Three Skills Leaders Need to Work Effectively with the Rising Generation Z

With the entry of Generation Y (born between the 1980s and 2000s) and the even younger Generation Z into the workforce, new management challenges have emerged.

These younger generations have different expectations compared to their predecessors; they want direct access to success and often show impatience on the road to their goals. On the other hand, if given the opportunity, they possess the energy and perspective to tackle any task and have the potential to disrupt entire industries.

So, what leadership skills are required to unlock this potential?

For these new generations, money is not the primary motivation. Instead, they value the desire to learn and progress, taking on responsibility from the start of their careers, job satisfaction, and gaining a wide range of experiences. The goal is not to change business models or structures entirely, but to place the right leaders in the right roles and manage these expectations effectively, ensuring that all generations work well together.

Leadership in a Post-Hierarchy Era

Leaders may experience tension when making decisions on behalf of young talent—this is more about their ability to adapt to change than their willingness to embrace it. If the talent pool composed of younger generations is not satisfied, they will seek the new experiences and responsibilities they crave elsewhere. While 84% of Gen Y and Gen Z aspire to leadership roles, 60% believe they can achieve this ambition within their current companies.

To make the most of this talent pool, organizations need to invest in leadership development programs, enabling leaders to enhance their ability to work harmoniously with diverse workforces and manage them effectively.

The Three Skills Leaders Need to Work with Generation Z:

1. Transparency – In flatter organizational structures, there is no place to hide, so leaders must be open and honest about expectations and business needs. While transparency may be uncomfortable for some leaders, when applied successfully, it enables cross-generational collaboration to develop creatively and rapidly.

2. Adaptability – Understanding the needs of different generations is important, but to get the best from the workforce, it is equally essential to align the business model, performance measurement, and overall structure accordingly. Developing adaptability provides organizations with a true competitive advantage.

3. Awareness – If leaders are not aware of what is happening around them, none of their other skills will matter. Generation Z will soon make up a significant part of the workforce. If leaders fail to recognize this and respond to their needs, they risk losing this talent pool to competitors who do.