More than half of workers in the United States view their senior leaders as just good rather than exceptional, according to a March 24, 2026, study from Chicago-based The Grossman Group and The Harris Poll. This gap in leadership quality is causing a decline in workplace productivity because employees who work for exceptional leaders feel three times more valued. In a city like Chicago, which is home to many major corporate headquarters and a growing technology sector, these findings show that businesses must focus on emotional intelligence to keep their workers engaged and effective.
The Gap Between Good and Effective Leadership
The research highlights a significant problem in the modern office. While many managers are competent at their jobs, they are not meeting the emotional needs of their teams. Only 11% of employees surveyed described their senior leaders as exceptional. The majority of the workforce feels their bosses are simply doing the minimum required to manage a department.
This distinction is important for the Chicago economic outlook. When an employee feels their leader is exceptional, they are much more likely to stay with the company. The data shows that 85% of people with high-quality leaders plan to stay at their current job for the next year. For those with leaders who are just good, that number drops to 52%. In a competitive market, losing nearly half of a workforce can be expensive and disruptive for local businesses.
Expert Insights on the Human Element of Business
David Grossman, the founder and CEO of The Grossman Group, spoke about these findings at a recent event in the Loop. He explained that many leaders are focused on the wrong things. “Leaders often think they are doing a fine job if the numbers are correct and the tasks are finished,” Grossman said. He noted that while technical skills are necessary, they do not build trust. “Workers are looking for a human connection, especially during times of change. They want to know that their boss understands their challenges and cares about their success.”
This need for connection is a primary driver of productivity. The study found that employees are 50% more productive when they believe their leader is honest and open with them. This is particularly relevant for Chicago’s tech corridor, where rapid changes require teams to be flexible and focused.
The Impact of Artificial Intelligence in the Workplace
The year 2026 has brought many new tools to the office, specifically in the area of artificial intelligence. While AI helps with data and automation, it also creates stress for many workers. About 75% of the employees in the study mentioned that new technology makes their daily work feel more complex and less certain.
Libby Rodney, an executive at The Harris Poll, shared how this affects the relationship between managers and staff. “As machines take over more technical tasks, the role of the human leader changes,” Rodney said. She explained that when technology handles the data, the leader must handle the people. “Our research shows that a lack of empathy is the main reason workers feel disconnected. People do not want to be managed by a machine, and they do not want a human boss who acts like a machine.”
Generational Shifts in Chicago’s Workforce
The study also looked at how different age groups view management. Younger workers in Chicago, especially those in Gen Z, have specific expectations for their bosses. They prioritize career growth and mental well-being over traditional corporate structures. They are more likely to demand clear communication about the social impact of their work and the future of the company.
For many local firms, this means a shift in how they train their executives. Traditional leadership development often focuses on strategy and finance. However, the current data suggests that training should focus on listening and empathy. Businesses that ignore these human skills may find it difficult to hire young talent in the city.
Economic Benefits of High-Quality Management
The financial impact of this leadership gap is clear. Companies with exceptional leaders see higher levels of innovation and lower costs related to hiring new staff. In Chicago, where the cost of living and doing business is a frequent topic of discussion, efficiency is vital.
Employee Retention: People with exceptional bosses are three times more likely to stay at their company.
Engagement: Workers are 70% more likely to say they feel proud of their work when they trust their leadership.
Productivity: Clear and honest communication leads to a 50% increase in output from teams.
These numbers show that better management is not just a nice idea, but a practical business strategy. By focusing on how they treat their people, Chicago executives can improve their bottom line.
Looking Ahead for Chicago Businesses
The findings from this local research suggest that the city’s business community is at a turning point. As more firms move their operations to neighborhoods like the West Loop and the Fulton Market District, the culture of the office is changing. The old style of management is losing its effectiveness.
To remain competitive with other tech hubs, Chicago companies must invest in their people. This starts with the people at the top. Moving from a good leader to an exceptional one requires a commitment to learning new ways of interacting with a team. It involves being present, being vulnerable, and being clear about the future.
The study from The Grossman Group and The Harris Poll provides a clear guide for the future. While the technology of 2026 is powerful, the success of a business still depends on the humans who work there. Closing the gap between employee expectations and leadership behavior is the next major challenge for the city’s corporate world.
