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CNBC
3 days ago
- Business
- CNBC
AI is radically changing entry-level jobs, but not eliminating them
The ongoing rise of artificial intelligence is having a significant impact on many types of jobs, particularly entry-level positions and especially on roles that involve lots of automation. And while AI might not be eliminating a large percentage of early career jobs, as recent headlines have proclaimed, it certainly is changing them in a big way. "AI is reshaping entry-level roles by automating routine, manual tasks," said Fawad Bajwa, global AI, data, and analytics practice leader at executive search and leadership advisory firm Russell Reynolds Associates. "Instead of drafting emails, cleaning basic data, or coordinating meeting schedules, early-career professionals have begun curating AI-enabled outputs and applying judgment." For example, people working in entry-level marketing jobs are using generative AI to create first drafts of promotional or campaign documents, and early career data analysts are relying on AI to prepare datasets, Bajwa said. "AI is reshaping all jobs," said Zanele Munyikwa, an economist at labor analytics firm Revelio Labs. He pointed out that hiring for entry-level jobs is down in general, regardless of AI exposure. "AI-exposed entry-level jobs are seeing bigger drops in demand, but the difference to non-exposed jobs is small," he said. What AI is doing is forcing an "occupational transformation" among entry-level roles, Munyikwa said. For example, the firm's research has shown that tasks performed by junior-level professionals are shifting toward less AI-exposed functions. The most AI-exposed jobs tend to be technical, such as data engineers, database administrators, IT specialists, and cybersecurity personnel, as well as financial workers such as auditors, Munyikwa said. And in an interesting twist, the most exposed jobs are also adopting AI the most, making them more productive, he said. In some of these occupations, up to 30% of workers are already using AI to perform their day-to-day tasks, according to Revelio Labs' research, and for those who use these tools, the productivity gains can be significant. "Increases in productivity may eventually lead to fewer headcounts in certain job families, but also create jobs elsewhere," Munyikwa said. "While AI may currently have some productivity boosting capabilities, it needs to be applied and used consistently across large parts of the organization to take effect." That requires investments in AI tool training and thoughtful restructuring of job requirements and capabilities, Munyikwa said. "This will take a lot of time and careful leadership to even partially achieve big cost savings," he said. Jobs with low AI exposure frequently involve tasks that are difficult to automate, the Revelio Labs' research noted. These positions include manual jobs in manufacturing, hospitality roles, or interpersonal work, which still require a steady pipeline of human workers. Compared with 2010, demand for these roles has grown more quickly than for high-exposure roles, the research said. To be sure, AI is already eliminating some entry-level functions in companies. "Generally, jobs that are repetitive, rule-based, and easily codified are most at risk," Bajwa said. Many are not disappearing overnight but rather are being fundamentally transformed and restructured to involve more oversight and less manual work, he said. Although it is highly unlikely that there would be a significant impact on entry-level jobs in the short term, Bajwa said, "organizations must redesign how early talent is onboarded, developed, and integrated in order to navigate the decade ahead," he said. "Without foundational tasks, it's harder for people to build experience, leading to a fundamental gap in terms of how new professionals will build judgment, confidence and fluency." In fact, 54% of the 3,000 executives from Russell Reynolds' global network that the company surveyed are concerned that AI reliance is eroding critical thinking, and one-quarter are worried about AI inadvertently undermining product/service quality and critical internal process quality. A growing number of leaders across industries are also concerned about AI-driven layoffs, according to the RRA research. Last year 20% said they were concerned, compared with 40%in the latest survey. CIOs and other technology leaders need to be prepared for the impact of AI on current and future entry-level jobs within their departments, especially considering how aggressively many are launching AI initiatives. "It changes both talent strategy and team design," Bajwa said. "Tech leaders must now rethink how they develop junior talent and build future pipelines. The goal isn't just efficiency; it's ensuring AI-augmented teams can still grow, learn and lead," he said. With the possible reduction in some entry-level technology positions, there is a potential for more top-heavy team structures, Muniykwa said. "Tech leaders need to redesign workflows and roles as they implement AI," he said. Businesses will need new "on-ramps", for example, apprenticeships and AI-assisted boot camps, so early-career talent can still learn and advance even as some traditional entry-level tasks disappear, Munyikwa said. "Leaders must plan for continuous upskilling, not one-off training sessions, to keep teams productive alongside rapidly evolving AI tools," he said.
