Beyond the diploma: Skills that actually get graduates hired

The graduating class of 2026 is entering a highly challenging job market, and human resources leaders are increasingly concerned that traditional pathways into corporate America are struggling against the impact of artificial intelligence, a reduction in entry-level positions, and a growing disillusionment among young people regarding the employment system.

At Fortune's Workplace Innovation Summit, a panel comprised of executives and educators convened for a session entitled Beyond the Diploma: Skills That Actually Get Graduates Hired to address these pressing issues. Participants included Christina Mancini, CEO of Black Girls Code; Dr. Harry L. Williams, president and CEO of the Thurgood Marshall College Fund; Debbie Dyson, CEO of SkillsRight; and Becky Schmidt, chief people officer at PepsiCo.

The panel reached a consensus that the dynamics of hiring have shifted dramatically, and clarity around the new norms is still evolving.

The vanishing entry-level job

Dyson highlighted the significant transformation occurring within the job market. "Entry-level positions have effectively been elevated. As a result, today’s entry-level role resembles what was once classified as mid-level," she stated. "Artificial intelligence and theoretical advancements have led to the disappearance of many of those traditional roles."

This shift has far-reaching implications regarding how newcomers acquire their professional skills. Dyson, who entered the workforce through finance, reflected that her early career skills are now irrelevant to her current role. "My background in finance was instrumental in allowing me entry into the field, but where I acquired my essential skills was through on-the-job experience. Unfortunately, that opportunity is waning."

Williams, representing approximately 300,000 students across 57 historically Black colleges and universities, emphasized the palpable sense of apprehension among students. "There's significant fear and uncertainty regarding AI among the student population. The future implications of AI remain unpredictable, and the rate of change is genuinely staggering."

Schmidt provided perspective from the employer's point of view, noting, "At PepsiCo, our hiring continues across countries where we operate. Our internship programs aim to engage talent from universities." However, she acknowledged a noteworthy evolution in the experience: "Even leading tech firms have shifted away from traditional recruitment venues such as the University of Michigan's engineering program; students are now required to apply online and present their qualifications differently."

The AI conversation nobody is having

Mancini pointed out that discussions surrounding AI often overlook the individuals most impacted by these advancements. "There are dialogues happening at the academic and enterprise levels, yet there is an absence of conversation for the affected communities, resulting in individuals who are hesitant to voice their lack of understanding."

She refuted the notion that coding skills are becoming obsolete due to AI. "The claim that coding is disappearing is premature," she asserted. "It's crucial to remember that AI systems on these platforms are rewarded for generating a response, not necessarily for providing the correct one. Hence, we still have a significant demand for skilled professionals, as my colleague Paula Goldman at Salesforce articulates, to lead these technologies."

Mancini advised graduates to steer clear of basing career aspirations solely on the allure of social media influencers.

She expressed particular concern for her community, urging greater participation in technology fields. "I worry about the black community’s hesitance to embrace technology. The prevailing negative narrative surrounding AI must be addressed proactively."

Skills, not degrees

Dyson’s organization emphasizes skill-based hiring rather than relying solely on formal credentials, presenting three key dimensions that employers now consider. "First, technical skills, which may have been acquired through formal education or vocational training. Second, there are soft skills, such as problem-solving, critical thinking, and communication, which are gaining prominence. Finally, the third dimension relates to cultural fit."

She underscored the growing importance of cultural fit in hiring decisions. "Our discussions with employers have revealed that success is increasingly determined by alignment with organizational culture, which has emerged as a critical factor."

Schmidt noted that PepsiCo is reassessing its approach to candidate evaluation beyond traditional résumé metrics. "In a facility, whether the role is sanitation, a certified profession, or a skilled engineer, we consider what additional attributes candidates bring beyond their specified job duties."

She provided an illustration: "A candidate may be employed in one capacity, yet their weekend hobby of fixing cars indicates underlying aptitude." She also mentioned that PepsiCo prioritizes "retraining individuals who already mesh with our culture, rather than continually onboarding new talent, which incurs significant costs."

The interview gap

Recent graduates are submitting upwards of 100 job applications weekly, with only a 1% chance of securing interviews. Williams highlighted that his students are encountering issues that differ from merely obtaining interviews.

"I’ve learned that numerous students are successfully landing interviews but struggle to convert those opportunities into job offers," he explained. "This often stems from being unprepared to discuss the qualifications listed on their applications."

