How Total Rewards Can Close the Work Experience/Readiness Gap

Two-thirds (66%) of managers and executives say that most recent hires are not fully prepared for their new jobs, and a lack of experience is their most common failing, according to Deloitte’s 2025 Global Human Capital Trends report.

The survey of almost 10,000 business and human resources leaders in 93 countries also found:

73% of executives and 72% of workers agreed that organizations should do more today to connect their workforce with opportunities to gain experience and build career readiness.
Nearly three-quarters (74%) of surveyed workers, managers and executives say it is very important, or of critical importance, to prioritize human capabilities while addressing this situation.

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The reality is work has changed, and it requires more judgment, said David Mallon, a co-author of the Deloitte report and a chief analyst and managing director at the consulting firm.

“Entry-level roles have shrunk and require a longer resume than ever before, so the path to gaining experience is narrower and more obscure,” he said. “At the same time, traditional markers of experience, like tenure or formal education, don’t always reflect the capabilities needed today. The result is a widening disconnect between what employers want and the opportunities workers have to prepare themselves to meet those requirements.”

Why Is Experience/Readiness an Issue?

One underlying cause of the experience/readiness gap is outdated recruitment practices, said Tamarah Saif, a national managing director of people data and insights practice at risk management and consulting firm Gallagher.

“Relying on a traditional ‘years of experience’ benchmark can lead to missed opportunities for diverse candidates who may have transferable skills from different contexts,” she said. “Organizations are struggling to define what ‘experience’ means. They need to determine what real-world experiences are truly applicable and know this before hiring or promoting.”

Definition disconnects and off-base hiring metrics are exacerbated by the changing nature of work, such as the increase in automation from artificial intelligence, and shifting work patterns, said Ragini Mathur, a director of work, rewards and careers at consulting firm WTW.

“Employers increasingly demand ‘ready-now’ candidates with specialized skills, but fewer invest in long-term development, exacerbating the gap,” Mathur explained.

For example, emerging technologies are reshaping job requirements faster than education and training systems can adapt, she said, noting that the rise of gig work and remote roles also has reduced opportunities for traditional mentorships and on-the-job learning opportunities.

"Organizations are struggling to define what ‘experience’ means. They need to determine what real-world experiences are truly applicable and know this before hiring or promoting.”--Tamarah Saif, a national managing director of people data and insights practice at Gallagher

The Impact of Inexperienced Workers

Not enough employers are hiring inexperienced candidates at lower wages and offering career development in order to compete for talent, said David Lewis, a national managing director of HR and organizational effectiveness consulting at Gallagher.

“Employers need to plan now for the notion that they can and will be outspent by competitors for the talent they can find and even for the talent they employ today,” he said. “Therefore, you need to build a culture and team that focuses on developing talent from their core skills, building them into your future leaders, all while creating a sticky culture — one from the bottom up that employees shape — as a means to ensure that your investment in them gives you a return in the form of them staying.”

In addition, remote work, flexibility, respect and professional development are currencies that may be perceived as far more valuable than a higher salary, Lewis said.

Inexperienced workers bring both challenges and opportunities, said Laurie Bienstock, a managing director and global leader for knowledge architecture at WTW.

“New entrants may bring tech savviness, innovative ideas and a fresh way of thinking,” she said. “Younger workers may be more adaptable to change, especially in tech-driven environments.”

But be prepared for a temporary drop in productivity as novices require time and resources to reach full effectiveness, Bienstock noted.

How to Close the Gap

The key toward mitigating workforce readiness issues is not to leave experience-building to chance, Mallon said.

“Bringing in under-experienced talent without a plan to develop them can strain teams and culture,” she said. “But when [development is] done with intention, it’s a catalyst for creating leaders.”

To aid total rewards professionals, the experts in this article offered the following tips:

Shift to skills-based hiring. “When looking for candidates, a degree or years of experience is not a proxy for readiness,” Mallon said. “Instead, unpack the role requirements to align with what the organization truly needs.”
Support internships. “Partner with educational institutions to co-create programs that allow students to get real-world experience,” Saif said. “Don’t let your intern just perform administrative work.”
Upskill internally. “This is more than just offering access to a broad range of learning and development options but creating a strategic and targeted approach to building the skills you need,” said Bienstock. “Consider cross-training as another potent strategy to quickly equip employees with necessary skills, tapping into their adaptability.”
Leverage skills-based mentorship programs. “Pair early career workers with experienced employees,” Mallon said. “This helps workers develop not only technical abilities but critical human skills like judgment, resilience and leadership.”

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