AI training drives higher salaries, HR seeks specific skills for hiring: report

Last update:December 22, 2024, 1:55 p.m. IST

While 6 in 10 HR people frequently use AI tools at work, Gen Z is concerned about “intellectual dwarfism” and the stifling of creativity due to over-reliance on AI.

HR considers analytical skills, teamwork and strategic leadership to be top priorities, but the hardest to find. (Representative image)

A growing preference for skills-based assessments is reshaping the hiring process, with 95% of students favoring skills assessments over traditional methods, and 46% advocating for these assessments to take place before resume screening, according to a new report.

Based on comprehensive surveys of 6,900 GenZ professionals and 610 HR leaders, the report adds that 73% of HR professionals identify mentoring as the most effective solution. However, there is a gap in AI preparation— while 68% of Gen Z consider themselves competent in AI, only 13% of HR believe graduates are well prepared to work with this technology.

On a positive note, 85% of Generation Z express a strong demand for workplace training, and organizations are stepping up to meet this need by providing the resources necessary for continuous learning and development.

Unstop, a talent attraction, assessment and hiring platform, recently unveiled its “Unstop Hiring Kart: Skills & AI Report 2024”. The report provided insight into the evolving dynamics of skills, job readiness, and the growing role of AI in the workplace.

Main conclusions:

AI training and salaries:

• 89% of Gen Z and 68% of HR professionals believe that candidates with AI training get higher salaries.
• 45% of Gen Z identify data and AI as must-have skills, although only 14% of HR people share this sentiment.
• Despite mixed opinions, 65% of HR people say they integrate AI expertise into their recruitment strategies.

Skills Gaps and Workforce Readiness:

• 45% of arts, sciences and commerce graduates feel ill-prepared to face the job market, while 25% of working professionals share the same concern.
• 93% of HR and 78% of Gen Z believe traditional degrees are losing relevance, urging universities to focus on job readiness.

Professional skills sought:

• HR ranks analytical skills, teamwork and strategic leadership among the top priorities, but the hardest to find.
• 74% of HR professionals advocate structured mentoring programs as a solution.

Recruitment misalignment:

• 46% of Gen Z prefer skills-based assessments before resume screening, but 59% of HR managers conduct them after screening, highlighting the need for skills-first hiring strategies.

Polarized opinions on AI:

While 6 in 10 HR people frequently use AI tools at work, Gen Z is concerned about “intellectual dwarfism” and the stifling of creativity due to over-reliance on AI.

Skills development and continuous learning:

• 60% of Generation Z actively pursue their skills through online courses, internships and competitions.
• Although 81% of organizations offer training resources, 19% still neglect to invest in this critical area.

CEO Perspectives:

Ankit Aggarwal, Founder and CEO of Unstop, highlighted: “The report highlights the urgency for academia and organizations to close the skills gap. Generation Z is embracing AI and demanding meaningful development opportunities. Organizations must adapt their recruiting strategies, promote mentoring, and foster continuous learning to build a workforce ready for an AI-driven future.