Source: Fortune.com
Summary
According to a study by Harvard Business School and INSEAD, AI-native start-ups are building smaller teams with fewer entry-level workers, instead opting for more senior employees. These companies employ around 15% fewer entry-level workers than conventional start-ups and have a higher share of senior employees. The study also found that AI-native start-ups are more likely to employ workers with advanced degrees and from prestigious employers and institutions. The findings suggest that young talent is being overlooked in the AI era, with entry-level workers being squeezed out of the job market. The percentage of Gen Z workers at tech companies has halved in just two years, with the average age of a worker at a tech company rising dramatically.
Our Reading
The numbers tell one story.
AI-native start-ups are favoring senior employees over entry-level workers, with 15% fewer entry-level workers than conventional start-ups. The share of senior employees is 20% higher, and the share of engineers is 13% higher. These companies are raising more capital per employee and carrying higher valuations per employee. The trend is squeezing out young talent, with the percentage of Gen Z workers at tech companies halving in just two years. The average age of a worker at a tech company is rising, with older and more experienced workers dominating the industry.
It’s a tale of two cities, where 22-year-old Excel junkies are being disrupted, but 40-year-old established professionals are thriving.
Author: Evan Null
