What Employers Really Want: How Higher Ed Can Deliver With Real-World Learning

Imagine two new graduates interviewing for the same job—one clutching a pristine diploma, the other armed with a portfolio of real projects and practical solutions they’ve delivered. Who stands out? Increasingly, employers are saying it’s the skills and experience behind that diploma that make the difference. Research from the AAC&U 2021 Employer Survey and Brookings confirms a simple truth: it’s skills, not just degrees, that drive hiring decisions in today’s economy. The CCWT College Internship Study reinforces this, highlighting the risks of underemployment and the rising emphasis on applied learning. The good news for higher ed is that there’s a clear way to deliver those skills—through experiential, real-world learning.

The ROI and Economic Stakes

 

The stakes for students and institutions have never been higher. Average U.S. student debt now exceeds $30,000 per borrower, and CCWT research shows 44% of recent bachelor’s graduates are underemployed, meaning they work in jobs that don’t require a degree. This underemployment is costly: graduates in the wrong-fit jobs can lose hundreds of thousands in lifetime earnings (Federal Reserve). These realities are fueling the push for demonstrable return on investment (ROI) in higher education—and experiential learning is the lever that can change the trajectory.

Degrees vs. Skills: What the Research Shows

 

A college degree alone isn’t the guarantee of job readiness it once was. That same AAC&U survey found that while eight in ten employers say graduates are nominally prepared for entry-level roles, surveys and market trends still reveal widespread concerns about true job readiness, especially as AI and automation reshape entry-level opportunities, only about half feel those grads are very prepared in key skills. Employers consistently emphasize abilities like communication, problem-solving, teamwork, and data analysis as the most critical for hiring decisions.

 

The Center for Research on College-Workforce Transitions (CCWT) highlights the real-world impact of this skills gap. Research shows that 44% of recent bachelor’s degree graduates end up in jobs that don’t even require a four-year degree, which is a clear sign of underemployment and a mismatch between education and workforce needs.

 

Meanwhile, Brookings reports that skills-based experiential hiring is gaining momentum as employers and state governments increasingly recognize that degrees have been overused as a proxy for talent. Over 20 state governments and many organizations are already removing degree requirements for roles where demonstrable skills are a better predictor of success.

 

Bottom line? Employers still value higher education, but they are demanding proof of skills and real-world readiness.

How AI and Automation Are Changing Entry-Level Jobs

 

Adding to the urgency, the rise of AI and automation is transforming the entry-level job market. Routine tasks once handled by recent graduates are increasingly automated, meaning that the first jobs students land now often require higher-order problem solving, adaptability, and creative thinking from day one.

 

Reports from McKinsey and World Economic Forum show that entry-level positions are being redefined, and the bar for “job ready” has never been higher. Employers expect graduates to step in with hands-on experience, digital literacy, and the ability to work alongside AI tools—all of which are best cultivated through experiential learning.

The Power of Real-World Learning in Higher Ed

 

Enter experiential learning: the most effective strategy for bridging the gap between classroom theory and workforce reality.

 

Platforms like CapSource define an “experiential institution” as one that embeds real industry projects across its curriculum, creating “reference-worthy learning experiences” that can go straight on a student’s résumé or LinkedIn. Rather than just completing assignments, students tackle real industry challenges, whether that’s designing a marketing campaign for a startup, building a financial model for a nonprofit, or crafting a strategic growth plan for a Fortune 500 company.

 

When experiential learning is implemented well, it provides:

• Reference-worthy experiences students can showcase in interviews
• Confidence and career clarity through practical application of knowledge
• Win-win collaborations where companies benefit from fresh insights and talent

 

As CapSource founder Jordan Levy notes, successful experiential learning results in deliverables, connections, and stories students can leverage in their careers, not just a grade.

From Campus to Career: Success Stories

 

Real-world examples prove that experiential learning works:

• Notre Dame MBA Interterm: 160 MBAs spent a week tackling 41 real-world projects for 34 corporate partners. Students practiced consulting in real time while companies got actionable solutions.
• Fordham Self-Sourced Projects: Students pitch their own industry projects, learning networking, initiative, and communication skills while delivering meaningful results to organizations they care about.
• Butler University Strategic Campaigns: Graduate students delivered professional-grade communications campaigns to nonprofits and businesses, impressing clients and building tangible portfolio pieces.

 

These aren’t just “experiences,” they are career accelerators that directly address the skills employers say they want most.

From College to Career – Making It Happen

 

To prepare students for the workforce of today (and tomorrow), institutions need to embed more experiential learning into their programs. That might look like:

1. Launching live case projects or capstones in core courses
2. Offering structured internships or co-ops that deliver real outcomes
3. Incentivizing faculty to partner with industry and mentor projects
4. Leveraging AI-powered project scoping tools like CapSource’s Project Builder to make sourcing and managing these experiences easy at scale

 

Schools that make this shift become true experiential institutions—producing graduates who can prove their value from day one.

Why This Matters

 

The takeaway is clear: employers hire skills, not just degrees. Experiential learning is the bridge that transforms education into employability. And in a job market reshaped by AI and automation, hands-on, real-world experience is more essential than ever.

In a world where higher ed must demonstrate ROI to students, parents, and policymakers alike, these experiences are no longer optional—they’re essential.

If your institution is ready to embrace this future, CapSource can help you launch scalable, high-impact industry collaborations that prepare students to thrive.

Because the future belongs to graduates who can do the work, and experiential learning is how we get them there.