The Future Workplace: Gen Z, AI, and New Leadership Metrics

Transforming the Future Workplace: Gen Z, AI, and New Leadership Metrics

The way work gets done is evolving rapidly. Technology, changing leadership paradigms, and generational shifts are redefining organizational structures and setting new expectations for both leaders and employees.

This article explores the future of work and the critical transformations that are emerging in today’s workplace, particularly influenced by technology, generational diversity, and evolving corporate culture.

The article includes expert insights from a podcast completed with Max Blumberg, a people analytics pioneer and advisor to global organizations on workforce dynamics.

The full interview:

👂🏽 Listen here:

👁️ Watch here:

Talent Scarcity and the Shift to Skills-Based Hiring

With a global shortage of skilled talent, companies are finding that investing in retention can be more cost-effective than recruiting new hires. Retaining talent that has already received in-house training and development offers significant benefits, as these employees are already aligned with company goals.

"There's a massive shortage of skills out there and, as we know, it's a lot more expensive to find new people than it is to retain the ones that you've got. So retention is so much better than acquisition. So we've already got to start getting better at retaining. Companies need to retain the talent that they've invested in. " Max Blumberg.

Internal talent marketplaces are gaining traction, as seen in companies like Cisco and Unilever, which use these platforms to match employees with internal growth opportunities. Additionally, businesses are increasingly moving towards skills-based hiring, focusing on candidates’ practical abilities rather than formal degrees. While degrees and qualifications can be beneficial for strategic roles, hiring based on skills alone often accelerates onboarding and productivity.

Building Skills Through Corporate ‘Universities’

As companies move towards skills-based approaches, they are also creating in-house training programs to develop the expertise necessary for their specific needs. Consulting firms, for instance, often train new hires through proprietary “universities” that teach specific methods and processes.

This trend is set to spread, with companies like Google and others exploring branded educational experiences that create highly skilled employees aligned with corporate goals. These internal training initiatives can help mitigate talent shortages and ensure that skills are continuously updated to keep pace with technological advancements.

"Companies are moving far more towards skills based acquisition, and so you're looking for people on the skills that they have rather than on the letters that they have behind their name, and I think that's a good thing." Max Blumberg.

Embracing Gen Z’s Leadership Values and Transforming Corporate Culture

As Generation Z takes on leadership roles, traditional hierarchical structures are increasingly being challenged. This generation, having grown up in a networked digital world, values collaboration over command-and-control styles, and favours companies with strong environmental and social ethics. This shift could lead to flatter organizational structures where decision-making is more democratic.

"So we're going to see far more flat rather than hierarchical, network organizations. There'll also be far more of an emphasis on ESG and sustainability are more of an emphasis on ESG and sustainability." Max Blumberg.

Network-based organizations are expected to emerge, supported by AI-driven tools that facilitate team-driven decisions, breaking down traditional hierarchies. Leaders of the future will need to adapt to these values to engage a workforce that prioritizes collaboration, sustainability, and inclusivity.

Fostering Generational Collaboration through Reverse Mentoring

With four generations now in the workplace, companies face a unique opportunity to bridge generational differences. Purpose and vision serve as powerful unifiers that can transcend age-based divides. Reverse mentoring, where younger employees share digital skills while older colleagues impart strategic insights, has proven successful in organizations like PwC and Deloitte.

"The other thing, which I think is old as the hills already but surprisingly few organizations do it is reverse mentoring. So there have been a lot of very successful reverse mentoring schemes implemented at PwC and Deloitte and Microsoft, for example, where the older workers will give the benefit of wisdom and the years, the slow thinking, if you like in Kahneman terms, whereas the younger generations bring the digital skills to the older generations." Max Blumberg.

Building Effective Hybrid Work Models

Hybrid work models are reshaping how and where work gets done. While collaboration often benefits from in-person interaction, advanced digital platforms now allow teams to collaborate remotely in meaningful ways. For younger employees, who are generally comfortable working digitally, remote work may even be preferable.

Leveraging advanced collaboration technologies, including AI-driven tools, can facilitate real-time feedback, track meeting contributions, and ensure that agendas remain focused. By experimenting with these tools, companies can create hybrid work environments that are productive, collaborative, and engaging for employees of all generations.

