Research: Companies Face Manager Crisis as Gen Z Rejects Middle Management Roles

Recruitment firm Robert Walters has revealed that Generation Z workers in Indonesia tend to shy away from middle management positions because they view the compensation as disproportionate to the demands. “Gen Z want to lead, but they see the pressures that today’s middle managers face,” said Eric Mary, Country Head of Robert Walters Indonesia, in a written statement on Thursday, June 18, 2026. Eric Mary explained that the younger generation is hesitant to step forward unless the financial rewards match the responsibility. He noted that companies cannot solve financial anxiety or workload issues merely by offering training certificates. A survey by Robert Walters Indonesia identified a specific gap between Gen Z’s requirements for taking on management responsibility and the priorities of most companies. Among Gen Z professional respondents who were hesitant about management positions, 64 percent cited higher compensation as the single most important factor that would make them more open to accepting the role. The second factor was clearer decision-making authority, followed by better work-life balance at 24 percent. In contrast, only 38 percent of companies in Indonesia stated they are reviewing salary and incentive packages. The majority, or 69 percent of firms, instead prefer to prioritise clearer promotion pathways and leadership development programmes. The survey also found that 46 percent of Gen Z workers would only accept a management promotion if they could negotiate the terms beforehand. On the other hand, 54 percent of them worry that avoiding management positions could limit their long-term earning potential. Michelle Tanjung, Associate Director of Robert Walters Indonesia, said she was not surprised that Gen Z workers are deterred from becoming managers after witnessing their superiors shouldering excessive burdens. She urged companies to review their compensation structures and ensure middle management roles are empowered with genuine autonomy. Reflecting on the current situation, the Robert Walters Indonesia research noted that 64 percent of companies are making better succession planning for senior positions a top priority. Meanwhile, 36 percent stated they are currently taking no action to address the middle management pipeline gap, even though the majority acknowledge the challenge is real or approaching. Based on the findings, Robert Walters Indonesia identified three areas requiring action. First, compensation is the primary driver that could change Gen Z’s decisions. Second, the role itself needs restructuring, as Gen Z respondents identified limited decision-making authority and the pressure of managing overlapping demands from senior leadership and junior staff as the most frequently observed concerns among current managers. Finally, companies must invest in the visibility and recognition of existing middle managers, as the impression they leave indirectly shapes the next generation’s perception of the role.