Flexibility, Impact, Growth: The Evolving Priorities of Gen Z and Millennial Leaders

Jonathan H. Westover, PhD
Apr 27
6 min read

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Abstract: This article examines the evolving landscape of organizational leadership as Gen Z and millennials increasingly comprise the workforce, revealing their diminished interest in traditional corporate hierarchies. Unlike previous generations, these younger workers prioritize flexible arrangements, meaningful impact, and work-life balance over conventional career advancement. The research highlights their preferences for collaborative environments, continuous learning opportunities, and transparent leadership structures, driving them toward alternative career paths such as entrepreneurship, horizontal moves, and portfolio careers. Organizations seeking to attract and retain this talent must adapt by flattening hierarchies, offering developmental rotations, formalizing flexible work arrangements, and measuring social impact. The case study of Redfin demonstrates successful implementation of these strategies, suggesting that companies embracing these leadership transformations will better position themselves for future success in an evolving workforce landscape.

The landscape of organizational leadership is shifting as new generations enter the workforce. Gen Z—those born between 1997-2012—and millennials—born between 1981-1996—now make up a sizable portion of company employees. However, these younger workers are less interested in climbing the traditional corporate ladder and more focused on flexible work, meaningful roles, and a good work-life balance (Luscombe, 2020). As a result, many Gen Zers and millennials are choosing alternative career paths or leaving companies altogether rather than spending decades working their way up through management. This represents a significant change for businesses that have long relied on hierarchical leadership structures.

Today we will explore why Gen Z and millennial workers are less inclined to pursue traditional career advancement.

Values of Gen Z and Millennials

Research findings provide context for why Gen Z and millennial workers are less inclined to ascend corporate ladders.

Gen Z places high value on work-life balance. A recent study found that 77% of Gen Z workers would rather have flexibility and free time than climb the career ladder quickly (Bencsik et al., 2016). This generation grew up with busy scheduled and desires more control over their hours.
Millennials prioritize meaningful work and causes. According to Pew Research Center (2019), millennials are more likely to consider a job's social and environmental impact when choosing employment. Many want roles where they can directly see positive change rather than focus solely on promotions.
Both generations crave feedback and development opportunities. Continuous learning is important for retention of Gen Z and millennial employees. Research suggests these age groups expect regular coaching and want new challenges at least every 2-3 years (Ehrhart et al., 2012). Traditional career ladders may not provide varied enough experiences.
Flat leadership structures appeal more than hierarchy. A study by Deloitte (2018) found younger workers prefer working collaboratively across departments rather than being limited within strict management chains. They value transparency and sharing of power/information.

The values espoused by Gen Z and millennials differ meaningfully from prior generations who largely aspired to climb linear career ladders. Their priorities point to a need for alternative leadership approaches focused more on flexibility, impact, learning and flat structures.

Alternative Career Paths Emerging

Rather than ascending traditional organizational hierarchies, Gen Z and millennial workers are exploring new types of career journeys that align better with their values.

Entrepreneurship and Gig Work: According to a Gallup study, 30% of millennials prefer being their own boss to working for an organization (Newman, 2017). The flexibility and potential for meaning/impact attract many to entrepreneurship. Platforms like Uber, Fiverr and TaskRabbit have enabled more gig and freelance work options. This independence allows Gen Zers and millennials to control their time and choose diverse projects that interest them.
Horizontal Career Moves: Rather than move 'up', some instead choose lateral career changes every few years to gain new experiences. For example, an accountant may switch departments or even industries periodically for varied work.
Portfolio Careers: Weaving together multiple types of roles, some build diverse 'portfolio careers' that combine entrepreneurial gigs with part-time work or consultancy. This mixes independence with scheduling flexibility.
Focus on Meaning over Management: Social entrepreneurs are directly tackling issues like poverty, healthcare and sustainability through nonprofit or mission-driven roles rather than aiming for C-suite positions. Impact becomes a higher priority than titles.

These emerging paths demonstrate a rejection of traditional advancement norms in favor of autonomy, impact, constant learning and flexible working styles better aligned with Gen Z and millennial values. Companies must adapt leadership models or risk losing top young talent.

