2025 Workplace Trends Report

Culture isn’t what’s written—it’s what’s lived. If values and behaviors aren’t reflected in decisions, they lose credibility. For culture to thrive, it must be embedded into daily operations, structures, and systems.  

The levers that shape culture are broad and interconnected. Culture lives in the daily attitudes, actions, and behaviors within an organization—in how decisions are made, how people communicate, and how employees are recognized.

These day-to-day experiences must be reinforced by the organization’s structures, systems, and work environments to create clarity, alignment, and cohesion.  

“When these elements are intentionally aligned with the organization’s strategy and future direction, they form a powerful foundation for a strong, cohesive culture,” says Anna Kelly, Insights Analyst at Quantum Workplace.  

Even admired cultures can falter if not reinforced. Companies like Google and Starbucks have faced cultural breakdowns as operational pressures overshadowed foundational values.

Google’s early reputation for innovation and empowerment gave way to bureaucracy and employee disillusionment. Starbucks, once rooted in community, saw its culture weaken as speed and scale took precedence over experience.  

In contrast, organizations like Nvidia, Palantir, and Costco actively protect and reinforce culture through leadership behaviors and decision-making.

Nvidia’s CEO ensures innovation stays central as the company scales. Palantir emphasizes mission-driven work, while Costco consistently invests in employee well-being, even during downturns.  

“Your core values should be more than just words describing your culture,” says Mikala Friedrich, Chief Human Resources Officer at Scooter’s Coffee.

“They must serve as a decision filter, and living by them can’t be optional. They're the price of admission.” 

Culture only thrives when everyone in the organization plays their part. When culture is actively modeled, reinforced, and lived at every level, it strengthens decision-making, engagement, and retention.  

Without shared ownership, culture becomes corporate jargon—empty words with no influence on daily work. To turn culture into a competitive advantage, it must be actively modeled, reinforced, and evolved at every level.  

Executives Set the Tone  

Leaders play a pivotal role in shaping and sustaining culture. But articulating values isn’t enough—they must consistently model them through decisions, priorities, and behaviors. 

When employees strongly agree that leadership is committed to cultural values, they are 9.8x more likely to rate their culture as “excellent.” This alignment creates clarity and connection between work and purpose.  

Managers: The Frontline of Culture  

Managers translate culture into daily experience. Yet only 19% of employees strongly agree their manager explains how company values relate to their work. 

To bridge this gap, managers must connect the "big-C" culture—formal values and company direction—with the "small-c" culture of team norms and interactions. That means setting expectations, giving feedback, and recognizing behaviors that reflect company values.  

Employees: The Heart of Authentic Culture  

Employees determine whether culture is real or performative. Yet only 21% of U.S. employees strongly agree they feel connected to their organization’s culture. 

Organizations must empower employees with clear expectations, tools, and psychological safety to live out values, speak up about misalignment, and shape culture through their actions.  

HR: Enabling and Narrating Culture  

HR's role is to enable and steward culture—not just define it. That includes equipping managers with tools, coaching, and data, and using employee feedback to monitor alignment between stated values and lived experiences. 

HR is also the organization’s storyteller—bringing culture to life through shared narratives, amplifying voices, and fostering meaningful dialogue. This ongoing work ensures culture stays dynamic and relevant.  

When culture is owned at every level, it becomes the operating system that powers performance and long-term success. 

Culture is strategic, living and breathing asset that must adapt as a company grows or shifts direction.  

Culture isn’t something you set once and forget. It must evolve as your business evolves. What worked in a startup won’t sustain a global enterprise, and what resonated five years ago may no longer reflect today’s realities. Organizations that fail to adapt risk not just disengagement, but irrelevance.  

Strategic HR leaders know culture isn’t self-sustaining. If they aren’t guiding its evolution, something else will—new leadership, market pressures, or the natural drift that comes with scaling.

Like any business function, culture needs clear goals, measurable outcomes, and accountability. That means listening to employees, tracking trends, and ensuring values show up as behaviors.  

“As we’ve evolved as a business, we’ve had to adjust our culture,” says Friedrich.

“Our core values have gone from defining our culture to calling people to action. It’s how you need to show up and stand behind your words and actions. Our values now bring more clarity to how we operate, not just who we aspire to be.”  

Cultural evolution doesn’t mean abandoning what made a company great. It ensures cultural principles remain relevant and actionable.

HR plays a critical role in making culture a decision-making filter, not just an aspiration. And one of HR’s most powerful tools in shaping culture is employee feedback. Without it, blind spots grow, and trust erodes. At Scooter’s Coffee, listening drives action.  

“The biggest driver for change in our organization has been our annual engagement survey, which we take seriously,” says Friedrich.

“We really listen to our employees, and after the survey, we conduct follow-up chat sessions and focus groups. We publicly commit to our employees exactly what we're going to do based on their feedback. And we bring them in to help solve for issues and opportunities that we see.”  

Organizations that ignore feedback risk decisions that contradict their culture. Those that act on it build cultures that thrive through change—and drive growth. 

Culture shows up in daily moments: how teams innovate, how leaders make decisions, and how employees contribute. HR must lead by embedding culture across the employee experience, turning it into a lasting advantage as the organization grows.  

