Why human-centred leadership is back in focus

New research shows culture and trust may matter more than technology

Why human-centred leadership is back in focus

 

Organisations worldwide are finding that technology alone cannot guarantee success in an increasingly volatile business landscape. According to a report by the Centre for Organisational Effectiveness, leaders must invest in people-driven strategies alongside technological advancement to sustain long-term performance.

The report, titled “The Power of the Human-centred Workplace: 2026 Trends and Predictions,” draws on more than 1,000 touchpoints with executives globally. It finds that 72% of employees say their organisations experienced disruption in the past year, citing Gallup data.

“As I listened to my colleagues discuss their experiences and opinions, it dawned on me that making sure everyone has an equal chance to succeed helps the team,” one training participant said.

“Leaders play a crucial role in modelling behaviours that create a safe environment, where employees are empowered to collaborate, challenge ideas constructively, and contribute their best work without being afraid to take risks.”

The report says that while 87% of executives use artificial intelligence at work, successful AI integration requires more than changes to infrastructure. McKinsey research cited in the document shows AI initiatives are more likely to succeed when companies clearly communicate the technology’s purpose and reinforce psychological safety so employees feel supported through change.

Employee engagement emerges as a critical priority. The research notes that engaged employees are 14% more productive and up to 50% less likely to leave. However, only 21% of employees worldwide report being engaged at work, according to Gallup’s State of the Global Workplace 2025. This disengagement costs the global economy US$9.6 trillion in lost productivity each year, or about 9% of global GDP.

The report also points to several concerning trends, including the erosion of middle management. A 2025 DDI global leadership survey found that 40% of leaders worldwide are considering leaving their roles because of workplace stress. Companies including Estée Lauder and Match Group have each cut about 20% of their managers.

Psychosocial risk management is gaining attention, particularly outside the United States. According to DHR’s November 2025 Global Survey, cited in the report, 83% of workers experience some degree of burnout. Nearly 100 countries now require assessments to reduce psychosocial hazards such as bullying, harassment, and excessive workloads.

The research concludes that organisations most likely to succeed in this environment are those that create stability through clarity, trust, and human-centred leadership, rather than relying solely on technological solutions.

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