A new report by TST, a UK-based learning and development consultancy, has revealed that employers are turning their attention towards apprenticeships and internships as they move away from solely considering degrees in their recruitment of early careers talent.
The 2026 Best Practice Early Careers Guide, published by TST, analyzed recruitment, retention, and early careers strategies across 30 global organizations, jointly employing over 2.75 million people worldwide. The report found that organizations with strong internship-to-graduate pipelines have a higher graduate retention rate after three years than those without (73% vs 62%).
According to the report, internships also attract significantly more applications per role (20%) than graduate programs and apprenticeships (80%), indicating a growing interest in alternative routes into employment.
Dr Khairunnisa Mohamedali, Managing Director and Chief Innovation Officer at TST, stated that the shift towards hiring based on skills, potential, and adaptability is becoming increasingly attractive to both employers and candidates. She also noted the decrease in graduate vacancies, with numbers falling to their lowest since 2012, highlighting the changing landscape of early careers recruitment.
In support of this trend, the National Association of Colleges and Employers (NACE) reported that 70% of employers now use skills-based hiring for entry-level roles and that 46% of middle-skill jobs no longer require a formal degree.
Dr Mohamedali added, “Many organizations are recognizing that talent can come from non-traditional routes. They are creating multiple pathways into their business and focusing on skills, attitude, and potential alongside qualifications. Internships represent one of the most effective ways for employers to build relationships with future talent before the graduate market even opens.”
The report also addresses the debate surrounding online learning and its effectiveness in training future skills. TST’s statistics suggest that there may be a shift towards in-person learning, with organizations with the highest three-year retention rates prioritizing face-to-face learning over digital content.
The report also highlights the challenge of measuring the success of early careers support and the struggle to gain stakeholder buy-in. Organizations with strong stakeholder support invest an average of £2,500 per person per year in early careers training, compared to £850 for those without. The report also notes that functions lacking senior advocates are almost three times more likely to cite resourcing as a top challenge, creating a cycle of under-investment and underperformance.
Finally, the report addresses the influence of AI on workplace readiness and the changing skills landscape. Dr Mohamedali states that AI is not only changing the nature of work but also the way people learn at work. As technology continues to evolve and automate routine tasks, employers need to think differently about how they develop early careers talent and focus on qualities such as adaptability, curiosity, and the ability to learn quickly.
The full 2026 Best Practice Early Careers Guide by TST can be viewed on their website.
