People Over Perks Live

HR leaders don’t need more theory — you need actionable insights you can put to work right away. That’s why we’re hosting People Over Perks Live: a free, half-day virtual conference on October 16 for HR and People leaders across Europe and North America.

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2026WORKFORCE
TRENDS REPORT

People at the Center of Change

Jenny Podewils
Co-Founder & Co-CEO at Leapsome

People want to grow.
Your company needs innovation.
‍HR can connect the two.

Today’s workforce is under pressure.

Global shifts in trade, policy, geopolitics, and technology are reshaping decisions inside and outside of work.

In our 2026 Workforce Trends Report, 2,400 employees and HR leaders share how they’re affected: the job market feels uncertain, and many people are holding onto jobs out of caution. Retention may look steady — but beneath the surface, motivation, trust, and performance are slipping.

AI is adding to the strain.

It’s entering workplaces much faster than the support available, raising expectations before employees have the time, skills, or clarity to adjust. Many are learning new tools while also covering work from colleagues whose roles weren’t replaced.

With hiring slowed, the pressure lands on leaner teams. But without structure, training, and clear ownership, promised AI gains don’t reach the people doing the work. This “crunch moment” slows innovation just when businesses rely on it for growth.

Jenny Podewils
Co-Founder & Co-CEO at Leapsome

For HR leaders, this is a chance to turn pressure into progress.

People teams play a critical role in balancing employee needs with business demands, guiding AI into daily work with clear communication and guardrails, and rebuilding trust through transparency and follow‑through. When growth paths are visible and time to learn and experiment is protected, it’s much easier for people to keep pace and for innovation to move forward.

This report explores:

  • Why steady headcount can mask a stagnant, disengaged workforce
  • How AI is creating both new opportunities and concerns
  • Where trust is breaking down and how to restore it

At Leapsome, we believe people are key for the future of work — and the foundation of business success. Done right, AI can support better work and help HR leaders build resilient organizations where people and business thrive.

Jenny Podewils
Co-Founder & Co-CEO at Leapsome

Core trends defining the future of work & leadership

1

Employees are staying for security, not satisfaction

Many employees remain in roles for stability, even if they’re no longer the right fit.

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Market signals and wider uncertainty play a part; the cost is disengagement, lower motivation, and slower progress.

2

AI ambition without readiness undermines productivity

Some companies have slowed junior hiring and backfilling, expecting AI to fill the gaps.

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Without clear strategy, training, and strong change management, pressure mounts on remaining teams — and gains fall short.

3

The AI skills gap is limiting innovation

Most organizations lack clarity and strategy around AI learning.

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Many employees don’t understand how AI applies to their role or who is responsible for training. This is slowing adoption and fueling anxiety.

4

Trust in HR is under strain — but it can be renewed

In people-centric companies, business and employee interests often align; however, trust only holds when there is transparency, consistency, and follow-through.

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Many workers still question whether HR can influence decisions that affect them.

Trend 1

Employees are staying for security, not satisfaction
Jenny Podewils
Co-Founder & Co-CEO at Leapsome

Why “good’ retention can hide a disengaged workforce

At first glance, stable retention can look like a win. But many employees aren’t staying because they’re thriving — they’re staying because leaving feels risky. Job growth is slowing across major markets,* making roles harder to land and riskier to give up.

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At the same time, AI is changing job requirements so quickly that 33% of employees doubt their skills would match what’s expected in a new role. Under that pressure, people are choosing safety over satisfaction.

*Source: OECD’s Employment Outlook 2025

Jenny Podewils
Co-Founder & Co-CEO at Leapsome

Job changes feel risky — even for those ready to leave

30% want to leave their current workplace, but

49%
worry about the increasingly competitive job market
43%
are concerned about losing flexibility
42%
are anxious about short‑term contracts

The desire to move on is real, but so is the fear of what comes next. Short‑term contracts, fewer flexible options, and a tougher market make change feel unsafe. Add concerns about fast-changing AI skills, global instability, and shifting economies, and it’s clear why many would-be job movers hesitate.

Jenny Podewils
Co-Founder & Co-CEO at Leapsome

The cost of fear-based retention

For ICs that stay out of fear, these are the top 3 negative effects experienced:

1

Lower emotional & mental well-being

2

Reduced motivation & engagement

3

Less feelings of belonging or connection

Fear‑driven choices drain energy, reduce motivation, and erode connection to culture — weakening the foundations of performance and innovation.

Productivity is the first thing to go when motivation fades

When morale drops, the effects show up fast. Six in ten HR leaders and managers say disengagement directly cuts performance — and the financial toll is staggering.

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‍According to Gallup, global disengagement costs businesses around US$8.8 trillion annually, or 9% of global GDP.*

*Source: Gallup State of the Global Workplace, 2023

Jenny Podewils
Co-Founder & Co-CEO at Leapsome

Why motivation slips

Individual contributors say disengagement comes down to the basics: too little growth, too much work, and unhealthy cultures.

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For those staying out of fear, the trade-offs feel like stability — but they also cost performance.

Jenny Podewils
Co-Founder & Co-CEO at Leapsome

Turn insights into action

To break fear-based retention, reset the conditions so people can contribute from day one and grow with confidence.

1

Create visible career paths

Make growth paths and expectations clear; connect growth to team purpose and mission, and recognize progress early.

2

Rebalance workloads

Align responsibilities to capacity; remove low‑value work to protect focus and well-being.

3

Restore trust & purpose

Explain decisions, act on feedback, and close the loop. Tie goals to customer and business impact so people see why their work matters.

Steve Browne
SHRM-SCP, Chief People Officer at LaRosa’s, Inc.

Anchor your people

Engagement, as we’ve defined it for the past 20 years, is dead. 

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What people want has changed. They don’t need to be entertained — they want to contribute from the moment they join. Our job is to remove the hoops and hurdles and let them add value right away.

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In a world of personalization, employees want to plug in, get instant feedback, and move with purpose. This is not tied to a generational argument. Today’s workforce doesn’t want to be engaged. It longs to be anchored.

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Anchoring gives people a clear role, a sense of security, and visible connection. When employees feel anchored, they know they matter, they see their place in the company, and they can weather any storm. That stability fuels collaboration, diverse perspectives, and belonging.

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Look around your organization. Where could you take steps to anchor your people? Take those steps, and you‘ll see what true engagement looks like!!

Jenny Podewils
Co-Founder & Co-CEO at Leapsome

Employee engagement toolkit

Keeping employees connected and motivated doesn’t happen by chance — it takes the right tools and practices. That’s why Leapsome created this employee engagement toolkit: a practical guide for HR and managers to strengthen culture, boost retention, and drive performance.

What’s inside

  • Step-by-step checklist to design your engagement strategy
  • Templates for surveys, feedback, and recognition programs
  • Ideas for learning & development and team-building activities
  • Communication and wellness frameworks that support culture
Jenny Podewils
Co-Founder & Co-CEO at Leapsome

Help employees see a future worth staying for

Leapsome makes career growth meaningful and fair by streamlining reviews, clarifying competencies, and turning feedback into development.

Jenny Podewils
Co-Founder & Co-CEO at Leapsome

Trend 2:
AI ambition without readiness