Gen Z employees have developed a reputation for presenting business leaders with unique management challenges. Their growing presence in the workforce makes it imperative that their supervisors learn how to manage and lead them effectively.
Already accounting for 18% of the U.S. labor force, Gen Z is projected to make up 30% by 2030 and continue growing thereafter, as its youngest members are still in junior high school today. Meanwhile, the youngest Boomers will turn 65 in 2029, placing the challenge of managing Gen Z employees squarely on the shoulders of Gen X, Millennials, and older members of Gen Z.
How great is the challenge? “When given a choice, 37% of hiring managers…said they would rather have a robot or artificial intelligence fill a position than hire a new grad. 44% said they would rather give the job to an existing freelancer, and 45% would rather recruit and rehire a worker who has retired than bring on a graduate.”1
Given that Gen Z will account for roughly a third of all workers within the next decade, it’s vital for business leaders to understand them and adapt their management approaches. Those who do will have a leg up in recruiting, maintaining a high-performing organization, and retaining their young talent.
Along with management challenges, Gen Z brings valuable perspectives and skills to the workplace, as well as a natural comfort level with digital technology, having grown up with smartphones, social media, and ubiquitous connectivity.
Here’s a look at some of the stereotypes and misconceptions about managing Gen Z employees; the unique challenges this generation faces in adapting to the corporate world; and proven strategies for managing these workers more effectively.
Common Stereotypes and Misconceptions About Gen Z Employees
Complaints from HR and direct supervisors about the shortcomings and bad habits of Gen Z employees have become staples of business reporting and online discussions. In summary of many of the prevalent stereotypes and negative perceptions of these workers:
“Financial-advice guru Dave Ramsey called them ‘just awful,‘ while many hiring managers confess to ignoring them. They’ve been called out for being late, entitled, and overall not a good fit for many businesses. A survey from the Freedom Economy Index report…found 68% of small-business owners said Gen Zers were the ‘least reliable’ of all their employees.
“Overall, 54% of non-Gen Z workers say the generation is lazy, with another 40% labeling them as selfish…About 30% of older workers said they would rather get a root canal than work with Gen Z.”2
And a recent survey of hiring managers “found 56% of respondents said they’ve had Gen Z applicants in the last year who were unprepared for their job interview. Some of the biggest complaints were poor communication skills, unprofessional attire, and a sense of entitlement.”2
Other sources complain about Gen Z applicants bringing their mom or dad to a job interview; new Gen Z hires “ghosting” employers (either not showing up for their first day of work or disappearing after just a few days on the job); scrolling on their phones during work meetings; being chronically disgruntled; and complaining to each other, dragging down workplace morale. Instagram creator Cruz Corral has built a considerable following by creating videos that humorously contrast the reactions of workers of different generations to common workplace scenarios. Like this:
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Unfortunately for everyone involved, these generalizations can create barriers to effective management and integration into workplace teams. It’s vital to treat every employee as an individual rather than making assumptions based on generational labels. Employees of any generation can develop disruptive work habits, while many Gen Z employees are ambitious, hard-working, eager to learn, and easy to relate to.
Fortunately, a growing number of Gen Z employees recognize the stereotypes and the harm these can do to their careers, and focus on being the exception rather than reinforcing these perceptions. Effectively managing these workers starts with understanding the differences in generational communication styles and preferences in the workplace. Gen Z workers favor fast, digital-first communication methods, but also value authentic, transparent communication.
Understanding the Unique Challenges of Managing Gen Z in the Workplace
Gen Z employees face distinct workplace challenges that require thoughtful management approaches. In many cases, their formative school-age years were impacted by the isolating effects of COVID and social media. Today, they are entering a challenging job market amid rapid technological change. Effectively managing this generation starts with empathy for their unique circumstances.
Gen Z Reports Higher Workplace Dissatisfaction
Numerous research studies show Gen Z is the generation most likely to be unhappy at work. According to a survey by background and employment-check company Checkr, “44% of respondents said they were happy at work. That share fell to 35% among Gen Z workers, though, compared to 50% for both baby boomers and Gen X workers.”2
And “44% of business leaders were satisfied with the quality of leadership in their industry, while 36% said they were dissatisfied, and 20% said they were neither. But when Gen Z and the youngest millennial leaders, ages 28 to 34, were asked the same question, dissatisfaction rose to 53%, the highest share of any cohort.”3 As job satisfaction has generally increased in the past year across the economy, Gen Z workers have actually recorded a modest decline in satisfaction.
