New Blog Post
What’s Actually Powering Retention in 2026?
Read time: 5 min
In 2019, Harvard Business Review said: “The need for leadership development has never been more urgent.”
That was six years ago.
In the years since, we’ve seen:
Historic voluntary turnover
A complete reshaping of what “work” even means
$1 trillion in annual losses due to attrition
So if leadership was in crisis then... what do we call it now?
Between inflation, rising labor costs, and mounting tax and regulatory pressures, your operational cost isn’t just higher, it’s squeezed from all sides.
The cost of replacing an individual employee can range from one-half to two times the employee's annual salary, conservatively. So, a 100-person organization that provides an average salary of $50,000 could have turnover and replacement costs of approximately $660,000 to $2.6 million per year.
Losing millions to voluntary turnover just isn't unsustainable. Can you think of a single organization that can afford to waste that kind of cash in 2025?
So, the question becomes: What can we do about it?
Some senior leaders still shrug and say, “That’s just the way things are in our industry.”
But if the overnight layoffs at Nestlé (16,000) and Salesforce (40,000) in fall of 2025 taught us anything, it’s this: business as usual isn’t working anymore.
According to the World Economic Forum, 90 million jobs will be lost to AI by 2030 and 170 million new ones will be created.
The question is no longer whether roles will change. It’s whether leadership will change with them.
Yet in hospitality and other people-first industries, there’s still a belief that today’s staggering turnover costs are just the fallout of a “lazy, entitled generation” that only wants to “work remote” and “go into tech.”
Sure, it’s easy to blame turnover on generational differences. To call Gen Z “soft” or “entitled” and move on. But new research shows that disengagement isn’t about laziness. It’s about mismatch -- between what leadership offers, and what today’s workforce actually values.
Young people aren’t disengaged because they don’t want to work -- they’re disengaged because they don’t want to work like this.
Today’s workforce is driven by deeper, more personal motivators than we’ve seen in previous generations: visibility, flexibility, growth, belonging, and the opportunity to do meaningful work.
Once dismissed as a “soft skill,” emotional intelligence is now considered a core leadership competency, especially in complex, AI-augmented environments, according to experts at Harvard Gazette, TalentSmartEQ, and the World Economic Forum.
While Gen X, Boomers, and many Millennials valued a nose-to-the-grindstone work ethic rooted in grit and knowledge, today’s reality looks different.
And those rising leaders who’ve been labeled “too emotional” or “too soft”? They’re actually poised for success. Why? Because they’re wired for self-awareness, empathy, and connection -- the exact skills needed for strong communication, collaboration, and leadership in a rapidly evolving workplace.
In a world where you can find everything you want to know (and everything you don’t) at the click of a button, isn’t it time we shift towards something more…human?
"Hard skills can be Googled or automated in seconds. Isn't it time we shift towards something more... human?"
The Motivation Shift: From Paycheck to Purpose
There was a time when job security and a clear ladder were enough to keep people around.
Not anymore.
Today’s workforce isn’t just asking what they do -- they’re asking why they do it. And they’re walking away when the answer doesn’t align.
McKinsey’s Great Attrition study said it best: “People are leaving not because they want more money, but because they want to feel valued, have a sense of belonging, and be trusted.”
And it’s not just entry-level talent. Deloitte’s Human Capital Trends report shows that even senior leaders are rethinking what matters: “Purpose and meaning now rank above compensation in decisions to stay or leave.”
That doesn’t mean money doesn’t matter -- of course, it does. But it’s no longer the lever that keeps people loyal.
Leadership is.
The Rise of Workforce Value Profiles
Today’s workforce isn't necessarily motivated by one-size-fits-all strategies. Adaptive leaders are moving away from rigid assumptions about what drives performance and are beginning to ask a better question: “What does meaningful work look like to you?”
Enter the Workforce Value Profiles, a modern lens on what truly motivates your people to stay, contribute, and grow.
Which one is most familiar to you? Most foreign?
How many profiles can you identity in your current workforce?
What the Research Says About Retention in 2026
Still hoping better benefits or another engagement survey will turn the ship? The data says otherwise.
Leading hospitality research continues to point to the same three factors behind today’s retention crisis (and better benefits aren’t on the list).
1) Leadership Support & Development Matter More Than Pay
“Compensation and job security were insufficient without complementary motivators like leadership connection and meaningful development.”
— Employee Retention Strategy in Hospitality, Walden University, 2021
2) Growth > Incentives
“Career progression and training… are key drivers of retention. Workers stay with employers who invest in their growth.”
— Challenges and Strategies for Employee Retention, MDPI, 2022
3) Autonomy and Balance Drive Loyalty
“Autonomy, professional development, and work-life balance, not incentives, emerged as the strongest predictors of retention.”
— What Drives Retention in the U.S. Hotel Sector?, FIU, 2025
Don’t Miss the Neuro-Difference Opportunity
Neurodivergence isn’t rare, but it is under-recognized. An estimated 15–20% of the global population is aware of, and reports being, neurodivergent. (Gallup, 2023)
Most won’t disclose it, or even recognize it, and nearly all are working in systems not designed for the way they focus, solve problems, or process information.
That’s not a limitation. It’s a missed opportunity.
“Designing for neuro-difference isn’t an unnecessary accommodation, it’s smart business.”
Neurodivergent thinkers often excel at pattern recognition, lateral problem solving, systems thinking, and creative innovation. Exactly the kind of cognitive thinking today’s organizations need to navigate complexity and rethink service delivery.
But when leadership doesn’t adapt, or doesn’t even know who’s in the room, that talent gets overlooked, underutilized, or lost.
Forward-thinking teams aren’t just including cognitive diversity, they’re activating it. And they’re gaining loyalty, innovation, and retention in return.
If you’re losing talent that thinks differently, you’re not just risking disengagement, but leaving innovation, loyalty, and retention on the table.
Today’s most successful leaders are asking:
“What are we missing by not leading for cognitive diversity?”
What Smart Leaders Are Doing Instead
From Loews Hotels & Co Miami Beach to progressive teams across hospitality, high-performing leaders are shifting how they think -- and act: Connecting daily work to mission and vision so even entry-level talent knows why they matter.
Leading with transparency and vulnerability, especially in moments of challenge.
Creating space for autonomy, especially for emerging talent and neurodivergent thinkers.
Making growth pathways visible, not just promised. (Think: internal & external brand communications)
Sharing the “messy middle," so success feels like a journey, not expected.
“Retention doesn’t hinge on surface-level incentives. It hinges on whether people see a future worth committing to.”
5 Leadership Questions That Actually Drive Retention
Forget communication that doesn’t impact. These questions uncover why your best people stay (or leave).
What do our top performers value most — and are we reinforcing it in daily operations?
Are our managers earning trust — or just enforcing policy?
Who on our team feels unseen — and how is that showing up in turnover, performance, or morale?
Are we preparing future leaders — or just promoting whoever has lasted the longest?
If someone left tomorrow, could they tell a story worth recommending — or just one worth escaping?
The Bottom Line
“If retention is the outcome, leadership is the input. And leadership today means seeing people clearly, designing for difference, and leading with values rather than assumptions.”
If your team is stuck in the cycle of turnover and disengagement, you're not without options. Senior leaders in hospitality trust Christy with the 3 critical communication shifts that improve retention, reduce turnover costs, and secure the future of our industry's top talent.
Christy Renee Stehle is a Smart Meetings Best of Stage "Life-Changer" Award Winner, IMEX Future Leader Emcee, and an Atlanta Award Recipient for Outstanding Community Innovation. Send a DM to get in touch.
