Across every industry, the evidence is clear: Gen Z isn’t all that interested in climbing the corporate ladder.
According to a recent survey from Robert Walters North, more than half of young professionals want nothing to do with traditional management roles. And Randstad’s Workmonitor 2024 survey confirms that nearly two out of five aren’t interested in career progression, with over half happy to stay in a role they like even when promotion isn’t an option.
The rise in “conscious unbossing” has HR teams scratching their heads, trying to figure out why and wondering how they’ll fill their dwindling leadership pipeline. But the reasons really aren’t that mysterious—look no further than Gen Z’s own bosses for an explanation: 72% of leaders feel used up at the end of the day, according to DDI’s Global Leadership Forecast. Burnout is soaring with more than 70% of leaders aged 35 and under reporting they feel burned out.
It’s no wonder Gen Z is increasingly opting for individual contributor roles—they see management as being too stressful. And they’re not wrong.
Challenges Begin at Mid-level
The reality is that leadership is hard and getting harder every day. Not only are leaders under more scrutiny than ever, but they’re also constantly barraged by change—everything from return-to-work mandates and managing hybrid teams to digital transformation and uncertainty around the economy and the role of AI.
The problem is most profound in middle management. Already 69% of Gen Z believe it’s simply not worth it—they see it as a high-stress, low-reward role. And, at the top, executives are also sending signals that middle management roles lack value. With the “Great Flattening,” CEOs like Mark Zuckerberg have laid off mid-level managers en masse.
That’s a big problem for organizations. Research shows that it’s much more challenging to weather a recession or crisis without a strong pipeline of leaders. Yet, too often, organizations underestimate the importance of middle management, which clamps off their pipeline and hinders long-term stability and growth.
On the other hand, when leaders understand their career path, they’re 4X more likely to find meaning and purpose in their role. As a result, this strong sense of purpose makes them 2.4X more likely to stay with the company, building a stronger pipeline and greater organizational resilience.
Strategies to Reverse the “Unbossing” Trend
With only 12% of companies reporting confidence in the strength of their leadership bench, it’s clear the pipeline problem has reached crisis level and will only get worse as Gen Z opts out of management roles. That’s why HR teams must act in 2025 to ignite the interest of this next generation of leaders by reimagining modern management, investing in transformative leadership development, and meeting Gen Z employees where they are. Here’s how.
- Prioritize people-focused leadership. Gen Z leaders—but really leaders of any age—need to feel they matter and that the organization values them as people, not just workers. To do that, it’s simple: treat them how you’d like to be treated. That includes ample two-way feedback and active listening to spot any concerns or signs of burnout or disengagement, plus taking swift action before those become problematic. Seek their input and ideas on initiatives, policies, and procedures. Explain the “why” behind decisions, especially when they’re tasked with communicating those decisions to their direct reports.
- Make leadership sustainable. Leaders who don’t have clear expectations will struggle with engagement. Instead, set realistic expectations based on situational context and communicate those expectations to eliminate ambiguity. Emphasize collaboration and teamwork. For example, leaders can’t always be held solely responsible for not meeting stated goals—sometimes extenuating circumstances are beyond their control. Take a more holistic view of their performance and encourage innovation and experimentation without fear of failure or repercussions.
- Promote work-life balance. Work-life balance now outranks higher pay as an incentive for career moves, and 60% of workers say their personal life is more important than their work. To encourage young people to step into leadership roles, organizations must respect those boundaries, especially in hybrid environments. Adhere to a manageable workload and schedule, which includes limiting meetings and discouraging after-hours emails and texting. Gauge the time required to perform tasks before assigning them to leaders to ensure it’s realistic for them to take on the work. Finally, lead by example: HR and upper management should hold themselves to these same expectations to set the standard for up-and-coming leaders.
- Don’t promote high performers by default. Too many organizations assume that someone who’s good at their job would be good at leading others. This logical fallacy often results in placing reluctant leaders into roles for which they’re not well-suited or interested but feel it’s their only option for advancement. Just as the best performers aren’t necessarily the best leaders, the opposite is also true. Identify and promote those who have leadership competencies and support the remaining 72% of Gen Z who prefer growth through skills advancement with training and development.
- Set leaders up for success. Don’t assume the leaders you’ve identified will naturally know what to do in a leadership role. Organizations have an obligation to set leaders up for success with robust onboarding and essential training to help them get up to speed faster. Use real-time assessment to objectively gauge how your leaders are doing and provide the targeted, just-in-time support needed to help them solve relevant challenges.
- Encourage authenticity and vulnerability. Young people may be hesitant to take on a leadership role because they fear being placed on a pedestal, held up to unbearable scrutiny, and expected to be infallible. But DDI’s Global Leadership Forecast shows the opposite is true: employees are 5.3X more likely to trust leaders who display vulnerability and are 7.5X more likely to maintain that trust when leaders acknowledge their failures and shortcomings. Encourage leaders to own up to mistakes and admit they don’t know everything. This display of humanity lowers the perceived barrier to entry for people who fear any sign of imperfection will be seen as weakness.
Navigating the expectations of the next generation of talent alongside the need to grow the leadership pipeline can feel like swimming upstream for HR. The key to success is in meeting Gen Z leaders where they are, offering a reasonable path to advancement that’s sensitive to their concerns around work-life balance, and prioritizes them as people, not just leaders.
In 2025, HR must stop focusing on how well leaders will serve the organization and instead figure out ways the organization can serve them as well.
By Stephanie Neal, Director of DDI’s Center for Analytics and Behavioral Research (CABER).