Why Leadership Skills Matter More Than Ever in 2026

Cathie Leimbach • January 6, 2026

People are essential to your business success—yet many organizations underestimate the return on leadership development. Payroll and benefits alone account for 15 to 60% of operating expenses for most companies. In industries with lower payroll percentages, the trade-off is often expensive equipment—but without well-trained people, even the best tools underperform.


The truth is simple: mediocre employee skills produce mediocre business results. What’s often overlooked is where performance and engagement are truly shaped. Employees themselves only control about 30% of the factors that drive engagement and high performance. Leaders control the other 70%.


Despite this, only 18% of organizations say their leaders are very effective at achieving business goals, even though 71% offer leadership training. Why the gap? Much of that training focuses on strategy or systems—not on people leadership skills that directly improve performance.


When leaders do build those skills, the impact is powerful. Employees who feel supported give 57% more effort and are 87% less likely to leave. Organizations can see earnings increase by as much as 147%. In fact, leadership training delivers a $7 return for every $1 invested—more than double the return on technology investments.


Since leadership capability is being touted as the most critical factor for organizational success in 2026, it’s worth asking: Which people leadership best practices have your managers truly adopted? What currently weak areas are the most important to strengthen this year? 


A short leadership quiz can surface strengths and growth areas that aren’t always obvious—especially when you take time to talk through what it reveals.

How Managers Drive 70% of Performance

By Cathie Leimbach • February 17, 2026
Most CEOs focus on strategy, systems, and talent. But the biggest driver of performance is already in place: managers. Manager behavior influences about 70% of team engagement and results. What happens in everyday conversations matters more than perks, pay, or policies. Managers either multiply energy or drain it. Clear, supportive managers raise performance. Avoiding, inconsistent managers quietly lower it. The good news? Small habits make a big difference: Clarifying expectations Giving timely feedback Addressing issues early Reinforcing priorities These moments add up. Instead of telling managers to “motivate people,” try asking: Where might expectations be unclear? Where is inconsistency allowed? What conversation is being avoided? When managers improve just a little, results improve a lot. 👉 Join our 60-minute Leadership Conversation to explore how everyday manager habits quietly shape engagement and results.

Why Engagement Isn’t About Perks

By Cathie Leimbach • February 10, 2026
When engagement drops, many organizations reach for perks—rewards, programs, or incentives. These can create a short lift, but they rarely solve the real issue. Engagement starts with expectations. Most people want to do good work. What gets in the way isn’t motivation—it’s uncertainty. When priorities shift, roles feel unclear, or success means different things to different leaders, people disengage quietly. Leaders often don’t realize they’re contributing to this. Vague direction, inconsistent follow-through, or assuming “they already know” leaves teams guessing. Over time, guessing turns into frustration—and frustration turns into disengagement. Strong engagement cultures focus on leadership basics: Clear priorities Shared definitions of success Aligned expectations Consistent reinforcement When expectations are clear, people move with confidence. They take ownership, collaborate better, and stay engaged because they know where they’re headed. Perks can support engagement—but only after clarity is in place. 👉 Read our full article on Why Engagement Starts With Expectations to turn clarity into a real advantage.