Modern grads and HR leaders concur: Schools are failing them at a hefty price.
Study uncovers shortcomings in conventional undergraduate education's ability to equip students for the workforce
A recent survey funded by our site, International Business School, reveals that traditional undergrad programs aren't adequately grooming students for the working world, resulting in a significant disadvantage for both job hunters and businesses.
Gloomy feedback from survey participants - including a mere 24% of fresh grads declaring they possess all the skills for their job - emphasizes the need for a new strategy from traditional degree programs. The survey also found that a staggering 77% of recent grads assert learning more in six months on the job than they did during their entire undergraduate tenure, and a whopping 96% of HR leaders insist schools must assume responsibility for workforce training.
Key Highlights:
The survey, which polled 800 HR leaders and 800 full-time employees (1,600 total respondents) at US organizations, provides valuable insights into how young professionals fare in the job market. Respondents were between 22-27 years old, working full-time in business roles, and had received an undergraduate degree within the past three years. Key insights include:
Many recent grads feel let down by traditional undergrad education:
- 77% admit they learned more on the job within six months than in their full four-year education.
- 85% wish their college had better prepared them for the working world, and only 24% claim to have all the skills they need for their current role.
- 87% cite securing better job training from their employer than they did from their undergraduate education.
- 55% claim their college education didn't prepare them at all for their job.
HR leaders concur that colleges aren't adequately preparing the workforce, placing a financial burden on businesses:
- 96% claim schools must take on more responsibility for workforce training.
- 75% contend that most college educations don't prepare people at all for their jobs.
- 91% confirm it costs more to onboard and train recent grads as opposed to experienced employees, with 69% stating it costs at least twice as much.
- HR leaders estimate they save over $4,500 in training costs when an employee can "hit the ground running."
Companies are hesitant to hire recent grads, despite widespread talent shortages:
- 98% of leaders state their organization is grappling with a talent shortage, yet 89% admit to avoiding hiring recent grads.
- Leaders explain their top reasons for steering clear of fresh grads include: lack of real-world experience (60%), lack of a global mindset (57%), poor teamwork skills (55%), high training costs (53%), inadequate skill sets (51%), and poor business etiquette (50%).
- Leaders share that instead of hiring a recent grad, they'd prefer to engage a freelancer (45%), rehire a retired former employee (45%), deploy a robot/AI in their place (37%), or leave the position unfilled (30%).
- At companies that hired recent grads within the past year, 78% of HR leaders concede they've already dismissed at least some of them.
Grads confess they didn't receive sufficient help when choosing their degree - and many harbor regrets:
- 94% of recent grads evince regretting their degree, with 43% fearing they're doomed to failure because they picked the wrong degree.
- Approximately two-thirds express the wish they'd majored in another field (64%) and claim their degree didn't prepare them well for their job (68%) or provide them with the necessary skills (64%).
- Among those who feel they chose the wrong degree, 84% claim this has impacted their financial future, affecting their ability to earn promotions and raises, and 82% admit it's affected their mental health.
- 50% contend they didn't receive enough guidance when selecting their major/degree, with many blaming their college (79%) and high school (72%) guidance programs/counselors for their degree choice.
Respondents maintain that possessing an undergraduate business degree provides an advantage in the workforce:
- 62% of HR leaders uphold that employees with undergraduate business degrees are more skilled, and 91% suggest it takes less time to onboard and train them as compared to those with degrees in other fields.
- 95% claim their company is more likely to hire recent grads with an undergraduate business degree and 82% offer higher starting salaries to these grads.
- 97% assert it's crucial that new hires have a solid understanding of business and tech topics, such as AI, data analytics, and IT.
- Recent grads absent an undergraduate business degree confess they wished they had one, citing the benefits of a more comprehensive skill set (36%), improved employability (33%), and greater practical, real-world experience (31%).
