January 12, 2026 | Industry Trends, Insurance, Our Thinking
2025 Insurance Leadership Review: What has Changed and What is Next
Recently, a consistent theme has emerged among executive leaders surrounding employee turnover. Many are asking the same fundamental question: “How do I reduce unnecessary turnover in my organization?” While some turnover can be healthy, rising workloads and escalating expectations have caused burnout to be a leading driver of attrition, particularly among senior and high-impact employees. Research consistently shows that employees experiencing burnout are significantly more likely to leave, often driven by unsustainable demands or unhealthy work environments. Reducing this type of turnover requires more than competitive pay or expanded benefits. It requires an environment where expectations are explicit, performance is measured consistently, and leaders are trusted to deliver results. This is the foundation of a performance-based culture (PBC), and it offers executives a practical framework for strengthening retention across their organizations. |
What is a PBC?
A performance-based culture is built on a simple principle: leaders are accountable for outcomes and allowed the autonomy needed to achieve them. The focus is not on managing activity, but on enabling results.
In practice, organizations must articulate what success looks like, give leaders room to operate in alignment with their strengths, and transparency around progress measurement. While this requires discipline and intentionality, it creates environments where high performers thrive and engage.
This can be seen in the approach companies took with return-to-office expectations. Rather than issuing blanket mandates, a PBC evaluates what each leader needs to deliver their goals. Leaders consistently meeting expectations may need flexibility to sustain performance, while struggling leaders may benefit from greater in-person collaboration and visibility. Determining the proper approach for everyone is critical to delivering alignment, engagement, and long-term commitment.
Building a PBC
Data consistently shows that high trust, strong alignment, and meaningful responsibility correlate with higher engagement and retention. In fact, employees who trust their managers are reported to be 72% more motivated at work, particularly at senior levels, where impact and autonomy are core motivators.(1)
To build a strong PBC, organizations must provide:
- Clear performance standards. Leaders perform best when expectations are unambiguous. A PBC removes guesswork, reduces frustration, and creates an environment where people can operate with confidence and direction. This clarity is especially stabilizing during periods of change or transformation.
- Simple, real-time reporting. Transparent metrics allow leaders to course-correct and maintain alignment without micromanagement. When data is consistent, accessible, and tied to strategic priorities, leaders can make informed decisions and stay focused on what moves the business forward.
- Consistent ownership. High performers want to be surrounded by others who operate with the same level of accountability. When ownership is applied evenly, including senior leadership, it reinforces trust and strengthens the desire to stay within the organization.
- Recognition that matters. Celebrating meaningful wins reinforces expectations and fuels continued excellence. In a PBC, recognition goes beyond generic praise and highlights specific achievements tied to measurable outcomes. When acknowledgment is timely, authentic, and aligned with organizational values, it deepens engagement, strengthens culture, and encourages leaders to sustain high performance over time.
- Meaningful Development and Long-Term Opportunity. In a PBC, strong performance is directly linked to advancement. This makes development programs, succession planning, and leadership pathways tangible rather than theoretical. When executives can see a future for themselves, retention naturally follows.
- Smart Empowerment to Reduce Burnout. Executive burnout often arises not from workload alone but from ambiguity, unnecessary oversight, and constant reactive decision-making. By tying actions to outcomes and giving leaders the room to operate with purpose, a PBC alleviates several drivers of burnout and allows leaders to sustain performance over time.
A Retention Strategy Built for What is Next
As organizations navigate 2026, they face a leadership environment defined by rapid change and evolving expectations. Retention strategies must adapt accordingly. Performance-based cultures offer a durable, principle-driven approach that remains effective regardless of industry, organizational structure, or working model.
Whether a company is remote, hybrid, or fully in-office, public, private, or PE-backed, a PBC creates alignment, empowers leaders, and anchors top talent. More importantly, it builds a culture that is both resilient and attractive to executives who drive real business impact.
Slayton Search Partners sees firsthand how the right cultural environment elevates both leaders and organizations. We help clients identify executives who thrive in all environments, including performance-driven settings, so organizations can build momentum that lasts.
Source: (1) PwC