Change isn’t a disruption to be managed. It’s a force to be harnessed. Yet, transformation efforts often stall—not because of flawed strategies, but because employees feel uncertain, unheard, and unprepared.

People don’t resist change; they resist ambiguity. Organizations that engage managers as change champions, connect change to culture, and facilitate ongoing conversations can redirect disruption into belief and positive momentum. 

Managers are the bridge between leadership vision and employee execution, yet too often, they’re treated as middlemen rather than leaders of change.   

When change is on the horizon, managers are often handed a script and expected to deliver messages they had no part in shaping—leaving them just as uncertain as their teams. The result? Misalignment, confusion, and eroded confidence.     

74% of HR leaders say managers aren’t equipped to lead change, and mid-level leaders report some of the lowest confidence in company direction. 

Employees feel this disconnect too. Many question whether senior leadership truly understands how change affects day-to-day work. While leaders may not need to know every operational detail, manager input is essential to effective execution.   

“Executive leaders often approach strategy and change without fully defining the intended impact,” says Dr. Robert Rustman, Vice President Human Resources at LRS.

“That’s where mid-level leaders step in. Their role is to take those high-level ideas, break them down, and translate them into actionable plans that drive real results.”   

Involving every manager isn’t always realistic, but large organizations can scale alignment by forming task forces, pilot groups, or leveraging trusted change champions. These smaller cohorts can bring valuable insight, pressure-test strategies, and build early buy-in before a broader rollout. 

Employees rely on their managers to connect the dots—to translate the “why” and “how” of change into real-world action. That takes more than a script. It takes belief, clarity, and confidence.   

"Trust is strongest when messaging comes from someone employees interact with regularly, not just the CEO or senior leadership," says Nicole Davies, Chief People Officer at Valet Living. "Employees need a trusted space to process change."  

When managers are engaged as co-creators—not just conduits—change goes more smoothly. When they understand the “what” and “why” and can effectively translate, plan for, and partner with their teams on the “how”, belief runs high, and a successful outcome is more likely. 

“Successful change efforts require both ‘painters’ and ‘pointers,’” says Todd Pernicek, Senior Insights Analyst at Quantum Workplace.

“Painters lay out the vision—the ‘why’ and the big picture. Pointers guide teams through execution, helping them focus on what matters this week, month, and quarter. Without both, change efforts stall.”  

When change is rooted in culture, it becomes easier to navigate. Employees don’t need to agree with every decision, but they need to see how it aligns with the company’s values and long-term goals.  

Change often feels disconnected from the bigger picture. Decisions made in boardrooms without a clear cultural link leave employees questioning whether leaders are staying true to what the company stands for.

When change contradicts stated values, trust erodes, resistance builds, and top talent walks out the door.   

The stakes are high: 40% of employees have considered leaving their job due to organizational change, and 62% have seen coworkers quit as a direct result. When change feels misaligned, engagement plummets.  

"Too often, organizational change contradicts or undermines core elements of culture," says Rachel Hudson, Senior Insights Analyst at Quantum Workplace. "Employees see those gaps, and they call them out. Change doesn’t just need to align with culture—it should help strengthen it.”   

Leaders who get this right don’t just announce change, but anchor it in what employees already believe. Nicole Davies shared how Valet Living navigated a major leadership restructure by framing it through company values.  

"When we made the decision to split our CEO and President roles, we knew employees might see it as a signal of instability,” says Davies.

“So, we framed it under our ‘Better Tomorrow’ value. Instead of just explaining what was changing, we focused on why—positioning it as a step forward. We made it clear that this shift would allow each leader to focus on their strengths, making our leadership team stronger and better aligned with our growth strategy.

That framing helped employees see the decision not as a disruption, but as a necessary step in our evolution.”   

Change is about actions that reinforce culture. When transformation aligns with values, organizations can implement change and build trust, clarity, and a stronger workforce in the process.  

The most effective transformations start with conversation—not just direction. When employees are invited into the dialogue, strategy becomes something they believe in, not just something they’re told. 

But conversation can’t stop once the change begins. Many leaders announce a shift and then go quiet. 40% of organizations communicate only during or after change, even though less than 5% of employees prefer that approach. 

But those who receive communication before, during, and after are significantly more engaged and confident in company direction.  

"The key mindset shift for organizations struggling with change is prioritizing engagement,” says Rustman.

“Are leaders truly listening to their people and understanding their concerns? That’s the crucial first step.

Too many companies move too fast, overlooking the long-term impact of their decisions. But slowing down to consider the people involved doesn’t just improve the change process—it leads to better results."  

Many leaders hesitate to listen during change, fearing disruption. But that’s exactly when feedback is most valuable—because employees are processing the impact, adapting their behavior, and spotting real-world barriers. 

"A lot of leaders hesitate to survey during or after change,” says Hudson. “But this is the best time to ask. You get real-time insight into how change is landing, and employees feel like valued participants—not passive observers."  

Listening isn’t just about surveys. It means engaging before decisions are final, creating space for questions during change, and continuing conversations post-rollout. Lucy Adams, author of The HR Change Toolkit recommends the EACH framework: treat Employees like Adults, Consumers, and Humans—share honest context, tailor communication, and acknowledge emotion. 

