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Firm Management

Why Are Employers Having a Hard Time with Gen Z College Grads?

A new report shows that six out of 10 employers have fired or otherwise dismissed recent Gen Z college graduates they had hired only a few months ago when they graduated.

A new report shows that six out of 10 employers have fired or otherwise dismissed recent Gen Z college graduates they had hired only a few months ago when they graduated. Additionally, nearly 75 percent of companies reported having workplace issues and concerns regarding these workers.

This year, 94% of companies report hiring recent college graduates. Among these companies, only 25% state that all recent college graduate hires worked out well, while 62% mention that only some were successful. Further, 14% report that only a few or none of the hires were successful.

Source: Intelligent.com report.

Commissioned by Intelligent.com, the survey questioned 966 hiring managers about their experiences with Gen Z graduates. Most (94%) said they had hired recent Gen Z college graduates. Key findings of the survey included:

  • 75% of companies report that some or all of the recent college graduates they hired this year were unsatisfactory
  • 6 in 10 companies fired a recent college graduate they hired this year
  • 1 in 6 hiring managers say they are hesitant to hire from this cohort
  • Hiring managers say recent college grads are unprepared for the workforce, can’t handle the workload, and are unprofessional
  • 1 in 7 companies may refrain from hiring recent college graduates next year
  • 9 in 10 hiring managers say recent college graduates should undergo etiquette training

According to the survey, the most frequent reasons these new Gen Z graduate workers didn’t meet employer expectations and were let go were: Lack of motivation or initiative, poor communication skills, and a lack of professionalism.

While most companies that encountered subpar performance (79%) said they initiated performance improvement plans, about 60 percent of the difficult hires were ultimately let go within 3-4 months of total employment.

“Many recent college graduates may struggle with entering the workforce for the first time as it can be a huge contrast from what they are used to throughout their education journey,” said Huy Nguyen, Intelligent’s chief education and career development advisor. “They are often unprepared for a less structured environment, workplace cultural dynamics, and the expectation of autonomous work. Although they may have some theoretical knowledge from college, they often lack the practical, real-world experience and soft skills required to succeed in the work environment. These factors, combined with the expectations of seasoned workers, can create challenges for both recent grads and the companies they work for.”

Most of the hiring managers surveyed agreed that recent college graduates are unprepared for the workforce. They noted these employees displayed entitled behavior and were too easily offended. “Additionally, more than half of the survey respondents (55%) believe the employees lack a work ethic, and 54% say they don’t respond well to feedback,” according to the report. “Similarly, 53% feel that Gen Z college graduates are unprepared for the workforce and believe they have poor communication skills.”