Introduction and context

The shift in leadership expectations over the past few decades represents a fundamental change in how leaders are perceived and what is expected of them. In the past, leadership often focused on traits like authority, decision-making ability, and results-driven performance but the Gen Z employees of 2024 are looking for far different attributes. Not only is there a demand for modern leaders to evolve their leadership styles in order to engage younger employees but there is ample evidence that the utilisation of these traits is improving productivity, employee satisfaction and profit.

Arguably this shift in desirable leadership traits mirrors the landscape of business. Globalisation and technology integration means that leadership has reverted to being a people centric role rather than one solely focused on financial targets. Moreover, there is a shift in the individuals being led. Whilst some of Gen Z are yet to emerge in the workforce, this cohort has already displayed that values, authenticity and profitability are of equal importance to them in their work environment.

This executive summary examines recently published literature surrounding leadership in the current business landscape. In addition, it highlights the implication of the new expectations placed on leaders for businesses and how to facilitate the development of new leaders.

Key findings

1. Emotional Intelligence (EQ) vs. Technical Expertise

Historically, leaders were selected primarily for their operational skills and ability to get results, with less focus on emotional intelligence. This meant that technical expertise was the dominant trait in leadership (Gallop, 2000).

•  Emotional intelligence (EQ) is now seen as equally important to technical expertise. Gen Z wants leaders to manage their own emotions and navigate interpersonal relationships effectively.

• 70% of Gen Z believe that emotional intelligence is a crucial skill for leaders (Center for creative leadership, 2023)

• 71% of executives now recognise that emotional intelligence is a critical leadership skill, surpassing technical competence (Harvard Business Review, 2020).

• Teams led by emotionally intelligent leaders are 20-30% more likely to be highly engaged (Gallup, 2020)

• Similarly, organisations with high EQ in leadership roles see up to 20-30% better profitability than those with low EQ leadership (World Economic Forum, 2023)

Emotional intelligence is not just a ‘soft skill’—it is now a critical business asset. Emotionally intelligent leaders can foster environments where employees feel valued, leading to improved retention rates and team cohesion.

2. Collaboration, Diversity and Inclusivity

• 65% of Gen Z want their organisations to focus on building inclusive leadership, because they believe such leadership drives higher performance (Deloitte, 2021).
  73% of Gen Z say they would consider leaving an organisation if its leadership was not diverse or inclusive.

• Furthermore, 60% of Gen Z said they would stop buying products from companies whose leadership did not take a stand on social justice or diversity issues (Cone, 2022).
  68% of Gen Z believes that leadership should reflect the intersectional identities of the workforce, including factors like disability, LGBTQ+ representation, and socioeconomic background (Pew Research, 2022).

• 72% of Gen Z women and 40% of Gen Z men (ages 18-24) expressed a strong desire for more women in leadership roles. Gender equality is a core issue for this generation, and many report feeling disillusioned by the current lack of representation in leadership (Gallup, 2021)

Why do Gen Z want more inclusive and diverse leadership?

• ●  They see inclusion as a way to boost creativity, team collaboration, and overall business outcomes (Deloitte, 2021).

• ●  65% of Gen Z believed that diverse and inclusive teams make better decisions and bring in fresh perspectives (Harvard Business Review, 2021).

• ●  73% of Gen Z indicated that they believe a company’s commitment to diversity and inclusion is directly related to the mental health and well-being of employees. (Deloitte, 2021).

• ●  76% of Gen Z employees reported that a company’s diversity policies directly impacted their job satisfaction and sense of belonging. (APA, 2020).

• ●  79% of Gen Z express that diversity and inclusion foster greater engagement and long-term success (Gallup, 2022).

• ●  Companies with higher levels of gender and ethnic diversity are 35% more likely to have financial returns above their industry medians (McKinsey & Company, 2020).

• ●  Teams with high engagement, which is closely linked to inclusive leadership, see 21% higher profitability and 17% higher productivity (Gallup, 2021).

  To foster truly inclusive leadership, organisations must go beyond surface-level diversity metrics. Practical steps include creating mentorship programs for underrepresented groups, implementing blind recruitment processes, and offering diversity training that focuses on unconscious bias.

3. Transparent and Authentic Leadership

In the past, leaders were expected to maintain a level of distance and authority. Transparency was less of a priority, whereby CEOs and executives were expected to communicate in a formal, distant manner (Corporate Norms, 1980’s-2000). Employees now expect their leaders to be open, share information, and lead with integrity.

• 56% of Gen Z workers rated "honesty" and "trustworthiness" as the most important traits they look for in a leader. (Gallup 2023).

