Gen Z and Millennial candidates are showing stronger individual performance capabilities but declining leadership and teamwork competencies, according to new research from Cangrade. The findings raise questions about how employers identify future managers and prepare employees to take on leadership responsibilities.
Cangrade's Workforce Capability Index analysed 71,747 behavioural job assessments of candidates aged 18–44. Its findings show that eight of the nine leadership and teamwork competencies tracked by the company declined year over year, while individual performance skills recorded some of the strongest improvements.
Leadership and Teamwork Skills Show Declines
Fostering Teamwork recorded the largest decline among leadership and teamwork competencies, falling 0.65% year over year. Despite the decrease, the competency remained above average overall.
In contrast, Results Orientation recorded the largest improvement among the competencies, rising 1.11%.
The difference highlights a potential challenge for employers that rely heavily on individual performance when identifying employees for management positions. Delivering strong individual results does not necessarily demonstrate the ability to delegate responsibilities, coach colleagues, build consensus or coordinate teams.
For HR teams, the findings reinforce the importance of evaluating people-management capabilities separately from individual job performance when making promotion and succession-planning decisions.
Critical Thinking and Problem-Solving Competencies Also Decline
The research also identified declines in several thinking-related competencies, including Critical Thinking, Innovation, Creative Problem Solving and Analytical and Quantitative Reasoning.
These capabilities are increasingly important as organisations integrate AI into everyday workflows and employees are expected to assess information, challenge outputs and make sound decisions.
Cangrade cautions that its data cannot establish AI adoption as the cause of these changes. The findings show a pattern in assessment results, not proof that increased AI use has weakened human judgment or problem-solving skills.
Younger Candidates Show a Greater Preference for Structure
The research also challenges assumptions about younger workers' workplace preferences.
Novelty, which reflects a preference for new experiences and variety, ranked last among the 16 workplace motivators measured and declined by another 1.60%. Meanwhile, Structure, associated with defined processes and predictable environments, increased by 0.60%.
Compensation recorded the largest increase among workplace motivators, rising 2.26%, although it continued to rank 15th out of 16. Appreciation declined by 0.73%, while Competition increased by 1.35%. However, only around 5% of workers identified competition as their top motivator.
These findings suggest employers may need to look beyond assumptions about younger candidates' preferences when designing roles, workplace environments and recruitment messaging.
What the Findings Mean for HR and Leadership Development
The contrast between improving individual performance and declining leadership-related competencies presents a challenge for workforce development.
Organisations that promote employees primarily on the basis of individual results may overlook important capabilities required to manage teams effectively. HR leaders may need to give greater attention to coaching, collaboration, delegation, critical thinking and people-management skills when assessing employees for future leadership roles.
The findings also highlight the importance of providing opportunities for employees to develop these capabilities before they move into management positions.
As organisations continue to integrate AI into work, building a strong leadership pipeline will require more than improving individual productivity. Developing the ability to guide people, make decisions and work collaboratively remains an important part of preparing the next generation of managers.
Research source: Cangrade's Workforce Capability Index, based on 71,747 behavioural job assessments.