Change is hard because people crave certainty—and change, by definition, challenges it. But effective communication helps people tolerate that uncertainty. By sharing updates along the way—even when the path is still unfolding—leaders can reinforce trust, demonstrate progress, and keep employees engaged in the process. Importantly, leaders don’t need to have the full roadmap. Most transformations begin with a destination, a few early steps, and some milestones. Ongoing, transparent communication helps employees navigate uncertainty and stay engaged as the plan evolves. 

“Change is often the start of something new, but there’s also a sense of loss,” says Davies.

“We need to create space for people to process the shift—letting go of what was and embracing what’s next. Change can be both exciting and scary, and we want to support our team through that in-between space.”  

Go one step further by considering who you engage. Champions model the right mindset. Challengers offer useful resistance that, if addressed early, can prevent bigger issues. 

Finishing a transformation on time is one thing. Proving it moved the business forward is another. 

Some transformations hit every milestone and still miss the mark. Impact is the real measure of success.

Change should be judged not just by how efficiently it’s delivered, but by the value it creates. Did it achieve intended business outcomes? Did it strengthen culture and engagement? Do employees feel more confident in the company’s future—or has trust eroded?  

Many companies focus on immediate reactions, measuring employee sentiment around communication and rollout. While valuable, these metrics often reflect short-term friction rather than long-term success. A more telling measure? Employee confidence in the company’s direction.   

"When organizations move fast, employees may feel unsettled in the moment," says Anne Maltese, VP of People Insights at Quantum Workplace. "But if they still believe in where the company is headed, that’s a powerful signal that change is on the right track."  

Success starts with execution, but it’s defined by impact. The right metrics depend on the initiative.

For example, a restructuring isn’t just about org charts—it’s about team stability and productivity. A return-to-office policy isn’t just about attendance—it’s about whether collaboration and engagement improve. A tech rollout isn’t just about adoption—it’s about efficiency gains.

The job market is unpredictable, but your retention strategy can’t be. Companies that win aren’t waiting for exit interviews—they detect risk before top talent walks out the door. The best organizations use predictive insights, targeted interventions, and rapid action plans to support high-impact employee groups, allow for healthy turnover, and build a resilient, engaged workforce. 

Many leaders still treat retention as a reactionary scramble—rushing to replace key employees after they leave. But turnover rarely happens overnight. The warning signs are almost always there.  

Organizations experiencing chronic voluntary turnover often assume churn is inevitable. But this mindset signals a deeper issue: a lack of visibility into why employees are leaving and what could have been done to retain them. 

In fact, 62% of employees who leave say they discussed their decision with a manager or coworker before resigning. The signs are there—but too often, they go unnoticed or unaddressed. Leaders don’t have the infrastructure to tune in.  

Unwanted turnover can feel overwhelming. Faced with rising attrition, many leaders react with hasty, one-size-fits-all solutions or become paralyzed by uncertainty. Neither approach works.  

“When we act on turnover without data, measurement, and strategy, it creates a vicious cycle that isn’t good for anyone,” says Meghan Freeman, Product Manager at Quantum Workplace.

“Engagement and retention strategies need to be data-backed and scalable. If you're only measuring engagement once a year, you're missing critical moments when employees are deciding to stay or go.”  

The key isn’t just analyzing why employees leave—it’s predicting where risk is building and acting early. At-risk groups typically fall into two categories:  

Silent stewers show early signs across a team or department—reduced collaboration, lower participation, and disengagement in daily work. 

Active signalers provide feedback through surveys or check-ins, but if themes go unaddressed, frustration builds across the group. 

Often, these insights live in silos. When engagement data, performance trends, and sentiment analysis aren’t connected, organizations miss the patterns across groups that could help them intervene before it’s too late. 

“If we’re waiting for an employee to resign before we act, we’re already too late,” says Todd Pernicek, Senior Insights Analyst at Quantum Workplace.

“The organizations that are winning are the ones who listen to feedback, see the signals, trust the data, and take meaningful action before it becomes a crisis.”  

Broad retention strategies often fail because they spread resources too thin. Instead, organizations must focus on high-impact employees—those in critical roles, top performers, and individuals with deep institutional knowledge.  

High performers can be up to 400% more productive than average employees—and in complex roles, that gap can reach 800%. Losing just one top contributor can derail entire teams and cost your organization. 

At Certus, Director of Talent, Susan Battles, takes a proactive approach to retaining critical talent with talent reviews. Her team reviews performance, potential, and impact data to make strategic retention investments—before top performers become a flight risk. 

By conducting talent reviews before compensation cycles, Certus ensures its best employees are seen, supported, and given a clear path forward.   

“We don’t want to be scrambling when a key contributor resigns,” says Battles. “We want to stay ahead of turnover risks and create the conditions that make high-impact talent segments want to stay. 

Not every exit is a bad one—but if someone in our ‘Stretch & Grow’ category (high impact, high growth talent) is thinking about leaving, we want to step in before they walk out the door."  

It’s important to remember that top performers don’t just want to stay—they want to grow. But career stagnation, lack of recognition, and unclear advancement paths are common reasons they leave. 70% of departing employees say they didn’t talk about career growth before leaving, and 53% didn’t feel recognized. 

“Retention is about more than keeping top talent—it’s about maximizing their impact,” says Emily Rodriguez, Insights Analyst at Quantum Workplace. “When high performers feel valued, they don’t just contribute more—they elevate the entire organization.”   

