Why employers still place a premium on people skills, not AI, when they make hiring decisions

Finance


If you spend a few minutes talking with college students about their career prospects, one topic is at the top of their minds: Will their jobs be displaced by a bot?

Their concern makes sense. Universities are integrating artificial intelligence into their curricula, and employers are adopting AI at a rapid pace. So most students assume that AI skills are now key to getting an entry-level job.

But what if employers are changing their candidate criteria just as quickly?

As scholars who research how technology is changing the workplace, we have long asked what employers value when hiring new talent. The question grew out of our conversations with both employers and students about internship experiences.

Year after year, employers emphasize communication, professionalism and other workplace skills as the areas where interns most need to improve. Students tend to focus on building their technical skills instead.

To determine whether this disconnect extended beyond internships, we surveyed more than 600 employers across a range of industries and organization sizes. We asked them which skills and qualities matter most when hiring recent graduates and early-career professionals.

Their answer might surprise you: They consistently ranked “soft skills” over technical know-how when evaluating applications.

Learning to grow with the job

We had expected employers to place AI and technical skills at the top of their list. Instead, our survey told a more nuanced story. Employers clearly valued those skills, but they consistently ranked even higher qualities such as interpersonal skills and willingness to learn.

No matter the size of the organization, the results were similar. The rankings showed what employers valued, and their comments explained their reasoning. One theme surfaced repeatedly: Employers want to hire people who they believe will grow with their organizations.

This doesn’t mean technical abilities are unimportant. Rather, those were seen as job-specific skills that could be taught on the job – which is much more easily done when new hires already have soft skills like dependability, professionalism and a willingness to learn.

A human resources manager at a midsize healthcare employer captured this idea well: “Computer skills, excellent customer service and dependability are of utmost importance. The rest, we can train.”

A small medical device company made a similar point: While technical positions require a base level of competence, attitude and adaptability also matter because employees often need to take on varied responsibilities rather than staying in “one lane.”

Another respondent, from a small nonprofit, emphasized curiosity, adaptability and the ability to learn new skills quickly. In a small organization, the employer explained, employees need to be willing to grow along with the organization.

Together, these comments suggest that employers aren’t choosing between technical abilities and workplace qualities. Candidates may still need a technical foundation, but employers also want evidence that they can learn, adjust and apply what they know in changing circumstances.

Can we talk?

Communication was another recurring concern.

A hiring manager at a large manufacturer described the challenge of finding candidates who were comfortable with face-to-face and telephone conversations. Similarly, an executive from a small professional services firm said poor writing was a recurring reason for rejecting applications, and he cited communication with clients and colleagues as a growing challenge.

While our survey doesn’t show whether communication skills have declined over time, the consistency of these comments suggests that employers see this as a persistent challenge when hiring recent graduates. One respondent shared that many young graduates were “not equipped with great communication skills” and had trouble following through on commitments.

These comments suggest that employers see communication as more than just speaking and writing. They also associate it with professionalism and reliability.

Many employers identify communication with clients and colleagues as a growing challenge with new hires.
Annie Spratt on Unsplash, CC BY

The comments also helped explain why internships and training programs remain valuable to employers. A respondent from a small professional services firm said they primarily hired former trainees, adding: “We know their skills, motivation and how they fit within our firm.”

These experiences allow employers to observe more than a candidate’s academic record or list of skills. As part of our ongoing conversations with employers, one supervisor described an intern who completed several complex projects ahead of schedule while adapting quickly to a new corporate environment. The supervisor was especially impressed by the student’s communication skills and eagerness to learn.

As for AI, the message from employers was clear: Knowing how to use a technology matters, but so does knowing when and how to use it responsibly.

As one respondent wrote: “If AI is used well in application materials, it’s fine. Most of the time, we only notice because it’s being used so poorly, which is unacceptable.”

We encountered a similar issue while serving on a recent search committee. Several applicants appeared to have used generative AI to prepare their cover letters, but they left out references to other institutions or positions. Instead of strengthening their applications, these errors called into question the applicants’ judgment, attention to detail and the accuracy of their materials.

The hiring process through an employer’s eyes

Reading these comments changed the way we thought about hiring. We saw how students and employers often approach the hiring process from different perspectives.

Students, understandably, focus on getting the job. They build strong resumes, prepare for interviews and learn how to use AI. Those efforts matter because employers expect graduates to arrive ready to contribute.

Employers, however, are asking a different question: Is this someone who will succeed here?

Every interaction helps them answer that question. An email can show how clearly and professionally a candidate communicates. An interview may reveal how someone listens and responds to an unfamiliar question. An internship or training program demonstrates whether a student follows through, works well with others and responds to feedback.

Viewed this way, the survey results become easier to understand. Employers aren’t simply evaluating what candidates already know. They’re looking for signs of how candidates will perform, learn and develop after joining the organization.

Lessons for students and universities

For students, the message isn’t that they must choose between technical and workplace capabilities. They need both.

Learning to use AI and other workplace technologies remains important, but students also need to prove they can communicate clearly, work effectively with others, exercise judgment and follow through on their commitments.

This means universities need to do more than add AI-themed courses and majors to their curricula. They should give students repeated opportunities to demonstrate how they apply their knowledge, respond to feedback and contribute to a team. Internships, traineeships and client projects allow students to refine these qualities before entering the workforce.

Career advising can reinforce this strategy by helping students explain not only which skills they possess, but where and how they have used them.

We began with a simple question: Has AI changed what employers value when hiring recent graduates?

The answer was more nuanced than we expected. AI is changing how work gets done, but it hasn’t fundamentally changed what employers look for in the people they hire. They still want graduates who can use technology effectively while demonstrating the judgment, professionalism and adaptability needed to grow with the organization.

After all, AI may be changing the workplace, but employers are still hiring people, not algorithms.



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