Many young workers believe they have the skills needed to succeed in the workplace, but a growing gap between their confidence and employers’ expectations is raising concerns about whether recent graduates are adequately prepared for working life.
A report from the Chartered Management Institute found that only 6% of managers believe young recruits are ready for the workplace. That compares with 45% of Gen Z workers who say they already have the skills required to succeed.
Ann Francke, chief executive of the CMI, said too many young people leave education with ambition and potential but discover they have not been prepared for workplace realities.
She said government, educators and employers all have a role in improving workplace readiness, particularly as businesses seek to tackle youth unemployment and improve productivity.
The issue has also been raised by business leaders. Glenn Fogel, chief executive of Booking Holdings, said in 2024 that younger employees could need additional training and guidance to understand workplace structures and expectations.
A 2024 survey by Hult International Business School of 800 HR leaders found that 37% would prefer to use a robot or AI rather than hire a recent graduate for certain roles, while 45% would choose a freelancer. Around 30% said they would rather leave a position vacant than employ a recent graduate.
Resilience emerged as one of the biggest concerns. About 91% of managers said younger workers lacked resilience, with the gap affecting performance. Communication was identified by 98% of HR leaders as an important skill, while 93% highlighted curiosity and willingness to learn.
Collaboration was identified by 92% as a key missing ability, followed by creativity at 90% and critical thinking at 87%.
Only 12% of managers surveyed by the CMI said young people at their organisations were progressing as expected. Managers cited poor resilience, motivation, workplace behaviour and timekeeping among the reasons some employees struggle or fail probation.
Technology skills are another concern. About 97% of HR leaders said new employees should have a basic understanding of AI, IT and data analytics, but only 20% of recent graduates believed they possessed those skills.
The challenges facing Gen Z also extend beyond workplace preparation. Many entered the workforce after the pandemic into an environment marked by remote working, office return mandates, layoffs and economic uncertainty. Rising housing costs and concerns about retirement have also shaped attitudes toward employment.
Research from People’s Pension found that 12%, or around 2.2 million young adults in the UK, have stopped saving for retirement because they believe they may have to work throughout their lives.
Universities are also facing criticism. Around 90% of Hult’s surveyed HR leaders said colleges should offer career coaches or mentors, yet only 36% of students said they had received such support.
Martin Boehm, Hult’s global dean of undergraduate programmes, said traditional university courses had not kept pace with changing workplace demands.
He said education providers need to focus more on practical skills and continuous learning so graduates can adapt to a rapidly changing employment market.
