AI Training Boosts Salaries as HRs Prioritize Specific Skills: Report

A recent report highlights the growing influence of AI training on salaries and hiring trends. While 6 out of 10 HR professionals frequently use AI tools, Gen Z expresses concerns about the over-reliance on AI, citing risks to creativity and intellectual growth. The report, based on surveys of 6,900 Gen Z professionals and 610 HR leaders, emphasizes the need for skill-first hiring, mentorship, and continuous learning to bridge the skill gap and prepare the workforce for an AI-driven future.

Analysis
The findings reveal a disconnect between the skills HR leaders seek and the readiness of graduates entering the workforce. While AI expertise is increasingly integrated into hiring strategies, HRs face challenges in identifying candidates with critical skills like analytical thinking, teamwork, and strategic leadership. At the same time, Gen Z favors skill-based assessments over traditional hiring methods, pushing for a paradigm shift in recruitment strategies.

Despite these challenges, organizations are stepping up their efforts to address the skill gap, with 81% offering training resources and structured mentorship programs. However, gaps remain, with 19% of companies neglecting investment in critical learning and development areas.

Key Insights

• AI Training and Salaries
  • 89% of Gen Z and 68% of HR professionals agree that AI-trained candidates command higher salaries.
  • 45% of Gen Z identify AI and data skills as indispensable, compared to only 14% of HRs.
  • 65% of HR leaders report incorporating AI expertise into hiring strategies.
• Skill Gaps and Readiness
  • 45% of graduates from Arts, Science, and Commerce backgrounds feel unprepared for the workforce.
  • 93% of HR leaders and 78% of Gen Z agree that traditional degrees are losing relevance, urging academia to focus on job-readiness.
• Workplace Skills in Demand
  • HRs rank analytical skills, teamwork, and strategic leadership as top priorities yet hardest to find.
  • 74% of HR professionals advocate structured mentorship as a key solution.
• Recruitment Trends
  • 46% of Gen Z prefer skill-based assessments before resume screening, while 59% of HRs conduct assessments post-screening.
  • This misalignment signals a growing need for skill-first hiring strategies.
• Polarized Views on AI
  • 60% of HR professionals use AI tools frequently, while Gen Z raises concerns about “intellectual dwarfism” and stifled creativity.
• Upskilling and Continuous Learning
  • 60% of Gen Z actively pursue upskilling through online courses, internships, and competitions.
  • Despite 81% of organizations offering training resources, 19% still neglect this critical area.

Implications for HR and Organizations

• For HR Leaders: Focus on skill-first hiring strategies to align with Gen Z’s preferences.
• For Academia: Shift towards job-readiness programs and AI integration to meet workforce demands.
• For Organizations: Invest in structured mentorship and continuous learning programs to attract and retain top talent.

As Ankit Aggarwal, Founder and CEO of Unstop, notes, “Organizations must adapt hiring strategies, champion mentorship, and foster continuous learning to build a workforce ready for an AI-driven future.”