New Survey Finds 89% Of Companies Avoid Hiring New Graduates

A poll sponsored by Hult International Business School gathered input from 1,600 people in the United States, half of them human resources managers and half recent graduates. It found that traditional university programmes may not equip students with the practical abilities needed at work.

Over 3/4 of young workers surveyed said they gained more useful knowledge in six months at their job than in four full years of study. The poll continued. Among human resources professionals, 96% believe colleges should train learners more effectively. They feel ill-prepared graduates create big expenses for businesses that must give extra coaching.

There is also the problem of higher onboarding costs, because over 2/3 of these managers estimate it takes at least twice the investment to bring a new graduate up to speed compared to a more experienced person.

 

How Does It Affect Young Employees?

 

Many graduates do not feel workplace ready as only 24% think they have the complete set of abilities required for their jobs, and 55% believe their academic years offered little real world assistance. Guidance on degree choices also seems lacking, leaving students uncertain about their future paths.

Nearly half say they regret their field of study, and 43% feel stuck in positions that do not match their aspirations. More than 4/5 report that their choice of discipline has harmed their pay and mental wellbeing.

87% claim they learned more practical techniques from their employers than from college. This just shows that universities are not bridging theory with real life application in ways that truly benefit students.

 

Does It Hurt Businesses Too?

 

Employers experience problems when they recruit new graduates. According to the survey, 89% of human resources managers avoid hiring them because it is cheaper to select people with more experience. At the same time, 98% of these managers also admit they cannot easily find enough skilled workers.

They often mention a lack of hands on experience, a global outlook, or basic office etiquette. The training process absorbs a lot of time and money, so new degree holders frequently stay on the sidelines.

 

 

Data also shows that onboarding novices can cost at least twice as much compared to hiring experienced staff. This places more pressure on organisations that already struggle with finding suitable applicants.

Managers also complain that entry level hires may struggle to work in teams. That frustration slows productivity and creates tension with seasoned employees who must shoulder extra tasks.

Nearly half say they would turn to freelancers or even use robotics instead of training college newcomers. A portion of these managers believe that letting senior staff handle responsibilities alone is preferable to the effort of developing untested workers.

 

Will A Business Degree Help?

 

Many human resources managers see value in business studies. Actually, 62% believe those graduates have stronger competencies, and 95% are more inclined to hire them. Over 4/5 say they would give such recruits a higher starting wage.

This point of view can be clearly seen, because business programmes often cover real-world topics like technology, finance, and group projects. Such a mix encourages quick adaptation and fosters problem-solving abilities.

AI and data analytics are particularly relevant, around 44% of recent graduates say they had a bit of AI exposure in college, but nearly all of them wish there had been far more training. Most see AI skills as a direct path to better efficiency and creative thinking.

Human skills also matter, especially communication and creativity. Managers believe these qualities make graduates more resilient in team settings and better able to deal with changing demands. Many feel business degrees do a stronger job of bringing both technical know-how and soft skills.