The Future of Work in Startups: Gen Z Workers’ Work-Life Balance versus “Founder Mode”

A recent article in Business Insider discussed a growing trend among employees entering the work force (particularly Gen Z) who are taking more sick (read: mental health days) compared to older generations. HR platform data shows a significant increase in this time off since 2019, and workers aged 35 and under are driving this shift. Contributing to this trend is increased health consciousness in the post-pandemic period that has an emphasis on work-life balance and self-care by extension.

The list of acceptable reasons for taking sick leave, including mental health, has expanded, and the attitude towards workplace loyalty is changing.

This approach challenges norms that glorify hustle culture. But it also raises questions about long-term career impact and the sustainability of these sort of trends. The article suggests that while boundaries are important, self-care will need to be balanced with professional responsibilities to prevent negative consequences in the workplace.

Let’s put this notion against a recent viral blog post by Paul Graham, the founder of Y Combinator, that introduces the concept of "founder mode" (here) in running companies. This of course, references the conventional "manager mode" taught in business schools.

Graham argues that as startups scale, founders are advised to switch to a management style focused on hiring good people and giving them autonomy immediately. And yet, many successful founders, including Airbnb's Brian Chesky, haven’t found success with this approach.

Per the article, a distinct "founder mode" of running companies is more effective but poorly understood. It likely involves more direct engagement across all levels, breaking traditional hierarchies. Graham indicates it’s more complex but ultimately more successful, citing examples like Steve Jobs' approach at Apple. Understanding and implementing founder mode could lead to even greater achievements by startup founders who have already succeeded … despite following suboptimal advice.

So, knowing all this, how do we compare Gen Z Workers’ Work-Life Balance to “Founder Mode”?

Is it prioritizing personal well-being and work-life balance, exemplified by Gen Z workers? Or should we emulate highly successful company founders who adopt an intensely engaged leadership style at the other end of the spectrum?

These contrasting approaches present both challenges and opportunities for the future of work, especially in the environment they’re seen the most — startups. Here’s my take:

• Startups need to continue to find ways to both acknowledge and accommodate work-life balance expectations. But they also need to maintain the high levels of engagement and innovation to achieve success.

• The divide between the work cultures of later stage companies (more flexibility to Gen Z's preferences) and high-growth startups (more of a "founder mode" approach) will grow and grow.

• Future work environments may be more fluid and adaptable. Both modes provide a stark contrast from traditional, hierarchical management structures.

• Most importantly, any tension between these approaches will drive innovation in work practices, potentially leading to new hybrid models that combine elements of both perspectives – and create things we have yet to see.

Astute founders are always looking for ways to reignite the energy and commitment typical in the early stages of their companies, which is a positive approach. On the other hand, executives and managers often try to emulate this by using "founder mode" language like "LFG" ("let’s f***ing go!") to drive culture. However, this strategy falls short and can lead to friction between hard work and maintaining a healthy work-life balance, which is problematic. Though these trends may appear contradictory, they both reflect the shift away from traditional work cultures. The future of work likely lies in balancing these extremes. I believe we can achieve intense engagement and innovation during the 9-to-6 workday, while ensuring time outside of work for personal well-being and life beyond just work.

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