• 63% of Gen Z agree that it is important for leaders to be genuine and authentic rather than just authoritative. They are more likely to engage with leaders who show their true selves, acknowledge mistakes, and offer unvarnished views (Edelman, 2021)

• 58% of employees say they are more motivated by a transparent workplace (Harvard Business Review, 2021)

• 40% of Gen Z are more likely to stay working with leadership that values transparency (Harvard Business Review, 2021).

• 64% of Gen Z are more likely to trust companies whose leaders demonstrate transparency and authenticity (Edelman Trust Barometer, 2023).

• 70% of Gen Z and they expect real-time transparent updates and direct engagement with leaders and companies (Pew Research, 2020).

• Moreover, 61% of Gen Z said they would unfollow a brand or well-known leadership figure who seemed "insincere" or "fake" on social media.

  Transparency has become a cornerstone of trust in leadership. Leaders who openly share successes, challenges, and failures build stronger connections with employees. For example, Patagonia’s commitment to environmental transparency has not only strengthened employee trust but also enhanced its global reputation.

  4. Purpose and Values

  Leadership in the past was heavily results-oriented, with an intense focus on profits, performance metrics, and efficiency. Leaders were expected to deliver results, often at the cost of employee well- being or corporate responsibility. Today, leaders are increasingly expected to align their organisations with strong values and a sense of purpose. Employees, particularly younger generations, value leaders who demonstrate corporate social responsibility and ethical behaviour.

• 87% of Gen Z believe that businesses should have a purpose beyond profit, with a strong focus on contributing positively to society (McKinsey & Company, 2023).

• Gen Z expects their leaders to be motivated by values and to prioritise long-term societal impact over short-term financial gains (McKinsey & Company, 2023).

• 63% of Gen Z believe it is critical for companies and their leaders to demonstrate social responsibility. They expect companies to stand up for causes such as environmental protection, racial and social justice, and ethical labour practices. Results achieved at the expense of these values are seen as a betrayal of trust (Edelman, 2021).

• 71% of Gen Z say CEOs should take the lead on social issues (Edelman Trust Barometer, 2023).

• 70% of Gen Z want leaders who are transparent about the company’s purpose and the steps they are taking to achieve meaningful societal goals, rather than leaders who focus solely on financial performance (Gallup, 2023).

•  65% of Gen Z expects companies to prioritise sustainability and climate action, even if it impacts short-term profits (PwC, 2023).

•  67% of Gen Z believe that leaders should actively advocate for social justice and inclusivity through making tangible commitments. (EY Global, 2023).

• 79% of Gen Z said they would support brands that advocate for social and environmental causes, and they are significantly more likely to trust leaders and companies who champion sustainability and ethical practices (Zeno, 2020).

• Companies with a clear sense of purpose report 30% higher employee satisfaction and 40% higher customer satisfaction (McKinsey & Company, 2020).

• 64% of young employees will not take a job if the company doesn’t have a strong CSR commitment (Cone Communications, 2017)

  While purpose-driven leadership is increasingly expected, there are challenges in balancing community impact with shareholder demands. Successful leaders navigate this tension by aligning purpose with profitability, demonstrating that ethical and sustainable practices can drive long-term success.

  5. Adaptability and Agility

  Leaders in the past were expected to provide stability and long-term strategic direction. Today's leaders need to be adaptable, agile, and able to adjust strategies quickly in response to changes in technology, market conditions, and global dynamics.

•  87% of executives said their organisations have undergone a digital transformation, and 78% identified agility as a critical leadership capability (Deloitte, 2020).

• 79% of CEOs said they are focused on improving their organisations’ agility to navigate uncertainty and change (PwC, 2023).

• 77% of business leaders say that agility is more important than ever in the current environment, with 59% noting that rapid change and market volatility are the primary factors driving the need for agility (Harvard Business Review, 2022).

• 74% of business leaders reported that the ability to respond to consumer preferences and behaviours with speed is critical to success in their industry (Deloitte, 2023).

• 76% of CEOs see digital transformation and the adoption of new technologies as critical to their future business strategy. Furthermore, 78% of CEOs believe agility in adopting new technologies will be a key determinant in achieving long-term success (PwC, 2023).

• 71% of Gen Z they look for leaders who are comfortable with digital transformation and innovation (PwC, 2023).

• 83% of executives said the pandemic forced their companies to adopt more agile ways of working, and 72% said their leadership styles have permanently shifted toward greater flexibility and responsiveness (Gartner, 2020).

  Why is agility a necessary skill for leaders?

• Companies with agile leaders are able to introduce new products or services 36% faster than their competitors (Forrester Research, 2023).

• Agile workplaces have 33% higher employee engagement levels and 25% higher productivity compared to companies with rigid, traditional leadership structures (Gallup, 2022).

• Organisations with agile leaders reported 55% higher employee satisfaction, with employees expressing greater enthusiasm for roles that allow for more autonomy and adaptability in decision-making (Deloitte, 2023).

