As Gen Z have started to pour into the workforce, millennial managers are now finding themselves in a very interesting and unique position. Not only do they have to adapt to leadership roles but they also have to learn how to manage a completely different and newer generation with distinct values, emotional regulation, expectations, and work styles. An analysis noted that Gen Z’s employment share has increased by ~2% each year since 2018, even surpassing the shrinking share of Boomers by 2022 (Paychex).
Current trends illustrate how Gen Z workers are flowing disproportionately into high-growth, service-oriented sectors, while older generations are dominating slower-growth industries. For example, retail and hospitality historically employ many young workers, and healthcare and tech employers are aggressively recruiting new graduates. As a result, companies in growing industries are adapting workplace policies to attract and retain Gen Z talent, while sectors with aging workforces face pressure to recruit younger workers to replace retirees (U.S. Bureau of Labor Statistics).
Millennials, now in their late 20s to 40s, remain a huge segment and are steadily moving into management roles as Boomers exit. Due to the rapidly changing environment along with cultural shifts, there’s now an evolution in workplace dynamics and so it requires a completely novel and fresh approach when it comes to leadership.
Millennials were born between 1981 and 1996 and they do share some similarities with Gen Z share which includes a desire for a good and healthy work-life balance, ongoing development, and frequent and valuable feedback.
However, there are some differences in, for example, leadership style where Gen Z generally tends to prefer emotionally intelligent, communicative and thoughtful leaders. While millennials also value interpersonal relationships, they might struggle with the high level of feedback, attention, emotional intelligence and guidance Gen Z expects (Gabrielova and Buchko).
In a recent survey, 77% of Gen Z respondents said work-life balance is crucial when considering job opportunities, and 72% reported they have left or considered leaving a job due to lack of flexible work options (Qureos). In general, organizations that rigidly stick to 9-to-5, on-site-only policies risk alienating this generation of talent as Gen Z prefers having more flexibility in their work schedules such as incorporating remote work and having 4-day workweek programs (National Restaurant News; HR Brew).
Surveys also find that Gen Z employees “want to make a difference”! They prefer companies that are environmentally conscious, inclusive, and actively engaged in positive social causes (Stanford University). Many Gen Zers will even hold their employer accountable on issues that matter to them, expecting action on diversity, equity and inclusion (DEI), climate change, etc. (Stanford University).
Around 61% of Gen Z reported feeling frequent anxiety or stress in recent surveys
(Qureos), higher than older generations. They look for workplaces that promote wellness – whether through benefits (like therapy coverage, wellness programs) or simply a culture that encourages taking mental health days without stigma.
Only about half of Gen Z rate their mental health as “excellent” (Qureos), so they gravitate towards managers and companies that foster empathy and work-life harmony. Burnout prevention is key: Gen Z saw how the always-on hustle culture affected Millennials and many are consciously setting boundaries (e.g. “quiet quitting”) to protect their mental health (Job Today).
Meanwhile, millennials value learning opportunities as opposed to just doing a job for the money. Surveys found Millennials want roles that let them grow skills and advance. If these needs aren’t met, Millennials haven’t hesitated to switch jobs; at one point about 21% of Millennials reported changing jobs within a year, far higher than older generations, and this high turnover was estimated to cost the U.S. economy $30 billion annually (ADP).
Similar to Gen Z, millennial workers were attracted to companies that offered flexibility or at least a relaxed, fun workplace culture (StribeHQ). Millennials also expect empathy from employers regarding family needs, for example, they’ve pushed for expanded parental leave and better benefits, reflecting that many started families later and wanted to balance those responsibilities (Business.com).
Many organizations, from tech giants to startups, have implemented specific strategies to adapt to these generational shifts in their workforce. Below are a few case studies and examples illustrating how companies are responding to and leveraging the strengths of Millennial and Gen Z employees.
Google, known for its innovative culture, has actively integrated Gen Z workers by fostering an inclusive, chill environment. For instance, Google offers a high degree of work-schedule flexibility and remote work options, which appeals to Gen Z’s work-life balance needs. The company also emphasizes employee well-being, providing mental health resources and encouraging use of vacation time. This focus aligns with younger employees’ priorities and has led to high satisfaction and retention among Google’s Gen Z staff (OGGI Talent).
Additionally, Google’s famously open culture (flat hierarchies, TGIF all-hands meetings, etc.) gives both Millennials and Gen Z a voice. Younger Googlers are encouraged to share ideas and challenge norms, which keeps the company adaptable.
At Microsoft, an interesting approach to bridging generational gaps has been the use of reverse mentoring. Senior executives and older managers are paired with Millennial (and now Gen Z) employees who act as mentors in areas like new technologies, social media, and emerging workplace trends. Microsoft began piloting this in the mid-2010s (e.g. in their Norway office) and found it highly valuable (Microsoft News).
Microsoft’s leadership noted that reverse mentoring became a “bridge-builder” between Gen X and Gen Y, helping the generations better understand each other (Microsoft News). This practice has since spread to other companies (from Target to Procter & Gamble) as a way to update leaders’ mindsets and give young talent a voice.
