6 Trends Shaping Cold Work in 2026

Focused woman working at a desk with documents, laptop and coffee in soft morning light.Focused woman working at a desk with documents, laptop and coffee in soft morning light.Focused woman working at a desk with documents, laptop and coffee in soft morning light.Focused woman working at a desk with documents and coffee in soft morning light.
A healthcare employee told us, “I sit in my car and cry every evening before coming in the house.” An Office Clerk laments, “I’m just a number, they don’t care about me.” A supply chain manager explains, “It’s this echo chamber of they don’t care, so I don’t care. I don’t know who will break the cycle first.”

These are real comments from employees and employers alike – and the data shows these comments aren’t isolated. We’ve dubbed this moment the Cold Work Crisis.

Cold Work is the tense, silent standoff currently unfolding between employees and employers. Both sides have become disengaged and begun freezing each other out. And both sides are more focused on trying to survive than trying to thrive.

Our latest proprietary research, fielded in June 2025 with our partners at Nonfiction, reveals the six core tensions driving this freeze. These aren’t surface-level complaints. They’re systemic emotional and cultural fractures that are reshaping how people experience work.

It’s vital for HR and business leaders to tackle these tensions – and how they do so will define employee engagement in 2026 and beyond.
1. Flexibility vs. Accountability
The post-pandemic promise of freedom and autonomy is colliding with a resurgence of control. Employees want to work on their own terms, but many feel micromanaged and mistrusted. 1 in 5 employees say they feel scrutinized for how they spend their time during the workday. And 26% report micromanagement, including excessive oversight and premature check-ins.
“We’re f*cking adults. If you want us to get our work done, we don’t need to be micromanaged.” – Retail employee
Leaders are also struggling. More than 1 in 3 employers say employees take advantage of flexible policies, and 1 in 4 have experienced delays due to unresponsive team members. The tension is real: managers want to trust their teams, but fear losing control. As one financial services manager put it, “You have to tighten the leash to make sure things are getting done.”

People leaders are stuck in the middle, reluctantly enforcing policies they themselves don’t believe in. A financial services team lead told us, “I’m constantly having to back up policies that I don’t agree with. I’ll be on camera and have to lock in my eye roll.”

Employees and employers alike are craving a new deal – one balancing flexibility with accountability.
2. Employees Feel Unrecognized
Our study found that nearly 60% of employees feel invisible, undervalued, or replaceable – treated like cogs in a faceless corporate machine. One engineer summed it up: “Management doesn’t care… Everybody is just a body.”

The stories are stark. A customer service rep described being ghosted during training: “They left us in the room for hours without anyone there.” A sales associate who never misses a deadline told us: “I do a great job. I work hard. But I get no recognition.” An office clerk, after losing a parent to cancer: “They didn’t even give me a sympathy card.”

It's not just feeling invisible, there’s a growing sense that work feels meaningless. 30 hours a week in meetings is the norm for many. As workplace culture expert Bruce Daisley put it: “Even if your job was to watch 30 hours of TV a week, your soul would eventually feel sucked.” He added, “Employees … don’t feel consequential.”

Managers aren’t blind to the issue, but their hands are often tied. One financial services manager described advocating for a junior employee’s promotion, only to admit, “The dollars don’t exist. We’ve just given her false hope.”
“I barely have time in my day to say hello to my employees let alone give them the recognition they deserve. It sucks.” – Logistics Manager
Recognition isn’t just about money, it’s about meaning. Employers need to find ways to show how individual contributions drive real outcomes; and to recognize both visible and behind-the-scenes work consistently, so everyone can see the difference they make.
3. The Constant Expectation of Turnover Keeps Everyone on Edge
The corporate culture of long-term loyalty between employee and employer is dissolving. Employment has become more transactional, and it’s creating distrust that’s reshaping workplace relationships. A Fulfillment Associate put it bluntly: “I don’t feel like I have to be loyal to a company. That’s just business.”

The inevitability of turnover makes everyone anxious: 1 in 4 employees are nervous about losing their job in the next year. “I’m just always thinking I could be next.” A manufacturing employee told us “It’s no way to work.”  

And 57% of employers are concerned about unexpected resignations. One logistics manager said, “I quit trying to learn people’s names. They quit. I have other things to do.”  

Though layoffs and reorgs are common, they take a toll on managers who are on the front line. 28% of employers say they’ve had to manage layoffs or role eliminations they didn’t agree with. The emotional fallout is deep: “I was the butcher,” said one manager. “Now my team is scared. They’re just waiting to be next.”

Even high-profile leaders are signaling a shift. AT&T CEO John Stankey’s viral memo declared that employees should not expect loyalty from the company. The message? Performance matters more than tenure.

