Arbinger trends report outlines key factors for building people-first culture

The Arbinger Institute, a Farmington-based leadership and professional development products provider, has released the results of its “2025 Workplace Trends: Building a People-First Culture” report. The study found that 37 percent of professionals reported low morale and engagement as their top challenges this year.

The global survey of 350 professionals, ranging from non-supervisory employees to executive level, benchmarks employee sentiment and identifies strategies for cultivating successful workplace cultures. The goal is to drive better outcomes for both employees and organizations, the company said.

The report also contains Arbinger’s new disengagement calculator, a tool organizations can use to evaluate the cost of disengaged employees and explore solutions for boosting morale and improving retention rates.

“Arbinger’s research validates that having skilled leaders can significantly increase engagement and reduce employee turnover,” said Ray Smith, senior vice president of people and culture at the institute. “Workplaces that foster an environment where employees feel safe to share ideas and contribute in a meaningful way with their work are more likely to be engaged and feel connected to the entire organization’s success.”

The Arbinger study revealed the most critical aspects for creating and scaling a people-first culture that drives growth:

• The role of the leadership team: The study shows that employee development is a pressing concern for 46 percent of professionals. Only about one-third discuss overall job performance with their managers annually. The most efficient teams are nearly three times more likely to be regularly encouraged to reflect on how their work impacts the overall team’s success. In addition, organizations with the highest revenue growth are twice as likely to conduct accountability training compared to others.
• The role of artificial intelligence: Nearly three-quarters of respondents agree that the use of AI will free up time to focus on human connection at work in the next two years. Organizations using AI report being significantly more likely to have leaders who promote open communication, respect individual work styles and preferences and encourage collaboration.
• The role of human resources: HR is increasingly being viewed as part of the leadership team, a strategic partner responsible for shaping the human experience within the organization. Leaders must recognize and elevate the role of human resources within the organization because HR is no longer just a support function focused on compliance or employee relations. In fact, 92 percent of HR professionals feel that HR has a strong influence on companywide strategic decisions in their organization. Moreover, the study shows that organizations with the most significant revenue increases last year were more likely to have HR involved in strategic decisions like overall business strategy and adoption and integration of tech.

“We are pleased to see that our research supports what we have witnessed over the last few decades in our work with organizations: Fostering an environment where humanity is prioritized enables the high performance that is a hallmark of a culture where every employee feels genuinely connected to and invested in the organization’s overall success,” said Mitch Warner, a managing partner at the Arbinger Institute.

The Arbinger Institute, in collaboration with Ascend2 Research, conducted the custom online survey to gather insights from 350 professionals across North America, Europe and the Asia-Pacific region. Participants represented companies of varying industries, with employee counts ranging from 500 to 10,000. The survey respondents spanned a range of job roles, including non-supervisory positions, ensuring a diverse perspective on organizational practices. Data collection for this survey was completed in September 2024.