The workplace is facing a growing leadership gap as Gen Z’s values diverge from those of previous generations. For decades, it was assumed that employees naturally aspired to climb the ladder into leadership roles. But that’s no longer the case. Today, research shows Gen Z is increasingly less interested in traditional authority positions, prioritizing balance and purpose over power. As older generations retire, the gap is only set to widen, making it more urgent for businesses to rethink employee roles and policies, and to reimagine how they train and support the next generation of leaders. 

A recent survey by employment agency Robert Half underscores this need for change, revealing that 50 per cent of Gen Z workers are uninterested in managerial promotions. Instead, they prefer career growth through lateral moves or skill-building opportunities that don’t involve managing others. The survey suggests many Gen Z workers value hands-on roles and mental well-being over higher-paying management positions. Even with rising living costs, the added responsibility isn’t seen as worth the pay-off.

As a millennial, I’ve witnessed the shift in thinking that’s reshaping today’s workplace. Before launching Canadian Equality Consulting (CEC) in 2017, where I help organizations build more inclusive and equitable environments through HR and DEI services, I worked in the non-profit sector as well as federal and provincial government roles. In the public sector, with its rigid hierarchical structure, new hires like me were expected to steadily rise through the ranks. However, this traditional approach was already starting to face resistance. Nearly a decade later, the conversation around rethinking career progression has gained momentum.

This apparent shift seems to stem from the immense stress these roles often bring, compounded by a lack of support or meaningful rewards. Growing up amid socioeconomic uncertainty–from increasing living costs to a global pandemic–this generation has witnessed older generations burn out from long hours and frustration. They’ve also observed the emotional toll, inflexible hours, and added responsibility that come with management roles, while compensation, security, and autonomy often fall short of expectations.

The generation’s career choices are heavily influenced by their values. A 2025 Deloitte survey shows that nearly 90 per cent of Gen Z want work aligned with their values and that contributes positively to society. They’re wary of outdated management structures emphasizing in-person presence rather than results. Taking a management role in a company that doesn’t share their values feels like endorsing an institution they don’t support.

Despite Gen Z’s reluctance to take on leadership roles, they have the potential to transform the workplace by leading conversations on boundaries and well-being. We’re only starting to see this shift now. A study from Express Employment Professionals found that 59 per cent of job seekers who are or were supervisors have either quit or plan to leave their positions. This trend is expected to grow, making succession planning increasingly difficult due to both a shortage of experienced leaders, and the urgent need to nurture and upskill the next generation. 

Rethinking workplace policies is a crucial first step. Businesses can start taking action by updating policy handbooks to include comprehensive health benefits, wellness programs to prevent burnout, and flexible working hours or hybrid approaches, which are especially important to Gen Z. At CEC, we’ve embraced this approach by operating remotely with flexible hours, and optional Fridays, allowing our teams to set their own schedules. This shift has led to improved performance and well-being. Our flat organizational structure promotes independence and accountability, with team members trusted to manage their time–whether that means attending a midday appointment or working evenings–while remaining fully responsible for their work and client commitments. 

Businesses should also adapt their workplace structure to foster more flexibility and collaboration, supporting continuous skill-building. Gen Z particularly values teamwork, shared decision-making, and flatter hierarchies. Companies can respond to this by including younger employees in key meetings, offering opportunities to co-create projects, and focusing on mentorship and growth–moving away from the traditional top-down management style.

Adapting the organizational structure doesn’t mean abandoning accountability—it remains critical. Some clients of CEC have embraced matrix-style structures, which involve multiple reporting lines and a more flexible approach to work. These structures flatten hierarchies while maintaining clear responsibilities and accountability, enabling cross-functional collaboration. Success depends on clearly defining roles, setting expectations, and identifying decision-makers. 

This shift also requires rethinking of what leadership looks like–not as a top-down role, but as one that reflects an organization’s values, purpose and impact. Traditionally, leadership has been seen as a solitary role in which one person makes all the decisions and takes accountability alone. But leadership doesn’t have to be this way. Gen Z leaders prefer to work collaboratively, rather than being isolated at the top. To adapt to this change, businesses should move towards shared responsibility and decision-making. This approach requires a clear purpose, shared goals, and frequent check-ins to adjust plans and tackle challenges together. 

To attract young leaders, we need to rethink the traditional model of people management. Leaders must acknowledge past mistakes and show a path forward. This starts with creating open and ongoing feedback channels. Instead of relying on semi-annual reviews, organizations can adopt more informal, consistent approaches, such as providing direct access to senior leaders or monthly coaching check-ins. For example, if burnout is rising in middle management, real-time feedback can help identify and address root causes.

Related: Gen Z Inspired My Mid-Career Pivot

Gen Z is increasingly drawn to organizations that focus on social and economic responsibility—not just profit. Influenced by social movements and the climate crisis, this generation is more inclined to pursue leadership roles that align with their values and allow them to drive meaningful change. Creating workplaces where they can thrive requires more than mission statements—it demands an active investment in diversity, equity, and inclusion. There’s urgent work to be done in building psychologically safe, inclusive environments, which will not only support Gen Z’s expectations but also strengthen organizations as a whole.

Recognizing employees as whole people–not just workers–is essential to closing the leadership gap and ensuring long-term business success. While changing cultures and systems may feel overwhelming,  I believe they’re possible. Younger generations are seeking collaborative workplaces with strong ethics, and they’re ready to lead in new ways. By making gradual changes and updating outdated structures, organizations can foster inclusive leadership and build a pipeline for future leaders. It’s never too late to start–and the impact will be worth it.

– As told to Rowan Flood