In this week’s blog we hear from Talia Pavell, one of the analysts in our early career programme, as she explores the relationship between early careers, AI and skills‑based organisations.

In brief:

• AI and automation continue to reshape organisational needs. As a result, many companies now prioritise agility through skills approaches over traditional job titles and rigid roles.
• Hiring trends are shifting towards general and transferable skills.
• Early careers pathways sit at the centre of this change, influencing hiring, development and progression.
• Early talent can stay competitive by building strong skills profiles, especially in a labour market where entry routes are narrowing and competition is rising.

How is the future of work impacting talent strategy?

AI, automation and the future of work

The rapid progression of AI and automation is transforming the working world. Technology is redefining both the daily tasks of employees and the long-term capabilities organisations need to achieve their goals. As emerging technologies continue to generate new demands, the demand for new skills increases and organisations designed around traditional fixed roles struggle to adapt. Because of this, many organisations are rethinking their talent strategies in a bid to remain competitive and avoid skills gaps.

The World Economic Forum reports traditional planning cycles are struggling to keep pace with rising skills gaps. Hiring for the needs of today is no longer sufficient, and many organisations are shifting their focus toward future capability. For many, this means redesigning work and development strategies around adaptability and agility. As a result, organisations can more rapidly react and redeploy talent as business priorities, needs or environmental conditions evolve.

What are organisations hiring for today?

Many organisations are leaning away from the traditional indicators of performance, for example formal qualifications and degrees, instead assessing whether candidates possess the capability required to minimise skills gaps.

To meet their changing needs, organisations are seeking talent who can:

• Learn quickly
• Solve unstructured problems
• Work with emerging technologies
• Bring creativity and curiosity

Clear patterns are emerging across today’s labour market. Organisations are favouring candidates with general, transferable skills (e.g. problem-solving, critical thinking, communication), rather than candidates who fulfil a checklist of skills required for a specific role. According to Hays’ 2026 Salary & Recruiting Trends report, 72% of organisations are likely to hire a candidate who does not possess all the skills required, with the intention of upskilling them internally.

As this shift progresses, differences in the prioritisation of different skillsets are becoming apparent. Traditionally ‘soft’ skills describe interpersonal and behavioural capabilities, whereas technical skills relate to specialist or practical expertise. In today’s landscape, ‘soft’ skills hold more currency in a world where certain tasks, and associated skills, risk redundancy due to automation. The World Economic Forum predicts that resilience, flexibility and agility will see the greatest increase in value by 2030, as well as skills that complement automation such as AI literacy, data analysis and strategic thinking.

What does the shift toward skills-based models mean for early careers?

As organisations redefine their approach to talent, early careers pathways and opportunities are also changing. Recent labour market statistics highlight how limited opportunities in early careers are creating a bottleneck, forcing candidates to compete for increasingly restricted entry routes.

However, the shift toward skills-based models may create new opportunities for early talent seeking to enter the workplace. Traditional entry routes may disproportionately advantage individuals with more prestigious networks and financial safety nets, particularly in the current competitive landscape. Focusing on skills can mitigate this, evidencing capabilities beyond formal qualifications and prestigious institutions.

Early talent may also benefit from increasingly creative attempts to meet rapidly changing needs. The recent replacement of the Apprenticeship Levy with the Growth and Skills Levy, for example, expands access to short courses and foundation modules. Organisations are also afforded the ability to address skills needs without implementing full apprenticeship programmes. These revisions enable talent to enter the workforce through alternative routes, without the time or financial commitments typically associated with traditional qualifications.

As a result, early careers programmes are increasingly focused on agility and skills-based learning. Today’s early talent may find that entry-level jobs and early careers programmes become more centralised around skill development, focusing on elements such as rotational programmes and skill-based progression pathways. Early talent can subsequently benefit from faster exposure to varied work, building their skills portfolio to remain competitive both within their organisation and across the wider labour market.

How can organisations hiring early talent develop and attract the right talent?

As organisations refine their early careers approach, many are rethinking how best to develop and attract the right talent. We recommend that organisations hiring early talent should:

• Consider adopting skills‑based hiring practices: Place less emphasis on qualifications and prior experience, focusing instead on learning ability, transferable skills and potential.
• Use structured, rotational programmes: Design early careers programmes where talent rotate around various functions and activities to develop their skills portfolio and build internal capabilities.
• Centralise skills‑based learning and development: Using a targeted combination of theoretical and practical, hands-on learning opportunities, support the development of a range of relevant, transferable skills as early talent enter the organisation. Provide structured support systems such as mentoring or buddy systems to accelerate knowledge transfer.
• Build performance management around skill development: Evaluate early talent on their development of core skills, rather than narrow role‑based requirements, to reinforce adaptability from the outset.

Learn more about different skills approaches:

How can early talent stay competitive when entering the workforce?

Competition for early careers roles is at its peak. The Institute of Student Employers reports 140 applicants per open role, a first since records began in 1991. Focusing on skills can help candidates stay competitive, even with limited work experience.

In the current landscape, LACE recommends the following:

• Demonstrate learnability, not just qualifications: Focus on developing and exhibiting your curiosity, flexibility and ability to learn. Agility offers the competitive edge many organisations are seeking to ensure their talent can meet rapidly changing demands.
• Build a skills narrative: To go beyond listing tasks completed and modules undertaken, consider mapping your skills and reflecting on those you have developed in previous roles, extracurriculars and life experiences. Learn the foundations for becoming a skills-based organisation here.
• Show AI fluency (not expertise): You are not expected to be an AI expert. Instead, demonstrating how you have previously used AI offers a way to evidence your ability and willingness to engage with it, adding weight to your skills profile and evidencing your ability to adapt as technology evolves.

Thinking about becoming a skills-based organisation? Whether you’re looking to attract and retain only early careers or the rest of your workforce, our latest research shows that 75% of organisations will look to become skills powered in the next five years.

Visit our Becoming Skills-powered page for resources or simply reach out via the form below to speak to a member of the team – we’d be happy to help.