Leading the Next Generation: Five Leadership Shifts to Reduce Stress and Unlock Performance 

Burnout isn’t a fringe issue anymore. For Gen Z, it’s the baseline. Nearly half of this generation report feeling stressed or anxious most of the time at work. They’re ambitious and tech-savvy, but they’re also overwhelmed – and traditional leadership is only making it worse. 

What’s needed isn’t softer management. It’s smarter leadership. 

Compassionate leadership isn’t about hand-holding. It’s about understanding what people need to perform at their best – especially younger workers navigating an unpredictable world. Here’s how to lead the next generation effectively, without burning them (or yourself) out. 

1. Make Mental Health an Ongoing Conversation 

Younger workers don’t see mental health as taboo, but they still struggle to bring it up at work. Many feel pressure to appear “resilient” even when they’re not coping. 

As a leader, you set the tone. If you only ask about mental health during crises, you’ve waited too long. Instead, build it into everyday culture: regular check-ins, open conversations, and visible use of resources, rather than just posters on the wall. 

You don’t need to be a therapist. But you do need to be present. A simple, consistent “How are things really going?” can go further than you think. 

Quick shift: Stop treating wellbeing like a side topic. Start asking about it in the same breath as project updates. 

2. Focus on Outcomes, Not Optics 

Younger employees value autonomy. But many still feel pressure to be “seen working”, even if it’s performative. They worry that logging off on time or skipping a meeting makes them look less committed. 

The fix? Stop rewarding presence. Start rewarding progress. 

One nonprofit leader we spoke to implemented protected learning time every Friday. Performance didn’t dip, and engagement went up. When people are trusted to own their schedules and deliver results, they stop wasting energy trying to look busy. 

Quick shift: Swap “How late did you stay?” for “What did we move forward this week?” 

3. Create Space for Questions and Mistakes 

If your newest hire isn’t speaking up, don’t assume they have nothing to add. They might be unsure if it’s safe to try. 

Psychological safety isn’t a nice-to-have. In fact, it’s the foundation of innovation and learning. It’s what lets someone admit they’re stuck, push back on an idea, or admit a mistake before it becomes a bigger one. 

You build psychological safety through how you respond: to confusion, to dissent, to failure. Do you default to critique, or curiosity? 

Quick shift: Try this in your next meeting: “What are we not seeing here?” Invite the voices that usually go quiet. 

4. Turn Everyday Work Into Development 

While younger employees want to grow, they’re not just chasing titles. They want to feel like they’re progressing, learning, and being trusted with more than just grunt work. 

That doesn’t require a formal program. It requires intent. 

Let them shadow a key meeting. Give them a stretch assignment with room to fail safely. Offer feedback in real time, rather than saving it for a review six months away. 

The payoff? They feel seen. They stay engaged. And they start leading faster. 

Quick shift: Identify one junior team member this week who could take on something slightly out of their comfort zone. Back them to do it. 

5. Model What Balance Actually Looks Like 

You can’t preach wellbeing and then send emails at 11pm. Younger workers watch what you do, not just what you say. If they see leadership skipping holidays, replying during burnout, or praising overwork, they’ll fall into the same trap. 

Buffer, a fully remote company, is known for its open culture and strong work-life boundaries. But the real difference? Leaders live it. The CEO talks publicly about his own wellbeing routines, and also encourages their employees to unplug. 

You don’t need to be perfect. But you do need to be visible in protecting your own boundaries, and theirs. 

Quick shift: Want to show it’s safe to disconnect? Start with yourself. Take that break. Say no to that unnecessary meeting. Others will follow. 

Final Thought: The Shift Starts With You 

Younger employees aren’t waiting for leadership to catch up. If they don’t see care, flexibility, and growth where they are, they’ll find it somewhere else – or check out entirely. 

Compassionate leadership isn’t about being indulgent. It’s about being effective. It’s about understanding that to get the best out of people, you first have to treat them like people. 

Ask yourself: 

• Do I reward effort or just visibility? 
• Do I make it safe to speak up, or just safe to agree? 
• Do I role-model wellbeing, or just talk about it? 

The leaders who can answer these questions honestly, and act on them, won’t just retain young talent. They’ll help it thrive.