Over the last five years, the number of Gen Z managers has more than tripled but on the other hand have been promoted less than other generations!

?? Gen Z workers - people born between 1997 and 2012 - have more than tripled their managerial footprint in recent years, a demographic shift that’s reshaping the workplace.

?? For the first time, employers are promoting Gen Z into management as often as they do Baby Boomers.

?? Millennials, Gen X, and Baby Boomer managers get promoted far more often than their Gen Z counterparts.

The reasons why Gen Z managers with direct reports get promoted less often than Baby Boomers is that nearly half of them work in industries with comparatively low career development opportunity, according to a new interesting research published by ADP Research using data ?? from ADP Payroll and HR data analyzed.

?Number of Gen Z managers is rising very fast

Researchers found that Gen Z managers are rising fast as these workers age into the management ranks.

?? Despite the rapid growth of Gen Z managerial promotions and hiring, Gen Z workers accounted for only 13.9 percent of managerial hires in 2023 and made up only 3 percent of the managerial workforce.

?? The vast majority of Gen Z hires in 2023, nearly 98%, were not managers.

?Non-managers and managers Gen Z are growing

Researchers noticed that more and more of the workforce at every managerial level is a member of Gen Z.

?Baby boomers with direct reports are promoted faster than Gen Z

Researchers noticed that Baby Boomer managers who have direct reports are promoted far more often than their Gen Z counterparts.

?? Researchers believed that one reason Baby Boomer managers get promoted more often than Gen Z is that they tend to hold jobs with stricter requirements than Gen Z.

Whereas, the growth of Gen Z’s rate of promotion into management is also faster than for all other generations.

Job Requirements is the cause of this gap

Researchers found that Gen Z managers with direct reports get promoted less often than Baby Boomers is that nearly half of them work in two industries with comparatively low career development opportunity: Leisure and hospitality, and trade, transportation, and utilities.

Researchers believed that there are 2 reasons Gen Z managers with direct reports get promoted less often than Baby Boomers:

??Gen Z tends to hold jobs with fewer education, experience, and training requirements than Baby Boomers, which partly explains why Gen Z managers move up the ranks less often.

?? Gen Z managers tend to work in industries with comparatively low opportunity for career advancement, which partly explains why they move up the ranks less often than Baby Boomers.

Researchers believe that three factors drive Gen Z’s rapid ascendance:

1?? Employers promoted Gen Z workers into management 1.2 times faster in 2023 than in 2019. For the past three years, employers promoted Gen Z into management as often as Baby Boomers (born between 1946 and 1964).

2?? Not only are Gen Z workers moving into management, more of them are staying there. Employers promoted Gen Z managers into higher positions 1.8 times as often in 2023 as they did in 2019.

3?? Gen Z’s share of workers hired directly into management roles with direct reports has more than doubled since 2019.

?? Finally, researchers recommend organization to take following actions :

?? Prepare for a demographic shift in management. Employers should consider the implications of Gen Z’s ascendance for compensation strategy, employee relations, team dynamics, and public policy. Gen Z workers make up a minority of managers, but they already account for more than 1 in 10 managerial hires.

?? Don’t overreact. Although Gen Z workers are a growing presence in management, they still make up a minority share. If training programs, recruiting strategy, and employee relations are too closely tailored to Gen Z preferences, they might overlook other workers.

?? Be mindful of how different generations perceive one another.

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This interesting research on Gen Z demonstrates that companies must be more attentive to the aspirations of this generation which has been more seriously affected by the pandemic because they are the ones who will increasingly take the lead in the management role in their business and their retention is crucial. The success of tomorrow's business for organizations depends in particular on the way they manage the talents of Gen Z.

Thank you ?? ADP Research researchers team for these insightful findings: Nela Richardson

Dave Ulrich George Kemish LLM MCMI MIC MIoL

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