The underlying factors contributing to this dissatisfaction include unmet expectations (such as for flexibility, rapid career growth, and purposeful work); misalignment with workplace culture (in areas like authenticity, concern for mental health, and leadership transparency); stress and burnout; and a different definition of success (Gen Z prioritizes meaningful experiences and personal growth over blind loyalty).
AI Technology Could Threaten Traditional Entry-Level Opportunities
Discussing how AI is creating an entry-level job crisis for Gen Z workers, Anthropic CEO Dario Amodei “believes artificial intelligence will wipe out half of all entry-level jobs and drive unemployment up to 10% to 20% in the next five years — and those trends are already in motion.”4
Entry-level job openings in fields such as finance, administrative support, and computer programming have already decreased substantially. And “The number of internships in the United States dropped 13% (year over year), with the biggest drops coming in software, quality assurance, public relations, and legal services.”4
These trends around AI in the workplace are worrying to those already employed, even as they create additional pressure and uncertainty for Gen Z employees just entering the workforce. Recent college graduates who believed that majoring in finance, computer science, or even industrial engineering would guarantee their employability are seeing opportunities disappear as the use of AI spreads.
Shrinking job opportunities aren’t the only threat to Gen Z from AI. There are concerns that “heavy use of AI tools can damage cognitive ability.”5 Different studies have found that heavy “LLM users consistently underperformed at neural, linguistic, and behavioral levels,”5 that AI use increased the development of procrastination and memory loss, and that it dampened students’ academic performance.
“Gen Z workers, despite their heavy use of AI, also worry about its long-term impacts:
- 49% are concerned that AI could lead to unfair or biased decisions that affect them at work.
- 39% feel burned out by the frequency of AI tool updates.
- 38% say they need to use AI just to manage their workload.
- 37% say AI makes them feel replaceable.
- 23% say using AI at work has negatively affected their mental health.”5
Leadership Gaps and Management Aspirations
Nearly a third of all “workers in a recent survey said they would decline a promotion to management, citing work-life balance…Gen Z is the age group most interested in a promotion that doesn’t involve becoming a manager, at 40%.”3 Part of the reason for that trend is that workers want to grow more within their own roles as individual contributors rather than taking on a management position that requires a completely different mindset and set of skills.
However, part of this may also be dissatisfaction with their own current leadership. Often, newer and younger employees work for first-time managers who have not received proper training on how to become effective leaders, and consequently don’t know how to avoid being a bad boss.
Actually, leadership training is important for every employee. Those with a desire to pursue a management role will learn the basics of leading a team, while those without that ambition will learn how to communicate more effectively with coworkers, collaborators, and their supervisors.
11 Proven Strategies for How to Manage Gen Z More Effectively
Successfully managing Gen Z employees requires adapting traditional leadership approaches to meet the unique needs and expectations of this generation of workers. This section details 11 practical, proven strategies, from embracing flexibility and transparency to building trust and creating alternative career paths, that will help keep Gen Z employees engaged, happy, and loyal.
1. Embrace Flexibility and Hybrid Work Options
“67% of new graduates think working 9 a.m. to 5 p.m. is a thing of the past (and) 59% of 2025 graduates said they think working full time in an office is outdated.”1
Why? “The class of 2025 only knows hybrid or remote work, rather than working all hours in an office. They were in high school during the pandemic when the typical workplace model shifted. Therefore, most of the internship and work experience they have previously been exposed to has shown them that non-traditional (remote and hybrid) models were not only possible, but successful.”1
Providing flexibility in terms of policies like “core hours” and hybrid workplaces accommodates Gen Z preferences while maintaining productivity and the ability to bring teams together face-to-face when really necessary.
As noted in our post on how some leaders are getting return-to-office (RTO) mandates wrong and how to get workplace structure right:
“Remote work can be directly linked to employee well-being. A 2022 study from Tracking Happiness found that the ability to work remotely increases employee happiness by as much as 20%.”
Flexible/hybrid work environments also help companies increase workplace diversity by accommodating young parents and employees with disabilities who face challenges with commuting.
