Employers Don’t Want To Hire New Grads — Can Young Professionals Turn The Tide In 2025?

• Hiring managers are increasingly reluctant to hire Gen Z graduates due to concerns about work ethic, professionalism, and interview preparedness.
• Employers report that recent graduates lack real-world experience, essential technical competencies, and soft skills.
• Collaboration between employers and educational institutions is needed to bridge the skills gap and better prepare graduates for the workforce.

A troubling new reality is unfolding for Gen Z graduates as they face a stark challenge in the job market.

According to a new survey conducted by Intelligent.com, 1 in 8 hiring managers plan to bypass recent graduates in 2025, with a third citing poor work ethic as the primary concern. 

Even more alarming, a study by independent research firm Workplace Intelligence in partnership with Hult International Business School found that 37% of employers would hire AI over a young graduate. 

With 96% of employers agreeing that colleges are falling short in preparing students for the workforce, the statistics reveal a growing disconnect between employer expectations and the readiness of graduates.

This widening gap raises many pressing questions about the future of hiring practices and the preparedness of the next generation of workers.

A Stark Disconnect: Hiring Expectations and Gen Z Readiness

A concerning gap has emerged between the expectations of hiring managers and the preparedness of Gen Z graduates. 

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According to the Intelligent.com survey of 1,000 U.S. hiring managers, 27% would rather avoid hiring Gen Z employees, citing concerns including poor work ethic, excessive phone use, and unprofessional behavior. 

These issues are not just minor inconveniences — they are creating significant workplace disruptions. 18% of managers have even considered quitting due to the challenges of managing Gen Z workers, and 65% have adjusted their management styles to accommodate them.

The data from Intelligent.com underscores this growing tension:

• 33% of hiring managers believe recent graduates lack a strong work ethic, and 24% say they are unprepared for the workforce.

• 1 in 4 hiring managers find recent graduates ill-prepared for interviews, citing poor eye contact, inappropriate dress, and even candidates bringing their parents along.

• These missteps have serious consequences: 55% of managers reported firing recent graduates in 2024, primarily due to unrealistic expectations and lack of accountability.

This problem may lie, in part, with traditional education. The research by Workplace Intelligence and Hult International Business School found that although 98% of employers are struggling to find talent, 89% avoid hiring recent graduates. 

Instead, many would prefer to hire freelancers (45%), former employees (45%), or even AI (37%). Even those who do hire recent graduates often find themselves firing them soon after. 

Additionally, 77% of graduates reported learning more practical skills in their first six months of work than during their entire four years of college.

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Business leaders describe Gen Z as easily offended and overly reliant on accommodations

This growing disconnect is further fueled by perceived generational differences. Business leaders describe Gen Z as easily offended and overly reliant on accommodations, which, combined with excessive use of personal devices and a lack of accountability, is creating friction in traditional office environments.

Why Employers Hesitate to Hire Recent Graduates

Employers seek more than just academic credentials in new hires. They value adaptability, motivation, and the ability to work effectively in teams. However, recent studies show that many graduates fall short in these essential areas.

The research by Workplace Intelligence and Hult highlights several reasons employers hesitate to hire recent graduates. The study cites the following key reasons for their reluctance to consider new graduates:

• Lack of real-world experience (60%)
• High training costs (53%)
• Inadequate skill sets (51%)
• Poor business etiquette (50%)
• Insufficient teamwork skills (55%)

According to Huy Nguyen, Intelligent.com’s Chief Education and Career Development Advisor, their survey results highlighted some concerning perceptions about Gen Z graduates’ lack of work ethic, feelings of entitlement, and low motivation. 

Nguyen points out that while these perceptions are not entirely new — similar concerns were raised about millennials entering the workforce — they remain issues that Gen Z should take seriously and address proactively.

Nguyen also highlighted the challenges recent graduates face in adapting to professional environments. Many have limited experience with autonomous work settings, which demand self-direction and the ability to handle less structured roles. 

