Transitioning The Leadership Mold: Embracing the Millennial and Gen Z Wave

The businesses of today are in great flux. Both by the composition of its workforce and by the incursion of newer advanced technologies that pivot established norms.

The arrival of millennials and Generation Z into the workforce is not just a demographic shift but a seismic transformation. By 2025 millennials would form nearly 80% of the global workforce. ?Generation Z, the cohort following millennials, is already stepping in and establishing its unique stamp in the workplace.

Interestingly, the ‘generational leadership gap’ at most established organizations has not been in step with the fast-transitioning workforce composition. It’s still heavily tilted toward the baby boomers and Gen X’ers, especially the former. Reminiscent of old established norms of ‘age & experience matters’ greatly in leadership. However, this sensibility is limited mostly to those who are enjoying the benefits of this philosophy.

Consider this:

• CEO Succession: It's Not Your Father's Retirement Plan?(2022) by McKinsey & Company found that Baby Boomers (born 1946-1964) still hold the vast majority of CEO positions at Fortune 500 companies, with Gen X (born 1965-1980) making up a smaller but growing share.
• Deloitte 2023 Global Human Capital Trends?report found that Baby Boomers and Gen X make up 85% of C-suite executives globally.

Workplaces of today are plagued by many people challenges that point toward a disconnect between leaders and those they are leading. Today, we have 4 generations at play, at work. The possibilities of clash/mismatch of varied senses and sensibilities are unprecedented. It sure shows up regularly in workplace research findings.

A recent study featured in Harvard Business Review highlights this inter-generational ‘sense & sensibility’ paradox/clash: limitations of conventional leadership styles in managing younger generations. The research emphasizes that outdated leadership approaches often lead to reduced employee engagement, higher turnover rates, and stifled innovation.

It's evident that the leadership paradigms of yesteryears are on their last leg. Future leadership requires a newer and more nuanced approach reflecting the sense, sensibilities & aspirations of the younger workforce.

While we crow about ‘adaptive leadership styles’, the disconcerting fact remains, that most leaders aren’t able to cope. They continue to remain comfortable under their own ‘sense & sensibility’ skin. ‘Inter-generational’ adaptability challenges increase with increasing mix in the workforce. It’s rather a forgotten life lesson. This corporate challenge is in many ways akin to our grandparents (or great-grandparents) finding it difficult to understand grandkids' sense and sensibilities.

To navigate these shifting tides successfully, it's imperative to groom a new generation of business leaders who not only comprehend the unique sensibilities of these younger cohorts but also exemplify leadership behaviors that inspire, encourage, and motivate them. These ‘digital natives’, have varying degrees or different perspectives and expectations regarding life, work, leadership, and success. They are often uncompromising in their outlook and look to leaders who genuinely care about their development, well-being, and overall success. If leadership doesn’t listen, they aren’t shy to confront. We have witnessed their mass protests around the globe under various banners (ongoing): Great Resignation, Quiet Quitting, Bai Lang, Hikikomori et al.

Effectively leading the millennial and Gen Z workforce necessitates a deep understanding of their sensibilities. Millennials, often described as individuals seeking purpose and meaning in their work, are driven by a desire to make a positive impact on society. They value flexibility, diversity, and opportunities for personal growth. Gen Z is characterized by their entrepreneurial spirit and technological acumen. They're accustomed to rapid change and expect agility from their leaders. Authenticity, transparency, and values-driven leadership are highly valued by this generation.

To cultivate leaders equipped to lead millennials and Gen Z, organizations must make substantial investments in leadership development programs tailored to address the unique needs of these generations. These programs should stress on the importance of soft skills, transparency, diversity, inclusiveness, emotional intelligence, adaptability, and the ability & agility to embrace technological changes. These aren’t mere banner words to flutter on colorful pamphlets/displays. But critical leadership skills to acquire.

Author Profile:?Writes about life. Consults on human potential and workplace HR. A keen observer of emerging trends and technologies that enhance workplace productivity. AI/People Analytics and its effective and ethical usage at the workplace is the current preoccupation. Over 25 years of broad experience developing Leadership/Human Resources in large global organizations and start-ups. Enjoy analyzing and going beyond the hype. Admire the word ‘holism’.