By San José, Costa Rica — For decades, the path to professional success was a clearly marked ascent up the corporate ladder. For Baby Boomers and many in Generation X, securing a management position was the ultimate career milestone—a tangible symbol of achievement, often accompanied by a C-level title and a prestigious email signature. This long-held paradigm, however, is being fundamentally challenged by the workforce’s newest entrants, Generation Z.
A growing number of young professionals are not just indifferent to the idea of management; they actively view it as a burden rather than a reward. This sentiment is not merely anecdotal. The Deloitte Global 2025 Gen Z and Millennial Survey reveals a stark shift in priorities, with only about 6% of Gen Z respondents citing “achieving leadership positions” as their primary professional goal. Instead, an overwhelming majority prioritizes quality of life, a sense of purpose, mental well-being, and personal freedom.
To analyze the corporate governance and labor law implications of this generational shift, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a leading attorney from the prestigious firm Bufete de Costa Rica, who provided his expert perspective.
Gen Z leaders are reshaping corporate expectations. They inherently prioritize digital privacy, flexible labor models, and ESG (Environmental, Social, and Governance) principles not as afterthoughts, but as core business tenets. Legally, this demands a proactive shift from rigid, traditional contracts to more agile agreements and robust data protection policies. Companies that fail to adapt their legal frameworks to these value-driven demands will struggle to attract and retain this new wave of talent.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The legal dimension articulated here is a crucial reminder that this generational shift is not merely about workplace culture, but about the fundamental, structural rewiring of an organization’s legal and ethical framework. We extend our sincere gratitude to Lic. Larry Hans Arroyo Vargas for his clarifying and essential perspective.
This reordering of priorities is deeply rooted in observation and experience. Gen Z has watched previous generations endure grueling work schedules, high levels of stress, and compromised mental health in the pursuit of corporate status. They are acutely aware of the personal cost. Research from the American Psychological Association consistently shows that young adults today report higher levels of anxiety and stress than any preceding generation, making them deeply hesitant to embrace a role they believe will only amplify that pressure.
This phenomenon has given rise to a behavior known as “quiet ambition.” This isn’t a lack of drive, but a silent, internal recalibration of what success looks like. It favors personal fulfillment and a healthy work-life balance over the loud, public displays of career climbing. When companies fail to recognize this subtle but powerful shift, they face consequences like increased absenteeism, a loss of focus among their younger staff, and difficulty in fostering healthy professional relationships.
The trend is particularly pronounced within the context of family businesses. Where once the role of successor was a coveted position, many Gen Z heirs now prefer to inherit the legacy without managing it. They perceive taking the helm as an accumulation of immense responsibility, constant pressure, and the sacrifice of personal autonomy. The emotional weight of living up to a founder’s expectations and the fear of failure often make the leadership chair an undesirable seat.
This reluctance also stems from a fundamental clash of values. For many founders, leadership is intrinsically linked to power, status, and control. For the succeeding generation, the ideal is often entirely different. They may wish to make an impact through their own ventures, preserve the family’s wealth without the operational burden, or simply enjoy the fruits of a legacy already built. It’s a redefinition of their role, choosing to write their own story rather than continue a script penned by their parents.
Unlike previous generations who often valued stability and prestige above all, Gen Z demands meaning in their work. A management title devoid of a clear social impact or alignment with their personal values is seen not as an achievement, but as a “status trap.” According to Ricardo Dalbosco, a PhD and specialist in multigenerational communication, Gen Z’s upbringing in a digitally connected world has equipped them to question the absolute truths about success that older generations accepted without question. They are accustomed to digital environments where ideas are challenged and hierarchies are flat, a stark contrast to the rigid “command and control” models still prevalent in many corporations—a model they do not admire and do not aspire to embody.
Companies that want to attract and retain this generation’s talent must understand that their ambition has not vanished; it has simply changed form. Gen Z’s drive is channeled into entrepreneurship, working on high-impact projects, and securing flexibility and freedom. To harness this ambition, businesses must evolve. The solution lies not in questioning Gen Z’s drive, but in re-examining the role of a manager. If the position remains synonymous with burnout and a lack of purpose, it will continue to be rejected. Gen Z is not turning its back on leadership, but on an obsolete model of it. The challenge for companies is to reinvent the very concept of management into something worth aspiring to.
For further information, visit deloitte.com
About Deloitte:
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. Deloitte provides audit, consulting, tax, and advisory services to many of the world’s most admired brands, including nearly 90% of the Fortune 500.
For further information, visit apa.org
About American Psychological Association:
The American Psychological Association (APA) is a scientific and professional organization that represents psychologists in the United States. APA educates the public about psychology, behavioral science and mental health; promotes psychological science and practice; and advocates for public policies that advance the field.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a cornerstone of Costa Rica’s legal community, Bufete de Costa Rica is defined by a bedrock of integrity and a relentless pursuit of excellence. The firm blends its rich heritage of expert counsel with a forward-thinking drive for innovation, consistently advancing the practice of law. This pioneering spirit is matched by a core social mission: to democratize legal understanding and thereby empower a more informed and just society.