This gap leaves new professionals struggling to develop practical skills and a strong work ethic, which are critical for success.

Martin Boehm, Executive Vice President and Global Dean of Undergraduate Programs at Hult International Business School, shared his perspective on this issue:

“The survey results show a disconnect between what’s being taught in traditional college programs and what today’s organizations need from workers. Most schools rely on teaching theory, but that’s only part of the equation,” Boehm said. “Programs that add skills development and valuable experiential learning provide students a preview of what will be expected of them in the workplace. This type of learning would greatly benefit Gen Z learners.”

96% of employers believe colleges should take greater responsibility for preparing students to be workforce-ready.

HR leaders echo this sentiment. The Workplace Intelligence/ Hult survey revealed that 96% of employers believe colleges should take greater responsibility for preparing students to be workforce-ready.

Their research highlights the critical need to bridge the skills gap. Focusing on soft skills — such as teamwork, communication, and problem-solving — is essential for preparing students to thrive in today’s workplace. 

Over 90% of HR leaders rank communication, collaboration, and critical thinking as key traits for new hires. However, many graduates feel unprepared in these areas due to gaps in their college education. 

To align with the demands of the modern job market, universities must transition from traditional theoretical instruction to practical, skills-based learning that emphasizes real-world, business-relevant competencies.

75% of HR leaders feel most college graduates are underprepared for the workplace, leading to higher onboarding and training costs. 

On average, onboarding a new graduate costs more than $4,500 — an expense that could be reduced by hiring candidates better equipped to transition into their roles seamlessly.

Closing the Gap: 5 Steps for Graduates

As graduates enter the workforce, many face a significant gap between the skills they acquired during their education and the expectations of hiring managers. According to Workplace Intelligence/ Hult’s research, 55% of recent graduates feel their college education did not prepare them for their jobs. However, both studies provide recommendations to bridge this divide.

Here are five steps young workers can take to improve their readiness and meet employer demands:

1.Develop Practical Skills and Real-World Experience

Boehm emphasizes the importance of practical skills and the right mindset: “New and recent graduates have ample opportunity for learning. Making sure they understand what their manager, and the organization, expects of them is paramount.”

The research by Workplace Intelligence/ Hult indicates employers want college programs to include career coaching, mentorship, and challenge-based learning to help students develop key business skills. 

HR leaders agree that exposure to global perspectives and team-oriented projects can enhance employability.

Based on the findings from the research by Intelligent.com, Nguyen suggests that to strengthen their candidacy, recent graduates should seek experience through volunteering, internships, or personal projects. 

Gaining hands-on experience and learning how to communicate this to hiring managers can help challenge negative perceptions.

Gaining hands-on experience and learning how to communicate this to hiring managers can help challenge negative perceptions about this cohort entering the workforce.

2.Focus on Adaptability and Soft Skills

The Workplace Intelligence/ Hult survey shows over 90% of HR leaders value soft skills such as communication (98%), collaboration (92%), and critical thinking (87%). However, traditional college programs often fail to prepare students in these areas. Graduates should seek training in communication, teamwork, and problem-solving.

Nguyen advises that employers often prioritize individuals who show motivation, adaptability, and growth potential: “Specific skills and processes can be easily taught to someone who is motivated and has the right attitude.”

3.Commit to Continuous, Future-Focused Learning

Nguyen highlights an often overlooked option: learning outside the classroom. 

With the abundance of free or low-cost online courses, content from creators, industry peer groups, and online communities, graduates have endless opportunities to take charge of their learning. 

This approach helps them become more adaptable and proactive, better preparing them to showcase these experiences to employers.

According to Boehm, recent graduates should focus on developing mindsets that will help them become lifelong learners — traits such as resilience, critical thinking, and creativity. The ability to adapt to ongoing changes in the workplace and collaborate effectively with others will be especially essential for younger generations as they advance in their careers.

