Gen Z is prioritizing mental well-being over career advancement, often avoiding management roles to maintain a better work-life balance. This contrasts with previous generations' approaches, with Boomers favoring hierarchical structures and Millennials reluctantly taking on leadership positions. Research shows Gen Z is 1.7 times more likely than previous generations to avoid management to protect their well-being.
Experts highlight Gen Z's focus on autonomy, flexibility, and social responsibility in the workplace. They are more motivated by work that feels meaningful than simply high pay. While dedicated, they won't overwork themselves or others, prioritizing efficiency over long hours.
This shift presents a challenge for businesses, as Gen Z is projected to make up 30% of the workforce by 2030. To retain this generation, companies need to adapt their leadership models, fostering a more supportive and engaging work environment, offering flexibility, and prioritizing employee well-being. Failure to adapt may lead to difficulties in attracting and retaining talent.
This change requires businesses to move away from the traditional “hustle culture” and embrace Gen Z's preferences. Those organizations that successfully adapt will thrive, while those that fail to do so will struggle to attract and retain employees.
As the oldest Gen Zers approach their 30s, they're taking a Gwenyth Paltrow approach to work: Instead of "consciously uncoupling" from their spouses, workplace culture experts say they're "conscious unbossing" at the office.
Gen Z prefers to avoid leadership roles at work in favor of a better work-life balance. And this preference should be a wake-up call for corporate leaders who need to develop the next generation of leaders to keep their businesses running.
Boomers have traditionally preferred a hierarchical leadership style and stayed in one workplace for many years. Gen X bridged the gap between boomers and millennials, with a slightly flatter corporate structure and more autonomous work styles, and millennials, who prioritize collaboration, will take on leadership roles — albeit reluctantly.
Gen Z is 1.7 times more likely than previous generations "to avoid management roles to protect their well-being," according to research by the management consulting company Development Dimensions International.
"They're really asking better questions that I think we've all silently been asking for decades," Megan Dalla-Camina, founder and CEO of the leadership development program Women Rising, told BI of Gen Z. "But they're very open about redefining power models and where they find their purpose, and particularly good at prioritizing their mental well-being. They're just not willing to compromise their life to fit into these outdated leadership models."
And who can blame them? Business Insider previously reported that managers are overwhelmed, their roles are increasingly targeted for cuts, and many younger workers find the pay isn't worth the stress of supervising others.
"I think what they're doing is taking a step back to see how they can actually create lifelong employment and professional growth that is sustainable, because I think there has been such high frequency and prevalence of burnout," Julie Lee, a Boston-based clinical psychologist specializing in supporting Gen Z professionals and co-president of Harvard Alumni for Mental Health, told BI.
Kathryn Landis, an executive coach and New York University professor of marketing and public relations, told Business Insider that Gen Z workers value autonomy and flexibility in their workplace, prioritizing transparency and collaboration more than climbing the corporate ladder.
Landis added that Gen Z employees are also more motivated by social responsibility and doing work that makes them feel like they're helping others than simply showing up to collect a paycheck. That means even higher-paying roles are less attractive to Gen Z employees if the work doesn't feel meaningful.
But, Landis said, "that doesn't mean that they won't necessarily step up or won't work hard."
They're just not going to stick around the office for eight hours if they can get the job done in five — and they won't ask their colleagues to do so, either, she added.
Dalla-Camina added that Gen Z's approach to leadership can benefit most working people and flatten traditional hierarchical models that the corporate world is used to.
But, as the Bureau of Labor Statistics projects Gen Z will make up 30% of the workforce by 2030, it's a problem for businesses if the next generation of leaders doesn't develop the skills to run the place.
Related storiesTony Davis, a leadership training expert at Crestcom International, told Business Insider that if workplace leaders don't intentionally motivate, empower, and engage their Gen Z workforce by leaning into their work style and preferences, those businesses will have a hard time creating the necessary leadership depth to scale their teams and grow their business.
In other words, he said, this is an existential moment for corporate leaders to learn from — or risk being left behind.
"The difference between a growth-minded company and a fixed-minded company is creating those types of mentalities within their employee base and developing those leaders," Davis said. "And a company is doomed to failure if they have a fixed-minded culture, because then they're on their heels and they're reactive, and there's nothing, nothing in business that is better done reactively than proactively."
The "how" for keeping Gen Z workers engaged will vary by industry and each specific workplace, but some options include offering flexible working hours, providing more opportunities to volunteer, and outlining clear paths for career progression that focus on achieving individual employees' long-term goals while prioritizing a sustainable balance.
It's no easy task to adapt to Gen Z's more laid-back work style, given how the "hustle culture" and "hardcore" work mode have been a staple of the US workforce for so long — and are still promoted by some Gen X business tycoons like Elon Musk. But no matter how current corporate leadership feels about it, workforce experts say the change is underway.
"This is a massive call to shift how we work, and to shift leadership models," Dalla-Camina said. "The organizations and leaders who can make that shift will really thrive. And the ones who don't are really going to struggle attracting and retaining, not just Gen Z, but also other people who are really ready for change."
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