Leading Workplace Culture in 2026

Welcome to 2026! And welcome to the continual evolution of the workplace. What once was is not… and is, again. Let me explain. No, there is too much, let me sum up.

Artificial Intelligence

We’ve seen AI move from experimental to rapidly be deployed into mainstream enterprise functions. A lot was learned, including, that people kind of like people. Several industries (generally, not all of them) went AI-heavy just to return to humans, at least in part. Examples are:

• Fintech

• Banking

• Healthcare

• Nursing

• Legal

• Compliance
  

Even in my own industry of coaching and consulting, the “human element” remains the most critical competitive advantage.

AI has been gently and appropriately demoted in some cases. AI is no longer a futuristic conceptual Captain of Industry but a daily First Mate. Forward-thinking leaders are shifting away from using AI solely for administrative automation toward integrating it into management practices. For instance, AI is now being used to identify overlooked talent for promotions and to map employee skill inventories using machine learning. However, the risk of employees using unendorsed tools remains a concern for governance and data privacy.

The Rise of Culture Atrophy

Management is currently facing culture atrophy where the rapid pace of change has become nearly ungovernable. Employees are increasingly tired and cautious. The number of U.S. workers planning to change jobs has plummeted to 43% (down from 93% in 2025) as people prioritize job security and income protection amid economic uncertainty.

In addition to the concept of staying scared (versus running scared) some employees are realizing they have been treated as a literal human resource rather than a person. When people transition from believing they’re part of a team or a “work family,” to selling chunks of their life, they tend not to give a rat’s fender about going above and beyond for the sake of additional success. They’re meeting expectations, and that’s it. No suggesting that it’s bad, in fact, my opinion is that it is great. However…

While many companies treat employees as expendable on paper, they shouldn’t do so in action. The more managers treat their direct reports as doers of work, the less they see the humanity in the person they’re speaking to.

Actionable Strategies for Management:

• Prioritize Psychological Safety: Psychological safety has become a business necessity for innovation. Only 41% of employees feel they can bring their "whole self" to work, a significant drop from previous years. Leaders must reward honesty and acknowledge uncertainty to rebuild this trust.
  

• Invest in "Managerial Development": The "manager experience" is the new employee experience. Managers are often overwhelmed and underprepared for 2026’s complexities, requiring targeted training in conflict resolution and change management.
  

• Standardize the 4-Day Workweek: Many business leaders are adopting the 4-day workweek in 2026 as a strategic move to boost productivity and meet evolving workforce expectations.

The AI push has pushed back and put people back in the picture. Companies have treated employees like renewable resources and employees are starting to treat companies in similar ways. Leaders in companies of all sizes will be well-advised to appreciate that people need people. An amount of automation will almost always be present. But nearly 100% automation will lead to a soulless experience with low engagement, low connection, and low loyalty with employees and customers alike.