More Companies Moving Gen Z Employees Into Management Roles

Gen Z managers are on the rise. According to payroll and human resources data recently analyzed by the ADP Research Institute, employers promoted workers born between 1997 and 2012 into management roles 1.2 times faster in 2023 than in 2019. And members of Gen Z — the oldest of which turn 27 this year — now account for more than one-third all of hires and 16.8% of the total workforce.

The ADP payroll and HR data represents 865 million months of work done by 49 million people at more than 95,000 employers in the United States between January 2019 and December 2023, and it signals a demographic shift employers need to acknowledge.

“Employers should consider the implications of Gen Z’s ascendance for compensation strategy, employee relations, team dynamics, and public policy. Gen Z workers make up a minority of managers, but they already account for more than 1 in 10 managerial hires,” the ADP report states. “[But] don’t overreact. Although Gen Z workers are a growing presence in management, they still make up a minority share. If training programs, recruiting strategy, and employee relations are too closely tailored to Gen Z preferences, they might overlook other workers. Heavy-handed catering to Gen Z — especially when based on mistaken perceptions — might alienate members of the very generation you’re trying to welcome.”

Other highlights of the ADP research:

• For the past three years, employers promoted Gen Z into management as often as baby boomers, who were born between 1946 and 1964.
• Once in a managerial role, many Gen Z workers are staying there. Employers promoted Gen Z managers into higher positions 1.8 times as often in 2023 than they did in 2019.
• In December 2023, 1.8% of U.S. workers reported to managers who were members of Gen Z, yet only 5.8% of Gen Z workers have Gen Z managers.

“As your career progresses, no matter when you were born, more and more of the managers you encounter will be from Gen Z,” the report concludes.