Redefining Success Metrics for Modern Leadership

Today’s leaders face an important question: should success metrics still be focused solely on profit, or should they reflect a broader set of values, including societal impact and employee well-being?

Organizations are increasingly adopting a “triple bottom line” approach, where success includes profitability, environmental impact, and employee-centered outcomes. Younger generations, particularly Gen Z, are advocating for business practices that prioritize sustainability and community impact alongside financial performance.

By aligning company goals with societal values, leaders can foster a culture that is inclusive, purpose-driven, and better equipped for long-term success.

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Gen Z are rejecting the way things have been.

Every generation struggles to understand the generations that come after them. So, it is no surprise that organizations have learned that they need help integrating Gen Z into their businesses. They are readily rejecting traditional career paths. Gen Z does not want to work for a company for more than 4 years. A huge number – 72% – don’t want to be you – they don’t want to work 100 hours a week and climb to the top of the traditional corporate ladder the same way you have.

Yet, whilst they don’t aspire to be you, they do want the things you have – a family, home, car, holidays with a nice office, great colleagues, and fun work. They aspire to have fun and engage in meaningful work. They want to make an impact, desire to be coached and mentored and have a work-life balance.

Gen Z are technology and AI literate and struggle to enter a workplace that is more analogue than digital. Integrating Gen Z requires new approaches. They value work-life balance, tech-forward environments, and purpose-driven work. Organizations must embrace digital onboarding and ongoing development to attract and retain Gen Z talent.

Gen Z are not like you and that’s ok. Lot’s of people are not like you and they don’t want the same things. So, stop blaming Gen Z for being different. Learn to lead and provide differently for that new generation. They actually have a far better concept of work than you think.

What’s wrong with wanting work to be fun and meaningful?
What’s wrong with wanting to be respected and consulted?

For too many years, generations of workers faced work place bullying, sexual harassment, poor communication and leaders. We came to accept exceedingly poor work practices as the norm, and despite not wanting to go to work, we were conditioned to accept it, put on our ‘big boy pants’ and suck this up.

Organizations need to work hard to digitally hire, onboard and develop Gen Z talent. They need to make work meaningful and individually inclusive. It means training and developing the generations before to understand and work with Gen Z. They must invest in the latest technology – and train every generation to use it. Of course all this takes time, commitment and investment. However, once firms invest in Gen Z, they will benefit from a hard-working, talented, and inclusive workforce that can make a tremendous impact on their work.

Embracing Change: Building a Future-Ready Workforce for Lasting Success

As we move into a new era of work, it’s clear that Gen Z and other emerging technologies are challenging the status quo in ways that are redefining workplaces. From skills-based hiring and internal talent marketplaces to flatter organizational structures and hybrid work models, companies must adapt quickly to remain relevant. Gen Z’s values around work-life balance, technology integration, and purpose-driven careers are not just preferences; they are setting new standards for what makes a workplace attractive and sustainable.

For leaders, this shift offers an opportunity to foster an inclusive, agile, and purpose-driven culture that supports employees across all generations. Investing in modern skills training, embracing digital tools, incorporating data analytics and Generative AI into work practices and decision making, supporting generational collaboration, and adopting a triple-bottom-line approach will all help businesses thrive in this evolving landscape. Rather than resisting these changes, organizations that actively incorporate Generative AI and Gen Z’s unique strengths and values can expect a more engaged, innovative, and resilient workforce poised to shape the future of work.

End.

Who am I?

About Kieran Gilmurray MBA. MSc. PG. Dip. BSc.

Kieran Gilmurray, CEO of Kieran Gilmurray and Company, is a globally recognised authority on AI, automation, and digital transformation. Kieran has authored two influential books and hundreds of articles that have shaped industry perspectives. His expertise has earned him prestigious accolades, including being named a Top 50 Global Thought Leader and Influencer on Generative AI in 2024, a Best LinkedIn Influencer for AI and Marketing, and one of the World’s Top 200 Business and Technology Innovators.

Kieran’s extensive corporate background and deep insights into business make him a trusted advisor for companies worldwide. When he’s not chairing international conferences or delivering masterclasses to industry leaders, he is actively consulting for leading global businesses , driving digital transformation and innovation.

Kieran Gilmurray | 2 * Author | 10 Time Global Award Winner | 7 Times LinkedIn Top Voice

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