As organizations rush
to adopt artificial intelligence, many are abandoning their support of
high-potential Gen Z workers. But when you fail to invest in young
professionals, you’re missing fresh perspectives that will drive results now and long into
the future.
Entry-level jobs
are disappearing, which means fewer spots for young professionals. Since 2023,
entry-level job postings in the U.S. have dropped 35%, according to labor research firm Revelio Labs. Two-fifths of global leaders reduced or cut entry-level roles last year
due to AI efficiencies. Another 43% plan to do the same this year.
The logic is
straightforward: In a tight economy, why pay for entry-level talent when
technology can handle routine tasks faster and cheaper? Why invest in an
unknown new hire, when you can invest in AI technology to help your experienced
professionals be twice as productive?
It makes sense to protect your current employees and help
them be more efficient. Your balance sheet improves, as does your quarterly
report to your shareholders, your board, and your
investors. But this is 90-day thinking, when
you need a five- or 10-year strategy.
The business landscape is changing so fast that continuing
the old way of thinking — even if you can do it twice as quickly — is business
suicide.
Young employees
are fearless and creative
To survive in this chaotic new economy, you need people
who can see a problem from different perspectives, with no preconceived notions
of how that problem should be solved. You need people who are comfortable with
technology and able to use a variety of AI tools to achieve their goals.
In organizations
I’ve led, the youngest members of our teams have consistently been the most creative.
They work for excellence, yet they have no fear when it comes to tough tasks. They
aren’t constrained by “that’s how we’ve always done it” thinking. The
combination of ambition, fearlessness and perspective leads to genuine innovation.
For example, one of the companies I’ve invested in had a problem
that several people had been working on for months. Their intern saw the issue,
watched a few videos on YouTube, and even though she’s not a programmer, used
Claude.ai to write a Python script to address the issue. She tested her program,
and in less than a week, she had found a workable solution.
This young professional had no historical knowledge of the
problem or what had been tried before. What she did have was an insatiable
curiosity, a different perspective, and a familiarity with various AI tools
that were available. The final ingredient was the company’s psychologically
safe culture, which encouraged anyone with a good idea to come forward, try it,
and test it.
The real
competitive advantage: Multigenerational teams
Here’s the catch:
Creativity only translates to business results when it’s channeled and
developed. A 20-year-old with a brilliant idea needs guidance from someone who
understands the business implications. They need mentorship from someone who’s
navigated organizational politics, managed competing priorities, and learned
what drives revenue.
The data backs
this up. Deloitte found that 76% of Gen Z uses generative AI tools—the highest rate of
any generation. This compares to 58% of Millennials, 36% of Gen Xers, and 20%
of baby boomers. In addition, a Randstad survey reported that 78% of global workers learn
soft skills from older colleagues. At the same time, 72% say they learn tech
and AI skills from Gen Z and Millennials.
The companies
that will win in an AI-powered economy aren’t the ones that cut junior talent.
They’re the ones that build multigenerational
teams — where Gen Z’s
creativity and AI fluency combines with experienced workers’ judgment and
institutional knowledge.
How leaders
should actually approach AI adoption
If you’re going
to adopt AI effectively, you need to think strategically about your workforce. Here’s
what that means:
Hire for cross-discipline
thinking. Leaders should be
hiring less for skills and more for broad
experience. The ideal candidate is someone who understands marketing a little
bit, product development a little bit, coding a little bit. People who are
curious and know how to use AI tools to accelerate their capabilities and
knowledge are going to be the new superstars in business.
Give appropriate
recognition and compensation for higher productivity. Employees
who master AI tools are going to be more productive than their peers. They’re
going to accomplish more in less time. If a young person is achieving more, recognize their effort, so you don’t lose
them to competitors.
Foster psychological safety so all voices are heard. Junior employees often have the best ideas about how to use AI because
they’re not constrained by “the way we’ve always done it.” But they won’t speak
up if they don’t feel safe. Create an environment where a 24-year-old can
challenge a 54-year-old’s approach without fear of retaliation.
Provide
actionable feedback and professional development. Junior employees need to understand not just
what to do, but why it matters. Adjust roles so they are contributing in meaningful ways, not just checking AI outputs. Give them
feedback and professional development opportunities to help them grow.
The strategic
choice
I’ll leave you
with one more fact: A Georgetown University study estimates
that 18.4 million experienced workers will retire by 2032. But only 13.8
million younger workers are entering the workforce with similar qualifications.
The gap between those two groups — 4.6 million people — is what Fast Company
describes as a “demographic time bomb.” That means a
lot of companies will be looking to fill crucial roles over the next few years.
Leaders who invest in Gen Z professionals today can take
advantage of their AI fluency and relentless curiosity to drive innovation. The
resulting multigenerational teams will amplify professional growth, engagement,
and business objectives. These future-focused organizations will also have a
robust talent pipeline when their competitors are scrambling to catch up.
Cutting
entry-level jobs isn’t a sustainable workforce strategy. It’s a short-term
decision with long-term consequences, because investing in young people is the
only approach that wins over time. That’s why I’m spending more time
on college campuses, looking for young people who will propel my businesses
into the future.
About
the Author
Donald Thompson is Managing
Director of the Workplace Options Center for Organizational Effectiveness, host
of the High Octane
Leadership podcast, and author of The
Employee Engagement Handbook.