Mind the Leadership Gap: The Confidence Crisis of Next-Gen Executives

A major shift in leadership is underway, with Millennials and Gen Z stepping into executive roles at a pace we’ve never seen before. These next-gen leaders bring fresh perspectives, bold ideas, and a new approach to what leadership means. Understanding their journey is key to navigating the future of leadership in modern organizations.

This is exciting. It’s an opportunity for innovation, new ways of thinking, and a chance to redefine how businesses operate. But with change comes challenges. Organizations need to ensure these transitions happen smoothly—especially as we navigate an aging workforce, high executive turnover, and an unpredictable business environment.

The Advantage of Fresh Motivation from New Leaders

Today’s emerging leaders are motivated by different factors, unlike those that came before. According to ICEO’s latest 2025 View from the C-Suite report, 28% of Gen Z leaders prioritize creating a positive impact on their teams. They are also twice as likely as their baby boomer predecessors to focus on helping others reach their full potential.

For these leaders, success isn’t just about financial rewards or personal accolades—it’s about collaboration, purpose, and collective achievement. As Oprah Winfrey put it, “Leadership is not about being in charge. It’s about taking care of those in your charge.”

To harness this shift, organizations must rethink how they support this leadership transition. The traditional ladder of success—where power and influence accumulate over time—is being replaced by a more inclusive, purpose-driven approach. Companies that embrace this shift will thrive; those that don’t risk alienating the very leaders they need to move forward.

The Confidence Gap: A Silent Challenge

But stepping into leadership isn’t easy. Many new executives experience a confidence gap that can impact their ability to lead effectively. Our research shows that in their first year in a new leadership role, one-third of executives lack confidence in their own ability to succeed. Even more concerning, 31% doubt their leadership team’s ability to perform.

Why is this happening?

• High expectations. New leaders are expected to deliver results immediately, leaving little time to adjust.
• Organizational Silos. Many organizations are not aligned at a leadership level and which hinders team effectiveness and integration of new leadership.
• Generational turnover. As seasoned executives retire, institutional knowledge disappears, leaving new leaders to fill the gap without guidance.

This isn’t just a personal struggle—it’s a business risk. When leaders lack confidence, decision-making suffers, teams become disengaged, and strategic execution weakens. Organizations need to recognize this challenge and act before it affects long-term performance.

A New Approach to Leadership Readiness

As John F. Kennedy said, “Leadership and learning are indispensable to each other.” The next generation of executives needs more than just a seat at the table—they need the right tools to thrive.

To better equip these leaders, companies should focus on:

• Targeting critical career moments. Transitions—like promotions, major projects, or industry pivots—are defining moments. Providing structured support during these times can make a huge difference.
• Onboarding and mentorship. More than the usual 90-day plan, formal programs that pair new leaders with experienced mentors can bridge knowledge gaps and build confidence from someone who has been there before.
• Prioritizing team integration. Helping new leaders connect with their executive teams and align with company culture accelerates their ability to make an impact.

Leadership for a new generation

Modern organizations are built on the strength of their leadership teams. The companies that invest in their next-generation leaders today will be the ones shaping the future of business tomorrow.

By understanding the motivations and challenges of Millennial and Gen Z executives, businesses can create an environment where new leaders don’t just survive—they thrive. And when leaders thrive, teams perform better, strategies become stronger, and the entire organization benefits.