Gen Z rising fastest into management, but confidence outpaces capability 

Gen Z employees are stepping into management roles faster than previous generations, but many are struggling with core leadership skills, according to new research from talent and training partner mthree. 

The Gen Z Leadership Blueprint survey of 1,000 business leaders across technology, banking and the public sector found that 86 per cent of Gen Z managers felt ready when they first took on leadership responsibilities, with 43 per cent saying they were “very ready”. Only 24 per cent of older generations said they felt similarly prepared at the same career stage. 

Confidence was highest in technology, where 65 per cent of Gen Z leaders described themselves as “very ready”, compared with 40 per cent of older peers. In banking and finance, the figure was 32 per cent versus 23 per cent and in the public sector 27 per cent versus 19 per cent. 

However, the findings point to a growing “confidence–capability gap”. Only 64 per cent of Gen Z leaders have received structured leadership training, compared with 76 per cent of Millennials, suggesting fewer employers are investing in early development. With hybrid working and ongoing skills shortages, the report warns this mismatch could put pressure on team performance and progression. 

The consequences are already emerging. Older colleagues surveyed said nearly half of Gen Z managers struggle with decision-making (47 per cent), while 46 per cent face challenges managing conflict. 

The Chartered Management Institute estimates that poor management costs the UK economy £84bn each year, and the report notes that without focused development, capability gaps could further limit productivity and cohesion. Imran Akhtar, head of academy at mthree said:

“Gen Z are bringing real confidence and energy into the workplace. They’re ready to take on responsibility, but confidence alone isn’t enough. Employers must pair ambition with structured development to unlock genuine leadership potential, because when people are equipped early, they grow faster and strengthen the whole organisation.” 

Leading HR Consultant Rachel Cox from Full Fusion HR offered her take on this data and Gen Z in the workplace:

“Gen Z step into leadership faster than previous cohorts and bring strong energy, yet the data shows a clear gap between how ready they feel and the capability they hold. 86% report feeling ready, but only 64% have received structured leadership development, which places pressure on decision quality, conflict handling and team stability. 
 
Promotion without this structure creates risk for the organisation because it slows decisions, strains relationships and weakens overall performance. Gen Z can and will deliver their best when employers pair ambition with grounded support, keep learning close to real work and stay present as young leaders take on responsibility. This creates confidence built on skill and keeps teams moving in the right direction.”  

The findings come as sectors from healthcare to local government face pressure on leadership capacity, affecting service delivery and workforce morale. 

The full report is available at The Gen Z Leadership Blueprint.