Newsweek
18-07-2025
- Business
- Newsweek
Why Are So Few Women in Tech Leadership?
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Reaching equitable gender representation has remained an elusive challenge in the tech world. Despite decades of promises to make the world a better place and democratize opportunity, the tech establishment and its investors have not delivered. Just 3 percent of venture capital investment in 2024 went to solely women-owned businesses, and just 26 percent of the Financial Times Stock Exchange 100 Index CTO or CIO positions are held by women, according to a 2024 analysis by Russell Reynolds Associates. "The main issue, I think, is unconscious bias," Francine Gordon, management professor at Santa Clara University's Leavey School of Business, told Newsweek. "I think that has a lot to do with why women in tech tend to leave. ... They don't see upward mobility, and a lot of that is because of unconscious bias." She added that these biases affect key career moments such as hiring, performance reviews, promotion conversations, leadership searches and investor pitches. The tech industry has long viewed itself as different from the business titans of yesteryear. After the dot-com boom and bust, optimism soared around the ability to rapidly share information and work more productively, thanks to software, the cloud and, later, augmented or virtual reality, machine-learning and generative AI. This optimism drove heavy investments and high salaries and birthed a new culture, headquartered in Silicon Valley, with profits soaring as the world evolved from analog to digital. With great profits came job security, prestige and hefty compensation packages, driving glamorization of STEM fields to students and early-career professionals. But it has also driven exclusivity. Alongside this push, women were encouraged into science and technology fields, through programs like Girls Who Code, or into entrepreneurship, by funds like Anu Duggal's Female Founders Fund or Jesse Draper's Halogen Ventures, but those efforts have been overshadowed by a persistent inequity driven by societal, organizational and financial pressures, according to recent research. Larger workforce inequality in tech and startups and tech's failure to be a meritocracy play strong roles in the lack of gender equity and female leadership in tech. Larger workforce inequality in tech and startups and tech's failure to be a meritocracy play strong roles in the lack of gender equity and female leadership in tech. Newsweek Illustration/Canva/Getty A 2024 survey of women working in tech by Web Summit found that 50 percent of women reported experiencing sexism in the workplace, while half of women (49 percent) also feel pressured to choose between family and career. "Respondents identified unconscious gender bias, balancing career and personal life, the scarcity of female role models, imposter syndrome, lack of support networks, and difficulties in funding as their most significant challenges," the report stated. Institutional Bias and Support After completing her Ph.D. in organizational behavior at Yale, Gordon was part of the first "wave" of two female faculty members at Stanford University's business school. When they started in 1972, she said, it was a "very hostile environment," adding that her lone female colleague, Myra Strober, had people walking out of her classes because they didn't want to be taught by a woman or hear women's ideas. Gordon also recalled that office secretaries had to be reassigned because some didn't want to work for her, highlighting how even women can internalize bias. Through the struggle, she learned the importance of friends and allies at work. "I don't think people meant it to be hostile, but it really was. [Strober] and I became very good friends," Gordon said. "If you're the only one, it's very hard to succeed. Everybody's watching you, and you also have the sense of, "If I don't do well, everybody's going to think all women are bad." Gordon later worked in management roles at Pacific Bell, Ungermann-Bass and Boston Consulting Group before starting a consulting firm called Womennovation. She emphasized the importance of mentorship and sponsorship in the advancement of women's careers in tech. An article in a 1992 issue of Stanford Business magazine quotes Strober saying that with a supportive dean in place at the school, "[women] began to apply in large numbers. ... It was difficult for many of our male colleagues to understand that we were the beginning of a social revolution. I'm not sure that we understood it ourselves!" Gordon notes that "things are much better now," though a slight reversal has occurred over the last few years, amid a new presidential administration and its high-profile collaborations with the tech industry. "People are more resentful of women who have advanced," she adds, noting that DEI has come under a microscope as part of a multiyear advocacy movement. "There's been an increase in attacks on people who are different, and it's really