They don’t want to be managed. They want to be mentored, inspired, and heard.
Gen Z and Millennials aren’t just reshaping what it means to be a consumer.
They’re also rewriting the rules of leadership.
These generations grew up with access to information, constant feedback loops, and communities that reflect their values. They’ve been empowered to speak up, ask why, and challenge outdated systems. They’ve learned that authority should be earned, not assumed. And they’re bringing that mindset into the workplace.
Yet many leaders are still operating from a top-down, task-first, check-the-box model that can feel transactional, cold, or even tone-deaf. And it’s not working.
According to the 2025 Deloitte Gen Z and Millennial Survey:
- Only 36% of Gen Zs and 41% of Millennials say their manager motivates or inspires them
- Fewer than 50% feel they’re treated with genuine care and empathy
- Over 30% say they plan to leave their employer within two years
PeopleMetrics research tells a similar story. In our employee experience studies, emotional connection with direct managers is one of the strongest predictors of employee engagement and retention, especially for younger generations. When leadership is emotionally distant, employee loyalty suffers, regardless of salary or perks.
The takeaway?
Most managers are still managing tasks.
But what Gen Z and Millennials want is leadership that manages meaning.
Here’s what that looks like in practice:
- They want mentorship, not micromanagement.
These generations crave development and feedback, but they don’t want to be told what to do. It’s a fine line. They want guidance, not control. They want to learn, grow, and be coached by someone who is invested in their potential.
Implication: Leaders need to evolve into coaches, people who unlock potential, model vulnerability, and provide consistent, constructive feedback. The shift is from directing to developing.
- They need psychological safety to thrive.
Innovation doesn’t happen in fear-based environments. Gen Z and Millennials are more likely than previous generations to leave cultures that feel toxic, dismissive, or emotionally unsafe. Mental health is not a “nice to have” for these generations, it’s a core expectation!
Implication: Support emotional wellbeing with clear communication, inclusive decision-making, and room for vulnerability. Psychological safety isn’t just about avoiding toxicity, it’s about cultivating trust.
- They expect transparency and a voice.
These generations don’t want to be kept in the dark. They want to understand the “why” behind decisions and have opportunities to weigh in. They don’t see themselves as subordinates, they see themselves as collaborators.
Implication: Share more. Earlier. Explain the context. Ask for input and be willing to act on it. Transparency builds trust, and trust builds loyalty.
- They don’t separate who they are from what they do.
For Gen Z and Millennials, work is an extension of identity. They want to bring their whole selves to work, and they want leadership that sees and supports that. This includes flexibility, individuality, and space for life outside of work.
Implication: The best leaders meet people where they are, including celebrating differences, creating flexibility, and making space for the human behind the role.
Bottom Line:
Gen Z and Millennials aren’t rejecting leadership.
They’re rejecting bad leadership.
And replacing it with a new model, one rooted in authenticity, empathy, collaboration, and shared purpose.
If you're leading them the same way you led Boomers or Gen X, you're already behind.
Next up: “The Purpose Principle: Why Meaning Is the New Metric”
Explore how Gen Z and Millennials evaluate brands, careers, and choices through the lens of deeper purpose.
