Gen Z Is Opting Out of Middle Management: Report

While Gen Z, which consists of those aged 12 to 27, might be approaching the time in their careers when they enter management positions, it turns out a majority of the younger generation are opting out of these roles.

In a report from recruitment agency Robert Walters, 52 percent of Gen Zers said they don't want to become middle managers, and 72 percent would choose an individual route to progression over managing others.

"I believe Gen Z has observed what their parents endured and is learning from history. Middle management roles are often the first to be eliminated during a recession," Kevin Thompson, a finance expert and the founder and CEO of 9i Capital Group, told Newsweek.

"These positions come with greater responsibilities but only marginally better pay. Gen Z values work-life balance and would rather avoid the additional stress and instability of middle management."

Altogether, 69 percent of Gen Z said middle management is too high stress, low reward, according to the report.

"It shows that Gen Z values meaningful relationships and recognizes that some companies may not prioritize their long-term well-being," Thompson said. "As a result, they treat companies as stepping stones, mirroring how they feel companies treat employees—as expendable resources."

Older generations are typically viewed as more likely to value progressing in middle management roles, and 63 percent of Robert Walters' respondents said older generations value middle management roles more than younger colleagues.

If Gen Z continue to change jobs instead of going into middle management at the companies they're already at, companies might face higher costs because of constant hiring and training, Thompson said.

"This generation is less likely to remain loyal to one firm, which will drive up both recruitment and retention costs. Organizations may need to rethink their strategies to attract and keep Gen Z talent," Thompson said.

HR consultant Bryan Driscoll said most Gen Zers are not opting out of middle management because they're lazy or entitled.

"I think they're opting out because middle management sucks and it's unnecessary," Driscoll told Newsweek. "Middle managers are expected to enforce decisions they had no say in, bear the brunt of overworked employees and somehow still get blamed when things go south. This says more about the system and companies than about Gen Z."

Driscoll said the companies that hire correctly won't actually need middle managers anyway.

"You don't need someone to watch your employees work if you trust your employees to get the job done," Driscoll said. "Gen Z appears to be shedding the historical corporate ladder climb, dismissing the middle management hamster wheel entirely, and focusing on careers and positions which align with their values."

For many employers, middle managers continue to have more and more responsibilities without extra support or pay.

"These same jobs are also seen as some of the riskiest if employers have to make cuts in the coming years to leadership," Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek. "Employees in Gen Z are looking at these factors and realizing middle management is not the area they desire to be in, even if it could lead to a pay increase in the short term."