The Predictive Index (PI), the data-driven HR platform used to hire top performers, develop effective managers, and retain your people, released findings from its 2025 Workplace Perception Gap Survey by Dynata, revealing a growing crisis of workplace misunderstanding. The national survey of 1,000 consumers found nearly half (46%) believe their boss only somewhat or rarely understands their contributions — a disconnect that may be more damaging to businesses than burnout.

“We’ve long focused on workload-related burnout, but our research reveals a more fundamental issue at play,” said Matt Poepsel, Vice President and Godfather of Talent Optimization at PI. “When employees don’t feel accurately seen or understood, it creates a perception gap that directly impacts retention, performance and innovation. This issue isn’t just about hurt feelings — this negatively impacts business results.”

AI Authority Trend: Vena Earns 100 Percent Satisfaction and 55 Leading Rankings in BARC Planning Survey 25

Key findings from the report include:

  • Forty-four percent of employees report being overlooked for raises, promotions or projects due to misperceptions about their skills or work style.
  • Nearly half (48%) feel their contributions are consistently undervalued by leadership.
  • Forty-three percent receive feedback from managers that feels misaligned with how they see themselves.
  • One in five (18%) workers believe they’re “more capable than they appear on the surface.”
  • Approximately 62% of Gen Z employees report being overlooked for opportunities due to misperceptions — 18 percentage points higher than the overall workforce average.

The survey also found that the perception gap hits younger employees particularly hard, with 54% of Gen Z reporting that manager feedback feels inaccurate or misaligned with their self-perception. This contributes to significant retention risk, with data showing Gen Z will constitute 30% of the workforce by 2030, and job board signups for this generation surging 42% in a single year.

AI Authority Trend: Deloitte, IMA Survey Reveals Tech Trends in Cost Accounting and Profitability

Solutions to close the gap

The research identified clear priorities for addressing this workplace perception crisis, including:

  • Forty-four percent of employees believe better leadership training for managers would improve workplace understanding.
  • Forty-five percent want more frequent and meaningful feedback.
  • An overwhelming 80% of Gen Z employees believe behavioral assessments would help them and their teams better understand their strengths and work styles.

“Traditional leadership approaches are failing to recognize the diverse behavioral drives and work styles that make teams successful,” added Poepsel. “Behavioral data provides the objective insights managers need to truly see, understand and develop their people, including those whose strengths may not always be immediately recognized.”

AI Authority Trend: Deloitte, IMA Survey Reveals Tech Trends in Cost Accounting and Profitability Reporting

Source – PR Newswire

To share your insights, please write to us at sudipto@intentamplify.com