A significant skills gap is leading employers to hesitate in hiring recent university graduates, according to a new survey conducted by Workplace Intelligence and sponsored by Hult International Business School. The report found that 89% of HR leaders are actively avoiding recent graduates due to concerns over workplace readiness.

The survey, which gathered responses from 800 HR leaders and 800 recent graduates, points to a disconnect between higher education and current workforce needs. While nearly all HR leaders (96%) believe universities should take more responsibility for preparing students for employment, 85% of graduates said they wished their education had better equipped them for the world of work.

According to the data, both employers and students believe traditional degree programmes are not aligning with the skills needed in today’s job market. The findings indicate that graduates entering the workforce often lack practical experience and essential interpersonal capabilities, placing additional pressure on hiring organisations to fill the gaps.

Martin Boehm, Global Dean of Undergraduate Programmes at Hult International Business School, commented on the findings.

“Traditional undergraduate curriculum has not kept pace with an evolving global workplace, and the chasm between what’s being taught and what employers need has become more apparent,” he said. “Schools need to prepare students in new ways, with a focus on building both the skills and mindsets needed for continuous learning in a rapidly changing world.”

Employers Prioritise Human Skills Over Technical Knowledge

The survey highlights that over 90% of HR leaders now place increased importance on interpersonal or ‘human’ skills. Communication, collaboration, creativity, critical thinking and a willingness to learn are among the top competencies they seek in graduates.

Despite this demand, graduates report that these skills are the areas where university training has often been insufficient. Respondents said college programmes continue to focus heavily on technical knowledge and theory, while providing limited support for developing soft skills needed to function effectively in a professional setting.

Employers have expressed concern that the lack of preparedness is raising recruitment and training costs, with many organisations having to invest additional resources in onboarding and development to close the skills gap. The reluctance to hire recent graduates appears to reflect a broader lack of confidence in the current education-to-employment pipeline.

Call for Stronger Collaboration Between Universities and Employers

The report underscores the need for closer collaboration between higher education institutions and employers. While universities focus on academic outcomes, employers are prioritising adaptability and real-world problem-solving abilities.

The data suggests that bridging the skills gap will require joint efforts to redesign curriculum, embed workplace experiences into education and ensure students have access to relevant development opportunities before entering the job market.

Without such changes, the gap between employer expectations and graduate capabilities is likely to continue, leaving graduates underprepared and organisations reluctant to hire them directly from university.