Why you need to reinvent the career ladder to attract and retain young talent

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While this shift has been misunderstood as a lack of ambition, it’s actually something deeper, and more strategic. Gallup’s State of the Global Workplace 2025 report reveals a key piece of the puzzle: managers are struggling. Big time. Globally, only 21% of employees are engaged at work, and when Gallup zoomed in, they found managers themselves are less engaged than the people they lead.

Let that sink in. The people at the next rung of the ladder are burned out, disengaged, and sandwiched between executive pressure and team well-being. Is it any wonder the generations coming up behind them are thinking twice?

Climbing to what, exactly?

The desire to grow and do meaningful work is still very much alive, especially in younger professionals. An InStride survey showed that over 80% of adults seek educational benefits to grow in their careers. But it's the type of growth that matters now. Traditional ladder-climbing (hierarchical, rigid, often political) feels misaligned with the values of today’s emerging talent.

Why?

Because the workplace feels unstable.

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The rapid rise of AI and automation, coupled with economic uncertainty and widespread restructuring, has eroded the notion of a "safe path" in many industries. According to a 2023 McKinsey Global Institute report, up to 30% of current work hours in the US could be automated by 2030, potentially forcing approximately 12 million workers to transition into new occupations.

In South Africa, while digitalisation and automation are projected to create a net gain of up to 1.2 million jobs by 2030, the current youth unemployment rate remains alarmingly high at 46.5% for individuals aged 15–34.

This combination of technological disruption and existing employment challenges contributes to a landscape where young professionals question the value of climbing a potentially unstable corporate ladder.

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The manager dilemma

The Gallup report makes a compelling case that the manager role itself is in crisis. Managers’ report higher levels of burnout, lower well-being, and worse work-life balance than non-managers. In South Africa, where systemic challenges already weigh heavily on business structures, this pressure is even more pronounced.

Translation: The next step up the ladder looks like a recipe for burnout.

Instead of racing upward, young workers are being more intentional. They’re favouring roles that provide purpose, autonomy, flexibility, and yes, growth, but on their terms – which makes this hard for traditional businesses to understand.

The purpose paradigm

Younger generations care deeply about impact. Gartner found that 74% of employees want their employer to take a stand on societal and cultural issues, and this sentiment is even more amplified in South Africa’s deeply complex social landscape.

Meaningful work is no longer a nice-to-have, it’s a prerequisite.

So, what does this mean for businesses trying to attract and retain young talent?

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What companies can do

Let’s face it: it’s time to reinvent the ladder. Here’s how:

1. Create transparent, flexible career pathways

Don’t just offer a ladder, build a jungle gym. Let employees explore lateral moves, passion projects, and skills-based promotions. Spell out what success looks like, but give them the autonomy to carve their own path.

2. Rethink the manager role

If your managers are disengaged, fix that first. Coach them, support them, and redesign the role to be more empowering than draining. The future of leadership isn’t about control; it’s about connection and well-being.

3. Invest in skills, not just titles

Make continuous learning part of the culture. Sponsor certifications, offer microlearning opportunities, and reward curiosity. Take a cue from global examples like AT&T, who invested $1bn in retraining staff for future roles. Locally, companies like Clicks and Discovery have shown how impactful internal development programmes can be.

4. Enable purposeful work

If your company isn’t contributing to something bigger, you’ll struggle to keep top talent. Make social impact part of your mission, and show, don’t just tell.

5. Champion flexibility

Young professionals aren’t lazy; they’re boundary-setters. Embrace flexible work models that allow them to live whole lives, not just clock in. Let the career-driven mom be at her daughter’s netball final. Let the dad do the school run. Let humans be human.

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The bottom-line

The question isn’t: “Why won’t young people climb the ladder?”; it’s: “Why haven’t we built a better way up?”

Young professionals aren’t disengaged, they’re disillusioned with outdated systems. And in many ways, they’re right. The Gallup research confirms that leadership as we know it is flailing. If we want tomorrow’s leaders to step up, we need to make leadership worth aspiring to.

Forget the ladder. We need to build something better.