Research shows there is an increasing chasm between what employers expect of graduates and young people and the skills they have on entering the workforce. Neil Davey reports on the potential challenges and solutions.
The gap between young people’s skill levels and employer expectations is widening, according to the findings of two new studies.
Research from the Open University and the Institute of Student Employers (ISE) – published within a week of each other – both highlight a growing skills gap between education and employment, with particular concerns about a decline in soft skills.
The Open University’s survey of organisation leaders reveals that over half (58%) report a mismatch between young people’s skill levels and employer expectations over the past three years.
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The ISE’s 2024 Student Development Survey echoes these findings, with less than half (49%) of the 139 organisations polled agreeing that their graduates were ‘career ready’ at the point of hire – a decrease from 54% in 2023.
Unveiled at the ISE’s Student Development Conference, the results were met with little surprise.
In a roundtable discussion exploring the psychological shifts required as students become professionals, NatWest Group’s head of behavioural Science, Dr Anna Koczwara described the “clear difference” between graduates and employees.
However, businesses will find it is in their best interests to find a solution, she added. “Gen Z can provide a competitive advantage,” she said.
Preparation is everything
Indeed, with this generation accounting for 20% of the current workforce, businesses must invest in preparing Gen Z for employment. And the development of soft skills appears to be where the focus should lie.
According to the Open University, 54% of organisation leaders feel there has been a decline in soft skills, such as communication, teamwork and time management.
Soft skills were also a concern in the ISE study, with employers indicating that graduates did not meet their expectations in self-motivation, resilience and self-awareness in particular.
Nick Shaw, co-founder of skills intelligence platform provider Spotted Zebra, delivered further insight into soft skills shortcomings at the ISE Conference.
Evaluating a dataset of over 15,000 graduate assessments within the last year and contrasting it with the skills sought by employers, Shaw revealed that while there is a strong demand for analytical thinking, problem-solving and achieving results, these are the weakest areas in terms of supply.
The question of why the skills mismatch emerged was also a topic of conversation at the conference. Rebecca Fielding, founder of consultancy Gradconsult, proposed that several life events have contributed to the gap, including:
- Pandemic lockdowns influencing the emotional development of Gen Z
- Encouragement to be their ‘authentic’ selves conflicting with professional behaviour
- Remote working prevents employees from picking up social cues.
This aligns with survey findings from The Open University, with over half (51%) of business leaders attributing the lack of skills to the pandemic.
How should businesses respond?
With the Open University indicating that over half (53%) of employers struggle to retain young people, there is an urgent need to support early careers hires with the transition to the workplace.
The ISE’s 2024 Student Development Survey highlights several measures that are being adopted. These include:
- Internships or work placements: 74% of employers agreed that graduates who completed a work placement arrived with better skills and attitudes than other graduates
- Buddy-peer support schemes, and
- HoMentoring.
Speaking at the ISE Conference, Dr Koczwara shared how NatWest has developed its early careers programme to work with individuals to provide clarity and coaching on values and unspoken rules.
The bank also provides managers with generation awareness training to foster greater understanding between generations.
Other speakers highlighted the importance of understanding early careers’ skill requirements.
“One of the hot topics we heard about was the importance of employers understanding the skills they need for success in early careers roles and the skills that early careers talent can bring to the workplace,” said Nick Shaw.
“Considering the skills you need and creating a role skills profile when selecting and onboarding new hires – including how you will upskill individuals when they join – is critical. Taking a holistic, skills-first approach will ensure the success of your early careers programme.”
The Open University indicates that 54% of organisations do not currently have any specific initiatives, skills programmes, or workplace adjustments in place for specific employee groups, including early careers hires.
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However, with employers sharing ideas and initiatives in this way, the hope is that more businesses will be inspired to take action.
