Hilton research: Manager relationships fuel retention and RTO success

• Key Insight: Discover how managers, not technology, will determine retention in the AI era.  
• What's at Stake: Weak management and burnout threaten productivity and talent retention across industries.   
• Forward Look: Prepare for AI adoption requiring transparency, upskilling and manager-led cultural change.
  Source: Bullets generated by AI with editorial review

As AI reshapes the future of middle management, a new survey from hotel giant Hilton highlights a workplace reality that remains unchanged: Employees still place enormous value on their relationship with their managers.

Half of workers cite feeling valued as a top reason they stay in their jobs, and 92% say having a good relationship with their manager is critical to their happiness, according to Hilton's first Workplace Culture Trends Report.

Burnout (41%) and weak managers (33%) are the top two barriers to worker performance. Seventy-seven percent of workers say they are more likely to stay in their place of employment when leaders listen and foster community. 

"In a world that is increasingly digital, fast-paced and disconnected, people are craving something fundamentally human: connection, trust, stability and the opportunity to grow," said Christine Maginnis, senior vice president of global head of talent at Hilton. "The report shows that when employees experience those things, they're more engaged, more likely to stay and ultimately deliver stronger business results." 

Read more: Managers play a key role in employee mental health, benefits use

Maginnis recently spoke to Employee Benefit News about those survey findings and more, including how employers can strengthen workplace connections, navigate the rise of AI and build cultures that encourage employees to stay. This interview has been edited for length and clarity. 

Your report says workers still see value in the office. Does that mean the RTO debate is starting to shift?
The report highlights an evolving perspective on the return to office conversation, with many organizations exploring how to reframe office attendance around the opportunity it provides. Workers, particularly younger generations, are not just seeking productivity from the office, but primarily a hub for connection, relationships and community as they enter the early years of  their career. For instance, 94% of workers see purpose in the office — and a striking 96% of Gen Z workers — value coming into the office. This desire is partly driven by the finding that nearly half of early-career workers report feeling lonely at work, with Gen Z being twice as likely as Gen X to experience this. 

So, it's not about requiring presence, but about creating environments that are a magnet, not a mandate. It means creating opportunities for team members to gather, connect and build the trust and relationships that are essential for a thriving culture and innovation. 

More than half of workers are anxious about AI. What should employers be doing differently right now?
It's understandable that people feel anxious. Whenever there's significant technological change, there's uncertainty. The role of employers is to replace uncertainty with clarity. That starts with being transparent about how AI will be used, investing in training so employees feel confident using it, and reinforcing that AI is there to augment people, not replace what makes them uniquely valuable. 

At Hilton, we see AI as a tool that helps our Team Members work more effectively so they can spend more time doing what only people can do: building relationships, solving problems and delivering genuine hospitality. When organizations invest as much in preparing their people as they do in the technology itself, they build trust, and that's what enables successful adoption. 

How should employers balance AI investments with investments in people and skills?
Success requires a hybrid model where technology is blended with human judgment, keeping people firmly in the loop and giving them the opportunity to use technology to enhance their work, not replace it. If you can do that, then you can empower them and enable them to thrive in their roles. 

Technology can create scale, but it can't create culture. By creating opportunities for teams to learn and experiment with AI together, we can foster a sense of community and shared growth. This approach ensures AI is a tool that enhances our capabilities, not a constraint on human connection. 

Your research says managers have an outsized impact on happiness. How should employers better support and train managers? 
A critical focus should be training managers to offer "empathetic flexibility," because 71% of workers say they are more likely to stay with a company if their manager offers flexibility for personal needs. At the end of the day, it's about ensuring your  teams have a human-first approach to leadership. That's how you're going to build engagement, loyalty and performance.  

As leaders, it's our role to empower managers to build everyday moments where people feel seen and valued. To do this effectively, we must equip them with the practical tools and decision-making autonomy needed to support their teams' unique, real-life situations. By shifting our training from strict policy enforcement to human-centric leadership, supported by  the tools and autonomy they need to succeed, we enable managers to build deeper trust and long-term loyalty. 

If budgets are tight, which culture investments deliver the biggest return on retention? 
You don't need expensive, flashy perks to keep your team engaged and loyal. Our research found that human-centered elements like feeling valued and having clear career growth far outweigh perks as top drivers of retention. Mentorship is also a massive and cost-effective driver, with 77% of workers reporting that mentorship has an impact on their happiness at work.  

Which of these trends do you think companies are still getting wrong? 
I think too many organizations still think of culture as a program instead of an everyday experience. They invest in benefits, initiatives, or new technologies, but underestimate the impact that managers, team dynamics and daily interactions have on how people actually experience work. 

Our research shows that whether we're talking about AI, career growth, flexibility or connection, the common thread is trust. Employees want to feel supported, heard and confident that their organization is investing in their success. The organizations that get this right won't be the ones with the most programs, they'll be the ones that consistently create an environment where people feel connected, empowered, and able to do their best work.