One-way organisations can foster agility is by embedding continuous learning into their culture. Leaders should be encouraged to participate in scenario planning exercises and teamwide collaborations to build the adaptability required in today’s environment.

6. Authoritative Leadership vs. Leadership at All Levels

Leadership was traditionally seen as a hierarchical role, with authority concentrated at the top of the organisation. Leaders were often seen as distant figures, responsible for making decisions and directing work. Leadership is now recognised as a skill that can be developed at all levels of an organisation, and today's leaders are expected to cultivate leadership in their teams and throughout the workforce.

• 59% of Gen Z believe that leaders should empower others in their teams to make decisions and contribute to the overall vision of the company, rather than just giving orders (Gallup, 2022).

• 72% of Gen Z want leaders who encourage collaboration and open communication, as opposed to directive, authoritative leadership styles (McKinsey & Company, 2023).

• 90% of employees say leadership development should be a priority at all levels, with a focus on empowering people throughout the organisation (Harvard Business Review, 2021).

• 72% of executives believe that empowering employees at all levels to make decisions leads to faster innovation, which is critical for competitiveness in today’s market (Gartner, 2022).

  Why is distributed leadership important?

• Organisations with widespread leadership at all levels are 1.5 times more likely to outperform their competitors financially (McKinsey & Company, 2022).

• Organisations with distributed leadership are 3.5 times more likely to be able to respond effectively to disruptions compared to those with a more hierarchical structure (McKinsey & Company, 2023).

• 85% of organisations that have embraced agile working structures report greater productivity and innovation (Deloitte, 2021).

• Organisations with distributed leadership have 30% higher employee engagement and are 25% more likely to outperform competitors in terms of financial results (Gallup,2023).

• Organisations with strong middle management—those that foster leadership at all levels— report 41% higher engagement compared to those with traditional, top-heavy leadership structures (Gallup, 2022).

• Employees who feel empowered to lead in their roles are 38% more likely to stay with their current employer and contribute to a positive workplace culture (PwC, 2023).

• Companies with leadership at all levels were 2.5 times more likely to foster a culture of innovation (Accenture, 2023).

• Organisations with distributed leadership tend to have 43% higher levels of innovation in comparison to those where leadership is more centralised (Harvard Business Review, 2021).

  Distributed leadership does not imply a loss of control; instead, it empowers teams to act decisively within clearly defined boundaries. Leaders must establish a framework where responsibilities are distributed, yet accountability remains central.

Key Conclusions

The shift from past to present leadership expectations highlights a movement from a results-driven, top-down, and authority-centred approach to a more people-oriented, transparent, agile, and values-driven style of leadership.

• ●  As work environments and societal values have evolved, so too have the expectations of leaders.

• ●  In the past, leaders were often seen as decision-makers and authority figures whose success was primarily measured by results.

• ●  Today, the most effective leaders are those who balance operational efficiency with emotional intelligence, inclusivity, adaptability, and ethical leadership.

• ●  There is a positive impact of modern leadership expectations on employee engagement, organisational performance, and overall success.

  Leadership in 2024 is no longer about adhering to traditional hierarchies or maintaining authority for its own sake. It is about guiding teams with empathy, inspiring trust, and fostering an environment of shared growth and innovation.

  Recommendations from this review

• Implement leadership development programs that focus on both hard skills (e.g., strategic thinking, decision-making) and soft skills (e.g., emotional intelligence, communication).

• Incorporate real-world case studies and experiential learning modules that simulate complex, modern workplace scenarios to better prepare leaders for current challenges.

• Offer mentoring and coaching to employees at all levels to build future leaders from within.

• Establish programs that cater to different leadership levels

• Establish open communication channels for employees to share feedback with leadership.

• Encourage leaders to model empathy and vulnerability to build trust and stronger

  relationships with their teams.

• Actively promote diversity in hiring and promotions, ensuring leadership teams reflect the

  demographics of the organisation.

• Develop KPIs for diversity and inclusion, ensuring leaders are evaluated not only on financial

  outcomes but also on their ability to create equitable workplaces.

• Train leaders to recognise unconscious bias and create inclusive environments where all

  employees feel empowered to contribute.

• Model ethical decision-making and consistency between what leaders say and do.

• Establish ethics committees to provide guidance and oversight on major leadership

  decisions, ensuring alignment with corporate values.

• Create a zero-tolerance policy for unethical behaviour or practices and ensure leaders are

  held accountable for upholding organisational values.

• Promote a strong company culture rooted in values, ethics, and accountability.

  Report by Lexie Cook, EP Business in Hospitality.
  If you would like to contact EP Business in Hospitality in regards to this report, please email lexie.cook@epmagazine.co.uk