The Leadership Gap: How Generation Z’s Reluctance to Lead Could Reshape Our Economy

Leadership has always been the engine of growth, the spark of innovation, and the backbone of every successful organization. But here’s the twist: Generation Z, the tech-savvy, change-embracing, TikTok-dominating crew, isn’t exactly jumping at the chance to fill traditional leadership roles. As this powerhouse generation takes over the workforce, what does their hesitation mean for businesses, the economy, and, let’s face it, the rest of us?

The Trend: Why Gen Z Hesitates to Lead

Let’s get real: Gen Z isn’t lazy or lacking ambition—they’re just redefining the playbook. Here’s why many of them are saying, “No, thanks” to leadership:

• Mental health worries: They’ve seen the burnout stories and don’t want to star in one themselves.
• Value-driven work: They’re all about meaning over money (although rent isn’t getting any cheaper, folks).
• Corporate skepticism: Trust issues with outdated leadership models are real.

Gen Z is fiercely driven. However, their priorities differ significantly from those of Millennials or Generation X.

But hold on. Before we paint Gen Z as the “Netflix and chill” generation of leadership, let’s acknowledge the bigger picture. This isn’t a new trend; it’s an evolution. Purpose-driven work? Millennials were banging that drum years ago. The burnout buzzword? It’s overused to the point where “I’m burnt out” might just mean, “I need a nap.” Everyone seems to be burnt out. They are tired and stressed and manage their boundaries poorly. However, Burnout, by definition, requires 3 things to be in place: Depletion, Depersonalisation and Reduced Efficacy.

And here’s the kicker: If we keep reshaping systems to revolve around Gen Z’s preferences, we risk reinforcing their “me-centric” worldview. The world doesn’t work like their Instagram feed, and leadership never has—or should—be effortless.

Everyone wants to do work that matters

Organisations should be clear about their Reason For Being… Their purpose absolutely should be more than just serving the almighty dollar. This is not a new ask, I think you will find we all asked for this when we entered the working world bright-eyed and naive. And we have been running Purpose Workshops for decades: Answer the WHY before the WHAT and HOW.

Mental health worries are not the purview of Gen Z

A personal struggle to identify boundaries and learning to say no is a common issue that everyone faces. Very few organisations and managers are trying to push people to burnout… But it is easier to blame the organisation than it is to take personal accountability for setting and communicating clear and realistic boundaries and enforcing them. Of course, if your boundaries are not in line with the organisation's work expectations, there will need to be a conversation which could end up with someone saying ‘This isn’t the right fit’. Realistic expectations of earning a livable wage might require some compromise down the line. But very few people get to make a living from travel and video blogs! And even then, they are working pretty darn hard to make it look so effortless!

Addressing Corporate Skepticism

Challenging the idea of traditional leadership structures is also not a new concept. However, we are social beings and anthropologically developed in a group structure where we need leadership. We follow good leaders instinctively. We rebel against bad ones. So I don’t believe GEN Z are against good leadership. They are against bad managers, corruption, favouritism, victimisation and what we read about “leaders” on the scandal page of the digital news board.?

Good leaders who balance a results orientation with empathy for their people will gather the discretionary effort of their team. You can be any age and any generation.?

Opportunities for Organizations

Businesses can and should inspire the next generation of leaders:

• Rethink Leadership: Make leadership about purpose, collaboration, and impact—not just power and authority.
• Support Mental Health: Burnout is real, but so is the need for boundaries. Help leaders prioritize their well-being while driving results.
• Invest in Development: Leadership isn’t one-size-fits-all. Create programs that focus on mentorship, emotional intelligence, and confidence-building micro-leadership roles.

And guess what? This is exactly what we do: Helping organizations create leadership systems that work.

A Call to Action The reluctance of Gen Z to pursue leadership roles is both a challenge and an opportunity. We must ask ourselves:

• How can we redefine leadership to inspire this and the next generation?
• How can we sanction old-school leadership behaviour that pushes positional authority, and reward human-centered leadership?
• How can we support employee’s growth and careers in a line with their values?

The economic future relies on bold, innovative leaders. If we can align leadership opportunities with Gen Z’s ideals (which reflect similar ideas from other generations), we’ll not only bridge the gap but also unlock a new era of leadership that could redefine the economy for the better.

Let’s embrace this challenge together. What are your thoughts on this trend? How can we better support and empower reluctant leaders, regardless of their generation? Join the conversation in the comments below!