“The bottom line…Multiple studies suggest that giving people flexibility regarding where they work boosts job satisfaction, work-life balance, health, morale, productivity, and ultimately, the bottom line.”1
2. Focus on Outcomes, Not Presence
Flexible work arrangements work best when employees know they’ll be judged on results rather than how long they spend in front of a computer. Utilize project management software to track tasks and deadlines, rather than relying solely on clock-in times and keystrokes.
“The most future-ready companies aren’t asking, ‘Where are you working from?’ They’re asking, ‘What did you move forward today?’ We’re prioritizing outcomes over outputs, and replacing outdated office culture with systems that reward clarity, creativity, efficiency, and speed…
“While some leaders are doubling down on rigid return-to-office (RTO) mandates, we’ve doubled down on trust. We don’t monitor keystrokes. We don’t care if someone is building a pitch deck in a café in London or reviewing press targets from their lake house in Wisconsin. What matters is the work product and how it’s driving outcomes for our clients.
“The companies clinging to control are losing talent and time. If your team still measures productivity by hours online or office attendance, you’re not just behind, you’re building a business for a workforce that no longer exists.”6
3. Develop Alternative Career Advancement Paths
While most Gen Z employees place a high priority on opportunities for professional growth, that doesn’t necessarily mean a promotion into a management role, as noted above. That makes it imperative to create alternative growth paths for employees.
“Many employees who don’t want management roles often find greater fulfillment in doing more hands-on work and focusing on their own individual contributions…Companies should recognize that employees have different goals and try to create paths for those who may not be interested in managing others…
“Some employees who turn down a management promotion or say they are not interested in those types of jobs may instead want more training and development opportunities before they feel comfortable overseeing others.”3
What does that look like in the real world? “The new generation (of workers) wants to feel growth and stability. When these employees fail to do so, it affects their work and productivity.”6
“To prioritize job satisfaction to keep younger employees happy and engaged:
- Make Gen Zers part of their own growth plan development. Our job is to provide a transparent career path and set clear expectations. Their job is to proactively seize opportunities to grow on that path. We let them decide what their career growth looks like.
- Don’t let the new workforce feel stuck. Our team leaders actively look for high-performing employees. We keep pace with their performance by giving new training, seminars, and collaborative projects.
- Mentorship allows Gen Zers to work with senior individual contributors and upskill or reskill with greater flexibility.”6
When creating alternative professional growth paths, consider lateral moves (a “sideways” shift into a new role in a different department or function that offers the chance to have new experiences and learn new skills), deeper skills training, and project leadership opportunities. A professional development workshop like Strength Finders can help employees identify their natural strengths, better enabling them to play a role in designing their own growth paths.
4. Practice Radical Transparency About Role Expectations
Difficult conversations are, well…difficult for a reason. Avoid the temptation to “sugar coat” hard truths because that feels easier than complete honesty. Instead, demonstrate your respect for and belief in your Gen Z employees by being upfront about job responsibilities, workplace expectations, and challenges—as well as growth opportunities.
Clear communication prevents disappointment and, in the long term, improves job satisfaction. Communicating directly and transparently, even when it’s difficult, will also build trust with your youngest employees.
Some key insights every Gen Z employee entering the workforce, as well as every supervisor who leads them, should consider:
- “Everything worth having lives on the other side of effort. Everything good requires tending. Everything beautiful demands maintenance.
- “The unsexy truth is that the path to a life that includes your actual passions often runs through decidedly unglamorous work.
- “Your first job out of college doesn’t need to carry the weight of your entire identity! It just needs to teach you something and pay your rent.
- “We’ve been told that (Gen Z’s) mental health depends on avoiding difficult conversations, challenging situations, and uncomfortable growth. But peace isn’t the absence of problems; it’s the presence of purpose that makes problems worth solving.
- “Ultimately, here’s what I think we should tell young people about work: it will be harder than you expect and more rewarding than you can imagine, sometimes on the same day.”7
5. Actively Seek Employee Input and Feedback
Regularly ask Gen Z employees what they want and need from their work experience. This should always be done in person. Consider making this a recurring (at least quarterly) part of weekly check-ins with their manager. Addressing employee issues, from small immediate needs to more strategic career advancement training, in a collaborative approach builds engagement and ownership.
