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We have arrived at a nexus point in the relationship between employees and employers where two changes are reshaping the traditional hierarchical leadership model. Thanks in part to the democratization of publishing through social media, young people feel more empowered than ever in their careers. At the same time, these generations are facing waves of fear and insecurity. Business leaders must find smart and flexible ways to respond to this emerging reality because old ways limit individual contribution and innovation.
These two trends may seem paradoxical, but they are actually linked: as younger people realize that they are more than their job, they are confronted with a deep-rooted reluctance to challenge the status quo for fear of losing their job or being embarrassed in front of their peers. . Yet these fears will not slow down change. In my role coaching and mentoring technology leaders, I’ve seen a push toward creating a more accessible and neutral workplace culture where everyone’s opinion and participation are valued equally.
This is critical because the traditional leadership model will stifle the very innovation that Gen Z, in particular, are showing an aptitude for as digital natives. Leaders must establish an above-board culture that gives all generations the sense of security to communicate openly and take risks. It starts with leadership through humility.
Related: Why Every Leader Could Benefit from Adopting a Gen Z Mindset
1. Acknowledge your mistakes to gain more confidence
In traditional American corporate culture, executives can appear inaccessible and maintain an image of unquestioned authority. Problems arise when leaders are emotionally driven and illogical, so they end up denying their employees or treating them poorly. Then, when employees come to me, they express insecurity about team communication and fear a bad review or even termination. As a result, they don’t step up, challenge, innovate, or show up for their team.
Recent research from the London School of Economics found that around a third of Gen Z and Millennial employees consider themselves unproductive due to a lack of support from their bosses. And where there was a gap of at least 12 years between manager and employee, workers were almost three times more likely to be dissatisfied with their jobs. Results like these are symptomatic of a you-versus-me divide that has opened up between employees and leaders.
To return workplace culture to a level of neutrality, managers must convince people that there will be no punishment for escalation or for promoting new ideas at risk of failure. However, employees are more likely to trust a leader when they demonstrate the humility and transparency they want to see in others. This means publicly admitting your mistakes and showing employees that you are willing to backtrack when necessary. With 88% of managers admitting to hiding their mistakes in a Harvard Business Review study, there’s work to be done as old-school ideas about hierarchy in business continue to collapse.
2. Encourage people’s self-esteem for mutual benefit
Executives who fail to grasp the zeitgeist risk their company becoming a less desirable place to work. Research from the MIT Sloan Management Review, for example, found that company culture was the most reliable predictor of attrition. Failure to promote inclusion and lack of respect for people were two of the main factors contributing to a toxic work culture, which was ten times more relevant than compensation when predicting turnover.
There are always stories behind figures like these. My brother, for example, felt the pain of being misunderstood when he won an award as the top representative of a major pharmaceutical company. Just as he was about to accept the award, he was intercepted by the president, who took one look at his black suit and white Doc Martens and told him: “Those shoes are inappropriate. I never want to see you in those again.”
Without missing a beat, he responded, “Well, I’ve walked into over 150 offices wearing these shoes, outselling any other representative in the company.” My brother understood that today’s leaders should encourage individuality and confidence when achieving demonstrable success. McKinsey agrees, and his research shows that the culture of leading innovators is full of creativity, enthusiasm and optimism.
The caveat is that younger generations cannot rely on a job to boost their self-esteem. It’s common knowledge that they want to work for companies that drive social change, yet I’ve seen the desire for greater inclusivity create a false conflict between being direct and confident in your skills and being kind. Change is underway and I encourage employees to follow the example of their contemporaries and embrace their skills and values.
Related: If You Want Your Business to Succeed, Make Gen Z Like It: How Gen Z Will Impact Business and Marketing Decisions in 2024
3. Align personal and organizational goals
In my role with a large social media platform, I meet many creators and influencers, as well as representatives from merchants and big brands. As a result, I witnessed how the old employment contract is changing. Many of these young entrepreneurs started from nothing and their stories are the same. They say, “Instead of selling for you, I’m sourcing inventory and selling my own stuff—I’m the asset now.”
It’s far from the world Boomers inherited when they were at the company for 20 to 30 years. Generation X still has the subconscious bias that if they work hard and remain loyal, the company will take care of them. But in a global job market where people can work from literally anywhere, retention has become more transactional. For example, Gallup described Millennials as the job-skipping generation and found that 60% are open to new opportunities despite being currently employed.
So, my message to leaders is to abandon the mentality of owning employees and instead see your role as enhancing their talents. Engage people in regular, constructive dialogue to align personal and organizational goals so that they are seen as complementary. When employees know their value and feel confident to innovate, they are much more likely to become collaborative partners and make their personal value proposition mutually beneficial.