
Entry-level hiring is declining. What could go wrong?
Cutting entry-level roles may save costs today, but it endangers the development of future leaders and the skills organizations will urgently need....

by Katharina Lange Published February 5, 2026 in Talent ⢠4 min read
AI is taking on an increasing number of tasks previously carried out by humans. If repetitive work such as data entry, document classification and summarizing reports is not already the exclusive remit of AI in your business, the chances are it will be before long. Continual upgrading of the technology mean it will soon be equipped to undertake creative and analytical tasks too.
Despite doom-laden predictions about the impact of AI on employment, there will always be a need for humans to train, instruct and supervise AI. Doing this effectively, as well as verifying its output requires a high level of domain expertise and intangible knowledge. This is only acquired by observation which over time leads to the refined cognitive intuition that is needed to use the insights from AI appropriately.
Take barristers, for example. Many already, or will shortly, use AI-powered tools to research case law, draft skeleton arguments or index bundles of evidence. But in the moment, AI is not able to understand intuitively which arguments will resonate with a particular judge or jury. This is why it is hard to imagine a machine wearing a wig arguing a case inâŻcourt.

As businesses deploy AI more widely for repetitive tasks, executives are beginning to question the need for the current number of junior roles. Here lies danger. Entry-level roles offer an invaluable opportunity to develop expertise and intuition in a relatively low-pressure environment. Cutting junior staff today inevitably means losing domain expertise tomorrow. Whatâs more, it depletes the pipeline of future managers and executives. So, even if entry-level employees are no longer needed to conduct low-level tasks, itâs still worth investing in them to fulfil the future needs of the business.
CHROs should hire and structure entry-level roles in a way that maximizes their ability to build domain expertise. Rather than hiring junior staff into a specific job, it makes more sense to hire people that possess transferrable skills and provide work and learning experience in different departments. This allows them to gain an overview of the business, âconnect the dotsâ, and develop system thinking. Many large companies have already adopted this approach through graduate programs.
Respect goes both ways: younger employees should respect more experienced colleagues in their hierarchical position.
In times of instant gratification and narcissistic self-portrayal, humility is a rare quality. But it is crucial to building emotional, social and intellectual competence. Entry-level employees who are humble enough to know that they donât know are much more likely to learn than peers who overestimate their readiness for more senior roles.
Societal changes, combined with well-intentioned policies to flatten hierarchies and promote openness, may inadvertently discourage deferential attitudes toward more experienced colleagues.
Respect goes both ways: younger employees should respect more experienced colleagues in their hierarchical position. Executives in senior positions must provide learning opportunities for new starters and promote self-reflection and a desire to learn.
Leaders and managers can help this process by demonstrating humility and respect. CHROs should encourage executives and team leaders to establish psychological safety to learn and contribute without compromising accountability and the need to perform.
As AI goes mainstream, human domain knowledge and professional intuition should be used as a source of competitive advantage. Entry-level roles help young employees develop these capabilities. Cost savings that threaten these roles might come with an expensive bill later. CHROs should fight to preserve them, while also instilling a mindset of humility and respect that will allow new recruits to make the most of the opportunity they offer.

Affiliate Professor of Leadership
Katharina Lange is Affiliate Professor of Leadership at IMD. She specializes in self-leadership and cross-cultural team leadership in times of change. Before joining IMD, Katharina led the Office of Executive Development at Singapore Management University, where she directed Open Programs such as ALPINE (Asia Leaders Program in Infrastructure) and the J&J Hospital Management Program.

February 19, 2026 ⢠by Robert Hooijberg in Talent
Cutting entry-level roles may save costs today, but it endangers the development of future leaders and the skills organizations will urgently need....

February 16, 2026 ⢠by Zhike Lei in Talent
Some of Chinaâs most profitable companies have thrived by piling pressure on workers â sometimes with tragic results. Zhike Lei outlines how multinationals can design work that avoids burnout and exploitation. ...

January 27, 2026 ⢠by Ulrika Karnland, Katarina NorÊn in Talent
ABB Swedenâs 120-year-old graduate trainee program has survived wars, crises, and industry upheaval. What does its endurance reveal about building talent for the long term?...

January 22, 2026 ⢠by Shelley Zalis in Talent
Multigenerational teams bring competitive advantages. Itâs vital to tap into the wisdom and experience of older workers, urges Shelley Zalis....
Explore first person business intelligence from top minds curated for a global executive audience