For those leading Gen Z employees, our full-day Manager’s Guide to Business Coaching workshop teaches supervisors how to give and ask for feedback (while avoiding common coaching pitfalls) in ways that strengthen relationships, build trust and commitment, and inspire high performance.
6. Balance Flexibility with Clear Non-Negotiables
Gen Z office workers have been faulted, sometimes unfairly, for characteristics like being glued to their phones (even during meetings), pushing back on office dress codes with a preference for extreme comfort, gossiping, complaining, and avoiding conflict…among other problematic habits.
But not every deviation from office traditions or norms is a show stopper. Be flexible where possible; for example, casual dress Fridays, “core hours” that provide start time flexibility, and hybrid work environments.
At the same time, be prepared to be firm on essential standards and expectations, such as dressing professionally and keeping phones tucked away at any time employees are in the presence of customers or suppliers. Be clear on which policies are non-negotiable and why that’s the case.
Personality assessment exercises like our DiSC Workshop and Myers-Briggs Type Indicator Training can be eye-opening for Gen Z employees, helping them better understand their own personality preferences and conversation styles as well as those of their supervisors and coworkers. This can help younger employees accept and adapt to those unbendable workplace rules, practices, and policies.
7. Build Trust Through Consistency and Hope
Build trust with Gen Z employees by being reliable (tell them what you will do and when, then stick to it); transparent (always explain “why” and share as much company information as possible); and following through (closing the loop on every issue). Research shows a strong correlation between trust and employee retention, as organizations that build trust cut employee turnover in half, as well as a high correlation between consistency and trust.
But as vital as trust is to building a high-retention workplace, even more important is imparting a sense of hope. When “respondents from 52 countries were asked to list three words describing what positive leaders add to their daily life, hope emerged as the primary need, cited by 56% of respondents. Trust followed at a distant second with 33% while compassion (7%) and stability (4%) lagged far behind.”8
“The people who felt that they had a leader who encouraged their development had a much more positive view of their standard of living and their future. When people have a concept of where they’re headed, that’s part of hope…
“Hope isn’t just telling people things are going to be great, it’s helping them see how they can be great in tough times, how they can be a part of defining the future instead of being victimized by the present.”8
8. Understand Gen Z’s Relationship with AI and Technology
Gen Z grew up with smartphones, and these employees are comfortable using AI for a wide variety of both social and workplace tasks.
“57% of Gen Z workers have used AI to get feedback on their work before handing it over to a manager, and 56% said they’ve used AI for advice on how to communicate with managers or coworkers.”5
In addition, more than half of Gen Z employees report using AI for “brainstorming or generating creative ideas,”5 writing or editing email messages and reports, and analyzing large datasets for insights.
Managers need to leverage this technological comfort and fluency while addressing potential blind spots, such as assuring that employees are using only company-approved AI tools; any task or process automation is shared with managers and teammates to avoid unforeseen pitfalls; and sensitive company data is protected.
Beyond work-specific tasks, Gen Z, more than any other generation in the workplace, increasingly relies on AI for help with social interactions. Gen Z “workers use AI to make tough decisions, get advice, and seek mental support.”9
Gen Z employees are also using AI for help with career guidance, challenges with coworkers, to vent about annoyances, and to “discuss” mental or emotional struggles. To avoid over-reliance on AI technology, which can make mistakes, hallucinate, or simply try too hard to please, managers should involve their young employees in team building and professional development programs to help develop their emotional intelligence (EQ) skills.
As previously detailed, emotional intelligence is vital for high-performing teams because it enables workers to become more adaptable, empathetic, and resilient. Our Emotional Intelligence Training workshop builds a culture of trust, improves customer service (whether the “customer” is internal or external), increases social awareness, and fosters honest and open communication.
9. Establish Clear AI Usage Policies
As alluded to above, it’s imperative that leadership develops guidelines for appropriate AI use in the workplace, including:
- Transparency and disclosure: Employees must disclose when AI-generated content is used in reports, communications, or deliverables.
- Data privacy and security: AI tools must not be used with confidential, proprietary, or personally identifiable information (PII) without explicit approval.
- Human oversight and accountability: Ultimately, the employee remains responsible for the work, not the AI.
