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Chief executives must invest more in developing staff and creating future leaders as artificial intelligence reshapes traditional career paths, delegates at the World Retail Congress in Berlin heard on Wednesday.

Speaking during a panel on how technology is changing the traditional career ladder, Norm Yustin, Managing Director and Partner Global Retail Practice Lead at Russell Reynolds Associates, said succession planning should be a top priority for leaders.

“One of the best things you can do as a CEO is create a successor,” said Yustin, who chaired the discussion. He warned that advances in technologies such as generative AI are resulting in fewer entry-level hires and reducing opportunities for employees to gain “horizontal experience” across organisations.

“We are working with boards and CEOs to get back into rotations to take the risks on people,” said Yustin. “This is less of a risk than not having a successor. The lesson to take away today is take those risks.”

Panellists said broader changes in the labour market were also making it harder to build the next generation of senior leaders.

“The problem is that in the past people were getting into a job and thinking of it as a long-term career,” said Hani Weiss, Chief Executive of Max Fashion at Landmark Group.

“They really stuck to the business, they liked to grow and they thought of it as the only career they have. The younger generation has a completely different way of thinking about the business. If they don’t get a promotion quickly… they leave.”

Weiss said companies need to create clearer pathways for talent, pointing to initiatives such as ‘CEO Connect’, where he regularly meets employees looking to progress. “People are very hungry to learn,” Weiss said.

Tjeerd Jegen, CEO of B&M, said there were “less apprenticeships and less opportunities” for people “to get into a company to demonstrate you can excel and then move on”.

“I think moving on is more difficult as companies are reducing layers,” he said.

The panel also talked about employees being allowed to try things - and even fail at times - was necessary.

“You need to give people the time, the days and the months to learn from mistakes and improve,” said Jegen. “That’s where the funnel is missing.”

“You need to create a culture where people are really empowered and create safety where people know it’s okay to make mistakes,” added Weiss.