If trust and loyalty are going to be rebuilt, employers and employees will need to forge a new agreement around those values. This requires crafting win-win arrangements that identify and deliver upon the specific nuances of what each side truly cares about – leading to a working relationship both sides can get behind.
4. Conflict Goes Unrepaired
Workplace conflict is inevitable, but repair is optional – and when conflict goes unaddressed, negativity festers and impacts how we work. 55% of employees and employers say moments of tension, harm, or conflict often go unrepaired.  

Employees describe a culture of silence. One consultant said, “All my friends were fired the day before, and I was supposed to just show up and keep working without anyone acknowledging it.” Another recalled a town hall where the CEO laughed at a question about morale.

Managers cite fear and time constraints. 38% say they’re too busy to address conflict, and another 38% fear making things worse.

Others don’t think the effort is worthwhile. 30% believe issues should resolve themselves, while 26% don’t see it as important. One HR leader told us “A conflict between two employees didn’t get resolved because the supervisor didn’t want to do the paperwork.”

Even when feedback is solicited, it’s often ignored. One HR leader described a pulse survey that led to a generic “we hear you” response, then no follow-up. “I don’t even fill out the surveys anymore,” they said.

Further, inauthentic morale boosters, like pizza parties during layoffs, only deepen the disconnect. One-third of employees say they’ve experienced these “band-aid” solutions during times of high stress. As one HR professional put it, “We needed a tourniquet, not a band-aid.”

Organizations must normalize repair, building workplaces where conflict isn’t avoided, it’s metabolized. Failed projects, layoffs, mistakes, misalignments, and harm will be inevitable. What matters is having the tools and trust to mend them.
5. Generational Divides Are Undermining Teamwork
The generational rift isn’t loud – it’s subtle, cultural, and corrosive. 1 in 4 employees report experiencing tension due to generational divides in work style, communication, or values.  

“The older generation is like ‘if it ain’t broke, don’t fix it,’” a Financial Services Manager told us, “whereas the younger generation says ‘it’s not broken, but is it great?’”  

Due to this generational disconnect, workers are navigating multiple challenges:
33%

cite challenges in communication
tone, formality, or channel
28%

report clashes in place of work
26%

cin definitions of professionalism
21%

in openness to change
There’s tension breeding, but often there aren’t policies in place to address this tension head-on.

One HR lead said, “Job hopping used to be the No. 1 red flag, but now that’s not the case. If they cut everyone who was job hopping, we wouldn’t hire anyone.” Another manager described a younger employee refusing to follow an older lead. “Management hesitated to step in, so the tension grew. The job got done but the attitude was unresolved.”

Without policies to address these divides, frustration grows. As one IT manager said, “They just don't work together on every level. And there’s no easy fix.” And while some companies try to foster collaboration, many still lack the tools to do so effectively.

Leaders need to acknowledge and get ahead of this tension – instead of ignoring the generational divide, design for it by adopting clear, practical policies that address core points of friction head-on.
6. The Current System Isn’t Built for Working in New Ways
Employees want to grow, experiment, and embrace new tools like AI. Employers say they value this – with 85% of employers saying it’s very or extremely valuable to help employees learn, grow, and experiment.

But the reality often falls short, as opportunities to learn and develop within organizations feel increasingly limited. One marketing employee said, “The jobs I’ve loved the most are the ones where I feel like I’m always growing… I have no time right now to do that and it sucks.”

It’s not necessarily a managerial decision to limit growth… but a byproduct of a system with limitations. Darren Murph points out that corporate systems are designed for a 9-to-5 world. This excludes talent with different needs—parents, retirees, portfolio workers. “A smart company would build a system that enables them to come in,” he said.

This is particularly apparent in adopting AI, where employees report haphazard approaches from leadership. “they’re asking us how to use AI. But we’re siloed… and in meetings all the time. How can we have time to figure it out?” one employee told us. “There was no vision.”

In fact, across our research only 7% of employees are satisfied with how their company is implementing AI.  

Without vision, support, and structure, new ways of working just remain ideas. And employees are left siloed, overwhelmed, and stuck. Truly facilitating growth requires creating space and allocating resources for people to build new skills, try new tracks, and grow in non-linear ways, whether they’re full time, contract, or somewhere between.
Thawing the Freeze
These tensions, and how leaders respond to them, will dictate employee experience in 2026. Leaders who confront these tensions head-on – with empathy, vision, and action – can rebuild trust, reignite engagement, and reshape the employee experience.

Our full Cold Work Study 2025 is now available. Over the next several weeks, we’ll investigate each tension, offering strategies and solutions for leaders ready to thaw the freeze.

Read the full report. Start the conversation. And let’s build a better future of work, together.
Matthew dietly
Employee Experience Lead

Let's build a better future of work, together.

Thaw the freeze.

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