Speaking of feeling valued—ignoring feedback from top talent is one of the biggest mistakes organizations make.

“Executives often assume critical feedback comes from disengaged employees,” says Aaron Brown, Senior Insights Analyst at Quantum Workplace. “But it’s often coming from top talent—the very people they should be listening to.” 

If top performers raise concerns about leadership, career growth, or company direction and see no action, they’ll take their talent elsewhere. They know they have options. 

“The bottom line: You need to have the right data to be educated on where to invest,” says Battles. “Talent reviews, engagement data, and performance insights all need to come together so you can determine where to focus retention efforts—and where to let go.”

Effective retention strategies require understanding what employees need to thrive. Every organization is sitting on a wealth of untapped insight, yet many rely on assumptions instead of listening directly to employees.

"Too often, HR leaders say they’ve done everything they can," says Freeman. "But after gathering feedback, they realize they were spending effort on things employees didn’t actually want. Listening well means spending retention dollars in the right place—not guessing."  

When organizations create a consistent, structured listening strategy, they can:  

• Spot early warning signs before employees leave  

• Uncover gaps in engagement and growth opportunities  

• Pinpoint top talent at risk and prioritize retention efforts  

But many treat listening as a one-time event. Some delay or cancel engagement surveys—especially in times of change. Others collect feedback but deprioritize action, letting survey results sit in limbo while “more urgent” business needs take precedence. This is a missed opportunity.  

"Employee engagement is the foundation—it’s at the core of both retention and performance," says Pernicek.

“With today’s data and technology, organizations can measure and act on these insights more effectively than ever. Yet, many still struggle to integrate engagement data with retention and business outcomes.

During rapid transformation and uncertainty, engagement data becomes even more critical, helping HR leaders get ahead of issues before they escalate."  

Quantum Workplace research shows 35% of employees say their organization doesn’t effectively act on feedback. Yet employees who do see action are 12X more likely to be engaged.  
 
"Data alone doesn’t solve problems,” says Pernicek. “Acting on feedback does. Employees will only keep sharing their perspectives if they see it actually leads to change." 

Many organizations struggle to act on turnover, not because they don’t care, but because they don’t know where to start. The challenge is twofold: HR holds the data, but managers need it to act—and organizations struggle to operationalize retention efforts.  

Without clear ownership, turnover persists. The most successful companies understand that retention isn’t just HR’s problem—it’s a shared responsibility across the business.   

"Managers own retention," says Pernicek. "If we don’t equip them with the right tools and data, how can we expect them to act? You have to move fast, get the right insights in front of the right people, and make retention everyone’s responsibility."  

For managers to play that role effectively, they need real-time insights into their teams’ engagement, performance, and risk factors. Too often, HR hoards this data, leaving managers to guess why employees leave. But when managers have access to timely data and training, they can make small, meaningful interventions that keep top talent engaged.   

Prioritizing Retention Initiatives

Once turnover insights emerge, the next step is prioritization. A simple impact/effort scale helps leaders identify where to start:  

• What will have the most impact?  

• What level of effort does each initiative require?  

• What’s most urgent in high-risk areas?  

The sweet spot: high-impact, low-effort wins that create momentum. But don’t ignore high-effort initiatives—big bets like career development or compensation redesign take time but deliver lasting impact.  

Creating an Actionable Retention Roadmap  

Clear priorities pave the way for execution. Retention requires continuous attention. Fortunately, AI-powered tools are transforming how organizations act on data. 

When engagement data flows into AI-driven platforms, those tools can spot risk patterns and recommend tailored strategies by team or department. Instead of manually combing through results, HR can deliver the right interventions to the right teams at the right time.

For example, if AI flags career stagnation in a department, it might recommend upskilling or career pathing strategies tailored to that group. 

These recommendations help HR and managers move faster and smarter—focused on what works.  

The future of work belongs to companies that build talent as aggressively as they build products and services.

Employees don’t want one-size-fits-all training—they want personalized growth that moves their careers forward and delivers real business impact. But many development programs fail because they’re generic and misaligned with business priorities.

Winning organizations embed development into daily work, ensuring employees grow in ways that fuel innovation and growth, increase retention, and boost long-term success. 

Companies that invest in employee growth and development will dominate business—retaining top performers, driving innovation, and building a workforce ready for anything.  

Organizations with structured, business-aligned development programs are 98% more likely to retain high performers and 57% more prepared to anticipate and respond to change.

Yet many still struggle to make development meaningful. Employees want more than training. They want clear, tangible pathways to grow. Without that, even top performers will look elsewhere.  

88% of companies cite retention as a top concern, and their #1 strategy to keep top talent engaged is learning and development. The takeaway is clear: invest in employee growth, and employees will invest in you.  

Despite the buzz around skills-based strategies, most development programs fall short. While 78% of executives call capability-building essential for long-term success, only 30% believe their programs deliver real results.

That’s not just an L&D challenge—it’s a business risk. Without visible, personalized growth opportunities, employees disengage. And when they can’t envision what’s next, they leave.  

“We need to help leadership see that development isn’t just for development’s sake—it’s about preparing for the future,” says Teresa Preister, Senior Insights Analyst at Quantum Workplace.

“We often don’t know what skills we need until the moment they’re required. That’s why continuous learning and agile development are critical to spark real innovation.”  

