Recent reports have suggested that remote work preferences are at fault for youth unemployment and the disappearance of entry-level work, but data show that AI technology does have a definitive impact on the hiring of fresh talent. A new survey found that 48% of hiring managers would prefer to invest in AI tools over hiring and training a recent college graduate for entry-level work. The dislike towards Gen Z has long been evident in the workplace, but many employers previously caved into the decision to hire from their ranks due to their availability.
Now, with AI technology doing the work of these college graduates, many employers see little reason to train and build up the talent themselves. As work opportunities continue to dry up, it’s important to pause and consider what it will mean for the business years from now, when the talent no longer has the skills and workplace exposure they need for the higher-order roles that are eventually vacated by workers nearing retirement.
A new report shows that hiring managers are increasingly leaning towards using AI tools over spending resources on hiring and training workers. (Image: Pexels)
Nearly Half of Hiring Managers Would Prefer to Invest In AI Over Training Employees for Entry-Level Roles
In a new survey of 1,000 U.S. hiring managers, ResumeTemplates.com found some critical information about the impact of AI on college graduate jobs. For one, nearly half of hiring managers would invest in AI technology over hiring and training these aspiring workers. To add to that, 55% of companies have already made the switch, shifting away from their entry-level hiring budget to AI tools. Unsurprisingly, 45% of organizations have invested in restructuring operations to allow one senior employee to perform the work of many with AI tools.
This trend of training AI instead of hiring talent appears to be most popular in the tech industry, but the finance industry is not far behind. Only in governmental operations does this percentage fall lower, but considering the trend towards AI that we have witnessed over the past year, this may not stay unchanged for too long.
Why Are Hiring Managers Increasingly Replacing New Graduates with AI?
For some, this switch towards AI and away from entry-level jobs may offer obvious benefits, but the survey managed to turn these preferences into concrete data. While much of it boils down to costs, faster onboarding stood out as the most popular reason for turning to technology, as workers presented a greater learning curve that required an additional investment of time, energy, and resources. Other reasons for this shift included more consistent outputs, greater availability, and lower costs overall.
Hiring managers also picked AI over college graduates due to the many complaints they have had with this younger generation of workers. AI tools were unlikely to quit or get fired within the first year of employment. AI also did not require management attention after the initial setup and did not bring up issues of professionalism. The technology also helped these managers avoid workplace drama, which essentially tells us that the “people” side to people management no longer appeals to hiring teams.
Where Do We Go from Here?
As the data suggests, there is a distinct shift in how managers, and employers overall, approach the prospect of hiring talent. The survey responses may represent a small section of the hiring forces, and the majority may still lean towards hiring workers over training AI for now, however, as the technology grows more commonplace, this could change. With AI quickly closing in on entry-level jobs, college graduates could find themselves untrained and out of work, with no opportunity to gain the experiences that employers are looking for.
A change in the educational systems and the nature of training offered to graduates could help these job seekers upgrade their skills more quickly. Unfortunately, with how fast-paced the changes in tech are, they could still find themselves unprepared. With no fresh talent entering the market, employers might eventually find themselves facing a shortage of talent for senior positions, where expertise is needed, with no trained talent to promote to such roles.
The evolution of the job market may be inevitable, but preparing for the future of work is just as essential as enjoying the conveniences made possible with AI. As companies determine how best to implement the tech, it is essential that they simultaneously revisit the importance of talent and the reasons for nurturing the skills they do bring to the table.
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