The 5 Unseen People Challenges Leaders Must Face in 2026
As we approach a new year, I’m urging leaders and managers to pause and reflect – it’s time for strategic, actionable thinking about how we’ll lead into 2026. Expectations at work have changed, people have changed, and the way organisations respond needs to change too.
I’m sharing the five people challenges that simply can’t be ignored if you want a work culture where employees thrive, not just survive. You’ll also hear my suggestions about where to start for each challenge to make a real difference for the year ahead.
The reality facing us? Emotional exhaustion is everywhere, often hidden behind the facade of resilience. High output does not mean high wellbeing – it’s all too easy to misinterpret performance and overlook quiet depletion within teams. If left unchecked, this erodes empathy, creativity, and ultimately, results.
I’m seeing manager capability gaps widen, especially as they avoid difficult conversations or rely on tech for easy, yet superficial, solutions. Managers are now the critical link between strategy and reality. They need practical support to become skilled communicators who coach rather than instruct – tackling feedback, boundaries, and emotional intelligence head-on.
With more of us working hybrid or across multiple sites, culture is fragmenting. Belonging, consistency, and trust now hinge on intentional daily habits, observable behaviours, and rituals that build connection, even at a distance. Culture is built moment to moment: in tone, clarity, and follow-through, not slogans on the wall.
The world is also less predictable – dealing with brittleness, anxiety, non-linearity, and incomprehensibility. Thriving teams need to practise flexibility, foster trust, adapt quickly, and ensure shared understanding.
Finally, a warning – there’s often a gulf between what leaders believe is happening and the lived reality for their teams. Listening, curiosity, consistent communication, and small intentional changes matter more than ever.
Ask yourself: Where are the cracks? Where do the opportunities lie for your leadership, your management approach, and your team’s ability to perform at their best? When people thrive, business thrives. Let’s start that journey now.
Resources & References
Download the free resource: Leading in 2026 – The 5 Critical People Challenges and Actions for Thriving, High-Performing Teams
Listen to this episode on YouTube
Download the High Performance Accelerator to increase self-awareness
To reduce the anxiousness experienced in our BANI world, this discussion framework could prove helpful: Tackling Anxiety Collectively: Team Discussion Framework
Explore ways to build resilience: 13 Skills to Build Resilience
Contact details for Lisa LLoyd:
LinkedIn: lisapsychology
Website: itstimeforchange.co.uk
Sign up to be kept in the loop: itstimeforchange.co.uk/jointheclub
Contact me: itstimeforchange.co.uk/contact
Email me for a friendly chat: lisa@itstimeforchange.co.uk
