This management layer could be on the verge of extinction - what will happen to the multinationals?
The labour market is about to turn upside down: young generations are not looking for middle management, and companies are finding it harder and harder to find replacements. For Generation Z, careers are less about promotion and more about self-fulfilment, flexibility and work-life balance. What was once prestige and recognition is now a mere nuisance in the eyes of many.
"The thinning of middle management is not just a problem at company level, but a wider social phenomenon. If the leadership ambitions of the younger generation are declining at this rate, it will have a long-term impact on the whole labour market. If there is no one to take on these key roles, multinational companies will simply move on", warns Annamária Horányi-Kiss, Senior Consultant and recruitment expert at JIT Talent.
It's no longer fashionable to be a middle manager
The position of middle manager was once a motivating recognition, prestige and an opportunity for advancement. But today's young workers no longer necessarily want the role.
Team leaders, team leaders, shift leaders and other middle management positions are becoming increasingly difficult to fill
- points out Annamária Horányi-Kiss.
Generation Z is already entering a different labour market. They are born into the digital world, where tools, software and - increasingly - artificial intelligence take their place. This in turn undermines decision-making and empowerment. The logic of the "if I fail, I try again" computer game doesn't work in the workplace. Leadership there requires serious, high-stakes, conflict-ridden decisions, which fewer and fewer people are in the mood for. The middle management level is a conflict zone: it dampens orders from above, filters complaints from below, and tries to meet the expectations of both sides.
A growing proportion of Generation Z are entering the market having never worked before. They don't know monotony or frameworks, and although they are creative and fast, they can easily get bored under the pressure of leadership. Work-life balance, personal wellbeing and flexible working are becoming increasingly important. At the same time, companies are not always good at encouraging young people to make a long-term commitment to a company and to take on the responsibilities of a leadership role.
Individual career development and entrepreneurship have also become increasingly popular options. In particular, in marketing, IT and creative industries, young professionals are preferring to work freelance rather than take on a management role within a company.
But this trend poses a long-term challenge for companies: if internal succession is not addressed, the middle management layer will age out and a serious generation gap may develop within the organisation.The leaders of the future are sitting there, but they may not know it
A middle manager needs to not only know his or her job, but also understand the workings, culture and internal dynamics of the company. That's why it's much more effective for a company to select and develop future leaders from its own people, rather than bringing in someone from outside who learns it all from scratch. But just finding talented young people is not enough:
The scarcity of middle managers is not just because young people don't want to lead, but just as much because the organisational culture and incentive systems don't support them to do so. If companies really want to ensure a supply of middle managers, they need to take forward-looking, conscious steps and adapt to the new labour market conditions
.- advises Annamária Horányi-Kiss.
If the position involves too much stress and disproportionate responsibility, it is no wonder that few people ask for it. To attract young people into management roles, it is vital for companies to make middle management more attractive. Flexible working, work-life balance and well thought-out financial and moral incentives - such as bonus schemes, extra days off or executive coaching and training - can all help to make middle management seem like an attractive career option rather than a burden.
A second important step is for companies to consciously build up the leadership ambition dormant in young people. To do this, it is not enough to simply say how important it is to be a good leader. We need real-life situations where young people can put themselves to the test. Gamification, the creation of competitive situations, or even well-organised kick-off days, which are not only administrative milestones in project start-ups, but also great opportunities to find out who can lead, decide and motivate, are perfect tools for this. A good kickoff event goes beyond the coordination of objectives and tasks - it is actually a platform for bringing hidden talents to the surface. It's just a question of whether companies will notice who is really ready for a leadership role.
The key is to get the right people in the right positions.
Leadership shortages are the biggest cost
To succeed today, it is no longer enough to develop middle managers - there is also a growing need for senior managers to receive targeted mentoring. Although top managers usually receive their own professional support, far less attention is paid to how to motivate their middle managers and how to recognise the talent in their teams. Yet it is from these key people that the leaders of the future can emerge," said Annamária Horányi-Kiss, Talent recruitment expert at JIT.
In addition, the digital generation is used to constant stimuli from a young age, but has not learned to tolerate monotony. This puts a new burden on managers, who should also be trained to organise their teams' work in a varied and motivating way.
If companies fail to act in time, the middle management of the future will simply disappear, leaving not only a few vacancies but also upsetting the internal balance of organisations. The question is no longer whether young people want to lead, but whether companies are willing to rethink the rules of the game. Because bean bags, foosball tables and one wellbeing day a week are not in themselves an incentive to lead. For future leaders to recognise their role and take the lead, companies need to act now.
The expert warns that a lack of leadership not only causes internal tensions and organisational disruption, but also tangible financial loss, and not a small one. The more important a position, the higher the cost of vacancy (COV). Moreover, the problem doesn't stop with visible losses: the hidden, indirect costs of overworked senior managers, unmotivated team members and unmanaged projects also take a significant toll on the organisation.
Leadership shortages are therefore not simply an HR issue, but a serious business risk that has a direct impact on the competitiveness and long-term sustainability of the firm.
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