College Graduate Skills Study

New survey finds 77% of recent graduates say they learned more in 6 months at their job than in their entire 4-year education 

More than 90% of HR leaders surveyed also emphasize the importance of ‘human’ skills, such as communication and collaboration—areas where students feel current college programs fall short in providing adequate support.

Boston, MA – January 21, 2025. A new survey sponsored by Hult International Business School reveals that traditional undergraduate education programs are not adequately preparing students for the workplace, to the detriment of employees and employers alike. The study also highlights a shift in the types of skills that employers want from new hires.

Hult partnered with independent research firm Workplace Intelligence on the survey, which queried 800 HR leaders and 800 full-time employees (1,600 total respondents) at U.S. organizations to better understand how younger workers are faring at work. All employee respondents were ages 22 – 27, in full-time in business roles, and had received an undergraduate degree within the past three years.

The results show that most degrees, including traditional business and general education programs, are not preparing young learners with the skills to “hit the ground running” once they enter the workforce, at a steep cost to both employees and companies. Workers find they are unprepared, and HR leaders report increased time and effort to on-board recent graduates—estimating a savings of USD $4,500 in training costs when a new employee is job ready. As a result, some companies avoid hiring recent graduates altogether, despite struggling with talent shortages.

The survey also reveals that undergraduate programs focused on developing ‘human’ skills, like communication and collaboration, alongside workplace preparation and coaching could help solve this growing problem. Programs that provide a more comprehensive skillset for students with practical, real-world experience can help both workers and companies succeed.

Key survey findings include: 

 Most recent graduates feel their traditional undergraduate education let them down:  

  • 77% say they learned more in 6 months at their job than in their entire 4-year education. 
  • 85% wish their college had better prepared them for the workplace, and just 24% say they have all the skills they need for their current role.
  • 87% say they received better job training from their employer than they did from their undergraduate education.
  • 55% say their college education didn’t prepare them at all for their job.

HR leaders agree colleges aren’t adequately preparing workers and businesses are paying the price: 

  • 96% say colleges need to take more responsibility for training people for the workplace. 
  • 82% say colleges — not employers — should train people for the workplace. 
  • 75% say most college educations aren’t preparing people at all for their jobs. 
  • 91% say it costs more to on-board and train recent graduates versus more experienced employees, with 69% saying it costs at least twice as much. 
  • HR leaders estimate they save more than $4,500 in training costs when an employee can “hit the ground running.” 

Traditional programs are missing the mark when it comes to workforce preparation:

  • HR Leaders overwhelmingly say new hires should bring the following skills:
  • Communication (98%)
  • A willingness to learn (93%)
  • Collaboration (92%)
  • Creativity (90%)
  • Critical thinking (87%)
  • At least 9 out of 10 HR leaders say colleges should also provide the following, but less than half of recent graduates say their college offered them:
    • A focus on developing foundational business knowledge (98%)   
    • A focus on developing skills that today’s employers need (92%)  
    • A focus on working with teams to simulate the modern work environment (91%)   
    • A challenge-based learning approach focused on solving real-world business problems (91%)  
    • Exposure to global perspectives, for example through a diverse student body and faculty (91%)  
    • Personal career and development coaches or mentors (90%) 

Despite widespread talent shortages, most companies are avoiding hiring recent graduates: 

  • 98% of leaders say their organization is struggling to find talent, yet 89% say they avoid hiring recent graduates.
  • Leaders say the top reasons are because recent graduates don’t have real-world experience (60%), they lack a global mindset (57%), they don’t know how to work well on a team (55%), it costs too much to train them (53%), they don’t have the right skill sets (51%), and they have poor business etiquette (50%). 
  • Leaders report that instead of hiring a recent graduate, they would rather hire a freelancer (45%), recruit a retired former employee (45%), have a robot/AI do their job (37%), or leave the position unfilled (30%).
  • At companies that hired recent graduates within the past year, 78% of HR leaders admit they’ve already fired at least some of them. 

Recent graduates feel they didn’t receive enough guidance when selecting their degree — and many have regrets:

  • 94% of recent graduates have regrets about their degree, and 43% feel doomed to fail because they chose the wrong degree.
  • About two-thirds wish they’d majored in another field (64%) and say their degree did not prepare them well for their job (68%) or provide them with the skills they need (64%).
  • Among those who feel they chose the wrong degree, 84% say this has affected their financial future (e.g., ability to get promotions and raises) and 82% say it’s affected their mental health.
  • 50% say they didn’t receive enough guidance when selecting their major / degree.
  • Many respondents believe their college (79%) and high school (72%) guidance programs / counselors are at least “a little” to blame for their degree choice.

A business undergraduate degree could better prepare people for the workplace:  

  • 62% of HR leaders say employees with undergraduate business degrees are more skilled and 91% say it takes less time to on-board and train them compared to those with degrees in other fields. 
  • 95% say their company is more likely to hire recent graduates with an undergraduate business degree and 82% offer higher starting salaries to these graduates. 
  • Among recent graduates without an undergraduate business degree, 67% wish they had gotten one, noting that it would have given them a more comprehensive skillset (36%), made them more employable (33%), and given them more practical, real-world experience (31%). 

A focus on AI education in college is also key:

  • Most recent graduates say knowing how to use AI would help them be more productive and efficient (88%), more innovative (82%), improve their decision-making and problem-solving (80%), advance their career (80%), improve the quality of their work (80%), and provide greater job security (78%).
  • 86% believe AI will disrupt their profession in the next 1 – 2 years, but just 23% feel completely prepared to integrate AI in their role.
  • 97% of HR leaders say it’s important that new hires have a strong foundational understanding of technology-related topics such as AI, data analytics, and IT, yet just 20% of recent graduates say they have this level of understanding.
  • While it’s promising that 44% of recent graduates say they received some form of AI training or education in college,87% wish their college had provided more training.
  • 94% of graduates who received AI training in college say this has helped their career, by giving them more job stability (47%), more respect at work (42%), faster promotions (34%), and a higher starting salary (34%).

“In today’s world, with volatility and fast-paced technology advances now common themes at work, business schools need to move beyond traditional ways of teaching. 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.”

“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,” said Dan Schawbel, Managing Partner, Workplace Intelligence. “Undergraduate institutions that prioritize preparing students for the modern workplace are the best choice for people who want to equip themselves with the skills and competencies today’s employers are looking for.” 

Methodology

Research findings are based on a survey conducted by Hult and Workplace Intelligence between October 9 – 28, 2024. In total, 1,600 full-time, U.S.-based employees completed the survey, including 800 HR leaders and 800 recent graduates in business roles including finance / accounting, marketing, sales, management, operations / logistics, or business analytics / intelligence. 

Respondents were invited to take part in the survey via email and were provided with a small monetary incentive for doing so. All respondents had passed a double opt-in process and completed an average of 300 profiling data points prior to taking part in the survey.

About Hult International Business School 

Hult International Business School is a leading global business school with an innovative challenge-based learning curriculum. Hult’s global campus network includes Boston, London, Dubai, San Francisco, New York, and Singapore. Its programs are consistently ranked among the world’s best by Financial Times, Fortune, Bloomberg BusinessweekThe Princeton Review, and others. In 2024, Hult was named a LinkedIn Top MBA Program based on career results. Learn more at www.hult.edu.

About Workplace Intelligence

Workplace Intelligence is an award-winning thought leadership and research agency focused on the world of work. We help companies, and their executives, tell their workplace story in a meaningful, relevant, and impactful way using primary data, insights, and interviews. For more information go to our website and subscribe to our Insider newsletter.

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