More than a third of UK employers believe that graduate hires are not meeting their expectations, and many are concerned about the quality of future candidates. 

The Student Development Survey 2026 conducted by the Institute of Student Employers polled 144 organisations for their views on hiring for entry-level jobs, revealing growing concerns over the quality of graduates leaving university as workplaces continue to adapt to the impact of artificial intelligence.

While most employers were “broadly satisfied” with the foundational skills of new hires, just over one-third of employers (35 per cent) rated graduates as “below expectations” in adapting to workplace demands. This compared with 31 per cent who said the same about school- and college-leavers. 

Over two in five respondents (42 per cent) identified the quality of candidates as a key concern. The paper says this suggests that “organisations are experiencing difficulties in recruiting candidates with the skills, preparedness or attributes required for early career roles, especially when signals of quality are lost when AI is over-used by candidates in job applications”.

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Employers also flagged “readiness gaps” in graduates in their motivation and self-awareness, as well as wider contextual understanding, planning and organisational abilities. 

Three in 10 respondents (29 per cent) said they had seen a rise in performance-related issues with university- and school-leavers, up from 12 per cent in 2022.

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Concerns were raised over the professional conduct of new hires, with 52 per cent saying that they had increased the induction time devoted to professional conduct training and supporting the transition from education to the workplace. It says this shows “growing recognition that workplace norms, behaviours and expectations require more explicit support at entry”.

Overall, two-fifths of employers (42 per cent) said they were concerned about the quality of candidates coming to them in the future.

Stephen Isherwood, joint CEO of the Institute of Student Employers, told ߣߣ��Ƶ: “Employers are broadly satisfied with the skills and capabilities of their graduate hires, but there are growing concerns over how they are able to adapt to the demands of work and the professional environment. 

“Given the expected changes to the nature of entry-level roles, hiring adaptable candidates will remain a priority and likely a persistent challenge. More attention is being given to support the transition from education to the workplace during inductions, but these findings reinforce the importance of work experience and embedding these capabilities across the curriculum.”

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The impact of AI on entry-level roles and its impact on new hires’ development needs was cited as the biggest concern by employers at 54 per cent. But there were positive signs, also. While 87 per cent of employers expect AI adoption to reshape graduate and apprentice roles, 58 per cent believed this would consist of minor adjustments to tasks and responsibilities, and just half of this number (29 per cent) anticipate “significant changes” to entry roles.

Most employers believed that the impact of AI on such roles would be “limited in scope”, with 72 per cent expecting up to a quarter of jobs to be reshaped by AI, while 28 per cent believed it would be more than a quarter. 

Change is so far “modest”, the report says, noting that 43 per cent of employers said that roles have already been informally adapted, and 56 per cent reported no changes. 

juliette.rowsell@timeshighereducation.com