Poor leadership and employee misalignment could be costing businesses their best talent, according to a new report by The Predictive Index, a leading HR platform.

In a survey conducted with 1,000 U.S. workers, 46% said their managers only somewhat or rarely understand the value they bring to the table. This disconnect, the report warns, may pose a greater risk to retention and innovation than even burnout.

“We’ve long emphasized burnout tied to workload, but our research highlights a deeper issue,” said Matt Poepsel, Vice President and “Godfather of Talent Optimization” at The Predictive Index. “When employees feel unseen or misunderstood, a perception gap forms—damaging retention, performance, and innovation.”

Key findings revealed that:

  • 44% of respondents believe they’ve been passed over for raises, promotions, or projects due to misunderstandings about their skills or work style.
  • 48% feel their efforts are consistently undervalued by leadership.
  • 43% receive feedback that doesn’t align with how they view themselves — a figure that rises to 54% among Gen Z.

Among Gen Z workers, 62% said misperceptions have led to missed opportunities, and 80% believe behavioral assessments could help teams better understand individual strengths and working styles.

To address this growing perception gap, 44% of employees called for stronger leadership training, while 45% said they want more consistent, meaningful feedback.

Poepsel emphasized that traditional management strategies often overlook behavioral diversity. “Behavioral data gives managers the clarity to truly understand and develop their teams—including those whose contributions aren’t always obvious,” he said.

Adding another dimension, organizational psychologist Adam Grant, speaking at the Workhuman Live 2025 conference, stressed the value of “disagreeable workers.” While often misunderstood, these employees can offer candid feedback that organizations need.

A separate report by Deloitte echoed the importance of trust and “human sustainability.” The firm advocates for putting people at the core of business operations and using transparent, meaningful metrics to evaluate performance.

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Source: Hrdive.com