Recommendations for Organizations

To better support career journeys preferred by younger generations and thus attract/retain their talent, companies should consider the following recommendations:

Flatten Leadership Hierarchies: Adopt more circular leadership models where employees at all levels can contribute ideas and make decisions collaboratively. Reduce bureaucracy and promote based on skill rather than tenure.
Empower Cross-Functional Teams: Encourage fluid personnel movement and project-based work across departments. This allows horizontal career exploration through diverse project exposure.
Offer Developmental Rotations: Design rotation programs that provide short-term (6-18 months) assignments in new groups/locations. The variety and coaching opportunities enhance skills progression and engagement.
Formalize Flexible/Remote Work: Institute permanent flexible and remote work arrangements where roles allow, to attract parents, caregivers and those valuing autonomy. Demonstrate commitment to work-life integration.
Emphasize Skill-Based Careers: Shift focus from job titles/ladders to competency frameworks that outline diverse developmental paths. Highlight options for continual learning across different experiences.
Track Impact Metrics: Publicly measure and share social/environmental impact to engage employees passionate about causes. Communicate tangible results of corporate social responsibility efforts.

By embracing these recommendations, businesses can evolve leadership culture to better match the priorities of Gen Z and millennial workers likely to dominate the workforce for decades. This preserves a pipeline of top talent.

Case Study: Redfin

As a leading real estate firm, Redfin serves as an example of adjusting leadership approaches to attract younger generations.

Redfin implements a flat organizational structure where employees at all levels work closely on cross-functional teams and provide input to company strategy. This open communication appeals to shared leadership preferences of Gen Z and millennials.
The company also has strong parental leave and flexible/remote work policies. As many younger employees start families earlier, this commitment to work-life balance is important for retention.
Redfin publicly tracks progress on environmental sustainability initiatives, leveraging staff desire to work for purpose-driven companies. This transparency builds engagement.
Leaders offer rotational career paths across divisions to build broad skills. Rather than siloed departmental tenure, rotations encourage horizontal moves and continuous learning valued by younger generations.

By implementing recommendations like flattened hierarchies, teamwork, flexibility and impact transparency, Redfin exemplifies how adopting leadership practices aligned with Gen Z and millennial expectations can attract top talent today and build a workforce primed for long term success.

Conclusion

Shifting societal trends demand a new vision of organizational leadership. As Gen Z and millennials rapidly enter the labor force, their values diverge meaningfully from prior ones focused on climbing career ladders. To retain top young performers, companies must transform outdated leadership norms and instead empower employees at all levels through flattened structures, developmental opportunities and emphasis on fleibility and meaningful impact. Those who adapt leadership culture to match emerging workforce preferences will build teams positioned for excellence now and stability into the future. By supporting the career paths preferred by these rising generations, businesses can create truly satisfying and engaging work experiences to nourish talent for decades ahead.

References

Bencsik, A., Horváth-Csikós, G., & Juhász, T. (2016, June). Y and Z generational customers’ values and their reflection in loyalty. [Paper presentation]. International Conference on Management, Leadership and Governance, BMC, Szeged, Hungary.
Deloitte. (2018, January 18). The Deloitte millennial survey 2018.
Ehrhart, K. H., Mayer, D. M., & Ziegert, J. C. (2012). Web-based recruitment in the millennial generation: Work–life balance, website usability, and organizational attraction. European Journal of Work and Organizational Psychology, 21(6), 850–874.
Luscombe, B. (2020, August 19). The pandemic has pushed Gen Z to reject workaholic trap. Here's why. Time.
Newman, D. (2017, August 24). Millennials prefer to be bosses not employees. Gallup.
Pew Research Center. (2019, January 17). Defining generations: Where Millennials end and Generation Z begins.

Jonathan H. Westover, PhD is Chief Academic & Learning Officer (HCI Academy); Chair/Professor, Organizational Leadership (UVU); OD Consultant (Human Capital Innovations). Read Jonathan Westover's executive profile here.

Suggested Citation: Westover, J. H. (2026). Flexibility, Impact, Growth: The Evolving Priorities of Gen Z and Millennial Leaders. Human Capital Leadership Review, 20(3). doi.org/10.70175/hclreview.2020.20.3.2