It’s no secret: engaged employees drive better business outcomes. But in today's turbulent world, understanding the how and why behind that statement is more critical than ever. Our 2026 Employee Experience Trends Report, surveying employees in 24 countries across 5 continents and all major industries, reveals the key links between employee experience and business performance. See our Full Guide for even more in-depth analysis.

The Constant Amidst Chaos: Connection

The world of work feels increasingly chaotic. From rapid technological advancements to economic uncertainties, businesses face relentless pressures to evolve. But while the external landscape shifts, our research underscores a fundamental truth: the core drivers of employee attitudes and behaviours remain remarkably consistent. Foremost among these is connection.

In 2026, employees crave a deep sense of connection with their organization – a feeling that extends beyond the immediate present to encompass a shared vision for the future. They want to understand how their work contributes to the bigger picture and feel valued as individuals within the collective. This connection fuels motivation, engagement, and ultimately, performance.

Navigating the Pressure Cooker: Finding the Sweet Spot

Change and pressure are inevitable, and even, to a degree, desirable. A stagnant work environment fosters tedium and disengagement. The key is to strike the right balance. Too little change, and employees become bored and complacent. Too much, and they risk burnout, stress, and alienation.

Leaders must be mindful of the pressure they place on their teams. While a sense of urgency can drive innovation and productivity, excessive pressure, particularly without adequate support, can backfire.

AI: A Double-Edged Sword

Artificial intelligence is undeniably transforming the workplace. Our report indicates that over half of employees are using AI daily or weekly, reporting significant gains in speed, quality, and productivity. Employees are successfully leveraging AI to accomplish new tasks.

However, the rise of AI also presents challenges. A significant trend we've identified is the increasing number of employees sourcing their own AI tools, often driven by pressure to deliver results. This poses a significant security risk to organizations. When employees use personal, unvetted AI accounts, sensitive data can be exposed, creating vulnerabilities and compliance risks.

The solution isn't to ban AI outright. Instead, organizations must proactively provide secure, enterprise-grade AI solutions that meet the needs of their employees. This requires careful consideration of data privacy, security protocols, and user training.

The Hidden Costs of Cost-Cutting

The pressure to "do more with less" is a recurring theme in the business world, but our research reveals the hidden costs of short-sighted cost-cutting measures. While employing part-time or gig workers, or slashing onboarding budgets, may seem appealing on the surface, these strategies can have a detrimental impact on employee experience.

Part-time and gig workers often report lower levels of engagement and satisfaction compared to their full-time counterparts. Similarly, inadequate onboarding can leave new hires feeling unprepared and unsupported, hindering their ability to contribute effectively. This decline in employee experience, in turn, negatively impacts customer experience. Dissatisfied customers are likely to take their business elsewhere, ultimately undermining the organization's bottom line.

Embracing Disruption, Managing Change

Disruption, in and of itself, isn't necessarily negative. Disruptive technologies, such as new software or processes, can energize employees and improve efficiency, provided they are implemented effectively and make employees' jobs easier and more rewarding.

The type of disruption that truly unsettles employees is organizational change, such as layoffs, restructurings, and leadership churn. Our research reveals that long-tenured employees (5+ years) are particularly concerned about their future with an organization during periods of significant change. These employees represent a valuable asset, possessing deep institutional knowledge, experience, and established networks.

The Key to Retention: Support During Change

Employees today understand that change is inevitable. The biggest driver of employee expectations isn't the absence of change, but rather the feeling of being supported while adapting to it. To retain valuable, long-tenured employees, organizations must provide ample support and reassurance during periods of transition. This includes:

  • Transparent Communication: Keep employees informed about the reasons behind the changes and their potential impact.
  • Training and Development: Provide opportunities for employees to develop new skills and adapt to new roles.
  • Mentorship and Coaching: Offer mentorship and coaching programs to help employees navigate the changes and build resilience.

Ultimately, organizations must demonstrate respect for the individual and foster open, two-way communication to maintain a sense of connection during times of upheaval.

Unlocking the Power of AI: A Strategic Approach

Employees are embracing AI to enhance their productivity, and they're succeeding! Our research shows that 52% of employees are using AI at work frequently (daily or weekly), which is a 7-point increase from 2025. The key is to provide the right tools and guidance.

Organizations should adopt a proactive approach to AI, providing secure, enterprise-grade solutions that meet the specific needs of their employees. This requires:

  • Identifying Use Cases: Determine how AI can best support different roles and functions within the organization.
  • Investing in Training: Provide employees with the necessary training to effectively use AI tools and understand their limitations.
  • Establishing Guidelines: Develop clear guidelines for the ethical and responsible use of AI, including data privacy and security protocols.

By empowering employees with the right AI tools and guidance, organizations can unlock significant gains in productivity, innovation, and overall business performance, while also mitigating the risks associated with unvetted AI solutions.

In conclusion, the link between employee experience and business performance is undeniable. By prioritizing connection, managing change effectively, and strategically leveraging AI, organizations can create a work environment that fosters engagement, drives productivity, and ultimately, achieves sustainable success.