Succession planning in healthcare: Developing Gen Z

Why succession planning in healthcare can’t wait

Healthcare systems face an urgent reality: the leaders of today are churning, and the leaders of tomorrow may leave before they ever get the chance to lead. Burnout, staffing shortages, and shifting workplace values are reshaping the workforce in unexpected ways. Without a deliberate plan to identify and develop new leaders, hospitals risk losing both talent and continuity in care.

This means that succession planning is no longer optional — it’s the necessary foundation for building resilient healthcare teams and preparing future-ready leaders.

What is succession planning in healthcare?

At its core, succession planning is about preparing individuals to step into critical leadership roles when the time comes. In healthcare, the stakes are higher than in many other industries: leadership gaps don’t just disrupt operations, they directly affect patient care.

Yet many healthcare systems still lack intentional processes to prepare those in clinical roles for critical leadership positions. The result? Worsening burnout and attrition. Today, 65% of nurses report high stress and burnout, and only 60% say they would choose nursing again. These numbers underscore the urgency of creating pipelines that strengthen leadership capacity at every level.

Why succession planning in healthcare matters more now

The healthcare workforce is stretched thin. Short staffing, rising workloads, and inadequate support are cited as top stressors for nurses and clinicians. Student nurses, while optimistic about their futures, also express anxiety about managing the demands ahead: 58% are concerned about the emotional stress they anticipate in their chosen profession.

Succession planning addresses more than backfilling roles. It’s about building resilience across the entire organization. When leaders are supported and developed, staff retention stabilizes, and patient care improves. And the best results are achieved when human resources and clinical leadership work together. A strong CNO-CHRO partnership can align workforce priorities with leadership development strategies, ensuring retention and succession planning work hand in hand.

There’s responsibility on employers to address contributing factors [to burnout], provide support and improve the work environment.
Michael J. Dowling, President & CEO Northwell Health

Gen Z in healthcare: expectations and challenges

Gen Z is entering the workforce in large numbers, bringing fresh perspectives and different expectations for career growth and leadership. They value:

Purpose-driven work that makes a difference
Flexible work environments that balance life and career
Professional development pathways that lead somewhere
Mental health support that’s real, not performative

For succession planning to succeed, healthcare organizations must anticipate these needs and create environments where Gen Z can thrive. Supporting and fostering growth in this subset of the workforce is essential to retain them in the short term and prepare them to lead in the future.

Supporting mental health in healthcare to build resilient leaders

Future leaders can’t step up if they’re already burned out. Yet 24% of healthcare workers say their organizations lack mental health support. This gap must be addressed as part of succession planning if organizations want to cultivate resilient leaders who can sustain themselves and their teams.

Strategies to support mental and emotional well-being include:

Embed wellness into everyday workflows:

Normalize short breaks and workload check-ins so that resilience becomes a daily habit, not just an afterthought.

Expand access to mental health resources and peer support:

Offer confidential counseling and employee resource groups where staff can share experiences and strategies for coping.

Train leaders in emotional intelligence:

Equip emerging leaders with the ability to recognize signs of stress in themselves and others, respond with empathy, and foster psychological safety.

Integrate tech to enhance human connection (not replace it):

Use automation and digital tools to reduce administrative burdens, giving clinicians more time for patient care and peer collaboration.

Addressing burnout through proactive measures like these is essential for preparing resilient leaders.

Retention as the foundation of a strong leadership pipeline

To be clear, succession planning and retention aren’t separate strategies — they’re one and the same. Every effort made to keep today’s clinicians engaged doubles as an investment in tomorrow’s leaders. Without a strong retention strategy, succession planning simply can’t succeed.

But the strategies you choose must speak to Gen Z’s expectations:

Flexible work models:

Options like self-scheduling, hybrid roles, and innovative staffing models demonstrate respect for work-life balance and reduce the risk of burnout.

Career development pathways:

Gen Z wants to see where their careers can lead. Clear advancement ladders and development opportunities show visible progression.

Recognition of meaningful contributions:

DEI initiatives, peer-to-peer recognition, and rewards systems help young professionals feel seen and valued for their unique perspectives.

A culture of authenticity and purpose-driven work:

Transparency from leadership, alignment with mission, and opportunities to contribute to change help Gen Z connect their daily work to a bigger purpose.

Retention strategies like these don’t just keep people in their roles; they lay the groundwork for the next generation of leaders.

Bridging generational gaps in healthcare teams

While the center of gravity is shifting younger, healthcare is one of the few industries where four generations work side by side. Across provider organizations, millennials (37%) and Gen Z (19%) account for roughly half of the healthcare workforce, while Gen X (30%) and baby boomers (14%) continue to work alongside them.

In this multigenerational environment, Gen Z brings new ideas, Millennials bring tech savvy, Gen X contributes stability, and Boomers offer deep institutional knowledge. This mix is a strength, but it can also create friction: differences in communication styles, work expectations, and comfort with technology can lead to misunderstandings or even resentment.

Illustration of four people of different ages working

Age diversity Multimedia

Why age diversity is an asset in the workplace

Multigenerational mentoring:

Pair younger professionals with seasoned leaders to exchange knowledge, build trust, and accelerate readiness for leadership roles.

Reverse mentoring:

Create opportunities for emerging leaders to share digital expertise and fresh perspectives with senior leaders, strengthening cross-generational respect.

Shared leadership training:

Design development programs that bring the generations together to learn side by side, reinforcing the value of collaboration.

Bridging the gaps between groups empowers healthcare organizations to unlock the best of every generation. The result is inclusive leadership pathways that ensure succession planning benefits the entire workforce.

Succession planning for hospital leadership: A call to action

Taken together, these strategies equip healthcare systems to secure their future:

Invest in leadership development programs tailored for young professionals
Enhance access to mental health resources and resilience-building tools
Create structured pathways from clinical to leadership roles
Foster mentorship and collaboration across generations

Succession planning is the key to resilience, retention, and future-ready healthcare leadership. Now is the time to evolve your approach and build leadership pipelines that last.

Cielo partners with healthcare organizations to strengthen retention and prepare the next generation of leaders. Together, we will ensure tomorrow’s leaders have the chance to lead before they leave.

Quick answers / FAQ recap

What is succession planning in healthcare?

Succession planning in healthcare is the process of preparing individuals in clinical roles to step into critical leadership roles, ensuring continuity of patient care and organizational resilience and stability.

How do you retain Gen Z healthcare workers?

Strategies to retain Gen Z healthcare workers include offering flexibility, professional development pathways, recognition systems, DEIB, and building an authentic workplace culture that connects to purpose.

How can healthcare organizations support Gen Z mental health?

Support Gen Z mental health by embedding wellness practices into daily work, expanding mental health resources, reducing administrative burdens, and training leaders in resilience and emotional intelligence.

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