Your Team Can't Quit — Now What?

2026-05-05 · Source: MIT Sloan Management Review · Field: Business & Management — Human Resources & Workforce Development, Corporate Strategy & Leadership · Depth: Fundamental Awareness, quick

Summary

Amidst a hiring recession, leaders may encounter disengaged team members who are unable to find new employment. To manage this situation, a three-pronged approach is recommended. First, leaders should cultivate a non-threatening work environment, specifically by avoiding alarmist rhetoric about job displacement due to AI. Second, the focus should shift from "performativeness" to genuine performance, reducing demands for emotional labor and long hours, thereby conserving employee energy for essential tasks. Third, leaders should enable employees to engage in aspects of their jobs they still find enjoyable, such as coaching or mentoring, to foster a more positive experience despite overall disengagement.

Key takeaway

For managers navigating a hiring recession with disengaged teams, you should prioritize creating a secure and productive environment. Focus on tangible performance metrics over superficial displays of engagement, and actively seek opportunities for your team members to engage in tasks they genuinely enjoy, like mentoring, to improve morale and productivity.

Key insights

Leaders can mitigate disengagement during a hiring recession by fostering a supportive, performance-focused, and enjoyable work environment.

Principles

• Reduce job-related fear
• Prioritize real performance
• Support enjoyable work aspects

Method

Cultivate a non-scary environment by avoiding AI job displacement rhetoric. Focus on actual performance, not performative behaviors. Allow employees to engage in enjoyable job aspects like mentoring.

In practice

• Avoid AI job-loss discussions
• Evaluate output, not hours
• Offer mentoring opportunities

Topics

• Disengaged Teams
• Hiring Recession
• Employee Engagement
• Workplace Environment
• Performance Management

Best for: Executive, Consultant, HR Professional

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Editorial summary, takeaway, and curation by AIssential. Original article published by MIT Sloan Management Review.