Apprenticeships and Internships Gain Ground as Employers Prioritise Skills Over Degrees

New research reveals employers are increasingly valuing skills, internships and apprenticeships over degrees, with AI and in-person training reshaping early careers recruitment.

The latest research into early careers recruitment suggests that employers are placing less emphasis on academic qualifications alone and giving greater weight to practical skills, adaptability and real-world experience. 

For young people entering the jobs market, that could mean apprenticeships and internships are becoming more valuable than ever before.

According to the newly published 2026 Best Practice Early Careers Guide from TST, organisations are increasingly creating multiple routes into employment rather than relying solely on traditional graduate recruitment.

The report found that companies with well-developed internship-to-graduate programmes retain significantly more employees over the long term.

 After three years, 73% of graduates who came through strong internship pipelines were still with their employer, compared with 62% at organisations without similar programmes. 

Internships also attracted around 20% more applications than graduate schemes and an impressive 80% more than apprenticeship vacancies, highlighting the growing appeal of gaining workplace experience before committing to a permanent role.

The findings are based on recruitment and retention data from 30 global organisations employing more than 2.75 million people. They paint a picture of employers becoming increasingly interested in what candidates can demonstrate rather than simply what qualifications they hold.

Dr Khairunnisa Mohamedali, (PICTURED) Managing Director and Chief Innovation Officer at TST, believes businesses are looking for people who can adapt quickly to changing workplaces. She told That's Business that it is her argument that skills, attitude and potential are now sitting alongside formal qualifications when employers make recruitment decisions.

Supporting this trend, research from the National Association of Colleges and Employers suggests that 70% of employers now use skills-based hiring for entry-level positions, while nearly half of middle-skill jobs have removed formal degree requirements altogether.

The report also highlights another interesting development: the return of face-to-face learning. Organisations with the strongest long-term retention rates delivered almost two-thirds of their induction programmes in person, compared with just over a quarter among lower-performing employers. 

Building personal relationships, company culture and workplace confidence during those early weeks appears to have a lasting impact on employee loyalty.

Artificial intelligence is also reshaping graduate development. As AI increasingly takes over routine tasks that once helped new recruits gain confidence and experience, employers are placing even greater value on qualities such as curiosity, resilience, communication and a willingness to learn. Rather than replacing early careers programmes, AI is changing what successful development looks like.

For businesses competing for tomorrow's workforce, the message is clear. Investing in apprenticeships, internships, meaningful in-person training and skills-based recruitment could prove to be one of the smartest talent strategies of the decade.

https://www.wearetst.com/insight/insight-article.html?slug=best-practice-early-careers-guide-2026