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68% HR Leaders Believe Candidates With AI Expertise Can Get Higher Salaries: Report

45 per cent of graduates in arts, science, and commerce expressed feeling unprepared for the workforce, a concern shared by 25 per cent of working professionals, as per the report

93 per cent of HR professionals and 78 per cent of Gen Z believe traditional degrees are increasingly irrelevant, according to a report based on a survey of 6,900 Gen Z professionals and 610 HR leaders. The findings highlight the growing need for academic institutions and organisations to reassess their approaches to skills development, hiring practices, and workplace readiness.

Unstop’s Hiring Kart: Skills & AI Report 2024, released recently, calls for a complete overhaul of academic curricula to prioritise job readiness better.

Reflecting the increasing demand for artificial intelligence (AI) skills, 89 per cent of Gen Z professionals and 68 per cent of HR leaders stated that candidates with AI expertise are able to command higher salaries.

Meanwhile, 45 per cent of graduates in arts, science, and commerce expressed feeling unprepared for the workforce, a concern shared by 25 per cent of working professionals. HR leaders highlighted that skills such as analytical thinking, teamwork, and strategic leadership are in high demand but remain among the most difficult to find.

Seventy-four per cent of HR professionals advocate for mentorship programs as a potential solution to workforce preparedness, while Gen Z identified a lack of challenges in their upskilling journeys as a significant obstacle.

The report also highlighted a misalignment in hiring strategies. 46 per cent of Gen Z respondents prefer skill-based assessments before resume screening, while 59 per cent of HR leaders conduct these evaluations afterwards. The report urges organisations to adopt a skills-first approach as AI continues to reshape recruitment.

“The report highlights the critical need for a paradigm shift in how we prepare for and evaluate the workplace of tomorrow,” said Ankit Aggarwal, CEO of Unstop.

While 45 per cent of Gen Z respondents consider AI and data skills essential, only 14 per cent of HR professionals agree. However, 65 per cent of HR leaders acknowledged that AI expertise plays a significant role in their hiring strategies, and 60 per cent reported using AI tools frequently in their work.

Concerns persist, as Gen Z warns of "intellectual dwarfism," the risk of stifling creativity due to overreliance on AI.

Gen Z is taking the initiative despite challenges in workplace readiness, with three in five individuals upskilling independently through online courses, internships, and competitions, according to the report.

“Gen Z is pushing boundaries, embracing AI, and demanding meaningful skill development,” said Aggarwal.

The report also reveals that Gen Z expects organisations to provide role-specific training and continuous learning opportunities—resources that 19 per cent of companies fail to offer, despite 81 per cent of HR professionals claiming otherwise.

“For organisations, this is a wake-up call: adapt hiring strategies, foster continuous learning and champion mentorship,” Aggarwal concluded.

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