A radically different generation is entering the workforce. Generation Z, the approximately 70 million Americans born between 1996 and 2010, has been thoroughly studied by academics and thought leaders, keen to understand the unique approach Gen Zers take to their lives and careers.
Because of their differences to previous generations, Gen Z has the potential to transform leadership for the better, breaking the cycle of generational trauma that’s led to our current fearful leader crisis—but they’re going to need our help.
Gen Zers are also more conscious of mental health than previous generations and place a higher importance on psychological safety. As such, they are less likely to put up with a toxic workplace.
One study found that 70% of Gen Zers say their mental health needs the most improvement, when compared with other areas of well-being. And according to McKinsey’s American Opportunity Survey, over a quarter of Gen Zers say mental-health issues have a major impact on their ability to perform at work (compared with 14% of all employed respondents). As a result, an astonishing 77% of Gen Z respondents said they were looking for a new job, which was almost double the rate of other respondents.
That’s in line with my own research, the global Love Leadership survey, which examined the attitudes of Gen Z’s potential bosses (managers aged 24 through 54), and uncovered an urgent crisis in leadership. Managers in this window are typically considered to be Millennials or Gen Xers—two generations that faced their own considerable challenges when entering the workforce. For instance, many Millennials and Gen Xers entered the workforce during recessions and some have embraced hustle culture as a result of this difficult experience. Fortunately, I believe this generational clash between today’s young workers and their Millennial and Gen X leaders, has the potential to actually rescue their fearful managers, breaking a cycle of trauma that’s hurting workers and costing the U.S. economy tens of billions of dollars.
Here are just a few of the ways Gen Z can—and I predict will—help managers heal their own workplace wounds.
Gen Z cares about mental health
Sixty percent of Millennial and Gen X leaders who took part in our Love Leadership survey said they’re unhappy with their job. That means that Gen Zers are joining a workforce with a high percentage of leaders with a negative outlook on their own career.
Meanwhile, Gen Z workers are less likely to put up with a toxic environment, with almost 50% of their managers registering a resultant drop in performance from their teams following negative encounters.
If leaders want to improve their relationship with this new workforce, they need to take ownership of their impact on mood-sensitive Gen Z. Generational trauma comes from ignoring, or suppressing, mental health issues—so following Gen Z’s lead, and acknowledging mental health struggles, can help break this cycle.
Managers should take responsibility for their own happiness. By focusing on your strengths, having empathy for yourself and others, and setting clear boundaries, a leader gives permission for their team to do the same, contributing to their team’s psychological safety, which is the single biggest predictor of a team’s performance.
To achieve this, managers don’t need to take on Gen Z’s mental health concerns directly. All leaders need to do is listen to understand and refer the employee to mental health care resources. This is a generation that wants mental health care, but is worried about the cost. Help cover that cost, and you will be rewarded with loyalty and productivity.
Gen Z communicates often
Regular communication is extremely important to Gen Z. Where fearful leaders are closed off, with a fear of being wrong, and an unwillingness to receive feedback, successful leaders are open and accountable.
Gen Zers are part of a digital generation, and are used to getting near-constant feedback about the work they put into the world, through comments and messages. So the more one-on-one communication you can offer, the better.
Your feedback doesn’t have to be positive, but it does need to be brave, clear, and fair. Leaders should start with their highest intention, which is usually something like “I’m telling you this because I want you to reach your potential.” Make feedback as individualized as possible—this is important to Gen Z. If you provide frequent, fair feedback, research suggests you’ll see a productivity uplift. This process can also help leaders learn how to be more self-aware and pinpoint their own opportunities for growth.
Gen Z embraces independence
Gen Z are often referred to as the freelance generation—they’re less likely to be in full-time employment than those who came before them. But, if they have made the move to join your team, leaders can still embrace that independence.
According to my team’s study, 43% of managers expect their direct reports to handle unexpected situations. Depending on the situation, this could be positive—teams should be able to handle sudden challenges. But expecting your team to take responsibility for an urgent crisis is entirely different.
Both situations will be better handled by teams who have been allowed to take ownership of their work. Fearful leaders micromanage. What I describe as “Love leaders” empower their workers to explore different approaches, enabling them to take personal responsibility for their work. With this sense of autonomy, accountability follows—making Gen Z more invested in outcomes, and more prepared for difficult situations.
Generational trauma has led to the current crisis in management, but by following Gen Z’s lead by being more aware of mental health struggles, communication styles, and the way we delegate responsibility, toxic workplaces can be transformed, improving productivity in the process.