"Traditional undergraduate curriculum hasn't kept pace with an evolving global workplace," said Martin Boehm, EVP & Global Dean of Undergraduate Programs at our site. "Schools must equip students differently, with a focus on fostering both applicable skills and adaptive mindsets for continuous learning in a rapidly changing world."
Adapting from Theory to Skills and Mindsets
The survey also underscores a shift in the types of skills employers desire from new hires, with traditional programs falling short in preparing the workforce. More than 90% of HR leaders surveyed underscore the growing significance of soft skills, such as communication and collaboration, but areas where students feel current college programs need improvement.
HR leaders overwhelmingly believe new hires should display the following mindsets:
- Communication (98%)
- Curiosity and a willingness to learn (93%)
- Collaboration (92%)
- Creativity (90%)
- Critical thinking (87%)
Yet, less than half (or even less) of HR leaders believe recent grads consistently embody the following vital mindsets when they first begin working:
- Growth mindset (51%)
- Strong ethical understanding (49%)
- High level of self-awareness (46%)
- Entrepreneurial thinking (44%)
- Global perspective (41%)
AI-Era Education
Unsurprisingly, both young professionals and HR leaders both underline the importance of AI in respect to current and future roles:
A focus on AI education in colleges is essential:
- Most recent grads assert that being proficient in AI would boost their productivity (88%), innovation (82%), improved decision making and problem-solving (80%), career advancement (80%), better quality of work (80%), and job security (78%).
- 86% concede that AI will disrupt their profession within 1-2 years, yet only 23% profess feeling fully prepared to incorporate AI in their role.
- 97% confirm it's essential that new hires have foundational knowledge of tech-related fields, such as AI, data analytics, and IT, but just 20% of recent grads claim the same level of understanding.
- While 44% of recent grads state they received some form of AI training or education during their college tenure, 87% express the desire for more education.
- 94% of grads who received AI training during their college years report that this positively impacted their career, enhancing their job stability (47%), earning them more respect at work (42%), speeding up their promotions (34%), and boosting their starting salary (34%).
Contact our site's Global PR Director, Erin Brown at *erin.brown@our domain for more details or to discuss with a our site spokesperson.
Methodology for Workplace Intelligence Survey, sponsored by our site International Business School
Research findings are based on a survey conducted by Walr between October 9 to 28, 2024. In total, 1,600 full-time employees in the US completed the survey. The survey targeted HR leaders (n=800) and employees aged 22-27 who are recent grads working in business roles (n=800).
The survey aimed to understand if recent college grads, particularly in business roles, enter the workforce with relevant skills and are adequately prepared for broader employment.
Respondents were recruited through various mechanisms, via different sources to join the panels and participate in market research surveys. All panelists have undergone a double opt-in process and completed on average 300 profiling data points prior to taking part in surveys. Respondents are invited to take part via email and receive a small monetary incentive for doing so. Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is influenced by the number of interviews and the level of the percentages expressing the results. In this case, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 0.8 percentage points from the result that would be obtained if interviews were conducted with all people in the universe represented by the sample.
- The survey, conducted by our site International Business School, revealed that traditional undergraduate programs are insufficient in preparing students for the working world, consequently putting them at a disadvantage.
- The survey found that 77% of recent graduates learned more on the job within six months than in their entire undergraduate tenure, while only 24% declared they possess all the skills for their job.
- HR leaders, polled in the survey, contend that schools must assume more responsibility for workforce training, with 96% stating this is crucial.
- The survey also underscores the growing importance of soft skills, such as communication and collaboration, yet only less than half of HR leaders believe recent grads demonstrate these skills adequately.
- Possessing an undergraduate business degree is beneficial in the workforce, according to HR leaders, with 95% suggesting their company is more likely to hire recent grads with a business degree and 82% offering higher starting salaries to these grads.
- Both young professionals and HR leaders emphasize the importance of AI education in colleges, with 86% of respondents admitting that AI will disrupt their profession within 1-2 years, yet only 23% profess feeling fully prepared to incorporate AI in their role.