He attributed this gap to candidates relying on AI to embellish their qualifications. "AI can craft impressive resumes, yet when candidates arrive for interviews, they often cannot competently discuss their claimed technical skills."

Mancini corroborated this observation from the other side of the hiring process. "Some AI tools used to initially screen resumes can be problematic and may dismiss qualified candidates without sufficient evaluation."

An HR leader from the audience highlighted the detrimental long-term implications of this predicament. "We're observing smart individuals from every background receiving 200 to 300 rejections, fostering a growing cohort with diminishing self-esteem. This is becoming an urgent matter we must address as employers." She noted that in regions like Europe, this phenomenon has escalated into severe issues, including rising graduate suicide rates where individuals have lost hope in the job market.

The overarching inquiry remains: "If we continue to bypass entry-level opportunities, how can we cultivate critical judgment… How can individuals improve at their professions without the chance to experience setbacks?"

Partnerships, internships, and the community-college rise

Williams passionately advocated for the value of internships. "These opportunities should ideally begin as early as a student’s freshman year. Although some may hesitate to engage freshmen due to perceived inexperience, they stand to gain valuable exposure through these experiences."

He described collaborative training initiatives at institutions like Shelton State, St. Phillips, and Drake State, where students participated in three-day sessions partnering directly with corporate entities. "This hands-on training equips students for internships and apprenticeships, allowing them to transition seamlessly into the workforce upon graduation."

Dyson noted the swift ascendance of community colleges in addressing these gaps. "Community colleges are rapidly becoming more popular due to their affordability and efficiency. Employers are increasingly establishing tailored micro-credential programs to address specific entry-level hiring needs."

Schmidt elaborated on PepsiCo's adjustments to its summer internship framework. "Our summer internship program has evolved from a standard 10-week assignment to focused short-term projects. Interns are now tasked with multiple responsibilities with different supervisors, fostering greater adaptability within our operations."

The one skill that matters most

When asked to identify the one essential skill graduates should hone over the next five years, the panelists replied in rapid succession.

"Critical thinking," Dyson asserted.

"I would add adaptability," Schmidt concurred.

"Communication," Williams offered.

Mancini remarked, "Effective storytelling is paramount."

Lois Alexis Collins, chief people officer for field operations at Chipotle, highlighted the importance of mindset in career success. "Eighty-four percent of our management hires at Chipotle started in crew-level roles, eventually earning six-figure salaries as general managers." She added, "The main determinant of success is one’s attitude. If individuals approach their work with fear and resistance to change, they will likely encounter significant career obstacles."

Disrupting the hiring machine

The final audience inquiry addressed whether AI-driven hiring algorithms inadvertently exclude candidates. Schmidt acknowledged the limitations inherent to her oversight. "We strive to ensure that every tool we implement prioritizes human-centric attributes, with clearly defined accountability and regular audits."

She explained how PepsiCo has adopted a new tool to guide rejected candidates toward suitable alternative positions. "Now, when applicants submit for jobs that are not available, the system informs them of other opportunities they may not have considered before."

Mancini encouraged employers to critically evaluate the technologies they utilize. "If you're investing in software, whether as a manager or CEO, it's vital to understand the origins of that technology and the inputs that shape its algorithms. This understanding is crucial when discussing scalability."

She also expressed concern about the growing detachment from personal interactions in the hiring process. "I believe we've over-emphasized technology at the expense of interpersonal connections. It's essential to maintain genuine human interactions amid the technological shift, or we risk creating a homogeneous workforce."

Reasons for optimism

Dyson underscored the importance of emotional intelligence and human intuition. "Investing in the balance of emotional and cognitive capabilities is vital for fostering optimism."

Mancini emphasized the enduring need for human participation in technological processes. "We need to appreciate the technology we engage with while remaining cautious about the narratives we consume. Algorithms are shaped by our interactions."

Schmidt expressed hope for collaborative efforts: "It will require collective input from diverse organizations to craft a positive future. I remain optimistic about this potential."

Williams concluded with a call for a dedication to ongoing improvement in higher education. "The principle of continuous improvement is fundamental. Each day should present opportunities to enhance our methodologies."

The prevailing takeaway from this event was clear: while a diploma may still open doors, it no longer guarantees entry. The responsibility for adequately preparing the next generation now falls on universities, employers, and students alike—none of whom can afford to defer action to others.