37% of Employers Would Rather Hire a Robot or AI Than a Recent Grad: 'Theory Alone Is No Longer Enough' Three out of 10 HR leaders would rather leave a position unfilled than hire a recent graduate.
By Sherin Shibu Edited by Melissa Malamut
Key Takeaways
- A new study found that 98% of HR leaders were struggling to find talent, but 89% avoided hiring recent graduates.
- Nearly four out of 10 HR leaders would rather hire a robot or AI for the job than a recent grad.
A new study released Tuesday by Hult International Business School and independent research firm Workplace Intelligence found that even when faced with widespread talent shortages, employers would rather hire a robot or AI than a recent grad.
The study surveyed 800 human resources leaders and 800 recent graduates (ages 22 to 27) in business roles, including finance/accounting, marketing, sales, management, operations/logistics, and business analytics/intelligence.
Nearly all HR leaders, 98%, said their organization was struggling to find talent, yet 89% stated that they avoid hiring recent graduates.
When asked why, hiring managers said that recent graduates lack real-world experience (60%), a global mindset (57%), teamwork skills (55%), the right skill sets (51%), and the proper business etiquette (50%).
Three out of 10 HR leaders would rather leave a position unfilled than hire a recent graduate.
Nearly four out of ten (37%) would rather have a robot or AI do the job than a recent grad while 45% say they would rather hire a freelancer.
At companies that have taken the plunge and hired recent grads in the past year, the majority (78%) have already fired at least some of them.
Meanwhile, recent graduates who have successfully joined companies have found the work experience invaluable. 77% said they learned more in half a year on the job than in four years of undergrad and 87% said their employer provided better job training than college.
Over half (55%) said that college didn't prepare them in any way for the job they currently hold.
Related: Here Are the 10 Fastest Growing Jobs for 2025, According to LinkedIn.
"Our survey revealed that traditional college programs aren't providing what students need to be successful in today's fast-paced and increasingly tech-focused work environment," Dan Schawbel, Managing Partner of Workplace Intelligence, stated.
So what do recent grads lack that HR leaders are looking for? Technology skills, especially in AI, data analytics, and IT, are important to 97% of HR leaders, but only 20% of recent graduates possess 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, with a focus on building both the skills and mindsets needed for continuous learning, is the future of education."
