Overcoming ‘Status Incongruence’ as Gen Z Rises to Management Roles

Generation Z workers (born between 1997 and 2012) are being promoted into management roles at a significantly accelerated pace — 1.2 times faster in 2023 than in 2019, according to research from ADP, accounting for 3% of total manager months worked in 2023, compared to less than 1% in 2019. The rise of Gen Z managers brings an increase in younger managers leading employees with more organizational tenure, professional experience, or education. The awkwardness of this arrangement is called “status incongruence,” and it has the potential to disrupt workplace harmony and result in higher turnover and lower engagement if unaddressed.

For CHROs and HR leaders, managing a multi-generational workforce in these conditions can be particularly challenging. However, by equipping managers with the right tools, promoting accountability, and enhancing the employee experience, organizations can create a culture of inclusivity, collaboration, and productivity. 

The Challenge of Managing Status Incongruence

“This is the first time we’ve had five generations in the workforce, and everyone is motivated differently,” said Ginnie Carlier, vice chair of EY Americas, during an episode of SHRM’s “All Things Work” podcast. “Everyone has different needs and wants because they’re at very different stages in their careers.”  

This convergence of generations increases the likelihood of status incongruence, where employees are “not only older but have more work experience, organizational tenure, or education than their supervisors,” according to a study in the Journal of Business Research. Additionally, the study found that status incongruence with one’s supervisor is negatively associated with job satisfaction, creating friction that can ripple through the organization.

However, research published by Columbia Business School showed workers are willing to “overcome the impression of unfairness prompted by status incongruence” when their managers demonstrate competence. Developing competent, skilled managers is critical for creating a work environment where employees feel supported and heard.

The Impact of Competent Management on Organizational Success  

Competent managers influence not only employees’ work environment, but also overall organizational performance. In fact, 92% of HR executives cited people managers as critical to their organization’s overall success, according to SHRM’s Effective People Managers: The Linchpin of Organizational Success report. Executives likely identify managers as key players because of their direct impact on employee experience. According to SHRM’s The Case for Employee Experience report, managers are among the most influential factors in shaping that experience — critical point, because employees with a positive experience are 68% less likely to consider leaving.

An ineffective manager is like a small chink in your armor. You can keep moving forward, but your attention is divided between implementing your battle strategy and protecting your weak point. With status incongruence becoming a reality for more organizations, leaders can’t afford to let factors such as age become a chink in the armor of effective management.  

To reinforce that armor and clear a path to organizational success, HR leaders should focus on three key areas of expertise for managers:

• Managerial training.
• Accountability.
• Employee experience.

1. Train Managers at Every Level

No matter managers’ age or tenure, they need opportunities to continuously grow their expertise. HR executives, including CHROs, recognize this. In a survey of 330 HR executives, three of the top five areas in need of “significant transformation” included manager development, leadership development, and learning and development.  

A holistic approach will include tracks for all managers that cover three key areas of competency:

• Recognizing and accepting individual behavioral differences: Confronting personal biases is especially important in multi-generational organizational structures. Stepping outside of personal biases can allow leaders to better understand their team members and find solutions to complex problems.
• Verbal and nonverbal communication: Establishing and improving communication as a leader helps break down barriers between generations by encouraging open, honest conversations that bring clarity to issues or the work at hand.
• Conflict management: Disagreements are inevitable. However, equipping managers with skills to handle conflict constructively can transform tension into collaboration.

Regardless of where managers start, a course such as SHRM’s People Management Qualification can bring alignment to the overall organization’s culture of leadership.

2. Build Accountability Across the Board

Developing managers can carry your organization — to a point. A truly cohesive approach that supports a strong culture relies on accountability up and down the ladder. Performance management helps, and CHROs should focus on three components to strengthen accountability.

• Open and continuous feedback: Feedback should be encouraged throughout the year, not just during performance review time, and should include channels such as companywide surveys in addition to making space for employees to share feedback with managers.
• People analytics: Data on employee engagement can provide real-time insights for organizations, guiding actions where they are most needed. However, it’s important to actually leverage the data that is collected, rather than just report on numbers.
• Performance management joined with organizational goals: Accountability can also be helped by aligning performance management with organizational goals. If employees can see the connection between their performance and the health of the organization, they are likely to feel more engaged.

3. Invest in Employee Experience

With leadership training and performance management set, it’s critical to not overlook the employee experience. This holistic examination of how workers feel about their job is like looking at the “customer experience,” but for employees. Culture is the stage for employee experience, and these three areas set that stage:

• Tools and technology: Give employees access to tech that makes their lives easier, not harder. Consider tools that balance meeting employees’ needs and workflows with the needs of the business.
• Physical space: Whether it’s an office or a hybrid setup, your workspace should feel functional and inviting. It may have flexible workspace, such as open desks and multiple conference rooms for meetings or quiet work.
• Team value: Employees want to feel like they’re part of something bigger. Show them how their work contributes to team and companywide success. One way to tell if employees feel valued is by the hiring referrals they provide. If they are recommending contacts to work for the organization, they likely view the organization positively.

What’s Next for a Multi-Generational Workforce

The unique blend of five generations in today’s workforce creates both challenges and opportunities. Status incongruence, while difficult, is not insurmountable. By investing in comprehensive training for managers, fostering accountability throughout the organization, and enhancing the overall employee experience, CHROs and HR leaders can build resilient teams. 

Positive, inclusive workplace cultures don’t just happen. They are intentionally designed and nurtured. With the right strategies in place, organizations can turn generational diversity into a strength and inspire collaboration that propels both individuals and businesses forward. 

By focusing on these actionable steps, your organization can foster a culture in which every generation thrives.