Are college grads prepared for today’s workforce? Employers don’t think so

A recent survey revealed that over 60% of employers aren’t confident that their current talent pipeline solutions will meet their workforce needs in the next 5-10 years. Yikes.???

40% of US employers feel that graduates aren’t career-ready when they join the workforce.

What’s going on? And how can we rebuild confidence in the education-to-workforce pipeline?

Are education providers failing? ??

It seems to stem from a growing disconnect between education and industry. The learning outcomes in higher education don’t seem to match up with industry needs, and as a result, many graduates don’t seem to have the skills and experience employers seek.

Interestingly, education providers perceive the situation differently from employers.

Harvard Business School and the American Association of Community Colleges (AACC) conducted joint research that found that:

• 80% of community college educators feel they produce work-ready graduates.
• Only 62% of employers think the same way.

To thicken the plot even more, students feel similar to employers. ??

In a 2022 graduate employability report, a worrying 48% didn’t apply for entry-level positions because they felt they weren’t qualified enough.

39% said this was because they didn’t have all the skills listed in the job description.???

4 reasons grads aren’t career-ready ??

Here are the 4 main reasons we’re in this dilemma:

1?? - Skills gaps

There’s a disconnect between the skills students develop during their studies and the skills employers need. This is mostly explained by:

2?? - Rapid skills evolution

Students may be learning outdated curricula and missing out on acquiring the expertise employers are looking for. While we’re not saying this is the case across the board, it’s something often seen in industries like tech.

AI is a good example: many education providers have yet to incorporate it into their courses.?

3?? - The shift to skills-based hiring

Skills-based hiring is widespread, and some employers are even removing degree requirements from job postings (although this isn’t widespread – 70% of employers we spoke to said they haven’t done this). With a skills focus, it’s easier for employers to spot the skills graduates don’t have.

4?? - Lack of collaboration between employers and education providers

According to Harvard Business School and AACC research, only one in four employers openly discuss their hiring needs with educators.

Ways to improve the situation ??

The current situation is lose-lose-lose. The lost confidence in the graduate pipeline may result in fewer entry-level hires. A decline in graduate hires may devalue the qualifications education providers offer. And, at the end of the day, young people, ready and raring to enter the workforce, are having a more difficult start to their careers. So what can we do about it??

?? Collaboration!

Open and ongoing dialogue allows employers and educational institutions to talk about emerging skills and ways to give students access to practical experience that complements their education and prepares them for the workforce.

Plus, employers and education providers can build formal partnerships, resulting in initiatives and career pathways like internship programs.?

?? Microcredentials

The AAC&U proposes short, accelerated certifications in specific skills.

“Our research echoes that of others in suggesting microcredentials should be a growing priority for colleges and universities in helping students to both build and signal skill attainment.

?? Look to other talent pools

Employers should ensure their pipeline strategies include various forms of entry-level talent – from vocational program graduates to self-taught individuals to skilled people with some community college courses under their belts – and not just college grads.?

?? Hire for potential, then train and develop

Doing skills-based hiring is an opportunity to learn more about the professional development needs of your graduate and entry-level candidates.

You can use skills assessments to develop meaningful, targeted onboarding and training for new hires.?

What else would you add to the list? ??

We'll be at HR Tech Europe next week. See you there? ??

Europe's biggest HR Tech event is happening next week in Amsterdam. We'll be there! Will you??

If you are, come see us at booth 10-306. ????

We'll be offering live demos, conversations about hiring and beyond, and an opportunity for our booth visitors to bin resumes once and for all.

Literally.

More info about the event and agenda here. See you there!