Introduction

82% of CEOs say they’ll reduce headcount by up to 20% in the next three years because of AI.

That’s a lot of fear. For employees, it’s another wave of uncertainty: Will I be replaced? Is my job safe? Should I start looking now?

Here’s what I’ve learned from coaching executives through technological shifts: the fear always comes first. Whether it was the internet, offshoring, automation, or now AI, the pattern is the same. Uncertainty creates anxiety. Anxiety drives decisions. And organizations that don’t address the human side of transformation lose the very people they need to make it work.

The Connection Gap AI Can’t Fill

AI can automate tasks. It can write copy, analyze data, screen resumes. What it cannot do is make employees feel like they belong. And belonging is what predicts whether your best people stay.

Gartner’s 2026 report includes a term every CHRO should know: ‘regrettable retention.’ What is ‘regrettable retention’? It’s when disengaged employees stay, damaging your culture from the inside. It’s worse than turnover because you’re paying for the damage.

In an environment where employees are already anxious about AI, the risk isn’t today. It’s what happens when the cuts come. In companies where emotional connectedness is weak, layoffs will be the thing that pushes top performers who were already wavering to finally leave. In companies where employees genuinely believe in the mission, they’re more likely to stay through it.

What CHROs Who Get This Right Do Differently

The CHROs who succeed at retention through disruption don’t focus on programs. They focus on measurement.

They ask different questions: Do our people believe in where we’re headed? Can they see a future for themselves here? Do they feel respected as individuals, not just as roles to be automated or retained?

These questions don’t show up on standard employee satisfaction surveys. That’s why the satisfaction scores look fine while the resignation letters keep coming.

But measuring is only half the equation. The CHROs who retain talent don’t just collect data. They close the loop.

What most people call “survey fatigue” is actually action fatigue. Employees gave feedback. Nothing happened. So they stopped caring. That’s how regrettable retention begins.

The companies that win make action, not data collection, the habit. They act on a few visible insights. They communicate what changed. They build employer branding stories that prove they listened, and they keep generating that proof all year.

I’ve seen this work in healthcare, where staffing crises are existential. In restaurants, where 75% annual turnover is ‘normal.’ In tech, where competitors throw unlimited money at talent.

The companies that win aren’t outspending the competition. They’re out-connecting them.

Why might layoffs trigger collateral attrition in some companies and not others? Layoffs shake the whole organization. In companies where emotional connectedness is weak, top performers who were already wavering get pushed over the edge. The planned cut triggers unplanned departures. In companies where employees believe in the mission, they stay through disruption.

How do you measure emotional connectedness? The Love of Workplace Index measures five dimensions: system alignment, positive future vision, feeling of respect, emotional connection, and killer achievement. These predict retention better than traditional satisfaction or engagement metrics.