Gen Z is turning down promotions on the basis of a different strategic calculus about work.
Baby Boomers’ parents had a simple narrative about what moving up in a career involved: join a company, work hard, climb the ladder, and reap the rewards of increasingly prestigious titles and better compensation. No wonder that today, many Boomers are baffled by a new phenomenon: Generation Z – those born between 1997–2012 – are increasingly turning down opportunities to climb the corporate ladder. Research by staffing firm Randstad in 2024 revealed that 39% of younger workers are uninterested in promotions.
This generation has grown up amid unprecedented technological disruption, economic volatility and social change. They’ve watched parents and older siblings navigate the 2008 financial crisis, widening income inequality, bad jobs, pandemic disruptions, and the rise of the gig economy. They’ve never known a world where work was a place you went, not a thing you did. The result: a cohort with profoundly different views on work, success and the trade-offs they’re willing to make.
The new strategic calculus
Companies have spent a long time teaching their people not to expect loyalty. They shouldn’t be surprised, then, when employees return the favor. When a Gen Z worker declines a promotion, they’re not lazy – they’re applying sophisticated strategic thinking. They know that a new role involving people management likely means sacrificing things they care about doing – and it won’t make them more marketable should they fall victim to the next round of corporate downsizing.
Gen Z tend to prioritize work-life balance, too. Again, this isn’t laziness – it’s a rational response to the burnout culture they’ve seen devastate earlier generations. In their cost-benefit analysis, the ‘promotion premium’ doesn’t compensate for the added stress.
The new calculus also reflects Gen Z’s preference for building diverse transferable competencies across domains, as opposed to going ever-deeper within a single functional silo. This aligns with what I’ve termed “transient advantage”: competitive advantage now lies in the ability to adapt to changing circumstances.
Perhaps most tellingly, younger professionals are skeptical about what leadership roles entail. Social media and job review sites have revealed the reality of those jobs – and Gen Z don’t see how it aligns with the purpose-led impact they wish to make.
The strategic opportunity
For organizations, this moment is a strategic inflection point that presents both challenge and opportunity. Companies clinging to old models of advancement will find it harder to retain rising talent; those embracing new models of growth, purpose and flexibility will gain significant competitive advantage. Smart companies are responding with five critical steps.
- Creating advancement paths that don’t require managing people
- Redesigning leadership roles to retain autonomy and purpose
- Offering ‘portfolio careers’ with lateral and project-based options
- Embracing flexibility beyond token work-from-home policies
- Measuring contribution, not just hours or rank
The companies that will thrive in this new reality are those that recognize the opportunity to redesign work itself. By building cultures that allow for meaningful contribution without the traditional trade-offs of leadership roles, companies can tap into the genuine talents and motivations of this new generation. The key question isn’t, “How do we get Gen Z to accept promotions?” but rather: “What can we learn from their hesitation to create more sustainable and attractive pathways to organizational impact?”
In the end, this isn’t just about accommodating a new generation’s preferences. It’s about recognizing the early signals of a fundamental shift in how we organize work itself.