widespread. Everyone thinks California is so liberal; we have a lot of hate groups here, too, and I think it's been encouraged to some extent." Gordon also mentioned concern around seeing well-known leaders making public commentary that is anti-woman, anti-immigrant and anti-LGBTQ, contributing to a culture that skews toward labeling anyone in an out-group as inherently unqualified. Melissa Faulkner, CIO at the global construction company Skanska, points to strong mentorship and a culture of diverse leadership that allowed her to reach the CIO post in 2021. "I've been fortunate to have a lot of incredible mentors during my time here at Skanska and even previously," Faulkner told Newsweek. "We're a servant leadership company. We have a lot of empathy and are really focused on empowering teams." Faulkner also noted her company's strong female presence in leadership as an indicator of an inclusive culture. "Our executive leadership team is made up of more than 50 percent women. ... We have strategic operational leadership, where there's women running our business and running P&L. So I do feel like Skanska is a place to be celebrated for how women have been able to stand in leadership positions." Tracking the Data Without proper measurement, many companies are likely to be in the dark about the state of gender equity within their own companies. Financial consulting firm Grant Thornton has recommended tracking turnover data by gender, finding in 2024 that just 22 percent of tech companies do so, and keeping close tabs on pay equity as well. However, representation itself should not be the lone goal, as Mary A. Armstrong and Susan L. Averett, professors at Lafayette College, wrote in a paper that bore the book Disparate Measures: The Intersectional Economics of Women in STEM Work. "They're partial solutions," Armstrong said in an interview on a New Books Network podcast. "Part of the true lies of STEM is that we let ourselves imagine that opportunity and access or the power of diversity ... [are] complete solutions, but they're not. They're only partial solutions. They matter, but they don't correct the larger system that disadvantages women in the labor force, including in the STEM and STEM-related workforce." Disparate Measures also asserts that it is a myth that women do not seek STEM roles or leadership and that by simply encouraging them to enter the utopian techno-meritocracy that lives in the minds of tech investors and leaders, we can meaningfully address gender equality. Faulkner shared a similar thought as well. "We've always been interested in technology, but now there's a visibility component where there wasn't before," she said. Faulkner also noted that it wasn't as much about knowledge or access as it was those early STEM environments, such as science and math classes and extracurriculars in school as well as entry-level jobs. "Knowing that's a role and a place that they can have a career starts really early in education. ... For so long, it really wasn't a very inclusive environment where women who were interested were welcomed, if you will, into technology. That has really changed a lot, but it starts early on," she said. Armstrong and Averett's book highlights, among other challenges, difficulties in finding reliable data across time, the lack of parental support in the United States and unequal treatment of women as well as immigrants and people of color as the vectors for ongoing inequality in STEM. "Often we discuss STEM jobs as if they are some sort of magic set of occupations that live in the ether and function in a way that is entirely distinct from the rest of the labor force," Armstrong, a gender studies professor, said. "We are perhaps in a habit of pretending that STEM work is not wired into all the other systems of inequality that shape society. [But] STEM work is not exempt from these dynamics." The category of STEM-related work—roles like nurse or health care technician that require high levels of skill and certification but are not considered "core STEM" roles like those in engineering—Armstrong and Averett note, has strong female representation but is also correlated to lower earning potential, effectively segmenting women out of the higher-earning fields. "[STEM-related jobs] are diverse in training and technical demands, but they're often omitted from policy research discussions," Averett, an economics professor, said. "It turns out women in STEM-related work are potentially concentrated in lower-paid roles, which reflects persistent patterns of occupational segregation." So, while many of the issues of inequality persistent in tech are persistent in society writ large, the tech industry benefits from certain protections—such as idealism and sky-high profits—that have allowed it to propagate inequality, both socially and within its workplaces. Unless societal issues are addressed, working in tech or STEM will be like working in any other field, or maybe worse if concentrated power goes unchecked—it's not the utopian meritocracy that many believe it to be.
