Formation of leadership style of Generation Z

Abstract

The struggle to find and keep good employees in European companies is in full swing, and it poses a big problem on the desks of HR departments and leaders at all levels. Aside from a general shortage due to demographic developments, a new generation of future employees (Generation Z or ‘Gen Z’) is growing and will join the labor markets soon. A new generation, Gen Z, is entering the workforce, and companies must provide their future employees with a fitting employer value proposition. This study attempts to shed light on the features of leadership style for Gen Z. European companies have already started engaging in research to understand generational differences regarding company expectations better. The motivation of this study is to identify and categorize criteria that help to distinguish a ‘perfect from an average leader’ in the eyes of a Gen Z candidate. The central question of this empirical study was: ‘What does Generation Z expect from its future leaders, and which leadership style fits best to these requirements to unfold the full potential of this generation?’ The results show that Gen Z representatives are motivated and willing to perform. However, social and convenience factors play an essential role. The study comprises 550 pupils and students from Austrian education institutions entering the labor market in a few years. The study’s findings show a shift from ‘doing to being’ and from ‘managing to understanding’. Gen Z emphasizes social aspects like team spirit, working environment, work-life balance, and job security. Density, variety, and flexibility in the job are essential to Gen Z. Gen Z is accustomed to fast changes, which also determines their media-dominated private lives. Cross-functional jobs include job rotation, interdisciplinary tasks, tasks in groups with changing team members, etc., are exciting for Gen Z. Keywords: Generation Z, leadership style, transformational leadership, coaching leadership, servant leadership, employer marketing.