The skills gap is real and significant: According to both graduates and employers, graduates of colleges and universities often lack the skills they need and the capabilities that employers are demanding. But there is clarity about the skills students need from higher education and the improvement that can occur.
It’s a critical issue, because the job market is so competitive today. Many new graduates report they can’t even get an interview—and when they do, they are unable to make an effective case for their qualifications or preparation. And employers report an inability to find the talent they need.
But new data points the way toward options and solutions.
The Skills Gap is Significant
One of the key priorities for education is continuous improvement. In addition, the future of work dictates that we will continue to face a talent shortage and employers will struggle to find those with strong skills.
The issue is significant. Specifically, 87% of graduates say they received better job training from their employer than they did from their undergraduate education. And 96% of HR leaders say colleges need to take more responsibility for training people for the world of work.
This is from a survey of both HR leaders and graduates—a total of 1,600 people—conducted by Workforce Intelligence for the Hult International Business School
The Skills Students Need and Businesses Demand
These are the skills that businesses are demanding and graduates need from higher education.
1. Real World Experience
One of the top issues is a lack of real-world experience. In fact, 75% of employers say colleges and universities are failing to prepare people for jobs, and in particular, 60% say that higher education doesn’t adequately prepare students with real world experience, according to Hult/Workforce Intelligence.
As an example, 91% of employers in the Hult/Workforce Intelligence survey say graduates need to be able to solve real problems, and only 40% of graduates say they get this kind of education. And 85% of graduates wish their college or university had better prepared them for their workplace experience.
2. Global Mindset
Fully 91% of employers say they need a global mindset from graduates, but only 39% of graduates report they’re getting this preparation from colleges and universities, based on Hult/Workforce Intelligence data.
This kind of experience can come from many sources during college or university experiences, including exposure to diversity in the student body, from international placements or from diverse professors.
3. Interaction Skills and the Ability to Work Well on a Team
Employers also say that the ability to work well on a team is critical. This is according to 91% of respondents. But again, graduates report not receiving this education—with only 47% saying they received it, according to Hult/Workforce Intelligence.
On a related note, employers in the Hult/Workforce Intelligence report say they place a high importance on the development of human and interpersonal skill development. Including
- Communication (98%)
- Curiosity & willingness to learn (93%)
- Collaboration (92%)
- Creativity (90%)
- Critical thinking (87%)
People skills, soft skills and interaction skills are critical—since they drive effectiveness in forming relationships, building trust, gaining rapport, sharing ideas, working on a team and working within a culture.
4. AI and Tech Fluency
Another priority is for colleges and universities to provide education in AI and technology, because AI will change work significantly. In fact, graduates in the Hult/Workforce Intelligence survey say that AI education could help them be more productive and efficient (88%), as well as more innovative (82%) and better at decision making and problem solving (80%). Fully 80% also say AI could improve the quality of their work.
Employers also see this priority, with 97% reporting to Hult/Workforce Intelligence that new hires must have a strong understanding of tech-oriented capabilities such as AI, IT and data analytics. Unfortunately, despite 44% of graduates saying they received this training, only 20% say they have the knowledge they need. And 87% wish they’d received more training in this area.
For graduates who did receive AI training, 94% say it has helped their career. It’s had this effect because it has increased job stability (47%), increased the respect they receive (42%), contributed to faster promotions (34%) and contributed to a higher starting salary (34%). All of this is according to Hult/Workforce Intelligence.
5. Career and Degree Coaching
Another of the important areas that colleges and universities need to deliver for students is coaching on interests, degree selection and career direction.
Incredibly, 94% of graduates in the Hult/Workforce Intelligence report have regrets about their degree and 43% feel doomed to fail because they chose the wrong degree—with 84% saying it has affected their financial future.
In addition, 82% of Hult/Workplace Intelligence respondents say it has a negative effect on their mental health. This is in addition to separate data about the extent to which Gen Z is struggling with their wellbeing.
Fully 64% wish they’d majored in another field, with 68% saying their degree didn’t prepare them well for their job.
Graduates wish they’d had more guidance in selecting their major and their degree path and 79%-72% hold their college and high school guidance counselors and programs accountable for this miss, according to Hult/Workforce Intelligence.
Important Approaches to Education
Interestingly, data from Populace offers approaches for college and universities to address many of the demands of students and businesses. In their survey, people report they want
- A focus on meeting students’ specific needs and interests, with systems for personalization as well as in-person classes that allow for human-to-human connection.
- Greater availability of choices that go beyond a traditional degree—like micro-credentials, certifications, licenses or accreditations.
- Professors and instructors who are expert practitioners in their fields, not just academic experts.
- Labs, workshops and hands-on learning opportunities.
- Systems to pair students with mentors and obtain internships.
All of these would offer pathways to greater development of the skills that graduates need from higher education to succeed in their jobs and careers.
Closing the Skills Gap
While both graduates and employers see a significant need for continuous improvement on the part of colleges and universities, there is the potential for a bright future.
With focus and intentionality, it’s possible to close the skills gap—and offer more of the knowledge, experience and skills students need from higher education, and those that business is demanding.