Mint
18-07-2025
- Business
- Mint
Headhunters tell firms to get real, no 'Purple Squirrel' around
Top executive search firms are now pushing back against unrealistic hiring mandates from clients, warning that their dream 100% match or a 'purple squirrel", a candidate who ticks every box, simply does not exist in today's opaque and volatile job market. Instead, they are urging companies to accept strong 70% matches or risk long delays and costly dropouts. The demand is for a young leader equipped with in-depth knowledge of the latest digital skillsets and cross-functional experience, one who can weather all storms and drive the firm in poor visibility. But such a perfect candidate does not exist. Pranshu Upadhyay, regional director at global executive search firm Michael Page, says it upfront: a recruitment partner 'can match talent and not create it". 'In 6 out of 10 cases, we consult clients on what's available and what's not. In complex roles, a 70% match is a good fit. Otherwise, the hunt for purple squirrels remains on diluting the position further in the relevant candidate pool - being opened for four to six plus months," Upadhyay told Mint. The headhunters, those who prowl for CXOs and a level below, have noticed that companies are combining job descriptions to create a mandate that does not exist in the market. For instance, said the regional director of Michael Page said, a company may ask for a candidate with a large language model (LLM) experience of over five years. But since LLMs—used in artificial intelligence (AI) chatbots—arrived in India only two-three years ago, it is difficult to find someone with this tenure, 'unless they are targeting Silicon Valley for the talent". Over the past couple of years, CXO talent hunt has witnessed a yo-yo. On an overdrive in 2021 and a large part of 2022, the job market froze after companies realized that they had overhired. Indian firms mirrored global layoffs in IT and the startup sector, and then hiring expanded again in 2024. But it has not gathered the same momentum. The crises in West Asia and realigning of businesses as companies tighten their belts and measure the impact of AI on workflows have brought in a lot of hesitancy in the job market. The ongoing trade war, along with its domino effect on economies, has brought about opaqueness in what lies a few quarters down the line. Companies are taking up to six months to take recruitment calls and candidates are also turning hesitant. The fear that the last man in will be the first man out has set in. And, therefore, the talent search firms are strongly nudging clients to dial down their expectations. 'We are hired to find the best in the talent market. But like there is no perfect job, there is no perfect candidate. As leadership advisers, we consult and advise clients on attributes that are 'must have' and those which are 'good to have', and what are the acceptable tradeoffs," said Pankaj Arora, managing director at global executive search firm Russell Reynolds Associates. For Russell Reynolds, the advisory role increases for the "first-time clients" till the rhythm sets in. 'Companies in new-age sectors are more open to experiment since they know talent is scarce in their sector than in the established sectors facing some headwinds, who may have a lesser risk appetite," noted Arora. A search firm represented by headhunters looks at hiring CXOs or top-level executives. Then, there are recruitment companies that place junior and middle management executives. And finally, the hiring industry has staffing firms, which provide the third-party workforce, where the employee works for a firm but is on the payroll of the hiring vendor. While there is a flat fee structure for staffing and recruitment firms, the executive search sector gets its fees in tranches. A part of it comes in when the mandate is given, a part when a certain number of candidates are shortlisted, the third when an offer is made and accepted, and the final tranche sets in when the selected CXO completes three to six months in the firm. Therefore, delays in shortlisting candidates hurt the search firms' books. Agamjeet Dang, chief executive officer for search firm Executive Access India, sits with the client's hiring team to discuss the top three parameters that the candidate must have. 'Over the last 18-24 months, the search industry has seen an increase in failure rates, where the briefs led to long-drawn multiple hunts. About 60% of the clients are open to pushback, but many search firms do not say no, fearing the client will go away". Ultimately, the delays, multiple cross-checks and hesitancy from Indian companies are also leading to an increase in dropouts. Some search firms have noted a 20% increase in CXO dropouts after accepting the offer in the past year, and the whole process has to start again. Many companies are taking to accommodation. According to the HR head of a Mumbai-based mid-tier finance firm, they have decided to accept a candidate who matches 70% of the job profile. But the reason behind the strategy is different. 'We are open to candidates who may not have the exact qualities but can be groomed," the HR head said. "Hence, they are put in the succession pipeline and the skillsets that they do not have are honed."
