With close to 4 million Baby Boomers retiring each year, the face of business leadership is changing. As more and more Millennials transition into management roles, they’ll bring with them fresh perspectives on leadership, shaped by their unique experiences, influences, and opinions.

Although not every Millennial manager will be the same, common characteristics will permeate this generation of leaders. They did, after all, grow up in an era of rapid change and globalization of information — much different from their predecessors.

Many aspects of their upbringing — like learning to adapt to digital and scientific advancements, their uncertainties toward political and economic stability, and their concerns about societal and environmental changes — will undoubtedly influence their leadership and the business world at large.

A Profile of Millennial Managers

So what can we expect from Millennial managers? In short: a shift away from the old-school style of doing business. Millennials will redefine everything about the corporate world, from the hierarchy of power to the way innovation is rewarded. Here are the key components of Millennial leadership and how they will translate in the business world:

1. An openness to change, experimentation, and risk-taking.

Millennials grew up in the world of ever-changing technology, so they’re used to regularly incorporating new devices, programs, and concepts into their lives. They will certainly expect the same of their workforce. As leaders, Millennials will push their teams to be comfortable with frequent experimentation and risk-taking. They will also be more accepting of failure — an inevitable aspect of innovation — so employees can more easily admit mistakes, learn from them, and move on.

This openness to change will generate a lifecycle of constant experimentation, iteration, and prioritization within companies. Experiments may start off on a smaller scale, where success can mean great returns and where failures will be less costly. But because employees will be groomed to brainstorm new ideas and venture into uncharted waters, growth is inevitable.

2. Increased transparency and collaboration.

For as long as Millennials have been aware, both the social and business worlds have been based on shared information, transparency, and collaboration. That’s why this group doesn’t adhere to the standard hierarchy of power that traditionally dominated business. Instead, they believe that working collaboratively across geographies, departments, job levels, and generations is the key to success.

As such, we will see more crowdsourcing happening inside the workplace to extract employees’ collective intelligence in order to guide strategy, complete tasks, and forecast. Gaming company Twitch, for example, is currently crowdsourcing employee predictions on product development.

Internal crowdsourcing will break down silos of power and turn decision-making into an inclusive, collaborative effort. Leaders will no longer be a few designated individuals, assigned by promotion. Instead, everyone will share a vested interest in moving the company forward.

Crowdsourcing will also happen outside an organization in a number of ways. Its customers, for example, may respond to a call to action to solve a company problem. Its suppliers may forecast supply-and-demand pressures. And leading academics may help forecast industry trends. Access to real-time crowd data will enable people to make better decisions at a quicker pace and receive immediate feedback on results.

3. A relatable sense of purpose.

Millennials are motivated by meaningful experiences, which is why they want to work for more than profits and promotions. This generation is most attracted to companies that have clear senses of purpose in terms of people and society. Millennial managers will rally people to do their best work by being authentic and mindful about the big picture — giving their employees a clear sense of why and how their work matters.

In the future, we’ll see more Millennial leaders being candid about their own purpose, both in the business world and beyond. They’ll share their sentiments through blogs and open letters to their employees and customers, as well as by getting involved in social-driven events and causes. They’ll also encourage their employees to make their own positive contributions to society.

4. Recognition of individual needs and desires.

Millennials were raised to believe they can do it all and have it all. Previous generations might have scoffed at this idea, but Millennial leaders see it as their key to success. They believe in catering to the individual and helping workers meld their personal and work lives into one coherent existence because they know that, in the end, they will be rewarded with an engaged, dedicated, and highly productive workforce.

As more Millennials step into leadership positions, we’ll see more flexibility in terms of where, when, and how people work. Benefits and rewards will be customized for the individual rather than a standard, one-size-fits-all approach. And work spaces will be designed to offer more real-life conveniences, such as nursing rooms, pet-friendly accommodations, healthier foods, ergonomic spaces, fitness workshops, and more.

The mass exodus of Boomers into retirement will mean more than fresh faces in managerial roles. It will mean Millennials truly have the opportunity to impact how we do business. With a focus on promoting experimentation and risk-taking, recognizing individuality, and inspiring change, Millennial leaders are poised to make organizations smarter, more conscientious, and more agile than ever before.

Want to learn more about the future of work and how Millennial leaders will act as catalysts for change? Download “A Look at the Future of Work” whitepaper.