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Cutting graduate roles risks future leadership pipeline, report finds

CEMS found that while AI was changing entry-level work, graduate roles remain important for developing employees' judgement and leadership skills.

Cutting graduate roles risks future leadership pipeline, report finds
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Companies that reduce graduate recruitment in favour of artificial intelligence (AI) risk weakening their future leadership pipeline, a report from CEMS found.

It’s report, ‘The Missing Rung? AI and the Future of Entry-Level Work’, drew on research and interviews with students in more than 20 countries, alongside contributions from corporate partners and academics.

It found that while AI was changing entry-level work, graduate roles remain important for developing employees’ judgement, responsibility and leadership skills.

The report argued that graduates could also support employers’ adoption of AI, as experience with the latest technology remained relatively limited across organisations.

Nicole de Fontaines, executive director of CEMS, said: “Entry-level roles are far more than a way of getting work done.

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“They are where young people learn judgement, responsibility and how to lead across cultures, and where a company’s values are passed from one generation to the next.

“Companies that continue to hire and develop graduates are not simply filling vacancies. They are investing in the people, and the culture, on which their long-term success depends.

“Responsible, innovative, globally minded future leaders are not hired ready-made. They are grown, through the real-world experience that entry-level roles provide.”

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Contributors said the “bottom rung” of the career ladder was changing rather than disappearing, with routine tasks such as drafting, data gathering and initial analysis increasingly being absorbed into AI-supported workflows.

The report said this could create opportunities for graduates to contribute more meaningfully earlier in their careers and become workplace experts in emerging AI tools.

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It also argued that using AI was increasingly becoming a baseline expectation for graduates, with candidates needing to demonstrate their ability to combine tools and apply them to practical problems.

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Frank Steinert, global head of HR regions at Henkel, said: “If you go to the extreme and say you are not hiring entry-level positions, you may have created a significant risk for future growth.

“A few years down the road, the natural progression of your leadership pipeline breaks down, and that also damages the company culture you built up diligently over years or decades.”

The report also called on universities and business schools to embed AI into teaching and assessment while ensuring students’ individual reasoning and judgement remained visible.

de Fontaines added: “The tough graduate job market is not a myth, and we do not pretend otherwise.

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“It is genuinely challenging for students moving into the workplace right now, with some roles likely to disappear as AI reshapes work against a difficult economic and geopolitical backdrop.

“Yet the fuller picture is far from the one in which every junior role vanishes.

“The bottom rung, our contributors told us, is not missing in many cases so much as changing shape.

“That is a real opportunity for ambitious graduates to contribute more meaningfully, and earlier in their careers, than ever before – something we know from our previous research that they have craved for many years.”