Gen Z: The Future of Management

Generation Z is rapidly becoming a significant force in the workforce. As the first generation to grow up fully immersed in digital technology, their approach to work, leadership, and management is distinct from previous generations. With their rise to management positions, businesses will need to adapt to new ways of thinking and operating.

In this article, we explore what makes Gen Z unique as future managers, the situation in Latvia and the Baltic States, the characteristics that define them, their motivations, and how businesses can prepare for their leadership.

Born between 1996 and 2012 (the specific years defining a generation can vary between sources), Gen Z is the first generation to grow up with smartphones, social media, and widespread access to the internet. This constant connectivity has shaped their behaviors, attitudes, and expectations who value efficiency, instant communication, and authenticity. They are known for their adaptability, technological fluency, and global perspective. Unlike previous generations, they prioritize values such as inclusivity, sustainability, and transparency in both their personal and professional lives.

In Latvia and across the Baltic States, Gen Z is already beginning to enter the workforce, bringing with them global trends alongside regional influences. These countries have undergone significant economic transformation over the past few decades, with younger generations benefiting from improved educational systems and greater exposure to international business practices. Gen Z in this region is tech-savvy, highly educated, and eager to challenge traditional business practices. Their entrance into managerial roles could mark a shift in how companies across the Baltic States approach leadership, particularly regarding flexibility, innovation, and inclusivity.

As Gen Z begins to assume managerial roles, they bring a fresh perspective on leadership that reflects their values and experiences. Some key characteristics that define Gen Z managers include:

• Technologically Proficient: Gen Z managers are highly adept at using digital tools and platforms to streamline workflows and foster communication. Their ability to integrate technology into their work processes will drive digital transformation within companies.
• Collaborative Leadership: This generation prefers to work in collaborative environments where feedback and communication flow freely. Gen Z managers tend to flatten hierarchies, encouraging more input and participation from team members at all levels.
• Purpose-Driven Leadership: They are deeply motivated by purpose and tend to prioritize ethical practices, social responsibility, and sustainability in their decision-making.
• Transparency and Authenticity: Open communication and honesty are critical for Gen Z leaders. They value authenticity and aim to create environments where trust is cultivated through transparency.

Understanding what drives Gen Z is essential for any organization looking to foster successful leaders from this generation. Key motivators include:

• Purpose and Impact: Gen Z is motivated by work that aligns with their personal values and offers the opportunity to make a meaningful impact on society.
• Career Development and Growth: Continuous learning and development are vital for Gen Z managers. They seek opportunities for rapid skill development and advancement within organizations.
• Flexibility and Work-Life Balance: Unlike previous generations, Gen Z places a high value on maintaining a healthy balance between work and personal life. Flexibility in work arrangements, such as remote work or flexible hours, is crucial for keeping them engaged.
• Recognition and Autonomy: They seek acknowledgment for their contributions and appreciate having the autonomy to make decisions and lead their teams in their own way.

The rise of Gen Z in the workforce has already influenced recruitment practices and work environments. Businesses are adopting digital-first recruitment strategies, using social media platforms and video interviews to attract young talent. Additionally, AI-powered tools are becoming increasingly common in assessing candidates.

The work environment is also evolving to meet the expectations of Gen Z employees. They expect workplaces that emphasize inclusivity, collaboration, and flexibility. Remote work options, continuous feedback, and a strong emphasis on employee well-being are becoming standard expectations rather than perks.

As more Gen Z individuals assume leadership roles, several shifts in management practices are expected:

• Increased Use of Technology: Gen Z leaders will push for further integration of technology into everyday business processes, from communication to decision-making, driving efficiency and innovation.
• Flat Organizational Structures: Traditional top-down hierarchies may give way to flatter, more collaborative structures that empower employees at all levels to contribute meaningfully.
• Diversity and Inclusion: With Gen Z’s strong commitment to social justice, businesses will likely see more emphasis on creating diverse and inclusive work environments.
• Sustainability and Ethical Practices: Gen Z managers are likely to prioritize sustainability and ethical business practices, both in their internal operations and external partnerships.

While Gen Z managers bring many strengths to the table, there are potential challenges to consider:

• Impatience and Unrealistic Expectations: Growing up in an era of instant gratification, some Gen Z managers may struggle with patience when progress is slow or challenges arise. Their high expectations for quick results can sometimes lead to frustration.
• Over-Reliance on Technology: Gen Z’s comfort with digital solutions may make it difficult for them to navigate complex interpersonal dynamics, which require more face-to-face interaction and emotional intelligence.
• Blurring of Work-Life Boundaries: Their emphasis on flexibility and work-life balance can sometimes lead to challenges in maintaining professional boundaries, affecting team cohesion and productivity.
• Inexperience and Overconfidence: Gen Z managers often display confidence in their abilities, driven by their digital fluency and access to information. However, this self-assurance can sometimes overshadow their limited real-world experience, leading to hasty decisions or underestimating complex challenges. Addressing this requires guidance and structured learning to balance confidence with practical wisdom.

To effectively manage and support Gen Z leaders, organizations need to understand their unique needs and preferences. Here are some strategies:

• Provide Meaningful Work: Make sure their roles align with the company’s mission and larger goals. Gen Z managers want to feel like their work has a broader impact.
• Encourage Open Communication: Foster an environment where feedback flows freely and openly, and where transparency is valued.
• Embrace Technology: Support their use of digital tools and platforms to enhance productivity and collaboration.
• Offer Flexibility: Give them the freedom to manage their work-life balance by providing flexible working arrangements.
• Invest in Continuous Development: Offer them opportunities for learning and professional growth, whether through mentorship programs, training, or career advancement paths.
• Support mental health: Statistics indicate that depression rates are rising among young adults and persisting as they age. In the workplace, they are more likely to take mental health days and look for well-being-related benefits therefore start to think about a company’s health plan.

Gen Z’s rise to leadership positions will undoubtedly reshape how businesses operate. Their values of transparency, inclusivity, and innovation will challenge traditional management practices and introduce new ways of thinking. As organizations prepare for this generational shift, understanding what makes Gen Z tick and adopting strategies to support them will be key to fostering successful leaders in the years to come.

References:

1. Deloitte Insights. (2023). Understanding Generation Z in the Workplace.
2. PwC. (2023). Workforce of the Future: The Role of Gen Z in Business Transformation.
3. Latvia Business Review. (2024). Generational Shifts in Baltic Workforce: The Impact of Gen Z.
4. HOGAN Assessment. (2024). Managing Gen Z.

Krista Kristiāna Ziediņa, ASTRAL Executive Search board member