The rise of young leaders and the risks of choosing the wrong one

This shift reflects not only a change in leadership philosophy but also the urgent demand of the digital era. Yet alongside great opportunities come significant risks: a wrong leadership choice can have serious consequences, potentially threatening an organisation’s long-term sustainability. 

The rising trend of young leadership

Why companies prioritise young leaders

Many organisations are accelerating promotions as part of long-term succession planning and workforce renewal. The rapid pace of change in today’s business environment has rendered traditional management models less effective. In contrast, younger leaders tend to be more agile, better equipped to embrace emerging technologies such as AI, blockchain and big data analytics.

They also connect more naturally with the modern workforce, largely composed of Millennials and Gen Z. When employees see someone who represents their generation in leadership, they feel more understood, inspired and motivated to stay committed to the organisation.

Key traits of talented young leaders

Being “young” is not merely a matter of age. Outstanding young leaders often display an innovative mindset, a willingness to take calculated risks and an ability to make data-driven decisions rather than relying on intuition.

Moreover, they tend to prioritise social responsibility and sustainability, which helps businesses stay relevant while strengthening their brand image in the eyes of partners, customers and the community.

Real-world evidence

Globally, many corporations have seen a marked increase in the number of leaders under 40 within their management structures. In Vietnam, several technology and e-commerce companies have boldly entrusted young executives with strategic roles - leading to strong revenue growth and market expansion.

Reports from international HR organisations also reveal that the proportion of young leaders at both mid- and senior levels has been steadily rising each year, confirming that this is not a passing trend, but a lasting global shift in leadership development.

The benefits of appointing young leaders

Accelerating digital transformation

With their strong grasp of technology, young leaders can effectively drive digitalisation across business functions, from HR systems to online sales platforms. This not only streamlines operations but also lays the foundation for sustainable long-term growth.

The risks of choosing the wrong young leader

Choosing the right young leader should be based on demonstrated results and clear indicators of leadership potential — not simply age or rapid progression. Despite the clear advantages, selecting the wrong young leader can lead to significant challenges:

• Lack of management experience, resulting in poor or impulsive strategic decisions.
• Difficulty balancing innovation with stability, which may disrupt organisational culture.
• Weak people management skills lead to internal conflicts and low employee morale.
• Reputational and financial risks, as leadership missteps can quickly spiral into public crises in the age of social media.

How to select the right young leader

Establish a comprehensive evaluation process

Beyond technical expertise, companies should assess candidates across multiple dimensions — including leadership potential, adaptability, emotional intelligence (EQ), intellectual intelligence (IQ) and especially adversity quotient (AQ), which measures resilience under pressure.

Provide mentoring from experienced leaders

Structured mentorship programmes pairing high-potential leaders with senior executives can help transfer invaluable experience, shorten learning curves and ensure leadership continuity across generations.

Build multi-generational leadership teams

A balanced leadership mix, where young leaders drive innovation and experienced leaders provide strategic direction, allows the organisation to harness the strengths of both agility and stability.

Partner with reputable executive search firms

For key positions, organisations should collaborate with professional executive search firms. With proven methodologies and extensive candidate networks, these partners can help companies identify the right young leaders — those who are not only talented but also culturally aligned and ready to lead.

Conclusion

The rise of young leadership marks a new era in corporate governance, where innovation and agility define success. However, to fully leverage this opportunity, organisations must adopt a well-structured talent strategy for identifying, developing and empowering the right young leaders.

By combining youthful energy with seasoned experience and strategic vision, and partnering with trusted search firms, businesses can build leadership teams that are not only capable but also aligned with their long-term goals.