Leadership crisis: Gen Z isn’t opting out, they’re opting for change
Recent research indicates Generation Z's significant lack of interest in leadership roles. According to Harvard career consultant Gorick Ng, who interviewed hundreds of young people worldwide, less than 2% of this generation aspires to climb the corporate hierarchy. A study by Visier’s People Analytics platform with 1,000 respondents revealed that only 38% are interested in becoming managers.
This trend is a wake-up call for Human Resources departments and organizational leaders, as succession planning is crucial for business sustainability. The key question is why this generation hesitates to take on leadership roles despite being highly motivated by autonomy, entrepreneurship, and opportunities for creation and innovation—characteristics inherent to leadership.
The question remains: do they not want to lead or simply don't identify with current leadership models?
Characteristics and motivations of Generation Z
Each generation is shaped by the historical, economic, and social context in which it grew up. Generation Z (born between 1997 and 2012) consists of digital natives accustomed to technology, social media, and new ways of consuming content. They are highly connected and absorb information quickly, but they also have a lower tolerance for frustration and boredom.
While previous generations viewed work as a means of ensuring survival and financial security, Generation Z has the privilege of broader career choices. Easy access to information, globalization, the possibility of autonomous careers, and support from previous generations have contributed to this shift.
As a result, this generation seeks jobs that align with their values and motivations, such as openness to diversity, social responsibility, sustainability, and well-being. For them, work must have a purpose and create a positive impact.
The misalignment between Generation Z and current leadership
Analysing the values and expectations of the new generation reveals a disconnect from traditional leadership models. Management is often seen as an overwhelming, undervalued role with little work-life balance. Among the main challenges faced by managers are:
- An accumulation of responsibilities, ranging from team management and performance indicators to the implementation of numerous organizational initiatives;
- Resource constraints and increasing pressure for results;
- Lack of autonomy due to hierarchical and bureaucratic structures;
- Excessive workload and emotional strain without corresponding financial rewards.
With the growing appreciation for technical careers and the 'Y' career structure—which allows for professional growth without needing leadership roles—many young people choose career paths that do not involve managing teams.
In other words, the leadership models that Generation Z observes today do not inspire them to take on these roles in the future.
What does the future of management look like?
To ensure business continuity and attract talent to leadership, it is essential to rethink management models, focusing on developing more inspiring leadership. Companies should invest in skills development aligned with Generation Z’s expectations, such as:
- Future vision and purpose: Leaders should act more consciously and inspiringly, promoting sustainable and socially responsible initiatives.
- Delegation and empowerment: Less control and more autonomy. Generation Z values active participation in challenging and innovative projects.
- Empathy and conflict management: Creating inclusive environments where different perspectives are respected, and conflicts are seen as opportunities for growth.
- Feedback and development: The leader’s role should go beyond process management and focus on employees’ professional growth.
- Diversity and inclusion: Ensuring a psychologically safe environment where everyone can express themselves freely and feel a sense of belonging.
Organizations need to develop leaders who manage teams and inspire and connect their actions to a greater purpose. Only then will Generation Z see leadership as an attractive path, turning it into a viable career option and ensuring the sustainability of businesses.
This article was written for the blog of Cegoc in Portugal.
