Gen-Z Continues to Challenge the Traditional Workplace—Here’s How Leaders Can Adapt

Darragh McGillicuddy is an Entrepreneurs’ Organization (EO) member in Cape Town, South Africa, and the founder of McGillicuddy Hospitality, which creates exceptional luxury guest experiences through innovative service solutions. McGillicuddy shared how the hospitality industry is navigating the influx of Gen-Z workers, resulting in a mentally healthier culture with increased productivity:

There’s an old saying: “You have to earn your stripes.” You work late and say yes to everything. You put your head down, and eventually, maybe, you get to lead. That was the path I took. It’s also how most leaders trained their employees. For a long time, I believed it was the only way.

Then, Gen-Z arrived, which said, quite clearly, “No, thank you.” I’ll be honest—at first, it rattled me. I was used to team members who didn’t question why they were expected to work every weekend and who waited patiently for opportunities to come their way. 

Suddenly, I was managing people who wanted flexibility from the start and asked about purpose in their first interview. They weren’t afraid to say, “This doesn’t work for me.” It forced me to rethink everything I thought I knew about leadership. Here’s what I’ve learned.

The pay-your-dues mentality is outdated, and honestly, it wasn’t great to begin with.

The belief that you must suffer before you succeed isn’t just outdated; it’s also unhelpful. I used to see resilience as staying silent through hardship. Gen-Z sees resilience as setting boundaries and working smarter, and they’re not wrong.

One of my team members, a young, sharp-witted, front-of-house manager, once told me, “I love this job, but I’m not going to burn out to prove it.” That stuck with me. She wasn’t asking for less responsibility. She was asking for a healthier path to growth.

This generation isn’t afraid to say no to environments that expect them to grind endlessly with little support or clarity. Honestly, most people didn’t love that system either, but they just didn’t think they had another option.

The new hierarchy is flat (and that’s a good thing).

In the past, leadership meant distance. You moved up the ladder by being less accessible, more authoritative. That approach doesn’t land with Gen-Zers. They want mentorship, not management. Conversations, not commands.

So, I started changing how I lead. I abandoned rigid hierarchies and started showing up on the floor, in group chats, and over coffee. Instead of giving feedback, I started asking for it. I also focused more on growing people than on proving myself.

The result?  A more engaged team, better communication, and a leadership culture that doesn’t rely on fear or tradition.

What other industries can learn from hospitality’s wake-up call

The hospitality industry thrives on human connection. When that connection frays internally, it shows externally. Gen-Z has challenged the industry to rebuild from the inside out, and I think that shift applies to every industry and business, no matter the sector.

Here are a few takeaways I’d offer to any entrepreneur navigating a similar generational shift:

1. Redefine what growth looks like.

It doesn’t have to mean more hours, more stress, or more years of waiting. Create development paths that are visible, fair, and aligned with your team’s actual goals, not just your company’s hierarchy.

2. Stop rewarding burnout.

If you’re still glorifying all-nighters and 80-hour weeks, you’re going to lose your best people. Gen-Z values balance and mental health. When they’re well-rested and supported, they do incredible work.

3. Get closer to your team.

Leadership isn’t a title. It’s a relationship. Take time to understand what motivates your team, what they’re struggling with, and what kind of leader they actually need. Gen-Zers want to feel part of something bigger. As their leader, you need to create that deeper connection to fulfill that need.

Gen-Z is the future of the workplace.

I used to think leadership was about being the hardest working person in the room. Now, I think it’s about being the most human. Gen-Zers may have challenged our traditions, but they’ve also made us better. They’ve reminded us that people don’t grow when they’re exhausted and undervalued. They grow when they’re supported, heard, and trusted. Honestly? That’s a workplace I want to be part of, too.

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