C-suite Perspectives

In Padilla’s fourth annual C-suite Perspectives Study, we’re seeing leaders operate with a heightened sense of urgency – not because uncertainty has faded, but because it has become the norm. After years of disruption, leaders are more comfortable steering through volatility, risk and change, and they’re determined to show progress.

The C-suite is accelerating decision-making and building flexibility into strategies they expect to revisit and refine in 2026.

The “K-shape” that’s taking place due to economic impacts is also showing up as a divergence of points of view between leadership and employees that the C-suite will need to manage on change readiness, hybrid work, well-being and AI benefits.

What It Takes to Lead Today

• Credibility, vision and authenticity: These “classic” leadership qualities ranked as the three most important, signaling a paradoxical need to show both certainty and vulnerability.
• Stoicism and fearlessness: These traits rose significantly in importance as leaders are seeking to project stability amidst constant change.

Implication: While leaders are understandably leaning into the more traditional qualities in order to “power through” the uncertainty, employees may need more of the emerging leadership traits of empathy, transparency and humanity to be brought along.

Settling, Not Settled, into Hybrid Work

• More than 3/4 of organizations are maintaining or shifting to hybrid models if they don’t have them already.
• Nearly 1/4 of leaders are tightening expectations around the time spent in office, and offering fully remote models is becoming less and less popular.

Implication: If companies are planning more adjustments to hybrid work policies, it’s paramount to get employee buy-in and understanding so new changes don’t derail performance or incite talent flight.

Change Readiness Gap

• 2/3 of leaders believe employees are well-equipped to embrace and assist with change initiatives within the organization.
• Less than 1/2 of employees agree.

Implication: This disconnect underscores the importance of intentional change communications to help build employee engagement and change-resilient cultures.

Who’s OK? Who’s Not?

• 42% of leaders report a significant improvement in their well-being. For the majority, that well-being is coming through a commitment to self-care and balance and is not the result of improved business performance.
• Almost half of leaders believe employee well-being has improved as well.
• Only 25% of employees agree that their well-being has improved, tied more to better health, self-care and mindset than internal workplace factors.

Implication: This marks another opportunity for leaders to support employees through effective change communications and investing in employer brand and wellness programs.

Is AI a Threat or a Benefit?

• Nearly nine in ten leaders say their organizations are adopting AI aggressively or selectively.
• Employees are significantly less likely than leaders to view AI as a net benefit. They’re not necessarily opposed – it’s more that they’re unsure.

Implication: Organizations must drive urgency around AI adoption by merging the disciplines of change management and thought leadership, with clear narratives about intent, value and expectations.

Taking a Stand — Selectively

• More than half of leaders believe it’s important to speak out about a relevant external social issue –
  a substantial increase from last year. But they’re especially diligent about focusing on issues directly applicable to their businesses.
• Nearly four in ten employees, however, believe their companies are avoiding taking a stand.

Implication: Leaders can address this disconnect between employee perception of the company “speaking out” in support of social issues by spending more time communicating internally about the “why, when and how” of taking stands, and leaning into existing company values and reinforcing business priorities.

DEI Language — Shift in Positioning

• Some organizations are choosing different language to describe their DEI efforts, even as many leaders remain committed to programs that align with business objectives, mission and values.
• Many leaders are increasingly using terms like belonging, inclusion, fairness and community impact instead of DEI.

Implication: Although the terminology is showing up differently, many benefits of DEI – including talent attraction and retention, company culture and brand reputation – remain highly valued by leaders and employees.