The rise of the workplace situationship and what it means for leaders

A new workplace trend is emerging, and it should give leaders pause for thought.

Recent research from career platform Zety found that 59% of employees do not see a clear long-term future with their current employer, while almost two-thirds believe their employer is not fully committed to keeping them for the long term.

The report describes this growing phenomenon as a "workplace situationship" - an employment relationship characterised by uncertainty, mixed signals and a lack of shared commitment about what comes next.

While the study was conducted in the United States, the underlying themes will feel familiar to organisations around the world. In today's economic climate, many employees are choosing stability over fulfilment, remaining in roles that no longer inspire them while waiting for greater clarity about their future.

The result is a workforce that may be staying put but is not necessarily engaged.

Retention does not always equal engagement

For years, organisations have focused heavily on employee retention. Understandably so. High turnover is disruptive, costly and damaging to organisational performance.

However, the Zety findings point to a different challenge. Employees are not always leaving because they are satisfied. Many are staying because of financial pressures, familiarity, benefits and uncertainty in the wider job market. Sixty per cent cited financial stability as a key reason for staying, while 47% said their role simply felt comfortable or familiar.

This creates a form of professional limbo.

Employees remain employed, but they are no longer actively investing in their future within the organisation. They may be less likely to seek new responsibilities, pursue development opportunities or contribute innovative ideas. Their commitment becomes transactional rather than aspirational.

For leaders, this presents a significant risk. An organisation can appear stable on the surface while experiencing a gradual decline in motivation, engagement and performance beneath it.

The leadership challenge behind workplace situationships

What is particularly striking about the research is that many of the reasons employees feel stuck are directly linked to leadership and workplace culture.

Respondents highlighted limited growth opportunities, feelings of frustration and unfulfillment, poor manager relationships and unclear expectations as some of the most common factors contributing to their workplace situationship.

These are not simply HR issues.

They are leadership issues.

Employees are increasingly looking for purpose, development, transparency and meaningful conversations about their future. When these elements are missing, uncertainty grows. Trust diminishes. Engagement suffers.

In many cases, employees are not necessarily seeking a pay rise or a promotion. They are seeking clarity.

They want to understand where they are heading, how they can grow and whether their organisation is genuinely invested in their development.

Why executive coaching matters more than ever

This is where executive coaching has a critical role to play.

Effective coaching creates space for reflection, challenge and meaningful dialogue. It helps leaders develop the skills required to communicate with greater authenticity, create psychological safety and support career development more effectively.

At an organisational level, coaching can help address many of the conditions that create workplace situationships in the first place.

When leaders and line managers are coached to have stronger development conversations, employees gain greater visibility over potential career pathways. When managers develop their coaching capability, workplace relationships improve. When leaders become more self-aware, communication becomes clearer and trust grows.

Perhaps most importantly, coaching helps individuals move from uncertainty to intentional action.

Rather than remaining stuck in professional limbo, employees and leaders alike are encouraged to think strategically about their goals, values and future direction.

Joanna Dawson, interim head of AoEC for Business, commented: "Although this research was conducted in the US, the themes resonate strongly with organisations around the world. While much has been written about the Great Resignation in recent years, this latest trend suggests it may be on hold rather than over. Many employees are no longer actively looking to leave, but neither are they fully committed to staying. Instead, they are navigating a form of professional limbo, remaining in roles because it feels safer than moving on while lacking a clear sense of future direction.

"Executive coaching can play a vital role in breaking that cycle. By helping leaders have more meaningful conversations about growth, purpose and development, coaching creates the clarity and confidence that employees increasingly need. In a period of ongoing uncertainty, coaching is no longer simply a development intervention. It is becoming an essential leadership capability."

Looking beyond turnover metrics

The most interesting insight from the workplace situationship trend is that organisations may need to rethink how they define organisational health.

Low employee turnover should not automatically be viewed as a sign of success.

The more important question may be whether employees see a future within the organisation and feel supported to grow towards it.

In a world fashioned by economic uncertainty, changing career expectations and evolving workplace models, leaders cannot assume commitment will happen naturally. It must be nurtured through trust, communication, development and shared purpose.

Executive coaching offers a powerful way to strengthen these foundations. Because ultimately, the goal is not simply to retain employees. It is to create workplaces where people can genuinely see a future worth committing to.