Gen Z’s Soft Skills Deficit: A Crisis Born From AI and Remote Learning

At the Fortune Leaders Forum in Macau on Sept. 8, senior executives addressed the operational challenges of integrating young workers who spent critical formative years in remote or hybrid learning environments during the COVID-19 pandemic. The rapid adoption of generative AI across financial services, consulting, technology, and corporate operations has shifted the baseline requirements for early-career employees.

Richard Roper, president of Marsh People and Investment (Hong Kong & Macau)—a division of global professional services firm Marsh McLennan (NYSE: MMC)—noted that traditional interpersonal capabilities have become a key competitive differentiator for young professionals in an AI-driven economy. While recent higher education graduates frequently demonstrate familiarity with software, coding, and automated tools, corporate leaders report widespread deficiencies in interpersonal communication, meeting participation, professional dress standards, and basic office etiquette.

The intervention by corporate leaders reflects broader statistical evidence indicating widespread workplace adaptation struggles among Generation Z, generally defined as individuals born between 1997 and 2012. Addressing attendees at the Macau forum, Roper explained that as technical execution becomes increasingly automated, soft skills are functioning as high-value professional currency.

A 2024 survey conducted by The Harris Poll revealed that 65% of Gen Z employees admitted uncertainty regarding how to initiate or navigate informal conversations with colleagues. In response to the skill gap, Roper developed a structured guidance sheet of career principles—termed “daddy tips”—for his two eldest daughters as they entered the labor market, drawing on three decades of corporate management experience. The study found that young employees who entered the labor force during or after the COVID-19 pandemic were more than twice as likely to report difficulty starting workplace conversations compared to colleagues who had in-person office experience prior to the pandemic.

Roper emphasized that basic behavioral standards, including punctuality, polite demeanor, active contribution in meetings, and personal enthusiasm, often outweigh technical aptitude during initial career placement. Corporate recruiters and hiring managers have documented additional friction during the initial recruitment process. Approximately 20% of employers report instances of entry-level job applicants bringing parents or guardians to job interviews, struggling to independently articulate their skill sets, or failing to navigate standard salary negotiations.

His guidance framework stresses several operational strategies for early-career survival, including: attitude and punctuality, prioritizing positive engagement and punctuality over pure technical aptitude, under the principle that baseline professional behavior creates immediate credibility. Employers also cite frequent issues with professional attire, managing differing viewpoints during group tasks, and participating in face-to-face meetings. The framework also covers boss-centric value creation, identifying executive priorities to make supervisors’ workloads easier, establishing personal reliability prior to seeking advancement.

The widespread nature of these deficiencies has led to a split in corporate responses. While a growing number of companies have increased early-career terminations for non-performing junior staff, major institutions—particularly within professional services and finance—have instituted formal remediation programs. Roper’s guidance additionally stresses early operational wins, securing quick, visible contributions during the initial days of employment or project launches to establish a positive professional profile.

Other chief executives are taking direct action within their own households to instill workplace discipline prior to formal employment. George Arison, chief executive officer of dating application platform Grindr (NYSE: GRND), stated that he plans to have his children shadow him at the office once they turn 10 years old. Professional service networks, including major accounting and management consulting firms, have introduced specialized onboarding modules for recent campus hires. These programs cover baseline professional mechanics, including maintaining eye contact, conducting professional phone conversations, navigating small talk, participating in physical conference room settings, and adhering to corporate dress codes.

Arison, a Soviet-born entrepreneur who took the helm at Grindr in late 2022, stated that exposing young family members to 12-hour workdays is designed to demonstrate professional stamina, operational discipline, and what he termed “grit”—qualities he considers essential for long-term executive success. Roper’s framework further includes lateral and vertical networking, building professional relationships with peers and subordinates rather than focusing exclusively on senior managers, anticipating long-term organizational interdependencies.

The framework additionally addresses career and promotion agility, accepting leadership roles or promotions before feeling fully qualified, relying on on-the-job adaptation rather than waiting for complete preparation. It also covers the economic reality of industry sectors, recognizing structural compensation differences across fields—such as the pay gap between investment banking and management consulting versus public sector professions like teaching and nursing—and selecting career paths based on personal fulfillment and financial expectations.

As artificial intelligence tools rapidly automate routine technical and administrative tasks once assigned to entry-level hires, major employers and corporate executives are confronting an acute deficit in fundamental “soft skills” among Generation Z workers entering the workforce. As entry-level roles continue to evolve alongside AI integration, corporate leaders maintain that while technical mechanics can be automated or taught quickly, candidates who possess foundational human interaction skills, adaptiveness, and interpersonal influence will hold a distinct advantage in securing and retaining early-career positions.