In the startup ecosystem, generational shifts are also evident as Millennials often found startups that employ teams of Gen Zers. Startups tend to have flatter hierarchies and informal cultures by default, which aligns well with Millennial and Gen Z expectations.
There are also instances of Gen Z founding companies and taking on CEO roles in their early 20s; these young leaders often build the kind of workplace they want to see. A report by the Top Employers Institute noted that as of a couple years ago, the U.S. already had over 6,000 Gen Z individuals in CEO or founder roles often of small companies or startups (Top Employers Institute).
A Harvard Business Review analysis pointed out that multi-generational collaboration can be a strength in startups: younger employees contribute fresh ideas and tech fluency, while Millennials in leadership provide mentorship and industry experience, creating an innovative and learning-oriented culture (Microsoft News).
By 2030, nearly all Baby Boomers will be retired as the youngest Boomers will be in their 60s and Gen X will be in their late career. The workforce will be overwhelmingly Millennial+Gen Z. For example, in the UK it’s projected that Millennials could comprise 70% of the workforce by
2030; the U.S. will be similar, with Gen Z filling much of the remaining share as they mature. (StribeHQ).
This generational changing of the guard implies that many of the workplace preferences we see now (for flexibility, purpose, technology, etc.) will no longer be “perks” but standard expectations. Companies will either adapt to these norms or struggle to recruit talent.
Remote and hybrid work will likely stabilize as a permanent feature of many jobs, not an emergency measure. In fact, by 2030 the idea of a “standard 9–5 in the office” could be antiquated for many roles.
Virtual collaboration technologies (video conferencing, virtual whiteboards, possibly AR/VR meeting spaces) will advance to a point where distance is less of a barrier to teamwork. Gen Z, having started their careers during the COVID remote work experiment, will refine the balance between remote efficiency and the need for in-person connection.
As Millennials solidify their place in upper management and executive roles, leadership approaches will continue shifting away from traditional authoritarian styles. We can expect more organizations to be led by teams that practice collaborative or consensus-driven leadership. Millennial and eventual Gen Z leaders are more likely to solicit input from all levels and emphasize transparency.
For example, instead of closed-door boardroom decisions, future leaders might hold open forums or company-wide Q&As to explain strategic moves, a practice already common in some Millennial-run firms. Additionally, leadership tenure may change: younger generations might favor rotating leadership on projects (who leads could vary by expertise or phase), a concept Gen Z already leans toward (Stanford University).
Trust and inclusion will be core tenets of effective leadership which will be a continuation of trends Millennials started. Moreover, with Gen Z’s influence, future leaders will need to be authentic. Having grown up skeptical of institutions, Gen Z employees expect honest, down-to-earth leaders.
We project more businesses will take public stances on social issues, embed sustainability in their operations, and measure success by social impact metrics alongside financial metrics – because the workforce (and consumers, who will also be mostly Gen Y/Z) demand it. Corporate social responsibility (CSR) and Environmental, Social, and Governance (ESG) initiatives are expected to become integral, not optional.
By 2030, it could be routine for company leadership to consult employee resource groups or conduct moral/ethical impact reviews before major decisions, reflecting the workforce’s influence. As one generational expert summarized, Gen Z not only expects change – they demand it, and Millennials in power are increasingly receptive to making business a force for good (Stanford University).
Gen Z’s comfort with side hustles and entrepreneurship (Vanover) suggests that by 2030 a larger portion of the workforce may be contractors or have multiple income streams. Companies might adapt by offering more gig-like opportunities internally (short-term projects, flexi-time contracts) to keep entrepreneurial-minded talent engaged.
We may also see a rise in part-time and customized roles, e.g. someone could negotiate to work 6 months on, 6 months off to travel, without derailing their career. Such arrangements could become feasible as the stigma of non-linear careers fades. Moreover, tenure might shorten: rather than 10+ years at a firm, the norm might become 2-3 year stints of intense contribution, then a switch.
The culture will also evolve: we anticipate a more relaxed and authentic workplace culture where employees are encouraged to be themselves. The formality of earlier eras (dress codes, strict protocols) has been steadily declining under Millennial influence, and Gen Z is even more informal.
Expect even corporate workplaces to feel more “startup-like” – casual dress, first names, memes on internal chats, etc. This doesn’t mean unprofessional, but rather a blurring of the rigid separation between “work self” and “real self.” Gen Z’s norm of communicating with emojis and GIFs, for instance, will carry into workplace messaging.
We’ll see more proactive inclusion efforts, multicultural celebrations, use of pronouns and essentially, a workplace where people of varied backgrounds feel belonging, driven by the values of these younger workers who expect diversity and inclusion. For context, 48% of Gen Z in the U.S. are non-white, so they insist on representation and equity (Concordia University). By 2030, “culture fit” might fade as a hiring concept, replaced by “culture add,” seeking what unique perspective a person brings. The overarching trend is a humanization of the workplace!
The next decade will be about leveraging the best of every generation: the wisdom and experience of Gen X and older, combined with the creativity and energy of Gen Y and Z. This synergy can drive tremendous productivity and imagination. The companies that succeed in 2030 and beyond will likely be those that cultivate a culture where multi-generational teams thrive together, each learning from the other, united by common goals and shared values.
