AI Is Driving Up Demand for Leadership Skills and the Pay That Comes With Them
Companies Are Making Fewer Hires Because They’re Making Better Ones
Hiring has slowed sharply, but Goldman Sachs offers a more nuanced read on why. In a recent analysis, the firm’s economists found that short-term job separations, meaning workers who leave or get let go shortly after starting, have been declining for two decades and accelerated after the pandemic. The data comes from U.S. Census Bureau figures and Canadian labor force data and holds broadly across industries.
The explanation provides better information on both sides. Workers can research employers on LinkedIn, Glassdoor, and Indeed before accepting an offer. Employers are using digital screening tools, including AI, to filter out poor fits earlier. Fewer mismatches means fewer early exits, which means less need to backfill.
Goldman frames this as a more efficient labor market overall. The risk, as the firm notes, is that in a low-hiring environment, a further pullback hits displaced workers and younger job seekers hardest. Better matching efficiency doesn’t help much when there aren’t enough openings to compete for in the first place.
Related: Future of Recruiting
Staffing your team doesn’t have to be hard.
Reach out and see how we can help.
March Madness Will Cost Employers $12.1 Billion
The 2026 NCAA tournament is projected to cost employers $12.1 billion in lost productivity, up $2.5 billion from last year, according to Challenger, Gray & Christmas. The increase comes despite a slightly smaller workforce. The employment-population ratio dropped to 59.3% in February 2026 from 60.1% a year earlier, but average hourly wages rose to $37.32 from $35.94, pushing the total cost higher.
About 40.3 million working Americans are expected to engage with the tournament. Of those, 26% are projected to call off work for at least one day, costing employers roughly $2.6 billion in absences. The remaining cost comes from workers spending an average of 25.5 minutes per workday on tournament activity across the 15 working days of the event.
Challenger’s advice: lean into it. For organizations still recovering from layoffs, return-to-office friction, or a difficult stretch, the tournament is a low-cost morale opportunity. Watch parties, bracket competitions, and team gear days can rebuild connection and re-engage workers who have had a hard year.
Related: Workplace Culture Ideas
Frequently Asked Questions
Demand for leadership skills has held up much better than overall hiring, with postings requiring leadership falling just 8% year-over-year compared to 20% for other roles, per Revelio Labs. The salary premium for leadership skills has climbed to 40% above comparable roles, up from near zero in mid-2023. As companies integrate AI into their workflows, the need for workers who can coordinate people, oversee automated processes, and handle judgment calls has grown rather than shrunk.
Roles with higher AI exposure are seeing the largest increases in leadership skill requirements, according to Revelio Labs. When AI automates routine tasks, human workers shift toward oversight, exception handling, and coordination. Those activities require leadership capabilities even outside formal management titles, which is why AI-exposed roles are demanding more from workers, not less.
Goldman Sachs points to better matching between employers and workers as a key factor. Short-term job separations have declined for two decades, meaning fewer hires leave or get let go shortly after starting. Better screening tools, including AI, and platforms like LinkedIn and Glassdoor, have helped both sides identify stronger fits upfront. Fewer bad hires means less need to backfill, which reduces overall hiring volume even in a healthy economy.
Challenger, Gray & Christmas estimates the 2026 tournament will cost employers $12.1 billion in lost productivity. About 40.3 million working Americans are expected to engage with the games, with 26% projected to call off work for at least one day. Workers are estimated to spend an average of 25.5 minutes per workday on tournament-related activity across the event’s 15 working days.
Challenger, Gray & Christmas recommends the opposite. For teams recovering from layoffs, return-to-office mandates, or a difficult stretch, the tournament is a low-cost morale opportunity. Office pools, watch parties, and bracket competitions can rebuild connection and reengage workers. The goodwill generated tends to outweigh the productivity cost, particularly when morale is already strained.