Winning organizations operationalize growth and development. They build structured yet flexible career paths that help employees understand their next steps while staying aligned with evolving business needs. And when companies demonstrate clear ROI, leadership buy-in follows.  

“One of the biggest challenges with programs like this is proving ROI,” says Julie Melidis, Director of Learning & Development at Benesch.

“But when senior leaders see outcomes from employees’ ideas, it shifts their perspective. Learning becomes tangible, and that momentum helps push initiatives forward. Plus, it directly impacts retention and engagement by making employees feel valued and included.”   

Growth isn’t just a retention tool—it’s a performance multiplier. Companies that get it right don’t just hold onto great talent. They build a workforce that’s ready for anything. 

Most learning happens on the job. Yet too many organizations still treat development as a separate event, pulling employees away from the very work that drives growth.  

McKinsey estimates that 40-60% of an employee’s human capital value comes from skills acquired through experience.

The 70/20/10 model reinforces this: 70% of learning occurs through hands-on experience, 20% through coaching and mentorship, and just 10% through formal training. Still, many organizations rely on outdated models that isolate learning from daily work.  

The biggest blocker? Time. Employees are stretched thin, and when development feels like extra work, it’s the first thing to drop. When asked to name the top barriers to career development, HR professionals overwhelmingly point to lack of time and resources.   

• 50% say managers lack proper support  

• 45% say employees lack support  

• 33% say talent teams themselves lack support  

Employees want to grow, but organizations aren’t making it easy.  

“The most effective learning isn’t something employees have to find—it’s something that finds them,” says Meghan Freeman, Product Manager at Quantum Workplace.

"Growth should be part of the workday, reinforced in real time, and connected to real business challenges. If development feels like just another task, it won’t stick.

But when learning happens naturally and immediately adds value, it drives real behavior change.”  

Making this shift requires both vision and follow-through. Leading organizations will treat growth and development as an engine for performance. They’ll embed learning into workflows, use AI to surface timely growth opportunities, and foster environments where development is continuous, personalized, and built into the rhythm of work. 

Employees want control over their careers, but too often, they’re left navigating it alone. Leaders expect employees to own their development, yet most employees feel unsupported, unclear on their next steps, and unsure how to grow.  

More than half of employees feel completely on their own when it comes to career development, and 46% say their manager doesn’t know how to help them grow. And only 15% say their manager has helped them build a career plan in the past six months.   

The cost? Top talent walks out the door. When employees don’t see clear pathways for growth, they look elsewhere. 75% of exited employees say no one had a growth discussion with them in the 3 months prior to their departure.  

Organizations that get this right actively support employees in owning their careers. HR plays a key role by building clear career pathways, promoting opportunity transparency, and giving managers tools to facilitate meaningful conversations. And senior leaders must set the tone by making growth a business priority and celebrating internal mobility as a sign of success. 

For too long, career growth has been seen as a climb up the corporate ladder. But the best organizations know growth isn’t just vertical—it’s about expanding skills, gaining new experiences, and making a greater impact.   

Internal mobility is on the rise, up 30 percent since 2021. And companies that embrace it see major retention benefits—employees stay 41 percent longer when strong internal hiring programs are in place.

Yet many organizations still treat lateral moves as career detours rather than valuable growth opportunities.   

The issue isn’t a lack of opportunity—it’s a lack of visibility and recognition. Lateral moves and cross-functional experiences often go uncelebrated, making employees hesitant to pursue them. But when organizations encourage internal movement, they unlock hidden talent and build a more agile workforce.  

“At the heart of all of this is a shift in mindset: We need to be recruiters for our own employees first,” says Sally Pabin, National SVP, Talent at American Heart Association.

“It’s about keeping the best talent engaged, supported, and growing—before they even think about looking elsewhere.”  

Transparency is key. When employees have visibility into career paths, core competencies, and skill-building opportunities, they feel empowered to grow. That’s exactly what Valet Living embraced.   

“Our competency-based approach has expanded employees’ view of opportunity beyond their immediate career ladder,” says Nicole Davies, Chief People Officer at Valet Living.

“In 2024 alone, 43% of our employees moved into new roles—whether through a lateral shift or a promotion.”   

But visibility isn’t enough. Organizations must create pathways for employees to stretch, gain cross-functional experience, and explore personalized opportunities through AI-powered tools. Strong mentorship programs can accelerate this shift, developing both mentees and future leaders in a lower-stakes environment. 

Managers are the bridge between strategy and execution, yet many organizations still struggle to equip them for success. As expectations shift toward more coaching, agility, and cross-functional leadership, managers are being stretched thinner—especially as organizations flatten structures and expand team sizes. Many aren’t equipped for these demands, risking execution gaps and disengagement.   

With leadership pipelines also under pressure from one of the largest generational shifts in the history of the workplace, success hinges on treating management as a capability, not just a title. Companies that develop adaptable leaders, reevaluate workloads, and leverage AI to support (not replace) managers will build the resilience needed to grow through change.  

Managers are the critical link between strategy and execution, yet their roles continue to expand without the necessary structural support.  

As organizations push for efficiency, managerial scope has ballooned. Managers today oversee three times as many employees as they did in 2017. 