- Permitted vs. prohibited use: Provide clear dos and don’ts, such as that AI use is fine for drafting emails, summarizing notes, or brainstorming ideas. But it can’t be used for submitting unreviewed computer code, drafting legal contracts, or writing final marketing copy.
Establishing clear guidelines helps strike a balance between innovation and productivity improvement, on the one hand, and quality and compliance requirements, on the other.
10. Create Opportunities for Intergenerational Mentoring
When an organization’s newest and most senior employees get opportunities to simultaneously teach and learn from each other, everyone benefits. Older employees learn new tech skills (along with updating their slang vocabulary) while Gen Z employees benefit from the wisdom, insights, and experience of their Gen X and Boomer colleagues.
“Companies are revolutionizing mentoring by creating structured programs in which Gen Z employees teach digital skills to senior colleagues, while simultaneously learning institutional knowledge and strategic thinking from those same professionals.
“It’s an important trend because it addresses two critical workplace challenges simultaneously: the digital skills gap among senior leaders and the institutional knowledge gap among younger employees. Intergenerational mentoring fosters more cohesive and adaptable teams while enhancing retention across all age groups.”6
To maximize the benefits for both the employees and the organization:
- Design programs that emphasize mutual benefit rather than one-way knowledge transfer
- Create psychological safety that makes senior employees comfortable being “students”
- Set clear learning objectives for both parties
- Establish and measure success metrics through skills assessments and surveys6
11. Consider Offering Sabbaticals
Sabbaticals represent a significant investment by an organization in its employees, which is why the benefit remains somewhat uncommon. Only about 5% of companies offer paid sabbaticals, though the number has grown 11% since 2022.10
Done right, sabbaticals can help enterprises attract and retain talent while encouraging the personal and professional growth of their people. They help employees recharge their psychological batteries and prevent burnout while exploring new skills and experiences.
To maximize the benefits of these programs, organizations should:
- Establish clear criteria, such as having a minimum tenure with the company (typically 3-5 years) and high scores on 360 reviews;
- Control the timing by offering sabbaticals during the company’s slow season or after completion of a major project; and
- Co-design the experience with the employee so that it is more than just an extended vacation and actually helps the employee grow both personally and professionally.
The Role of Team Building in Managing Gen Z Employees
Structured corporate team building activities can help address many Gen Z management challenges. All professional team building programs incorporate core pillars, including communication, collaboration, relationship building, and problem solving (in addition to being fun).
As noted above, professional development programs like our MBTI Training and DiSC Workshop help employees better understand the role their personality type and communication style, as well as those of their teammates, play in shaping group dynamics. Additional professional development and team building exercises that can help Gen Z employees integrate more successfully into their organizations include:
Conflict Resolution Training: By teaching young employees how to recognize, address, and resolve conflicts using models like the Thomas-Kilmann Inventory, this one-day workshop helps Gen Z feel more empowered and understood, rather than shutting down when differences arise.
Belbin Behavioral Assessment: Gen Z employees often thrive when their strengths are recognized and leveraged. The Belbin Behavioral Assessment helps by revealing how each person naturally contributes to a team, allowing Gen Z workers to be placed in roles that align with what they do best.
Competition to Collaboration®: This workshop focuses on collaborative problem solving, shared goals, and mutual accountability. It teaches Gen Z how to build influence and contribute to a cohesive culture, rather than feeling isolated or like they’re always competing.
Bridge to the Future: This fun, action-packed program helps Gen Z workers envision their long-term growth by aligning their personal aspirations with company strategy and pathways. This kind of forward-looking development fosters motivation and loyalty, showing younger employees their contributions aren’t just for today but for what comes next.
Specific benefits of making programs like these a part of ongoing professional development initiatives within an organization include:
- Improved communication: Team building programs improve communication skills by providing opportunities to practice and refine skills like active listening, clear expression, and constructive feedback in a fun and fast-paced but low-stress environment.
- Trust building: When Gen Z workers learn that they can trust coworkers to make good decisions, collaboratively solve problems, and work together to achieve non-work-related goals, that trust extends back into the workplace.
- Skill development: The core of professional team building programs is teaching social skills such as leading by influencing and problem-solving as a group. These skills build confidence and competence in collaborating across different groups and functional areas.
