Each year, I teach a few courses in one or more of our local University Business Schools. I love it, because I get the opportunity to share my expertise, but I also get the chance to learn from my students.
I recently polled a few of my classes on their list of top 5 things they look for in a career role. Perhaps not surprisingly, “great boss”, “good team”, and “company culture” were often listed in their top 5. But do you know what was never listed as their number 1 priority – and many times didn’t even make their list of top 5?
Money.
Now, I admit that perhaps there may be a difference between what they ‘say’ they value and what they ‘really’ value, but as we discussed their priorities, most shared that they would rather have a fulfilling career than one that made them rich but miserable. They prioritize flexibility, work life balance, autonomy, and the opportunity to do interesting work over income.
And do you want to know another thing in which they have very little interest?
Leadership.
Without fail, only 2 or 3 hands go up (out of 25 – 30) when I ask who is interested in pursuing a leadership role in their careers. And this includes classes in Advanced Leadership!
This sentiment aligns with a recent Forbes article: Why Climbing the Corporate Ladder isn’t Attractive to Younger Workers. In it, the author, Mark Perna, points out that if the next generation stick to their word, eventually there may not be enough leaders to go around. More and more, leadership is seen as having to do more with less – less certainty, less resources, and less support from the top (see DDI’s Center for Analytics and Behavioral Research).
Perhaps rightly so, the next generation of workers are standing at the starting line and witnessing the melee of RTO mandates, strikes, layoffs, and notoriously low engagement in countries like Canada and the US and saying – ‘thanks, but no thanks.’ The bump in salary isn’t worth the added burden of leadership responsibility.
This could be partly because over 70% of under-35 leaders are already feeling burned out and woefully unprepared in core leadership skills. The knock-on effect is that many companies aren’t confident that they have the required bench strength to meet their future leadership needs. This so-called “leadership deficit” could lead to prolonged leadership vacancies, premature promotions, higher leadership failure rates, and poorer bottom-line results.
Add to this the recent Glassdoor Work life Trend 2025 Report that found that 65% of employees are feeling stagnant in their current roles and you have a recipe for higher turnover and attrition from a generation that puts a premium on meaningful work and growth opportunities.
Addressing the Gap
There are a few things that companies can do to address this potential leadership deficit including:
Accelerate Targeted Leadership Development. For those few younger worked who may still be interested in pursuing formal leadership roles, identify their interest and potential early and invest purposefully in their development. Implementing or investing in Emergent Leadership programs can be a key source of development support for those who are willing and able to move from individual contributor to first-time/front-line leader.
Bolster Professional Development. While Gen Z may not be interested in leadership roles, they are avidly interested in professional development. This can mean putting younger workers in expanded roles, on special projects, and/or using rotational roles to broaden their experience and understanding of the business. The better your professional ranks, often the less demand is put on your leadership team.
Invest in Team Development. Beyond individual leadership, there is no better driver of organizational success than effective teamwork. Cultivating high-performing teams across the company can be a key differentiator and competitive advantage for organizations. Help your leaders understand what it means to be a high-performing team and provide the skills and tools they need to get the very best from their teams.
For companies that are in a leadership deficit today or forward-thinking enough to plan ahead for their own likely gap tomorrow, taking action now to address it will be key. Investing strategically in the next generation of workers can pay dividends in higher engagement, lower turnover, and better organizational results.
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