At the same time, they’re expected to coach teams, navigate hybrid work, drive engagement, and deliver results—all while managing their own workloads. On average, managers now juggle 51% more responsibilities than they can effectively handle, leading to execution bottlenecks, delayed decisions, and diminished performance.  

"If you want more out of your managers, you need to create space for that to happen," says Teresa Preister, Senior Insights Analyst at Quantum Workplace. "They need capacity to effectively do the things we’re asking them to do."   

Yet too often, responsibilities keep piling up without reassessing their current workloads. 75% of HR leaders say managers are overwhelmed, and burnout rates are highest among directors (45%) and managers (41%).  

“It’s easy to blame managers, but leadership needs to flip the script,” says Todd Pernicek, Senior Insights Analyst at Quantum Workplace. “Yes, we need to support people leaders—but we also need to remove obstacles. Managers can’t lead if they’re stuck doing tasks they’ve outgrown. We must help them delegate and refocus.”  

When managers are stretched thin, coaching and development suffer, performance conversations get rushed, and strategic priorities lose traction. This puts the business at risk—watering down strategy, weakening team morale, and stalling the growth and execution needed to stay competitive. 

“This focus on supporting managers isn’t just a nice-to-have—it's a necessity,” says Julie Melidis, Director of Learning & Development at Benesch.

“We can’t solve challenges by simply adding more people; we need to equip managers to lead efficiently and effectively with the resources they have.

When we support them in coaching and development, we strengthen employee growth and increase manager capacity to lead and develop successors.”   

If organizations want managers to scale performance, they must first give them the structure, time, and tools to lead well. Overloaded managers don’t scale—and when they can’t scale, neither can the business.

For too long, organizations have treated management as a reward for high performance rather than a skill that requires investment. 

Top performers are often promoted into leadership roles without the training, coaching, or support they need to be successful. The result? Struggling managers, disengaged teams, and leadership pipelines that can’t scale with the business.  

The demands of management have evolved. It's no longer just about oversight—today’s managers must be coaches, culture carriers, and strategic problem-solvers. Employees, especially younger generations, expect leaders who provide real-time feedback, foster psychological safety, and support career growth. Yet many managers lack these essential skills.  

“Excelling in a role doesn’t automatically prepare someone to lead,” says Melidis.

“That’s why we don’t wait until someone steps into the role to start training them. Our leadership programs begin two to three years in advance.

Without that preparation, the transition is a shock. Handing someone a team and saying, ‘Good luck,’ sets them up to fail.”  

Despite rising expectations, many organizations still take a hands-off approach to leadership development. The numbers show a clear gap: 39% of managers have received no formal leadership training, and only 36% of HR leaders believe their programs effectively prepare managers for the future. 

Leadership gaps are widening, and organizations can no longer afford a passive approach to succession planning.

With Baby Boomers retiring at an accelerating rate, companies face a critical turning point: either build a stronger leadership pipeline now or risk a vacuum in institutional knowledge, decision-making, and execution.  

The challenge isn’t just filling roles—it’s preparing the next generation to lead in a rapidly evolving workplace. Yet only 23% of HR leaders feel confident they have rising leaders ready to meet future business needs.  

Meanwhile, many employees—especially Gen Z—are opting out of management altogether. 72% say they’d prefer an individual contributor path over leading others, and 1 in 5 current managers would step away from leadership if given the choice. The role is often seen as too stressful, too administrative, and too removed from meaningful work.

Without rethinking how leadership is positioned and supported, companies will struggle to fill key roles.  

Adding to the challenge, Gen Z expects faster growth, continuous learning, and leadership experiences that don’t always involve managing people.

But many organizations still rely on outdated succession models and lack the systems to support more flexible, skill-based growth. Those that don’t evolve risk losing top talent to more forward-thinking employers.  

“As a growing company, we’re anticipating significant leadership transitions in the coming years.” says Melidis.

“We can’t just wait for leaders to emerge—we need to actively develop them. That means rethinking how we approach leadership development, succession planning, and career progression.”  

Effective succession planning requires close partnership between HR and managers. HR needs systems to track potential and close skill gaps. Managers need tools to identify, coach, and prepare future leaders through real-world experiences.  

“There’s no choice but to get this right,” says Christopher Thompson, Founder of Core Inclusive Consulting. “Succession planning is a priority for everyone. If you’re just waiting for leaders to show up fully formed, you’re already behind.”  

Companies that invest now will build the leadership strength needed to scale and succeed.  

AI is reshaping the workplace—but it’s not replacing managers. While automation is streamlining workflows and boosting productivity, people leadership still requires trust, empathy, and human judgment—qualities no algorithm can replicate.  

Employees need coaches, mentors, and decision-makers who provide clarity, context, and career support.  

As AI adoption accelerates, the demand for managers is rising—not shrinking. Rather than eliminating leadership roles, AI is reshaping them. Managers are no longer burdened with repetitive administrative tasks. Instead, they’re expected to lead more strategically—with better insights, faster decisions, and stronger people skills.  

When used well, AI acts as a force multiplier, helping managers reclaim time, focus on people, and improve performance. 

By automating routine work like scheduling, data entry, and reporting, AI frees managers from paperwork. Instead of spending hours compiling data, they can use AI-driven analysis to identify trends, spot opportunities, and execute with precision.  

