2025 culture review
In my final blog of 2025 I want to reflect on the culture challenges that we’ve seen over the last 12 months and make some predictions about what we’re likely to see in 2026.
Personally - and like many of you - it’s been a full-on year and I’ve felt in control of it for about 20 minutes! I’ve worked in 7 countries this year with teams in FMCG, Technology, Retail, Consulting, Construction, Pharmaceutical, Engineering, Gaming, Government, Medical and Sport.
The issues faced in these sectors are similar yet uniquely different and I’ve been proud of the results that the teams have achieved.
The ongoing toxicity problem
Unfortunately - and despite my best efforts - toxic cultures remain endemic. According to iHire's 2025 report, 75% of employees have experienced a toxic workplace, with poor leadership cited by 79% as the primary culprit. 54% of people have quit because of toxicity and I expect this trend to continue as people refuse to accept inhumane conditions perpetrated from those at the top.
A significant number of companies have made it into the media as a result of allegations or reports into toxic cultures. Examples include the BBC, Foxtons, Aberdeen University, Ballarat Hospital and (according to one survey) most US companies!
The perception gap continues to be huge. Whilst 83% of employers rate their culture positively, only 45% of employees agree. This disconnect - leaders believing their cultures are healthier than they are - represents perhaps the most significant barrier to progress.
Many of you faced a toxic culture this year and many are likely to do so next year too. All I can hope is that one maverick leader decides to take action and set the example for other leaders to follow. Otherwise, it will only take media exposure to change it.
The (so far) unfulfilled promise of AI
Has AI delivered? The people that I’ve spoken to are divided (although most would say ‘no’). Whilst surveys suggest a majority perceive efficiency improvements, concrete evidence of productivity gains remain thin. However, organisations such as Barclays have seen improvements, so maybe we’ll see more successes next year.
McKinsey reports 78% of organisations now use AI, which sounds impressive until you examine the training provision. Only 38% of companies offer practical AI training despite 82% of leaders acknowledging its importance. SHRM found 75% of workers lack confidence using AI tools.
This training gap represents a failure of organisational priorities. Organisations have turned on AI features (Co-pilot from Microsoft being the best example of this) without giving enough consideration of how they should be used to deliver the value that shareholders or governance boards expect.
For many employees, it’s just another tool to use, except in this instance over 70% of workers are genuinely fearful that this one might take their job.
In April language learning app Duolingo boldly confirmed that it would do just that and replace contractors with AI. Only to have to backtrack a month later as subscribers deserted the tool for competitors who still used human linguists.
This will not be the last time that this happens.
The Return-to-Office Standoff
The battle lines hardened in 2025. Amazon (this battle started in 2024), JPMorgan, Starling Bank and Morrisons were just four companies that found themselves in the media as a result of mandated office returns.
Research from Cisco found 77% of employees view strict mandates as a lack of trust. Perhaps more tellingly, 80% of companies admitted losing talent due to RTO policies, whilst those with rigid mandates experienced 13% higher turnover.
My view is that there has to be a balance. Certainly the organisations that I’ve worked with on this issue have achieved far better outcomes by actually involving staff in the design and implementation of a return to office, rather than telling them what to do.
Interestingly in my experience, it’s often the most senior staff that benefit from greater flexibility and it is they who are less likely to stick to the mandated days in the office, than it is the younger staff who they point the finger at!
I think we’ll see more of these battles next year.
Training budgets
Training budgets are showing signs of life. US expenditure reached $102.8bn, up 5% from 2024. Average cost per learner rose to $874.
Yet only 20% of L&D teams report that training is 'strongly aligned' with business strategy.
Focus is slowly shifting towards management training (and not before time), interpersonal skills and executive development. There have been significant cuts in diversity, equity and inclusion training, which has largely been driven by political factors, however - and as I wrote about in January - many companies used it as a box ticking exercise rather than a genuine attempt to change.
Looking to 2026
So what of next year?
Mental health moved from peripheral concern to central challenge in 2025 and this will continue into 2026. Genuine leadership engagement around creating safe, productive places to work - regardless of sector - isn’t going to diminish any time soon.
Emtrain's analysis of 48 million employee responses reveals declining psychological safety. Employee engagement dropped from 88% to 64% year-over-year, whilst O.C. Tanner's research found that 72% of culture initiatives produced no improvements because employees saw them as superficial.
Expect continued tension around AI anxiety; unless organisations invest seriously in training and transparent communication. Without this understanding apathy is likely to increase and should the AI ‘bubble’ burst, it will have ripple effects both inside and outside work.
Employee activism will likely grow; workers will increasingly use social media and unions to demand better treatment or to expose toxic leadership. Unlike previous generations, they will simply not stand by and allow bullying and harassment to become the norm within their place of work.
The organisations that will thrive in 2026 are those that treat their people and culture as a strategic priority rather than HR initiative, investing in management capability and closing the gap between stated values and daily behaviours.
You get the culture that you choose to build. The question for 2026 is whether enough leaders will finally accept responsibility and make the choice to invest in undertaking meaningful work to realise the value that their people can deliver.
Thank you so much to everyone who has read the blog this year and to those of you who have taken the time to message me. The blog will return on Monday 12th January 2026. Please do forward this link to others who you feel might benefit from some daily culture inspiration.
