Members of the younger generations are assuming or preparing for organizational leadership positions, bringing with them new perspectives about work, the workplace, and the role of leaders in the success of employees and communities. Developing the right culture now is important to attracting, developing, and retaining the future leaders. - By DAVE DESOUZA

Attracting and retaining millennials (especially the younger ones) and Gen Z as future leaders requires a new approach, because they have clear expectations about the workplace and how their jobs are performed. These expectations embrace the business culture and its elements, including work form and autonomy, coaching availability, regular feedback, diversity and inclusion, and empathy. Employers largely retained the hybrid workforce after the pandemic because younger employees insisted, but this change is proving to be just the beginning. As future leaders, the younger generations are vocal about their preferences and needs, informing employers about the kind of workplace and workplace culture they should develop, in order to attract and retain the right talent.

Changing Generational Expectations

Millennials have been in the workplace for a while now, and many already hold leadership positions, or are preparing to become supervisors or managers. They have been and are initiators of change. They pushed for more management authenticity and transparency, made it clear they preferred to work for organizations with a purpose that supports their values, insisted on working with up-to-date technologies, and promoted collaboration and sociability. The positive changes millennials have promoted are now embraced by Gen Z talent, as the next generation’s workforce participation increases.

However, Gen Z has its own set of expectations to add, such as career mobility and coaching that does not depend on seniority, interesting work with a clear understanding of how it contributes to organizational success, environmental sustainability policies, and a company that pursues social justice through workforce development, HR policies, and community support. Both generations want feedback, a say in decision-making when the decision impacts their work, and empathetic management that supports employees holistically – physically, mentally, and socially.

For employers wanting to attract, develop, and retain future leaders, transforming toward an open, authentic, flexible environment is critical to developing the workplace culture the younger generations demand. Developing a supportive and authentic workplace culture cannot happen soon enough. Developing a truly diverse, inclusive, and empathetic workplace culture may take time, though, because it requires a new way of thinking about employees. Many leadership positions are currently held by baby boomers and Gen X, who have spent some or all of their working lives in siloed organizations with command-and-control decision-making. However, some best practices can move any workplace culture in the right direction.

Developing Leaders Now and into the Future

One of the first steps to transforming the workplace culture is developing your current leaders in soft skills like empathy, collaboration, communication, motivation, coaching, and feedback. Gallup's leadership development program called Boss to Coach reflects the change needed at the leadership level. The professional development program uses the CliftonStrengths tool to identify a leader’s natural strengths that can be used to help employees reach their potential. According to Gallup, 70% of team engagement variance is determined by managers, and 52% of employees who quit say their manager or organization could have done something to prevent their exit.

“Younger generations of employees want more than a paycheck,” says Gallup. Leaders must know how to uncover what employees see as their purpose or desire from work, and they must establish clear expectations, serve as coaches, and provide ongoing development. Leadership behaviors strongly influence the type of organizational culture developed. When managers and supervisors have the necessary skills, they are positioned to help employees develop professionally, be empathetic and collaborative, and provide honest feedback. They are also prepared to coach employees, transparently make decisions, and support an inclusive environment.

When developing younger employees for leadership positions, some principles must be remembered. One is that the program needs relevance. Future leaders are interested in something other than sitting through workshops dishing up generic information. They prefer interesting, interactive content on mobile technology, collaboration with managers and peers, and coaching. This is supported by a culture of continuous learning in which leaders support employee efforts to learn on the job, take on stretch assignments, work with various teams, and other experiential learning strategies. According to the Association for Training and Development, approximately 71% of Fortune 500 companies develop high-potential employees through mentoring programs.

New Approaches to Culture Development

Developing leaders as empathetic employee coaches is important to supporting the desired organizational culture, but there is a need to look at other areas too. For example, younger employees with leadership potential will not stay in a job for a long time to get their “turn” at promotion. There should be a process for identifying genuinely high-potential employees who exhibit leadership traits. Defining career pathways is another important feature of a culture that appeals to people who could be future leaders. To attract and retain the right talent, demonstrating the commitment to elevating employees supports a culture based on values.

The culture must also support diversity, equity, and inclusion. The consulting firm EY’s survey found that demographic groups view DEI differently. 44% of Gen Z responded that they associate DE&I with a community support commitment and actions, and 34% said Employee Resource Groups. 76% of millennials said they were willing to quit if DE&I initiatives were not offered, and 92% of workers surveyed said the company culture impacts whether they stay with the company. 49% of Gen Z and millennials expect the company to take a public position on social issues. The communication system is also a significant element in culture development. Millennials and Gen Z appreciate two-way feedback and want action plans that support future goals and collaboration. It has to be two-way feedback to support employee voice. Providing avenues for expressing employee voice allows the workforce to provide input into decision-making while getting feedback for growth and development purposes. This is the path to creating an authentic and transparent culture.

Start the Culture Transformation Process Now to be Future Ready Organizations that have yet to proactively begin the transformation process to create an organizational culture that supports the next generation of leaders will have difficulty competing in the labor market and retaining employees who are future leaders. It takes a comprehensive assessment of the culture and all the elements and tools that support it to determine what needs changing, and beginning now is crucial to organizational sustainability.