But the challenge for many managers isn’t just time—it’s knowing where to begin. AI helps overcome blank page syndrome by providing structure, timely insights, and context-specific recommendations. Whether giving feedback, setting goals, or coaching employees, AI-powered tools help managers lead with greater confidence and clarity.  

AI and technology also strengthen strategic decision-making. With real-time insights on turnover risks, performance trends, and engagement levels, managers can act faster and more effectively. Aggregated data helps them proactively address disengagement, recognize high performers, and guide development conversations. The result? Better decisions, improved retention, and stronger business outcomes.  

Performance management should be a catalyst, not a chore. It should drive alignment, fuel momentum, and transform everyday conversations into opportunities for growth. Decrease your reliance on rigid systems and retrospective ratings—and focus on creating value, increasing capability, and sharpening execution to drive real impact.

Performance management should be fuel, not friction. When measurement reigns, momentum stalls. Treat performance management as a two-way value exchange—where employees grow, and the business accelerates.  

70% of C-suite leaders believe HR should shift from improving productivity to unlocking human potential—but only 20% say that’s happening today. Employees feel the gap too: less than half say performance management helps them improve.  

The disconnect? Too many companies track performance without activating it. Employees get rated, reviewed, and ranked—but they feel scrutinized, not supported. Goals exist on paper but don’t drive action. Without a real connection to business impact, performance management becomes an empty exercise.  

High-performance organizations see performance management as a critical value exchange between employees and the business. For employees, it should provide clarity, growth, and recognition—helping them navigate challenges and see their path forward. For businesses, it should drive alignment, accountability, and agility—ensuring teams focus on what matters most.  

"When employees feel like they’re winning personally, and their work aligns with company goals, their output is significantly better,” says Mikala Friedrich, Chief Human Resources Officer at Scooter’s Coffee.

“But if performance management feels like a box-checking exercise, employees check out. And when they check out, results suffer.”  

Performance management fails when employee work and priorities don’t clearly tie to business goals—or when manager behavior and clunky tools feel culturally misaligned.  

“Every touchpoint—from goal setting to execution, from coaching to rewards—should be part of an ongoing, intentional system designed to help employees and business thrive," says Marie Potter, Vice President, Talent & Culture at Getty Images. 

"Nothing should feel disjointed or arbitrary.” 

Performance management is the #1 way employees say they experience company culture, even more than mission and values. The connection must be strong and authentic.  

Finally, performance management should be a springboard for growth, rather than a paper trail. That means replacing rigid cycles with dynamic conversations, real-time feedback, and tools that empower. 

“If we think about performance as enablement, it changes everything,” says Teresa Preister, Senior Insights Analyst at Quantum Workplace. “The goal is to move people forward and make them more valuable—to themselves and the business.”  

Performance management succeeds or fails with managers. But HR and senior leadership play a critical role in enabling managers to manage performance well. They need to equip managers to develop, coach, and drive daily performance.  

Performance management is a skill. One that many managers haven’t fully developed. But great leadership doesn’t happen automatically; it takes awareness, practice, and a commitment to growth.  

HR and executive leaders must do more than expect people leadership—they must enable it. That means offering tools, training, and creating capacity for managers to lead. Performance can’t be treated as an add-on to an already full plate.  
  
Building a high-performance culture starts with three key capabilities:  

Discernment.

Great managers can spot the difference between activity and impact. They observe, identify patterns, and coach employees to maximize potential.   

"I believe in the power of discernment," says Potter. "How do we help leaders assess and guide performance with clarity? It's about feedback, mapping performance to potential, and helping employees stretch and grow." 

But discernment is a learned skill. While 83% of managers believe they can identify high performers, only 74% of employees agree. 

Development.

A manager’s core responsibility is driving performance—and that starts with understanding what makes each person tick.

“A manager’s main purpose is simple: to drive performance,” says Anne Maltese, VP of People Insights at Quantum Workplace.

“But when you unpack that, it gets complicated. You’re working with people who are wired differently. It’s not just about goals—it’s about figuring out how to motivate each person.” 

Strong managers actively seek to understand what challenges, excites, and engages their people—and align those strengths to the right projects, opportunities, and business outcomes. 

No single process or system can fully address the complexities of performance management. Instead of chasing perfection: test, learn, iterate, repeat.  

HR leaders have spent years searching for the ultimate performance management solution. But it doesn’t exist. No single framework, rating system, or software will make performance management effortless or universally effective. Performance isn’t static—it’s shaped by people, context, and evolving business needs.  

"Smart execution in performance management isn’t about creating more processes—it’s about making the right ones work," says Potter.

"Before adding complexity, we need to pause, assess what already exists, and test whether a new approach actually improves how we manage and develop talent." 

"I’ve fallen into the trap of trying to fix performance management by designing a better process. But I’ve also learned to step back and ask:

Why does this process exist? Does it actually add value? If it’s just another step in a workflow, we need to rethink it."  

Instead of chasing the perfect process, forward-thinking HR leaders focus on refining execution—perfecting small things and embedding them into daily, weekly, and monthly habits. These steady improvements often outperform sweeping overhauls. Big, disruptive changes can overwhelm managers, create inconsistency, and add complexity instead of clarity.  

One of the best ways to evolve performance management? Ask employees. They offer valuable insights into what’s working and what’s not—helping leaders identify meaningful changes instead of making assumptions.  

