Uncertainty and Rapid Change: Bridging the Gap in Today’s Volatile Economy

The Challenge

In today’s turbulent economy—marked by automation, AI acceleration, constraints, and constant restructuring—the world feels increasingly complex, anxious, and unpredictable. In response, leadership teams are doubling down on data analytics, forecasts, and AI-powered strategies to streamline operations, reduce costs, restructure teams, and reignite growth. Today, many leadership teams prioritize investing in new technologies to optimize business and increase efficiency.

These investments make sense. But in the race toward optimization, as dashboards light up and KPIs sharpen, something essential is fading quietly into the background: the simple act of seeing people. It feels like we’re optimizing everything, except humanity.

In the rush to optimize, many leaders are overlooking the very individuals who keep the business moving. In a world increasingly governed by metrics and results, how do we ensure employees still feel seen, valued, and connected?  

The “Soul-Crushing” Disconnect  

The growing gap between senior leadership teams and their people is more than just a cultural issue: it’s a business risk.

Recent organizational decisions in the last year—changing span of control for managers, tightening compensation, mandating office returns—have widened this divide.  As highlighted in the 2025 Korn Ferry Workforce survey the push and pull of power between employer control and employee expectations is rewriting the workplace and the ways we work, and creating some tension:

• 41% of employees say their organization has reduced management layers
• 43% feel their leaders aren’t aligned in the shuffle
• 37% feel directionless due to a lack of managerial support

And the emotional toll is staggering:

• 1 in 5 employees experience daily loneliness. Well-being among younger generations is steadily declining.
• Only 39% say someone at work cares about them as a person—a significant drop from prior years.
• Just 21% of global employees report feeling fully engaged at work, matching the lowest levels since the pandemic began

 Top drivers of disengagement and attrition?

Disconnection from leadership, poor workplace culture, lack of career growth, poor rewards, ineffective management, and no work-life balance. 

This disconnection doesn’t just impact morale—it erodes performance. MIT Sloan estimates that toxic cultures cost U.S. companies an estimated $50 billion annually in turnover - those we call "regrettable losses".

A Call to Rethink Leadership

The most resilient companies in times of disruption aren’t led by the best technology—they’re led by people who build trust in the storm.  Today’s leaders must go beyond optimizing systems. They must rehumanize the workplace—fostering inclusive, high-performing cultures where everyone can do their best work regardless of their differences.

Here’s the good news: There is strong research and evidence that the organizations that intentionally engage and enable employees perform better across the board:

• 4.5x more revenue growth.
• 54% reduction in turnover when both engagement & enablement are high (compared to 40% with engagement alone).
• 67% of employees would stay—even in a role they dislike—if offered growth opportunities and upskilling.  

  This starts with shifting focus:

• From output to human connection
• From control to curiosity and care
• From one-way communication to two-way trust

In behaviors, that means:

• Spending real time with employees—not just in town halls, dashboards, or spreadsheets
• Listening to what inspires, what motivates them, and how they define success
• Building cultures where empathy and accountability go hand in hand
• Providing regular, quality feedback—not just year-end performance reviews

Want a high-performing agile team? Research shows the most effective teams share feedback in a 5:1 ratio—five positive/praise messages for every negative/constructive one. Trust and performance rise together. AND – you must be authentic on those messages: people can tell when your feedback is too generic or fake.

The teams that are more agile and resilient, bouncing back from adversity, are the ones who can accelerate psychological safety, those that are able to collaborate and support one another in achieving goals and maintaining commitments, sharing ideas and learning from mistakes without fear of potential repercussions. 

In short: the future of leadership is not just digital. It’s deeply human

What’s Next

If you’re a senior leader or board member, ask yourself:

• When was the last time you truly connected with employees, beyond the metrics, on a personal level?
• What message are you sending —through your actions—  about what (and who) truly matters?

It’s time to bridge the gap. Because the cost of disconnection is too high, and rehumanizing leadership may be the most strategic investment you make this year.

Sources & Research

Korn Ferry (2025) – 2025 Korn Ferry Workforce Survey: Insights on leadership disconnect, management layer reductions, and employee sentiment during organizational transformation. Also includes engagement and enablement statistics showing links to revenue growth and turnover reduction from Hay Group, a Korn Ferry acquisition.

Gallup (2024–2025) – State of the Global Workplace Report: Data on global employee engagement, well-being, and connection at work.

MIT Sloan Management Review (2022) – Toxic Culture Is Driving the Great Resignation: Estimated $50B annual cost of toxic cultures in U.S. businesses.

LinkedIn Learning Workforce Confidence Index (2023–2024) – Employee preferences for advancement and upskilling, even in disliked roles.

Heaphy & Losada (2004) – The Role of Positivity and Connectivity in Team Performance: Highest-performing teams had a ratio of between 5:1 and 6:1. Medium-performing teams averaged around 2:1 positive to negative interactions, while low-performing teams were at 1:3, meaning there were more negative interactions than positive ones. The 5:1 approach is not about ignoring or minimizing performance issues. It's about creating a psychological environment where individuals can receive and act on constructive feedback without becoming defensive. Recent research suggests that a high ratio of positive to negative feedback and interactions within a team is linked to higher performance, creativity, and overall team well-being. While the exact mathematical ratios initially proposed have been criticized and questioned, the core concept of fostering a positive and supportive environment through more positive interactions continues to be a key element for building high-performing teams.