ISE’s Claire Tyler unpacks the five hottest trends from this year’s Student Development Survey.
ISE’s Student Development Survey 2026 is full of interesting trends and data on how employers design, deliver and evolve development programmes for graduates and school and college leavers.
This year, we also explored which skills employers recruit for, how they rate the skills of new hires and which skills they develop. It is among the first pieces of research to use the new UK Standard Skills Classification (SSC).
Here are my top five trends that you shouldn’t miss.
1. AI is beginning to reshape early career roles and skill requirements
This year, over half (54%) of employers said they are concerned about the impact of automation and AI on new hires - making it their top concern for the future.
On balance, employers expect AI to reshape rather than replace entry level roles. Overall, 87% of employers anticipate some reshaping of graduate and apprentice roles: 58% foresee minor adjustments to tasks and responsibilities over the next three years, while almost a third (29%) foresee significant changes.
However, most expect any impact to limited in scope. Nearly three quarters (72%) anticipate that up to a quarter of jobs will be reshaped by AI, while 28% expect more than a quarter will be affected.
Change is already underway, with 43% of employers reporting that roles have begun to adapt informally to AI, although 56% say no changes have yet occurred.
Skill requirements are also shifting. Employers expect critical thinking and judgement to become more valuable as roles evolve, while routine administrative and clerical skills are likely to decline in importance.
This year we also found that employers are almost twice as likely to develop digital literacy skills than recruit for them. Employers are widely embedding AI literacy, practical use of AI tools, using AI for communication and data and digital skills in development programmes.
Meanwhile, candidate use of AI is raising concerns about authenticity in recruitment. Two-thirds of employers are worried that graduates (67%) and school and college leavers (66%) may misrepresent their abilities when using AI in selection processes - up from around half in 2025.
This raises the risk of disruption to development processes where candidates are not fully aligned with their roles.
2.Concerns about candidate quality and work readiness are growing
Two-fifths of employers (42%) told us they are concerned about the quality of future candidates.
While most are broadly satisfied with the foundational skills of new hires, around a third report that new joiners fall below expectations when it comes to adapting to workplace demands (graduates 35%, school and college leavers 31%).
As roles and career paths continue to evolve, adaptability will be critical, highlighting a clear need for targeted development support for students and early career hires.
Employers also highlighted notable readiness gaps in motivation and self‑awareness, wider contextual understanding and planning and organising skills. Meanwhile, a third of employers (29%) reported a rise in performance-related issues with leavers - up steadily from 12% in 2022.
Responding to this quality challenge, over half of employers (52%) have increased the induction time devoted to ‘professional conduct’ and supporting the transition from education to the workplace this year. Professional conduct now forms 17% of all development content.
These findings also reinforce the importance of high-quality work experience in preparing individuals for the workplace.
3.Development programmes remain hybrid but there’s a F2F shift
Hybrid working remains the dominant model for early career hires, with 95% of employers offering it to graduates and 83% to school and college leavers.
However, the balance is gradually shifting towards more time in the office to support supervision, collaboration and the development of workplace behaviours. Over a third of employers reported that new hires are more willing to attend the office or participate in in-person training this year.
This shift is reflected in how development is delivered. Nearly two-thirds (65%) of learning takes place face-to-face, compared with 25% online and 10% through coaching and mentoring.
This aligns with a growing consensus that in-person approaches provide the highest quality development experience - as rated by 72% of employers and up from 47% in 2024 and 67% in 2025.
Perceptions of impact reinforce this trend. This year, 60% of employers identified classroom-based learning as impactful (up from 34% in 2022), while just 8% said the same of online learning (down from 18% in 2022).
4.Retention remains broadly stable, but wellbeing and performance challenges rise
Three-year retention rates for early career hires remain broadly stable, at 74% for graduates and 76% for school and college leavers. However, over one-third of employers (38%) are concerned about future retention rates and manager capability to support new hires.
The mental health and wellbeing of new hires is a growing concern for development teams, as over half of employers report increased anxiety amongst new hires, while a third report increased financial pressures and career uncertainty. A further fifth report increased perfectionism and burnout amongst new hires.
Employers are responding by strengthening support. One-third (31%) of employers increased the induction time devoted to mental health and wellbeing this year. Overall, this now accounts for 10% of content across induction, onboarding and development activities.
However, a gap remains between provision and perceived impact. While three-quarters of employers (76%) offer mental health support to new hires, fewer (64%) consider it effective.
5.Employers are delivering early career development with lower budgets
This year, the typical development budget (excluding staff costs) was £180,000 which is 10% lower than last year’s benchmark figure.
Future internal cost pressures and budget constraints are a top concern for 37% of employers. A further 21% of employers pointed to the broader economic climate as a concern.
ISE members can explore sector-specific data on these themes in the new Development Survey 2026 dashboards, covering: