October 29, 2025

Leadership in the Age of Gen Z: Trust as the New Currency

We live in an era where transience has become the norm. Fake news, disappearing images, and a world in which almost everything and everyone seems instantly replaceable. For Generation Z, now entering the labour market in large numbers, this reality creates a profound hunger for something else: stability, trust, and genuine connection.

And it is precisely here that the greatest challenge – and perhaps the greatest opportunity – for leadership today emerges.

The paradigm shift in leadership

Leadership is no longer about hierarchy, control, or simply organising. It has evolved into something far more fundamental: the ability to create trust in a context that increasingly feels unreliable to younger generations.

Where previous generations might have accepted authority, title, or experience at face value, Gen Z looks straight through the façade. They seek leaders who are willing to engage in genuine dialogue, who are open to questioning their own frameworks, and who are prepared to reach solutions together. Not to change everything, but to take decisions grounded in mutual respect.

Not “fluffy” empathy, but authentic understanding

Let’s be clear: Gen Z is not asking for pity or constant emotional support. They are just as resilient and capable as the generations before them.

What they are asking for is dialogue. They want to be part of decision-making, to be heard, and to communicate on equal terms – even if not equal in role. For them, empathy is not a soft emotion but a leadership skill: the ability to understand their situation, analyse it objectively, and work together towards a solution.

This approach builds trust. And trust is the currency with which you retain Gen Z in your organisation.

Trust as a retention strategy

It is no coincidence that research shows Gen Z employees tend to leave employers faster than previous generations – often within one to two years.¹ In a world that feels transient and uncertain, they remain loyal only to places where they experience trust and stability.

This shifts leadership from a secondary responsibility – “something alongside the business” – to a core mission that now accounts for at least half, if not more, of a leader’s role.

The leader of tomorrow is not a messenger, not a process manager, but a connector of people and purpose.

Looking ahead: the workforce of tomorrow

The numbers are telling. By 2030, Gen Z is expected to represent around 30% of the workforce.² The World Economic Forum projects that by 2034, Millennials, Gen Z, and the first wave of Gen Alpha will together make up 80% of the labour market

In other words: Gen Z is not a niche. Within a decade, they will be the majority, and their way of working, communicating, and connecting will set the tone. The question is no longer: how do we deal with Gen Z? The question is: how do we transform leadership so that it works for the workforce of tomorrow?

Urgency and risk: what if we fail to adapt?

Organisations that ignore this shift risk far more than high turnover. The consequences are tangible and costly:

  • Attrition and knowledge loss: every Gen Z employee who leaves within a year takes with them not only recruitment and training costs but also accumulated know-how.
  • Loss of innovation capacity: Gen Z brings fresh perspectives. Without trust, the very people who drive innovation are the first to walk away.
  • Reputational damage: in an era of transparent employer branding (think Glassdoor, LinkedIn), poor leadership reputations directly affect your ability to attract talent.

In short: holding on to old models of leadership is not just risky, it’s unsustainable.

The implications for organisations

This is not merely an HR issue. It is a fundamental leadership challenge. Organisations that cling to traditional hierarchies and reduce leadership to numbers and processes will fail to connect with younger generations.

But those that invest in leaders who master their craft, who know their organisation inside out, and who can engage in authentic, equal dialogue – these are the organisations that will not only attract Gen Z, but retain them.

Final thought

Leadership in the age of Gen Z comes down to one word: trust. Not built through titles or authority, but through dialogue, respect, and authenticity.

Those who understand this will not only create stability in a volatile world, but also lay the foundation for sustainable growth. And perhaps that is Gen Z’s greatest gift to us: leadership is no longer a position. It is a relationship.

References

  1. Randstad (2025). Gen Z Workplace Blueprint – Research into work stability and attrition.
  2. Bureau of Labor Statistics (2024). Employment projections to 2030.
  3. World Economic Forum (2025). Future of Jobs Report.
  4. Deloitte (2025). Gen Z and Millennial Survey – What matters most at work?
  5. Pepperdine University (2025). Leading Gen Z: The Connected Authentic Leadership Model.