This study investigates the level of awareness of modern Human Resource (HR) practices among students and freshers and its impact on employability and job readiness. With the rapid digital transformation of the workplace, awareness of contemporary HR tools and practices has become a critical competency for fresh graduates entering the professional world. A structured questionnaire was administered to 201 respondents comprising final year students, fresh graduates, and freshers seeking employment. The study focuses on key modern HR practices including AI-based recruitment, HR analytics, performance management systems, employee engagement strategies, and hybrid work policies. With 70% of respondents affirming awareness of modern HR practices and ANOVA confirming a statistically significant gap between academic curricula and industry HR expectations (F = 6.47, p = 0.0004), the findings reveal that while awareness is broadly positive, practical understanding remains insufficient. The study recommends strengthening industry-academia collaboration through internships, workshops, and curriculum modernisation to bridge this gap and enhance career readiness among students and freshers.