Additionally, as sustainability becomes a priority, graduates should focus on obtaining green skills such as eco-conscious practices, renewable energy, and green technologies. 

An Allwork.Space Future of Work Podcast episode with Neil Yeoh highlights that many graduates lack the technical skills needed for the growing demand in this area. Educating themselves on these topics will help graduates stand out in environmentally focused industries.

4.Become More Professional and Proactive

Many hiring managers have expressed concerns about professionalism and independence, citing poor eye contact, inappropriate dress, and even candidates bringing their parents to job interviews. 

To meet expectations, graduates should refine their professional presence — dressing appropriately for interviews, maintaining eye contact, and demonstrating confidence and maturity in their interactions.

Both reports highlight the need for graduates to be more proactive about networking and standing out. 

Nguyen suggests seeking internships, part-time jobs, or volunteer opportunities to gain practical experience. 

Graduates should join industry-specific online communities to gain insight and learn from professionals when more formal opportunities are unavailable. These communities provide opportunities to engage in valuable discussions, contribute to projects with limited resources, or find a mentor. 

Many experienced professionals are willing to share advice and help motivated young individuals succeed, enabling them to give back to the next generation of talent.

5. Tailor Applications to Stand Out

Finally, graduates should tailor their job applications for each specific role. Nguyen advises researching the companies they are applying to and ensuring that resumes, cover letters, and outreach communications reflect an understanding of company culture and values.

Graduates should highlight how their personal experiences, values, and career aspirations align with those of the company they intend to apply to. 

Nguyen recommends that they explore different industries and careers and conduct in-depth research into the companies they are applying to. By gaining first-hand insight into how companies operate and serve their customers, graduates can better understand what is expected of them and how they can contribute.

By gaining first-hand insight into how companies operate and serve their customers, graduates can better understand what is expected of them and how they can contribute.

From Classroom to Career: Pathways for Employer-Educator Collaboration

The Workplace Intelligence/ Hult survey findings underscore the need for collaboration between employers and educators to equip young graduates for success in entry-level positions. “Schools like ours, which bring companies onto campus to work with students, are leading the charge,” Boehm explained. “Students engage in business challenges that offer learners the opportunity to help solve an actual challenge the company is facing. There’s no better way to learn than that.”

The Workplace Intelligence/ Hult survey highlights the critical need for practical, skill-focused education, particularly in AI. While 97% of HR leaders value foundational knowledge in AI and related technologies, only 20% of graduates possess these competencies. 

Among those who received AI training, 94% reported benefits, including faster promotions and enhanced job stability. However, 87% of graduates wish they had experienced more AI training during their college education.

Dan Schawbel, Managing Partner at Workplace Intelligence, stresses, “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.”

This statement highlights the need for closer collaboration between educators, graduates, and employers to create pathways that prepare students for a competitive job market.

According to Nguyen, Intelligent.com’s findings reveal that one of the key challenges in preparing recent graduates for the workforce is the communication gap between educational institutions and industry. 

Businesses often voice concerns about graduate readiness and their work ethics, yet collaboration to address these issues has been lacking. Strengthening these connections will help both sides create better pathways for students transitioning into the workforce.

Nguyen points out that while many schools offer career centers where students can find internships or entry-level job listings, these opportunities are often limited, leaving many students unable to access them. Employers can help bridge this gap by partnering with educational institutions to develop hands-on learning programs. 

These programs can expose students to the industry, provide practical experience, and teach them how to manage professional workplace dynamics.

Nguyen adds, “Even if employers don’t have the bandwidth or resources to create an extensive training program, they can explore setting up skill-building workshops to develop practical skills or mentorship opportunities where seasoned employees offer guidance and support to new graduates looking to work in their industry.”

By taking a proactive approach, businesses can help ensure more work-ready graduates — and potentially future employees — enter the workforce. The focus must be on solutions that bridge the skills gap and facilitate a smooth transition from the classroom to the workplace, ensuring graduate career success and fulfilling employer requirements.