Press release
Study Reveals a Major Disconnect Between Executives and Employees

Executives rate effectiveness 27 points higher than employees, revealing a major perception gap in workplace culture.
May 1, 2025
Study Reveals a Major Disconnect Between Executives and Employees
Irvine, CA - A recently released national study reveals a significant disconnect between executives and employees regarding workplace culture, communication, and leadership. While company leaders often rate their organizations highly, many employees report a different reality-one that directly impacts engagement, retention, and overall business success.
The Org Effectiveness Index: A National Study of Success Drivers and Gaps, produced by Terraform Leadership, finds that executives rate their organization's effectiveness 27% higher on average than team members do. This gap suggests that leaders may believe their organizations are thriving, but their employees often experience misalignment in leadership, communication, and workplace priorities.
The Executive-Employee Divide
While companies invest heavily in recruiting, turnover remains a challenge. This study highlights the connection between effectiveness and retention, with top organizations focusing on:
• Culture Blind Spots: Many executives believe their organizations have strong workplace cultures, yet 44% of employees say leadership is out of touch with the realities of their day-to-day work.
• Communication Gaps: Almost one in three employees (31%) say their manager fails to communicate how their work connects to company goals.
• Leadership Effectiveness: More than a third (37%) have left a job they liked due to a new boss they didn't like, highlighting the need for stronger leadership development.
Why It Matters
"An effective organization isn't just about operations-it's about how well leadership connects with and supports its people," says Angela Lin Yee, Founder of Terraform Leadership. "When executives and employees are not aligned, organizations risk disengagement, turnover, and reduced performance."
Executives looking to bridge these gaps and gain deeper insights can explore more key findings and download The Org Effectiveness Index for free at terraformleader.com/study.
###
Terraform Leadership
92 Corporate Park, Suite C #712
Irvine, CA 92606
For media inquiries or executive briefings, please contact:
Angela Lin Yee
949-381-1732 • angela.yee@terraformleader.com
Terraform Leadership Consulting
Terraform Leadership helps leaders move from strategy to execution with clarity, confidence, and focus. Rather than leaving vision at the whiteboard, leaders work with Terraform to define clear priorities, align their teams, and follow through on what matters most.
With practical tools, coaching, and collaborative planning, leaders learn to navigate complexity, make strategic decisions, and build the habits and systems that turn ideas into results. The goal isn't just a better plan-it's a leader equipped to lead it well.
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