The Upwardly Mobile report said this "changing of the guard" will bring a shift in organisational culture and business mobility.
The report, commissioned by telecommunications firm EE, explores how future CEOs will transform British business. It found the most notable change will be increasing flexible working practices.
The study of more than 1,000 UK employees, who work in businesses that employ more than 1,000 staff found future leaders are frustrated by the "absence of a mobility culture" in British businesses.
Lost decade of mobility
The report has urged HR directors to develop a mobile working policy that clearly sets out the organisation's commitment to remote working.
The report claims that British businesses have suffered a "lost decade" of under-investment in mobility.
It found 60% of British workers said presenteeism exists in their workplace, with half of respondents being discouraged from working away from their desks.
However, the report said the management style of Gen Y leaders is likely to encourage working styles where employees choose how and when, rather than where, they complete their work.
"The most important asset any business has is its people," said Gerry McQuade, chief marketing office for business at EE. "We are approaching a mobile watershed where future leaders will demand that organisations make use of mobility in a way that is not evident today.
"We urge businesses not to wait until the first Gen Y CEOs arrive before revising their mobility strategy."