How should CEOs manage Gen Z team members? [2025]

In the evolving landscape of the modern workplace, CEOs face the unique challenge of leading a multi-generational workforce, with Gen Z team members becoming increasingly integral. Born between 1997 and 2012, Gen Z is the first generation to grow up in a fully digital world, bringing a new set of values, expectations, and work styles. Their entrance into the workforce coincides with significant global shifts—technological advancements, a pandemic that has reshaped notions of work, and a growing emphasis on social and environmental issues. To harness the potential of Gen Z employees, CEOs must adapt their leadership styles, fostering an environment that attracts, retains, and nurtures this dynamic cohort. This requires a nuanced understanding of what motivates Gen Z, their aspirations, and the workplace culture that resonates with them.

Interesting facts and statistics underline the importance of this adaptation. For instance, a LinkedIn study revealed that Gen Z values learning opportunities, work-life balance, and a company’s commitment to diversity and sustainability more than preceding generations. Moreover, Deloitte’s Global Gen Z and Millennial Survey highlighted that 1 in 4 Gen Zers always feel stressed, pointing towards a need for mental health support and a healthy work environment. These insights are crucial for CEOs aiming to lead effectively in today’s fast-paced, ever-changing business world.

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How should CEOs manage Gen Z team members? [2025]

Understanding Gen Z: Key Characteristics

Gen Z is the first generation to grow up entirely in the digital age, which has shaped their communication habits, work preferences, and employer expectations. They are digital natives who value technology, flexibility, inclusivity, and social responsibility. Unlike their predecessors, they look for employers who can offer more than just a paycheck; they seek meaningful work, opportunities for learning and development, and organizations that reflect their values, especially regarding sustainability and ethical practices.

Strategies for Managing Gen Z Team Members

1. Foster a Culture of Inclusivity and Diversity: Gen Z is the most diverse generation to date and places high importance on inclusivity and representation within the workplace. CEOs should strive to create an environment where all voices are heard and valued and diversity in thought and background is seen as an asset.
2. Embrace Technology and Innovation: Given their comfort and familiarity with digital tools, incorporating the latest technology and encouraging innovation can be a significant draw for Gen Z employees. This includes flexible work arrangements enabled by technology, such as remote or hybrid work models, which have become particularly relevant.
3. Offer Opportunities for Growth and Development: Gen Z workers are highly motivated by personal and professional development opportunities. CEOs should invest in training programs, mentorship, and career advancement paths that allow these employees to gain new skills and take on challenging projects.
4. Prioritize Transparency and Authenticity: This generation values honesty and integrity in their leaders. CEOs should communicate openly about company goals, challenges, and successes. Building trust through authenticity and transparent leadership practices can enhance loyalty and engagement among Gen Z team members.
5. Champion Work-Life Balance: Gen Z values work-life balance and mental health more than previous generations. CEOs can support this by promoting flexible scheduling, encouraging time off, and providing resources that address mental health and wellbeing.
6. Engage in Social and Environmental Responsibility: Gen Z is conscious of global issues like climate change and social inequality. Companies actively participating in sustainable practices and social responsibility initiatives are more likely to attract and retain Gen Z talent. CEOs can demonstrate commitment by integrating these practices into the core business strategy and involving employees in these efforts.
7. Leverage Their Digital Savvy: Gen Z’s proficiency with digital tools and platforms can be a significant advantage. CEOs should consider utilizing these skills in marketing, social media engagement, and improving operational efficiencies.
8. Encourage Feedback and Collaboration: Gen Z prefers a collaborative work environment and appreciates being able to contribute ideas and feedback. Implementing regular check-ins and fostering a culture that encourages open dialogue can make them feel valued and involved.
9. Recognize and Reward Achievements: Like any generation, Gen Z employees seek recognition for their hard work and achievements. Implementing a system of regular feedback, recognition, and rewards can help keep them motivated and engaged.
10. Create a Purpose-Driven Culture: Gen Z seeks more than just a job; they want to work for organizations with a clear purpose that aligns with their values. Companies can attract and retain Gen Z employees by articulating a clear mission beyond profit, focusing on how their work impacts society, the environment, and global issues. For instance, TOMS Shoes, with its “One for One” giving model, appeals to Gen Z by directly linking their purchases and work efforts to positive social impact.
11. Leverage Peer-to-Peer Learning: Gen Z values learning from their peers almost as much as from formal training programs. Implementing peer-to-peer learning opportunities, such as mentorship programs where younger employees can learn from each other, can foster a collaborative environment. This approach facilitates knowledge sharing and builds a sense of community and belonging within the organization.
12. Enhance Digital Onboarding and Training: Given Gen Z’s digital nativity, companies should invest in digital platforms for onboarding and training that are interactive, engaging, and mobile-friendly. Using gamification, microlearning, and virtual reality can make learning more effective and enjoyable for Gen Z employees, ensuring they feel valued and invested.
13. Promote Entrepreneurial Thinking: Gen Z values autonomy and the opportunity to bring innovative ideas. Encouraging entrepreneurial thinking by allowing employees to work on passion projects or participate in innovation hubs within the company can drive engagement and satisfaction. Google’s “20% time” policy, which allows employees to spend one day a week working on projects that interest them, is a prime example of how to foster innovation and creativity.
14. Implement Social and Collaborative Technologies: To cater to Gen Z’s preference for social and collaborative work environments, companies should integrate technology that facilitates communication and collaboration. Tools like Slack, Microsoft Teams, and Asana can help create a more connected and dynamic workplace that supports Gen Z’s work and enhances productivity.
15. Offer Micro-credentials and Continuous Learning Opportunities: Gen Z is keen on acquiring new skills and credentials that advance their careers. Companies can offer access to online courses, certifications, and workshops that allow employees to gain new skills and credentials flexibly and self-directedly. For example, LinkedIn Learning and Coursera partnerships can provide employees with many learning opportunities that align with their personal and professional growth goals.

