Business school graduates feel ill-equipped to succeed at their jobs due to their education, thus motivating employers to look elsewhere to fill positions, a new survey warns.
Hult International Business School and Workplace Intelligence, a research agency, contacted 800 human resource leaders and 800 full-time employees to understand how well individuals are adjusting to working life. The latter were 22 to 27 years old; had received an undergraduate degree in either finance, accounting, marketing or a related field in the last three years; and worked full-time.
Nearly all of recent graduates (94%) reported regrets about their degree, either because it didn’t prepare them well for their job or provide the skills they would need. They also said they didn’t receive enough guidance when selecting a major.
Likewise, more than eight out of 10 employees wish their college had better prepared them for the workplace. In fact, 77% say they learned more in six months at their job than in their entire four-year education.
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Graduates’ shortcomings entering the workforce may have far bigger implications. Despite almost all HR leaders acknowledging that their organization is struggling to find talent, 89% said they avoid hiring recent graduates. The most prominent reasons were that applicants didn’t have real-world experience, lacked a global mindset and didn’t know how to work well on a team.
The majority of employees and HR leaders blamed colleges for graduates’ lack of job preparation. Areas where the survey suggested schools could improve right away include:
- Develop foundational business knowledge (98%)
- Develop skills that today’s employers need (92%)
- Work with teams to simulate the modern work environment (91%)
“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 at 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.”
Course-correcting future business school graduates
Proficiency in AI and other emerging technology was identified as a gap between what business graduates learned in college and the needs of today’s workforce. Only 20% of recent graduates believe they have a “strong foundational understanding” in this area despite nearly all HR leaders (97%) saying it’s required.
Employees believe that knowing how to use AI can help them become more productive, efficient and innovative, and improve their problem-solving. Of those who learned about AI in school, 94% say it’s helped advance their career and ensure job stability.
However, there are some foundational skills all hires should bring to their jobs. HR leaders believe employees’ most important assets are communication, a willingness to learn, collaboration, creativity and critical thinking.
“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,” said Martin Boehm, executive vice president at Hult International Business School. “. Theory alone is no longer enough. Preparing students in new ways, with a focus on building both the skills and mindsets needed for continuous learning, is the future of education.”