The rise of generative AI: a new era for hiring entry level talent

The oldest members of Generation Z, Gen Z or Zoomers are 26 years old – which means they are not exactly new to the workplace. However, most of them graduated during a turbulent time and faced the limitations of starting a new job remotely.

In this uncertain market, there is no guarantee that they will have access to the kinds of opportunities that have allowed previous generations to develop the required hard and soft skills needed to progress their careers. Their advantage then, will be in leveraging AI technology as it becomes a part of our working lives and our existing tech.

Totaljobs’ research provides insight from 1,002 HR decision makers across the UK on how generative AI is changing employer expectations from entry level talent.

Gen Z: the digital natives

Gen Z are known as ‘digital natives’, for being the first generation to grow up in a world where internet was already mainstream. They already have experience with the advantages and disadvantages of having information of any kind at their fingertips. As AI enters our lives – most notably ChatGPT – entry level talent could gain a competitive edge when they’re starting out.

Some people are already using generative AI tools to work more efficiently; whether it’s for automating tasks, creating content, doing market research, data analysis or developing code. Recent university graduates are particularly familiar with this technology too, as many of them used it to aid their studies and are entering the workforce with this skill.

In our previous research, we found that over half (56%) of workers would be comfortable using AI for work and younger generations are especially excited about the future possibilities and innovations AI will bring to their industry (48% of Gen Z and Millennials vs. 33% Gen X and Boomers).

As the AI hype continues, some companies are beginning to see generative AI skills as increasingly important, in some cases even more important that traditional qualifications. For example, 2 in 3 (64%) HR decision-makers think generative AI skills are more important than A-levels for a candidate’s success.

The obvious reason behind this is the increasing demand for AI skills. Almost half of businesses say AI is an up-and-coming skill (48%) and that there is a surge in demand for it (43%). As employers’ expectations from entry level candidates shifts to non-traditional achievements, generative AI could play a role in levelling the playing field.

At the same time, there is fear that generative AI could replace entry level roles, but employers seem to disagree. Over 3 in 5 (62%) believe that generative AI skills would help open more job opportunities for entry level candidates.

Skills employers look for in entry level talent in the age of AI

Most businesses are optimistic about the value AI can bring. When asked about the benefits of generative AI, businesses say it can enable quicker data analysis (43%), improved efficiency (42%), streamlined processes (39%), reduced costs (37%) and a competitive edge (35%).

It’s no wonder that in this rapidly changing technology landscape, businesses need people with the corresponding skills.

Our findings show that Gen AI and entry level talent will go hand in hand. Thus, almost a quarter (24%) of businesses started adding generative AI skills as an essential to all entry level offers and over half (54%) are currently looking to hire new graduates with generative AI skills for entry level roles in their organisations.

While competency in generative AI might become the norm in the race to AI, it’s not the only thing employers are looking for. HR decision makers give as much weight to the following skills:

Looking at the industries that are most likely to say they are looking to employ new graduates or entry level talent with AI skills, Construction (76%) and IT (73%) come at the top of the list. Unsurprisingly, 9 in 10 HR decision makers in IT say that generative AI is a valuable tool for entry level positions in their organisation.

Meanwhile, criteria such as language skills, salary expectations and A level results are becoming less of a priority when assessing entry level candidates.

Assessing entry level candidates who use AI tools

While almost half (45%) of employers feel positively about entry level candidates using ChatGPT for their CVs and cover letters, some (30%) disagree with its use. However, it’s not always easy to tell when a candidate submits an AI-generated CV or cover letter. Only 2 in 5 HR decision makers said they could recognise if a candidate has used an AI platform to generate their CV or cover letter each time.

Whether employers feel positively about receiving AI-generated CVs and cover letter or not, there are clear benefits for candidates. Almost 1 in 3 (29%) employers say AI generated CVs and cover letters are better formatted, have fewer or no spelling errors (28%) and look more professional (27%).

Businesses looking for entry level talent who embrace generative AI tools can adapt their hiring process to assess candidates’ skills, even if that means accepting AI-generated CVs and cover letters.

Equipping the future of workforce with generative AI skills

We’re still at the beginning stages of a technology that will revolutionise the way we work. By implementing learning and development opportunities around generative AI, businesses can empower the future workforce.

Positively, most (69%) businesses are planning to provide internships, apprenticeships, mentorship programs or training opportunities for new graduates and entry level talent interested in developing generative AI skills.

The additional benefit of building new opportunities around generative AI would be opening new pathways to employment. In our Early Talent research, we’ve discovered that more than half (54%) of HR decision makers struggled to hire entry level talent since 2020.

This challenge was exacerbated by strict hiring criteria such as mandatory degrees, and a lack of degree apprenticeships and graduate programmes. Based on our research, we’re already seeing some of these hiring criteria changing as entry level talent builds generative AI skills.

Therefore, adapting the entry level hiring criteria and providing training opportunities are key to diversifying your talent pool and developing early talent pipelines.

About the research

This study focuses on exploring HR Decision Makers’ thoughts on generative AI skills in relation to hiring recent graduates and entry level talent.

The survey was conducted by Totaljobs between 26 April – 9 May 2023.

The sample consisted of 2,002 respondents who work full-time or part-time in the UK (aged 18+).