half of those surveyed, and 75% of them said that most college educations are not preparing people at all for their jobs. The situation is so dire that most HR leaders who look for talent say they avoid hiring recent graduates. The survey found:
- 96% of HR leaders say colleges need to take more responsibility for training people for the workplace.
- 91% say it costs more to onboard and train recent graduates versus more experienced employees.
- 98% of leaders say their organisation is struggling to find talent, yet 89% say they avoid hiring recent graduates.
Also, the bigger the skills gap, the bigger the cost: HR leaders estimate they save more than $4,500 [around £3,580] in training costs when an employee can hit the ground running upon being hired.
Read more: Employers think graduates are unprepared for the workplace
The big question for HR leaders now is: how can you find young talent with the right skills for the job?
Human skills, critical mindsets
The truth is that many colleges are working with outdated curricula when it comes to workforce preparation. Traditional undergraduate, and even some Bachelor of Business Administration (BBA) curricula, have not changed in step with an evolving global workplace. There has been a shift in the types of skills employers want from younger workers especially, and organisations would benefit from partnering with schools on making sure what they teach maps to emerging needs in the workplace.
Read more: How to build a skills-first HR approach
More than 90% of the HR leaders surveyed emphasised the growing importance of so-called human skills, such as communication, critical thinking, creativity, collaboration, curiosity and the willingness to learn. Most of these are not just skills but game-changing mindsets. Understanding how to work well on a team, how to problem solve and negotiate solutions, are all critical to long-term success for an employee. And those organisations that prioritise these mindsets with new hires will be setting themselves up for success.
Just as 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, companies should make changes as well. HR leaders should think about setting up an onboarding process that clearly states what is expected of new hires, how to be successful at the organisation, and emphasise non-tangible assets like having a growth mindset, and problem-solving and decision-making skills.
Recent graduates have ample opportunity for learning. Making sure they understand what their manager, and the organisation, expects of them is paramount. Things like finding a mentor at work and taking advantage of online courses can help. But what they really should build to be successful are the mindsets that will enable them to become lifelong learners. Being able to deal with ongoing change at work, and to collaborate with others, will be especially important for younger generations to learn as they grow in their careers.
By Martin Boehm, executive vice president and global dean of undergraduate programmes, Hult International Business School