Harvard Business Review
02-07-2025
- Business
- Harvard Business Review
The Right Way to Step Down as CEO
Details Transcript When news breaks of a CEO succession, much of the attention is given to the new leader and how they will change the company. But new research shows that the leave-taking process of the outgoing chief executive is often mishandled, with negative impacts on succession and the organization. Rebecca Slan Jerusalim, an executive director at Russell Reynolds Associates, and Navio Kwok, a leadership advisor at RRA, say that boards are often surprised when a CEO gives notice, and they often make that person feel excluded during the handoff process. The researchers share stories from the front lines about CEO psychology, best practices for outgoing leaders and their boards, and broader lessons for effective transitions. Jerusalim and Kwok wrote the HBR article ' The Vital Role of the Outgoing CEO.' Key episode topics include: leadership transitions, succession planning, leadership, managing uncertainty, corporate communications, boards
Yahoo
17-06-2025
- Business
- Yahoo
Russell Reynolds Associates Introduces Strategy Decode and Activation to Address the Leadership Gap in Business Transformation
New advisory offering focuses on leadership-led solutions to solve transformation challenges NEW YORK, June 17, 2025 /PRNewswire/ -- Russell Reynolds Associates (RRA), the leading global leadership advisory firm, today announced the launch of Strategy Decode and Activation, a distinctive advisory capability that positions CEO and C-suite leadership as the central driver of successful business transformation. The new capability addresses a critical market need, as research shows 75% of business transformation efforts fail, primarily due to leadership execution gaps rather than strategic design flaws. This launch comes at a time of unprecedented urgency, as organizations grapple with rapid technological shifts, evolving market dynamics and the imperative to transform faster than ever before. "RRA has been at the forefront of helping the world's largest organizations solve their most pressing leadership issues for decades," said Constantine Alexandrakis, CEO of RRA. "Today, transformation is at the forefront of those challenges. Strategy Decode and Activation is our direct response, providing the hands-on, leadership-centric guidance our clients need to navigate and succeed in this era of constant change." The strategy execution divide Organizations consistently face the same fundamental dilemma: understanding the "why" and "what" of strategic change while struggling with the "how" and "who" of implementation. Below are five key challenges identified in detail by RRA's H1 2025 Global Leadership Monitor: Adapting to continuous change: Only 47% of CEOs proactively anticipate change and strategically plan transformation with long-term outcomes Strategy and strategic leadership disconnect: Organizations separate strategy-making from strategy-doing Evolution of leadership practice: Traditional command-and-control leadership no longer works in today's pace of change Gen AI readiness: While 82% of leaders agree Gen AI skills are essential for C-suite success, only 41% feel confident implementing it effectively Shifting to enterprise leadership: Moving beyond hub-and-spoke systems to collaborative, cross-functional leadership models RRA's Strategy Decode and Activation approach recognizes that even the most comprehensive transformation vision fails without leaders who can decode complex change, align teams around new directions, and sustain momentum through inevitable resistance. "Great strategy requires clear choices that realistically connect enterprise aspirations and capabilities," said Bob Marcus, a transformation advisor at RRA. "We work alongside executive teams to transform and expand the leadership and organizational capabilities required for their strategy to produce the intended results." RRA helps organizations develop the leadership capabilities needed to drive successful transformation and answer critical questions that determine transformation success, including: Which leaders have the transformation capabilities needed, and where are the critical gaps? How do leaders ensure their teams can navigate significant change? What leadership behaviors and decision-making processes accelerate transformation progress? How do organizations create alignment around their transformation vision without losing momentum? Expert leadership team The Strategy Decode and Activation is led by eight key transformation advisors with decades of combined experience in developing efficient change strategies for leading global organizations: David Lange, Global Development Capability Lead, Chicago: Brings 25+ years of experience in global executive development and culture transformation Bob Marcus, Managing Director, New York: Specializes in working with first-time CEOs and emerging leaders on change strategies and culture evolution David Mills, Managing Director, London: Focuses on leadership transformation for communications and technology companies Hetty Pye, Managing Director, London: Advises multi-national clients through leadership-led transformation and co-leads RRA Artemis, a CEO leadership accelerator program Sean Dineen, Managing Director, Boston: Partners with organizations to increase executive team potential and performance, with particular focus on financial services Alain Ishak, Managing Director, Montreal: Leads transformation advisory projects for multi-nationals across the globe Marie-Osmonde de Lanauze, Paris: Develops leadership-led transformation initiatives for clients with a focus on CEO leadership development. Nicholas Anderson, Hong Kong: Partners with CEOs globally to accelerate strategy execution and transformation leveraging leadership, teams and culture. Market impact and availability The Strategy Decode and Activation capability is available immediately to organizations across all industries and geographies. RRA's collaborative approach ensures transformations succeed because leaders truly own and can execute them, creating lasting change that becomes part of organizational DNA. RRA equips leaders to drive the urgent, impactful transformations essential for thriving in today's dynamic landscape. About Russell Reynolds Associates Russell Reynolds Associates is a global leadership advisory firm that helps organizations build adaptive leadership capabilities and unlock their potential for growth. We use our global network and deep insights to provide executive search, leadership assessment, and development advisory services across all industries and geographies. For more information about Strategy Decode and Activation, visit Media Contact Russell Reynolds Associates Amy Scissons Chief Marketing & Communications Officer View original content to download multimedia: SOURCE Russell Reynolds Associates Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
