Generation gaps are fertile ground for tension. Misunderstandings and assumptions are rife with four generations now working side by side. But with the youngest cohort entering the leadership pipeline in greater numbers, their values will increasingly shape leadership culture, boardroom dynamics and organisational strategy. So, what does Gen Z want from leadership?
Born between the late 1990s and early 2000s, Gen Z came of age in a world vastly different to earlier generations. Globally connected and socially-minded, they are more tech-savvy, more aware of the impact of climate change and, according to data from Deloitte, 44 per cent of the generation have left a job because it lacked purpose.
Scott Millar, founder and CEO of Australian technology and education company BOP Industries, says two key factors drive how Gen Z “turns up at work”.
“The first is technology — we were the first to grow up not knowing a world without touchscreen devices, wifi and social media,” he says. “But there are also economic factors. Home ownership is becoming unfathomable for young people these days. The cost of HECS and education is also increasing.
“Gen Z is redefining what that success looks like when home ownership and education are becoming so expensive, and we are experiencing a cost-of-living crisis that’s hitting young people pretty hard in the early stages of their career,” adds Millar.
“When you take away the pressure of having to repay a home loan, it opens up a lot of doors. Where do I want to spend my money? Where do I want to be working and what do I want to be working on?”
What does Gen Z want?
Jahin Tanvir, CEO of the Australian School of Entrepreneurship, says Gen Z is more entrepreneurial than previous generations. He says the internet opened their minds to new ideas from a young age, but this entrepreneurialism is matched by a strong social consciousness.
“If the company they’re working for is not socially conscious, and if their actions or behaviours don’t support their social values, Gen Z will leave,” he says.
Katelyn Adams, partner at HLB Mann Judd, believes Gen Z exhibits the same drive and passion as the Millennial generation she was born into, but they are more comfortable setting boundaries and more vocal about career expectations. She adds that current leaders should adapt to engage and retain this generation while preserving governance integrity.
“They’re very self-aware — they want to improve and so they seek feedback rather than waiting for the feedback to be given,” she says.
Tanir advises that leaders engage Gen Z in decision-making.
“I know some companies have Gen Z advisory councils or early career talent advisers,” he says. “Having Gen Z be part of the decision-making process — obviously not making the decisions, but making them part of the process — can be very motivating.”
Adams adds that Gen Z places a premium on authenticity, transparency and purpose at work, and that these values mirror core principles of governance.
“Fundamentally, they want to know you’re doing what you say you're going to do, which goes to the heart of governance,” she says.
“At a board’s remuneration or nomination committee level, there needs to be an understanding of the values shaping Gen Z in the workplace,” adds Adams. “Culture is driven from the top, so if boards don’t understand their employees or pipeline of leadership coming through, there may be succession issues for lots of businesses.”
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Gen Z leads the way
Many members of Gen Z entered the workforce during pandemic lockdowns, and adaptability became part of their career toolkit. Tanvir says this quality is key to their leadership style.
“As a leader, I adapt my approach depending on the people I’m working with. There’s obviously fundamental leadership principles to apply, but you should always go into a room and adapt — be fresh, creative and high-energy.”
For Millar, this generation craves community and connection, but they’re achieving it in different ways.
“As they’re stepping into leadership positions, I’ve seen them reimagining what corporate culture looks like,” he says. “Instead of going out for drinks on a Friday after work, they’re organising lunchtime run clubs with their team members. It’s centred around health, wellbeing and fitness.
“They are also creating inclusive workplaces where all of their team members feel able to come to work as their whole selves.”
Adams believes Gen Z will be more authentic leaders.
“When I was moving into leadership positions, I wasn’t really successful until I brought my true self to the role,” she says. “Before that, I was trying to be the director I saw growing up, which was a 60-year-old man. You can’t really pretend to be that when you’re a new mum and you’re 30.
“That won’t necessarily be the case for this next generation of leaders. They’re going to be more purpose-driven.”
Millar adds that engaging and retaining Gen Z requires appealing to their values.
“Leaders have a unique opportunity when working with their team to figure out what makes them tick and to find ways to align their work to that broader purpose. If you can do that, you’ll have a lot of success.
“Gen Z are tech-fluent digital natives,” adds Millar. “They’re challenging how we do things and reimagining how we do things. And they’re also quite socially connected and community-minded. So, how can you leverage those generational superpowers in the workforce?”
3 Gen Z expectations — and what they mean for governance
Authenticity
Authenticity is highly valued by Gen Z. Millar describes it as “stripping back the corporate polish that other generations have really mastered.” It’s a quality boards must harness, especially when communicating an organisation’s progress around sustainability and broader ESG issues.
Purpose
Adams says Gen Z leaders will have a “greater purpose-driven sustainability focus”. She says this has important implications for governance. Setting purpose-aligned objectives, integrating purpose metrics into executive performance and regularly reviewing whether major decisions reinforce stated values will resonate with this generation.
Transparency
Gen Z’s expectation for transparency has clear implications for governance, as transparency enables accountability. To engage this cohort, boards must communicate with clarity and be clear on how purpose aligns with action. Inviting meaningful participation, modelling digital fluency and upholding strong ethical standards are more likely to foster a culture of engagement among this values-driven generation.
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