What makes Gen Z leaders tick?

As members of Gen Z (those born between 1997 and 2012) enter the workforce in Vietnam, they are steadily shifting from newcomers to managers and emerging leaders. Now comprising about 30 per cent of the national workforce, Gen Zers are influencing the job market with their digital fluency, entrepreneurial spirit, and multitasking abilities.

“To prepare for a workplace with Gen Z leaders, we must recognise that they care more about values, flexibility, purpose, and expert-led leadership than about climbing the traditional career ladder,” said Dr Divya Juneja, a lecturer in Human Resource Management at RMIT Vietnam. “Many simply will not take on tasks or roles that don’t align with who they are.”

As highlighted in Deloitte’s 2025 report Growth and the pursuit of money, meaning, and well-being, Gen Z is motivated by purpose and meaning just as much as financial security. As Gen Zers step into people management roles, they are redefining leadership through authenticity, empathy, and a deep alignment with personal values.

“For Gen Z, managing people is not about authority, but about impact. They care about creating workplaces where meaning, diversity, and growth intersect,” said Dr Que Tran, also a lecturer in Human Resource Management at RMIT Vietnam. “Many are drawn to roles that allow them to lead with purpose, foster inclusion, and support their team’s wellbeing,” she added.

Breaking the norms

According to the RMIT Vietnam researchers, Gen Zers are more likely to build psychologically safe environments where team members feel heard, valued, and free to bring their whole selves to work.

Regular feedback, two-way communication, and a coaching mindset often feel more natural to them than traditional top-down supervision. Because of this, their approaches to people management may require leadership support and approval before they can restructure, pilot, and take responsibility for their initiatives.

Gen Z managers may also face challenges, especially when leading in multigenerational workplaces due to their younger age and limited experience.

“They are navigating new dynamics like ‘status incongruence’, where they lead older or more experienced colleagues. This shift challenges outdated ideas of authority but also requires organisational support,” Dr Juneja explained.

Interestingly, Gen Z professionals tend to be less motivated by being managers in the traditional sense. Some choose “conscious unbossing” or intentionally stepping away from rigid leadership tracks in favour of flexible, values-aligned roles that preserve their autonomy and mental health.

“What unites them, however, is their fluency with technology, their commitment to personal and team development, and their belief that leadership is not a title, but a relationship built on trust, equity, and mutual growth,” Dr Juneja pointed out.

The entrepreneurial opportunity

With the Vietnamese government prioritising private business development, Gen Zers now have more chances to pilot ideas and build energetic, productive, and innovative organisations.

Compared to previous generations, they typically have stronger command of foreign languages and digital tools – advantages that enable them to work effectively with international partners, use technology in management, and internationalise local businesses. Gen Z managers are already seizing business opportunities in AI, digital marketing, e-commerce, and the sharing economy.

In Vietnam, the opportunity for Gen Z to step into leadership roles is particularly growing in family businesses. A VCCI survey in 2023 reported that 58 per cent of business owners of 630,000 family businesses are more than 50 years of age and 38 per cent of those business owners are seeking successors.

“Family businesses are a cornerstone of Vietnam’s economy,” said Dr Que. “Gen Z successors of family businesses face both opportunities and challenges as they explore their own leadership identity while balancing the values and expectations of their predecessors.” 

Whether leading a family business or managing a team in a multinational company, Gen Z leaders must master people management skills to transform business opportunities into sustainable success. This is especially critical as Gen Z employees tend to have lower job engagement and higher turnover.

According to Dr Que, future Gen Z leaders need comprehensive training in people management to drive adaptability in a volatile and complex business environment. “From an organisational view, thoughtful work design, data-driven people analytics, employee recognition, and strong employee relations are important for future Gen Z leaders to optimise human capital for business growth,” she emphasised.

As Vietnam’s economy evolves, Gen Z leaders are bringing fresh thinking and human-centric values to the workplace. With the right support, they are ready to lead differently.

Story: Ngoc Hoang

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