What is causing the Gen Z employee exodus?

A survey of 1,000 UK workers, conducted by the experts at money.co.uk business loans, reveals the type of management style that different generations respond best to in the workplace – with the youngest generation of workers set to influence change.

Following reports that almost two-fifths of Gen Z plan to leave their jobs, a new study has revealed what managers need to know to motivate different generations of employees.1

The survey of 1,000 UK workers* reveals the type of management style that different generations respond best to in the workplace – with the youngest generation of workers set to influence change.

Most effective management styles for different generations: 

Which leadership style do you respond best to in the workplace? Pick the main option. [age]
Leadership style  18 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65+
Democratic: Involves team members in the decision-making process 45% 52% 45% 39% 46% 50%
Transformational: Inspires and motivates team members to achieve their full potential 23% 12% 18% 30% 24% 22%
Laissez-faire: Provides minimal supervision and allows team members to make decisions 7% 17% 14% 9% 8% 6%
Transactional: Focuses on routine, supervision, and performance-related rewards and consequences 7% 7% 7% 8% 8% 9%
Autocratic: Makes decisions themself with little input from team members 12% 8% 10% 6% 4% 5%
Servant leadership: Prioritises the needs of team members and helps them develop and perform as highly as possible 6% 5% 5% 8% 10% 8%

A democratic leadership style is preferred across the board, with the 25–34 and 65+ age groups having the highest resonance with this style (52% and 50%, respectively). 

However, almost a quarter (23%) of workers aged 18 to 24 prefer a transformational approach to leadership, where managers inspire and motivate team members to achieve their full potential. This is compared to just one in eight (12%) and one in five (18%) of the next two age brackets surveyed, mostly made up of millennials. 

Despite a reputation as the ‘lazy’ generation, the youngest group of workers also has one of the lowest affinities for laissez-faire managers that provide minimal supervision (7%), with higher preference among their immediate predecessors (around 16% of 25-44-year-olds).2

Finally, Gen Z is the age group that prefers autocratic leadership more than any other generation surveyed, ranking third for workers in this age category (12%). Tolerance of more authoritarian management approaches declines with age, to around one in ten or one in five for all other generations (4-10%). 

Joe Phelan, money.co.uk business loans expert, comments: “Effective leadership doesn’t develop overnight, but small business owners can take proactive steps to refine their management skills. Seeking mentorship from experienced leaders, attending industry events, and enrolling in leadership courses can provide valuable insights and guidance.

“Investing in training, whether through online courses, business coaching, or workshops, can help business leaders sharpen their decision-making and management approach. In some cases, securing short-term capital through a business loan can provide the flexibility needed to fund these initiatives while maintaining healthy cash flow.

“Building a strong company culture is equally important. Actively listening to employees, encouraging collaboration, and investing in solid HR processes can enhance team cohesion and efficiency. While these efforts require time and financial resources, they can drive long-term success, enabling businesses to grow, adapt and succeed.”

References: 

1-https://www.pwc.com/gx/en/about/global-regulatory-affairs/pwc-in-the-eu/skilled-for-the-future.pdf 

2-https://theconversation.com/why-being-lazy-at-work-might-actually-be-a-good-thing-248955

*Conducted by money.co.uk business loans

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