A new study released Tuesday by Hult International Business School and independent research firm Workplace Intelligence found that even when faced with a widespread talent shortage, employers prefer to hire robots or artificial intelligence over recent graduates.
The study surveyed 800 human resources leaders and 800 recent graduates (ages 22-27) in business roles including finance/accounting, marketing, sales, management, operations/logistics and business analytics/intelligence.
Almost 98% of all HR leaders report that their organizations struggle to find talent, but 89% are reluctant to hire new graduates.
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When asked why, hiring managers said new graduates lacked real-world experience (60%), a global mindset (57%), teamwork skills (55%), the right skill sets (51%) and proper work etiquette. 50%).
Three out of 10 HR leaders would rather leave a position open than hire a new graduate.
Almost four in ten (37%) would rather have a robot or artificial intelligence do the job than a recent graduate, while 45% would rather hire a freelancer.
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The majority (78%) of companies that have hired new graduates in the past year have fired at least some of them.
Meanwhile, recent graduates who successfully joined companies found the work experience invaluable. 77% said they learned more in half a year on the job than a four-year bachelor’s degree, and 87% said their employers provided better job training than college.
More than half (55%) said college did not prepare them in any way for their current job.
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“Our survey found that traditional college programs do not provide what students need to succeed in today’s fast-paced and increasingly technology-driven work environment,” said Dan Schawbel, Managing Partner of Workplace Intelligence.
So, what are recent graduates missing that HR leaders are looking for? Technology skills, particularly in AI, data analytics and IT, are important to 97% of HR leaders, but only 20% of recent graduates have these skills.
“Theory alone is no longer enough,” said Martin Boehm, executive vice president and Global Dean of Undergraduate Programs at Hult International Business School. “Preparing students in new ways, focusing on building both the skills and mindsets needed for lifelong learning, is the future of education.”