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Real-Life Examples of Excellent Gen Z Management

Let’s explore how various companies and leaders have successfully engaged with this generation by implementing innovative strategies that align with Gen Z’s values and expectations:

Adobe’s Digital Academy

Adobe’s initiative, the Digital Academy, offers a compelling example of investing in the growth and development of future employees, including Gen Z. This program provides scholarships and internships to individuals looking to transition into the tech industry, focusing on underrepresented groups. By offering training, mentorship, and real-world experience, Adobe cultivates a diverse talent pool and aligns with Gen Z’s aspirations for continuous learning and social responsibility.

Patagonia’s Environmental Advocacy

The outdoor clothing brand Patagonia is renowned for its environmental activism, aligning perfectly with Gen Z’s passion for sustainability and ethical business practices. The company has pledged 1% of its sales to preserving and restoring the natural environment and has been involved in numerous environmental campaigns. This commitment to social and environmental issues resonates with Gen Z, attracting talent who want their work to contribute to a greater cause.

Google’s Flexibility and Innovation

Google is a prime example of a company that has mastered attracting Gen Z talent through its innovative culture and flexible work environment. Known for its open workspaces, the tech giant encourages collaboration, creativity, and innovation. Google’s support for remote work and flexible schedules, especially highlighted during the COVID-19 pandemic, showcases its adaptability to the changing work preferences of younger generations.

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LinkedIn’s Employee Resource Groups (ERGs)

LinkedIn has implemented Employee Resource Groups (ERGs) to foster a diverse and inclusive workplace. These groups support various communities within the company, including LGBTQ+, racial and ethnic minorities, and women in tech, reflecting Gen Z’s values of diversity and inclusivity. By empowering employees to lead and participate in these groups, LinkedIn enhances its organizational culture and actively engages Gen Z employees in meaningful ways.

Salesforce’s Mental Health Initiatives

Salesforce stands out for its commitment to employee wellbeing, a priority for Gen Z workers. The company offers benefits like wellness reimbursement, mindfulness programs, and access to mental health resources. During the pandemic, Salesforce provided additional wellness days off to help employees recharge, demonstrating a deep understanding of the importance of mental health and work-life balance.

Ben & Jerry’s Social Activism

Ben & Jerry’s is another example of a brand that aligns with Gen Z’s values through its outspoken support for social justice issues. From advocating for climate change action to supporting Black Lives Matter, the company uses its platform to address global issues directly. This approach strengthens their brand identity and attracts Gen Z employees looking to work for companies that take a stand on social issues.

Spotify’s Focus on Feedback and Collaboration

Spotify exemplifies the importance of feedback and collaboration, key aspects that attract Gen Z talent. The music streaming company encourages a culture of continuous feedback, where employees can give and receive real-time insights. This culture fosters growth and learning, allowing Gen Z employees to feel valued and heard.

Related: Should CEOs support Remote Work?

Conclusion

Managing Gen Z team members is not just a leadership challenge; it’s an opportunity for CEOs to reinvent their organizations, making them more adaptable, innovative, and inclusive. By understanding and addressing Gen Z’s unique needs and values, CEOs can unlock a wealth of creativity, drive, and loyalty, ensuring their companies remain competitive in the face of rapid change. Emphasizing personalized growth paths, fostering a culture of inclusivity and flexibility, and leading with empathy and transparency are key strategies.

As we move forward, the companies that succeed in attracting and retaining Gen Z talent will be those that are not afraid to challenge the status quo, advocate for social and environmental responsibility, and prioritize the wellbeing of their employees. In doing so, they will thrive economically and contribute to building a more equitable and sustainable future for all. Engaging with Gen Z is not just about adapting to a new generation of workers; it’s about shaping the future of work itself. CEOs who recognize and act on this will lead their organizations to new heights of success and relevance in the 21st century.