By Jonathan H. Westover, PhD
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Abstract: Recent research suggests workers' career ambitions are changing, with fewer aspiring to top executive roles like CEO. This article explores the implications of shifting ambitions for organizational leadership strategies. Research from McKinsey and others finds only 3 in 10 workers today want C-suite careers, down from previous generations where climbing the corporate ladder was standard. Societal factors like economic instability and greater valuation of work-life balance, as well as generational preferences for meaningful work and flexibility over prestige roles, help explain changing priorities. To optimize talent management amid these trends, the author recommends companies realign leadership strategies, talent practices, and culture. Distributed leadership models, non-linear career paths focused on skills development, and culture emphasizing purpose, learning, and well-being can better engage modern workers who prioritize autonomy, growth, and impact over rigid hierarchy. Industry examples demonstrate how redefining success and expanding career definitions can boost retention, diversity, and collaboration.
Recent research indicates that ambitions among workers are changing. Only 3 in 10 currently aspire to roles at the C-suite level like Chief Executive Officer (CEO) or Chief Financial Officer (CFO) (McKinsey & Company, 2022). This is significantly lower than previous generations where climbing the corporate ladder was a standard career aspiration. As ambitions evolve, traditional notions of leadership must also evolve to remain effective and optimize talent. Organizational leaders need to understand these shifting ambitions and adapt their approach accordingly.
Today we will explore how workers' ambitions are changing and provide practical implications for organizational leadership in 3 key areas: leadership strategy, talent management, and culture.
Research Foundation: Workers' Changing Ambitions
Research shows workers today have different career ambitions compared to prior generations. A 2022 McKinsey & Company report found only 3 in 10 employees currently aspire to top C-suite roles like CEO, down from previous highs of 4 in 10 (McKinsey & Company, 2022). Additional studies have found Gen Z workers place less emphasis on hierarchy and prioritize work-life balance, purpose, and growth more than climbing career ladders (Deloitte, 2022; Gallup, 2021).
These findings contradict long-held assumptions that progression to the C-suite is a universal career goal. But why have ambitions shifted? Various societal and generational factors help explain these changes:
Societal Factors:
Work has become less stable due to technology disruption and economic shifts, making linear careers less certain
Work-life balance is increasingly valued as people prioritize time with family and personal well-being
Younger generations grew up in a recession and witnessed corporate scandals, diminishing allure of traditional executive roles
Generational Factors:
Millennials and Gen Z place greater importance on purpose-driven work and growth opportunities over prestige or high pay alone
Digital natives are less attached to hierarchy and value autonomy, flexibility, and meaningful impact over corporate titles
Overall, workers today view career success differently than previous eras characterized by hierarchical climbing. Organizations must adjust how they develop, engage, and lead talent accordingly.
Practical Implications for Organizational Leadership
Given shifting employee ambitions, organizational leadership must adapt in three key areas: leadership strategy, talent management, and culture. Proactive changes in these domains can help optimize existing talent while attracting new types of workers.
Leadership Strategy
Redefine what leadership means beyond C-suite roles to emphasize purpose, growth, and impact
Distribute leadership more horizontally across functions and levels
Rethink executive succession planning to allow for non-linear pathways focused on skills over pedigree
Talent Management
Evaluate performance and promotion criteria beyond hierarchical ranking to include skills development, innovation, collaboration
Offer lateral career moves, project-based work, and flexible arrangements to retain top talent at all levels
Equip middle managers with coaching skills to develop direct reports holistically as individuals
Culture
Foster an environment where purpose, learning, well-being, and inclusion are prioritized alongside financial performance
Implement programs like pro-bono work, sabbaticals, learning & development funds to fulfill non-monetary motivators
Emphasize transparency, authenticity and collaborative leadership to build trust across generations
By realigning strategies, practices and culture, organizations can better serve and engage workers whose ambitions now emphasize purpose, growth and autonomy over hierarchical roles alone.
Industry Examples
Several companies are proactively adapting leadership models to address changing worker ambitions:
Technology: At Google, the traditional corporate ladder is deemphasized in favor of a "lattice" structure allowing fluid career moves across teams and roles (Harvard Business Review, 2016). This better serves developing skillsets than hierarchical progression alone.
Professional Services: Deloitte initiated its “Crystallizing” program enabling employees to craft custom, non-linear career paths focused on continuous learning vs promotions (Deloitte, 2022). Over 80% of Gen Z employees report the program enhances their engagement and development.
Non-Profit: Charity Water detached from traditional hierarchy by distributing leadership across global teams and project roles (Fast Company, 2013). This empowering structure has helped double annual fundraising while retaining mission-driven talent.
Manufacturing: Unilever achieves industry-leading engagement by emphasizing flexible work, learning opportunities and culture over promotions (Gallup, 2019). Non-hierarchical development paths boost retention, diversity and cross-functional collaboration.
These examples demonstrate how companies are redefining leadership, career development and culture to be inclusive of changing worker needs. Key common elements include distributing leadership, expanding definitions of success, and prioritizing purpose, growth and flexibility over rigid hierarchy alone. Early results indicate such approaches optimize existing talent while attracting new types of workers.
Conclusion
As research shows current generations place less emphasis on climbing corporate ladders, traditional notions of leadership must evolve as well. Organizations neglecting these shifting ambitions do so at their own risk of diminished employee engagement, retention and innovation over time. However, those proactively adapting leadership strategies, talent practices and culture stand to gain competitive advantages in today's realities.
The most effective leaders will move beyond hierarchical mindsets to distribute power and define success more holistically. By emphasizing purpose, growth and well-being alongside traditional metrics, organizations can better develop, empower and retain talent. Those attuned to workers’ changing ambitions will establish trust, optimize diverse perspectives and outperform over the long run. While career definitions are evolving, the fundamentals of valuing people remain core to leadership. Adapting to today’s realities ensures organizational leadership remains equally vital.
References
Deloitte. (2022, January 18). The Deloitte global 2022 Gen Z and millennial survey: Understanding a generation that's redefining the workplace. https://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html
Fast Company. (2013, December 17). Charity: water tells its story in a completely new way. https://www.fastcompany.com/3023140/charity-water-tells-its-story-in-a-completely-new-way
Gallup. (2019, March 21). State of the global workplace. https://www.gallup.com/workplace/238079/state-global-workplace-2017.aspx
Gallup. (2021, September 13). How Gen Z will change the workplace. https://www.gallup.com/workplace/364626/gen-will-change-workplace.aspx
Harvard Business Review. (2016, May 11). Reimagining the organizational chart. https://hbr.org/2016/05/reimagining-the-organizational-chart
McKinsey & Company. (2022, February 18). The future of work after COVID-19. https://www.mckinsey.com/featured-insights/future-of-work/the-future-of-work-after-covid-19
Jonathan H. Westover, PhD is Chief Academic & Learning Officer (HCI Academy); Chair/Professor, Organizational Leadership (UVU); OD Consultant (Human Capital Innovations). Read Jonathan Westover's executive profile here.
Suggested Citation: Westover, J. H. (2024). The Changing Ambitions of Workers: Adapting Leadership for Today's Reality. Human Capital Leadership Review, 13(2). doi.org/10.70175/hclreview.2020.13.2.9
