If you want to use induction, I assume you have checked the base case $n = 5$. To do the inductive step, assume that the statement holds for some $k$: $k^2 < 2^k$, and then under this assumption, you want to check that the statement holds for $k+1$: $(k+1)^2 < 2^{k+1}$. Well,
$$
(k+1)^2 = k^2 + 2k + 1 < 2^k + 2k + 1
$$
by the inductive hypothesis. When is $2^k + k + 1 < 2^{k+1}$. Well,
$$\begin{align}
2^k + k + 1 < 2^{k+1} &\iff k+1 < 2^{k+1} - 2^k
\\
&\iff k+1 < 2^k.
\end{align}$$
It is sufficient to show that $k+1 < 2^k$ for all $k \geq 5$. One way to do this is by induction. You can easily show the base case $5 + 1 < 2^5$. Now, assume that it holds for some $j \geq 5$, and we want to show that it also holds for $j+1$. Thus, we want to show that if $j+1 < 2^j$, then $(j+1) + 1 < 2^{j+1}$. This follows almost immediately since
$$
(j+1) + 1 < 2^j + 1 < 2^j + 2^j = 2^{j+1}
$$
You should note that the inequality $1 < 2^j$ is not true in general, but it is true for $j > 1$ (and in particular for $j \geq 5$). Thus, we have shown that $k+1 < 2^k$ for all $k \geq 5$, and this was precisely what we needed for the inductive step of the original proof.
It should be noted that induction is indeed not the easiest way to prove this inequality, but if we want to strictly use induction, then something like this proof (and the consequent proof of the statement $k+1 < 2^{k}$ for $k \geq 5$) is the way to go.
As a final note, to show what I mean about the easiest proof, as it was noted above, we have $n^2 < 2^n$ if and only if $\frac{\log n}{n} < \frac{\log 2}{2}$. Now, $f(x) = \frac{\log(x)}{x} \implies f'(x) = \frac{1 - \log x}{x^2} < 0$ when $x > e$. Thus, the function is strictly decreasing for $x > e$. Coupled with the fact that $f(x) \to 0$ as $x \to \infty$, it then suffices to find the first integer $t$ such that $\frac{\log t}{t} < \frac{\log 2}{2}$. This happens to be $t = 5$.
Added: Thomas' hint is a bit nicer than my own answer, as it requires only check the values for which $n^2 > 2n +1$ which can be done with basic algebra.