Why business leaders must rebuild the first rung of the career ladder

Much has been written about whether AI will replace graduate jobs. It’s an important debate that deserves serious attention but from where I sit as a CEO, I believe we’re at risk of focusing on the symptom rather than the cause.

The challenge facing young people entering the workforce began long before generative AI arrived. Over the last decade, many of the traditional pathways into employment have gradually disappeared. Work experience became harder to secure, apprenticeships and graduate schemes became more selective, informal mentoring reduced and as hybrid working became the norm, many of the everyday opportunities to learn by observation started to fade away. The result is a generation of talented young people finding it increasingly difficult to get a foot on the ladder.

The statistics are concerning. Nearly one million young people in the UK are now not in education, employment or training, while graduate vacancies have fallen sharply. But behind the numbers is a more fundamental question: if businesses are not creating opportunities for people to gain experience, where exactly are they supposed to get it?

As leaders, we need to acknowledge our role in creating this challenge and, more importantly, in solving it.

Experience has become the new barrier to entry 

Across many sectors, hiring has become increasingly focused on reducing risk.

When teams are stretched and productivity is under pressure, it is understandable that managers gravitate towards candidates who can arrive and make an immediate impact. The unintended consequence, however, is that organisations increasingly recruit for experience rather than potential. I see this across the market. We are asking candidates for evidence of skills they have never been given the opportunity to develop.

At the same time, hybrid working has changed how learning happens. Early in many of our careers, we learned by sitting alongside experienced colleagues, watching how they handled difficult conversations, understanding the dynamics of meetings, and absorbing the unwritten rules of professional life.

These moments rarely appeared in a job description, but they were often the experiences that accelerated development the most. Today’s workplace offers flexibility and many advantages, but it also requires us to be far more intentional about how we help early-career employees learn and grow.

Building talent rather than buying it 

One of the contradictions I see in business today is that organisations frequently talk about skills shortages while simultaneously reducing investment in developing new talent. Too often, companies compete for a limited pool of experienced people rather than helping create the next generation of professionals. That mindset must change.

Businesses should not think of entry-level hiring as a charitable act or a social responsibility initiative, it’s a strategic investment in their future workforce. The organisations that succeed over the next decade will not simply be those that attract the best talent, they will be those that consistently build it. That means redesigning entry-level opportunities around what young people can genuinely bring to the table: curiosity, adaptability, energy, fresh perspectives and a willingness to learn. 

We should not expect someone in their first professional role to possess the same polish, confidence or commercial judgement as someone five years into their career. Our job is to help them get there.

Mentoring matters more than ever 

Throughout my career, I have benefited enormously from people who were willing to invest their time, share their experience and provide honest feedback. That sort of support can be transformational. One of the most practical actions businesses can take is to create structured mentoring programmes that connect younger employees with experienced colleagues. The benefits are significant for both individuals and organisations.

Mentoring accelerates learning, builds confidence and helps people navigate challenges that can otherwise feel overwhelming when you’re new to the workplace. Equally important is providing regular feedback and recognition. In many organisations, performance conversations remain too infrequent and too formal. For someone early in their career, waiting six or twelve months to understand whether they are progressing is simply too long.

People develop faster when expectations are clear, feedback is timely and achievements are recognised. Small moments of encouragement can have an outsized impact on confidence, engagement and performance.

Leadership starts with opportunity 

The conversation about AI and the future of work will continue but we don’t need to wait for every technological uncertainty to be resolved before taking action.

The reality is that many of the solutions are already available to us. We can hire for potential, we can invest in structured onboarding, we can provide mentoring, we can create clearer pathways for progression and most importantly, we can stop treating talent development as someone else’s responsibility.

As business leaders, we often talk about building the leaders of tomorrow. The truth is that tomorrow’s leaders are looking for their first opportunity today. If we want a stronger workforce, a more productive economy and a healthier talent pipeline, we need to rebuild the first rung of the career ladder.

The businesses that do so won’t just create more opportunities for young people. They’ll create a sustainable competitive advantage for themselves. Because in a market where everyone is searching for ready-made talent, the organisations willing to develop it will always stand apart.