- Cultural integration: Team building enables participants to learn more about each other, building trust and relationships within fun, low-stress activities like designing and assembling a Rube Goldberg-style contraption or competing against other teams as well as the clock in a corporate scavenger hunt.
Creating an Inclusive Multigenerational Workplace
Team building and professional development activities extend the benefits of initiatives like intergenerational mentoring by challenging Gen Z employees to work collaboratively with their Millennial, Gen X, and Boomer counterparts in friendly competitions. They help younger workers better understand the perspectives and communication preferences across generations without dry, boring lectures.
As with employees of different ethnicities and backgrounds, age is a component of workplace diversity. We’ve noted here before how workplace diversity is essential for numerous reasons, including helping companies develop more innovative solutions and improving the quality of decision-making. In addition to cross-generational mentoring and team building programs, leaders can leverage the unique strengths of each generation through practices like cross-functional projects, inclusive decision-making, and shared social activities.
Effectively managing employees across generations improves team cohesion and organizational performance. Behavioral assessments, such as the Belbin program noted above or our Colors Behavioral Assessment workshop, help employees better understand their coworkers’ strengths, challenges, motivational differences, and communication preferences, as well as how to utilize that knowledge to build a high-performance team.
Ready to Transform Your Gen Z Management Approach?
To more effectively manage Gen Z employees, it is essential to understand that every worker is an individual – not a stereotype – and to recognize the unique challenges this generation faces in the workplace, including the threat of AI and a desire for non-management career advancement options. Beyond that, specific recommendations for leading this generation of workers include:
- Embracing flexibility and hybrid work options
- Building trust through consistency, hope, and radical transparency
- Actively seeking their input and feedback
- Understanding and actively managing their relationship with AI technology
- Creating opportunities for cross-generational mentoring.
Team building and professional development programs can also play a key role in helping Gen Z employees integrate into the workplace culture, collaborate more effectively with coworkers, develop essential workplace social skills, and maintain engagement.
Starting with a flexible workplace structure and building trust through authentic dialogue, implement these strategies gradually. Measure the impact in terms of productivity, emotional check-ins (how are you feeling about work today?), and weekly one-on-one coaching sessions. Keep what’s working, adjust or discard what isn’t, and expand your use of these techniques.
Explore the full range of in-person and virtual team building programs, professional development workshops, and corporate scavenger hunts offered by Best Corporate Events. Discover why we’re the best team building partner to work with. And when you’re ready to discuss how we can support your leadership development, team building, and Gen Z management efforts, please contact us for a quote or more information.
Sources:
- “Hiring managers are hitting friction with new college grads” https://www.bizjournals.com/tampabay/news/2025/04/15/new-grads-2025-remote-hybrid-work-day-flexibility.html
- “Worker job satisfaction hits new high, but one generation bucks the trend” https://www.bizjournals.com/tampabay/news/2025/06/16/job-satisfaction-vacation-pay-gen-z-2025-culture.html
- “A great divide is emerging on promotions. It could be a game-changer for retention.” https://www.bizjournals.com/tampabay/news/2025/06/08/gen-z-splits-being-promoted-to-management.html
- “AI is creating an entry-level jobs crisis for Gen Z workers” https://www.bizjournals.com/tampabay/news/2025/06/02/entry-level-jobs-ai-internships-crisis.html
- “There’s a new problem for Gen Z in the office — and AI is to blame” https://www.bizjournals.com/tampabay/news/2025/06/21/gen-z-ai-chatgpt-work-problems-jobs.html
- “The most surprising workplace trends of 2025 (so far)” https://www.fastcompany.com/91367450/the-most-surprising-workplace-trends-of-2025-so-far-workplace-trends
- “why are we lying to young people about work?” https://maalvika.substack.com/p/why-are-we-lying-to-young-people
- “The quality employees need most right now from their leaders may surprise you” https://www.fastcompany.com/91378970/the-quality-employees-need-most-right-now-from-their-leaders-may-surprise-you
- https://www.resume.org/research/majority-of-gen-z-chatgpt-users-view-it-as-a-coworker/
- “Micro-retirement is the latest Gen-z buzzword” https://www.bizjournals.com/tampabay/news/2025/07/23/sabbaticals-job-postings-benefit-vacation-burnout.html
