By Tim Huff
President & CEO, TLG
“I don’t want a boss—I want a coach.”
That statement, shared by a high potential junior leader in her late 20s during a leadership development session, stopped the room. Her colleagues, Millennials and Gen Zers, nodded in agreement. It wasn’t a rebellion against hierarchy or authority, but it was a clear call for a different kind of leadership and a different kind of development. For organizations committed to future-proofing their leadership pipelines, it’s time to rethink how we invest in emerging leaders. The next generation of leaders aren’t waiting around for legacy career ladders; they’re asking for meaningful development, purposeful work, and leaders who believe in them. So, how do we invest wisely and effectively in high-potential junior leaders, especially those in the Millennial and Gen Z cohorts? Here are five proven approaches.
1. Provide a Clear Path—but Keep It Flexible
Millennials and Gen Z crave growth, but not necessarily in a straight line. They want to understand how they can progress in their careers, but they also want the flexibility to pivot, explore, and contribute in ways that align with their passions and skills. Instead of rigid promotion paths, consider developmental tracks that focus on skill-building and exposure across functions. Things like job rotations, job shadowing, and project-based assignments can provide the kind of variety that will resonate with younger generations. Gen Z especially values the chance to sample different roles before locking into a long-term path. What to try: Launch a “build-your-own-leadership-path” program with defined milestones but customizable experiences.
2. Shift from Boss to Coach
We all know that leadership doesn’t mean having all the answers. Younger generations especially respond best to leaders who are facilitators of growth, not just evaluators of performance. Millennials and Gen Z value feedback, but more than that, they want mentorship and coaching. According to Gallup’s research, employees who receive meaningful feedback are 80% more likely to be fully engaged (McLain and Nelson, 2022). This requires investing in training your current managers to lead through questions, empathy, and encouragement, rather than command-and-control. What to try: Train mid-level managers in coaching fundamentals, especially active listening, asking open-ended questions, and developmental feedback. Also, invest in quality executive coaching for mid-level leaders; research by the International Coaching Federation (ICF) found that companies investing in coaching realized a median ROI of seven times their initial investment (American University, n.d.)!
3. Invest in Purpose and Belonging, Not Just Skills
Yes, technical and leadership skills matter, but they’re not enough. Millennials and Gen Z want to work for organizations that stand for something, and they want to see how their role connects to that purpose. Leadership development for this group should go beyond business acumen to include topics like empathy, inclusion, psychological safety, and values-based leadership. The best investment you can make is helping young leaders connect their work to a larger mission and see themselves as builders of a culture that matters. What to try: Launch purpose-driven leadership circles; small, facilitated peer groups that meet monthly to discuss real-world leadership challenges through the lens of purpose, values, and inclusion.
4. Let Them Lead Now (Not Later)
Emerging leaders today aren’t content to wait a decade before they’re trusted with responsibility. The most impactful way to grow high-potentials is to let them lead, even before they feel “ready” and support them along the way. Whether it’s owning a small team initiative, leading a client project, or representing their department on a task force, junior leaders need real-world reps. They’ll make mistakes, but they’ll grow faster, build confidence, and feel deeply valued. What to try: Create a “Leadership Lab” program that gives early-career talent real-world challenges to solve, with access to senior mentors and feedback loops.
5. Recognize the Whole Person
Perhaps more than any generation before, Millennials and Gen Z are bringing their full selves to work, and they want employers who see and support that. Leadership development that ignores mental health, work-life boundaries, and identity-driven experiences will fall flat. When you invest in this next generation, invest in them as whole humans. Offer development experiences that support emotional intelligence, resilience, and self-awareness. Normalize conversations around imposter syndrome, burnout, and career doubt. And make sure representation is more than a talking point—it should be a lived reality in your programs. What to try: Incorporate well-being check-ins, personal storytelling, and self-reflection exercises into leadership development curricula.
The ROI Is Real
There’s a misconception that Millennials and Gen Z are “hard to lead.” In truth, they are the most investable generations we’ve seen… when you lead them in the right way. Investing in them isn’t about handing out promotions or ping pong tables. It’s about creating an environment where they can learn, stretch, contribute, and grow. Where leadership is a shared journey, not a position. Where they feel seen, heard, and supported. And if you get it right? You don’t just build leaders, you build loyalty, innovation, and momentum that carries your organization forward for decades to come.
The next generation of leaders is already here. The question isn’t whether they’re ready, it’s whether we are. Invest wisely!
References: McLain, D., & Nelson, B. (2022, January 1). How effective feedback fuels performance. Gallup. https://www.gallup.com/workplace/357764/fast-feedback-fuels-performance.aspx American University. (n.d.). The ROI of executive coaching. https://www.american.edu/provost/ogps/executive-education/executive-coaching/roi-of-executive-coaching.cfm
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