Companies are finding it increasingly difficult to build a reliable pipeline of future managers as younger workers show less interest in team leadership. Many in Gen Z prioritize work-life balance and professional mastery over traditional upward moves into management, prompting structural changes and fresh challenges for employers.
“For this generation, there’s often more prestige in being exceptional at your craft than in being the person in charge of others,” said Nora Jenkins Townson, founder of HR consultancy Bright + Early. “We grew up hearing stories about bad bosses and authoritarian leadership. Younger workers are more skeptical of those models and more selective about taking on people-management responsibilities.”
Gen Z favours non-management roles for balance
A Robert Half survey from March 2025 of 835 Canadian professionals found that while some Gen Z employees still want managerial promotions, many do not. About 39% of Gen Z respondents expressed interest in management roles, the survey showed, with millennials the next most likely at 34%.
Roughly half of Gen Z workers — about 50% — said they would prefer a promotion that does not involve supervising others. That preference eases somewhat with older cohorts: 44% of Generation X respondents indicated they would choose non-management advancement.
Also read
Best savings accounts in Canada
Compare current high-interest savings rates and find the best options for your needs.
Tara Parry, director of permanent placement services at Robert Half Canada, said a primary reason Gen Z prefers non-management promotions is maintaining work-life balance. Among those who told the survey they favor staying out of managerial roles, 51% said their current positions enable a satisfactory balance between work and personal life.
“When they observe people-leadership roles, they often see how quickly that fragile balance can be disrupted once you’re accountable for other people,” Parry explained.
Companies face manager gap amid shifting career goals
As more workers pursue alternatives to traditional management tracks, Parry warned of a growing shortage of management candidates. She said the trend was already becoming visible a decade ago at senior levels, and it is now affecting mid-level leadership pipelines.
To address the shortfall, organizations can identify leadership potential early and invest in development before people actually step into supervisory roles. “Often people hesitate to volunteer for leadership because they haven’t been trained to lead until they’re already in the seat,” Parry said. “If we equip people with management skills beforehand, more individuals might be willing to take that leap because they feel prepared rather than exposed.”
For those who intentionally avoid people-management duties, career progression tends to mean deeper technical specialization. “If you don’t want to move into leadership, you’ll likely become more skill-specific and focus on a narrow area of expertise — and those roles are available,” said Char Stark, manager of people and growth at Beacon HR.
Career advancement no longer tied only to leadership
Jenkins Townson noted organizations can create advancement opportunities for individual contributors that include mentoring and coaching responsibilities without formal managerial obligations. “Companies can design career paths that let skilled contributors support junior colleagues in their specialty without taking on full people‑management duties,” she said.
Some firms have already reworked compensation and promotion structures to reflect this shift. In 2023, Shopify Inc. introduced two parallel career tracks — managers and crafters — with equal pay potential for each path. The aim was to reward impact and expertise regardless of whether someone manages people, challenging the traditional model that primarily rewards managerial roles.
Parry added that many employers are developing non‑leadership career paths, such as expanding the scope of an employee’s client portfolio or recognizing subject matter expertise with senior titles that do not require managing others. “Companies have become savvier: to keep employees engaged and growing, you need multiple advancement options beyond simply moving people into management,” she said.
Newsletter
Get free MoneySense financial tips, news & advice in your inbox.
Read more about jobs:
- Ontario’s new pay transparency rules will shake up hiring
- Why Gen Z is choosing career vibes over big paycheques, especially early on
- How to use AI to find a job—without annoying employers
- How to negotiate a job offer to get better benefits