"Performance management has to evolve with the organization," says Mikala Friedrich, Chief Human Resources Officer at Scooter’s Coffee.

"It’s important to listen to employees and be open to trying things differently. A key question to ask yourself is, ‘How do you want an employee to feel through the process?’ That should guide your decision-making."  

Performance management is a practice to refine. Organizations that continuously test, learn, and simplify will go further, faster. 

HR technology should be a strategic accelerator, not a sunk cost. Yet, many HR teams are struggling to build engaged, high-performing workplaces while using outdated tools ill-suited for modern demands. Just 15% of HR leaders describe their current tech stack as "expert." Whether cobbling together “free” solutions or squeezing functionality from rigid HRIS systems, these misaligned tools trap HR teams in reactive mode. 

Tech decisions shouldn’t be driven by budget alone. Evaluate your tech on its ability to move the business forward—not just reduce the number of platforms. 

HR technology should serve as a bridge between people strategy and business strategy, fueling engagement, retention, and performance. But too often, HR teams find themselves working against their tools instead of with them—stuck in manual workarounds, low adoption, and fragmented insights that stall progress.  

While HR leaders recognize that technology is a critical driver of employee experience and business outcomes, they often face pressure to consolidate tools and cut costs.

The assumption? Fewer platforms will simplify operations, reduce spending, and create a seamless experience. The reality? Over-consolidation leads to rigid, one-size-fits-all systems that sacrifice usability, depth, and actionability.  

“The real issue isn’t just that these systems are clunky or difficult to use,” says Cindi Fosler, Chief Customer Officer at Quantum Workplace.

“It’s that they actively prevent organizations from getting the insights they need to move forward. Poor adoption leads to incomplete data, and incomplete data leads to weak decision-making.”  

Only 24% of HR employees say their function is getting maximum value from HR technology, and two-thirds of HR leaders believe their function’s effectiveness will decline if they don’t act. And only 68% say they feel confident their tech supports their organization’s objectives well or extremely well.  

Strategic HR leaders must push beyond the pressure to consolidate and advocate for technology that delivers impact. The right HR platforms should do more than reduce administrative overhead—they should empower leaders, drive engagement, and enable smarter, faster business decisions.  

“Always consider how a tool’s specialized capabilities uniquely impact your strategic priorities,” says Marie Potter, Vice President, Talent & Culture at Getty Images.  

Read: if you’re serious about building a high-performing, engaged workforce, you can’t rely on home-grown, bolted-on, or one-size-fits-all tools. The path forward isn’t about doing more with less—it’s about making the right strategic investments in solutions that create clear and lasting impact.  

Many enterprise HR systems promise a streamlined, all-in-one experience, often at a lower cost. But what looks like cost savings on paper often results in low adoption, fragmented data, and wasted time—adding up to more expense and less impact. 

While 30% of HR leaders say they struggle to extract accurate or useful data from their HR analytics tools, those with effective HR tech stacks are nearly 5X more likely to gain meaningful people insights. 

The problem isn’t just inefficiency—it’s that misaligned technology actively prevents HR from making informed, strategic decisions.   

“Clunky systems lead to slow decision-making and ineffective action,” says Potter.

“While consolidation may initially reduce costs, it runs the risk of increasing complexity and inefficiency in the long run.”  

Many HR leaders face pressure to consolidate tech to cut costs or simplify IT management. But when consolidating to a system isn’t built to support engagement, performance, and employee experience, it fails to deliver value.  

• If managers don’t engage, they miss critical insights to support their teams. 

• If employees don’t trust a platform, they won’t provide honest feedback, creating data gaps that weaken HR’s ability to act. 

• If reporting is inefficient, HR teams waste hours extracting and analyzing data, pulling focus from strategic work.  

“The problem isn’t just about price—it’s about what you’re actually getting,” says Fosler.

“Choosing an HR platform is like booking a hotel. An economy option might seem like a great deal. It’s accessible and it gets the job done.

But once you check in, you notice what’s missing. There’s no flexibility, no premium support, no room to grow, and you don’t really want to return. Suddenly, that ‘great deal’ doesn’t feel so great.” 

Even the best HR tech is worthless if employees and managers don’t engage with it. Adoption isn’t just about making a tool available—it’s about embedding it into daily work, making it easy to use, and ensuring employees see its value.  

Poor experiences with HR tech don’t just frustrate users. They erode confidence in HR’s ability to lead digital transformation. Nearly half of HR practitioners say their organization’s use of HR tech has damaged HR’s reputation.

This isn’t just a usability issue—it’s a credibility issue. To rebuild trust, HR must show clear, measurable impact. Rather than rolling out massive transformations, leaders should focus on small, high-impact changes that solve real problems and align with business goals.  

 “If technology doesn’t become a natural part of employees’ activities, they simply won’t use it,” says Potter. “The most impactful platforms turn data into daily actions.”  

Adoption thrives when tech removes friction. Tools that integrate into email, messaging, and performance systems make engagement feel seamless. AI-powered automation, real-time nudges, and embedded guidance help employees and managers act.  

But usability alone isn’t enough. Adoption requires intentional communication, training, and change management.  

“I don’t believe in the ‘Field of Dreams’ approach,” says Potter. “If you build it, you better tell people about it. You better get them on a bus to get there. You need a campaign, and then you need to keep them coming back.”