The Leadership Mindset for Attracting and Retaining Talent in 2026

It’s challenging but not complicated.

1. People work for how they feel.

2. At the end of the day, it all comes down to relationships.

3. How we feel in the relationships with our bosses is still the number one attractor, activator, and keeper of great talent.

Mattering Matters

In this powerful episode of the Small Giants podcast, Zack Mercurio articulates the premise and power behind mattering. At our core, humans want to matter and it drives everything.

Mattering isn’t about being famous, getting awards, or having the top position. It boils down to a very basic question: “Is my existence in this world significant in any way?” When we feel like we matter, we show up.

Zack Mercurio shares powerful and practical examples of how leaders can support mattering in their relationships with employees.

When I listened to this podcast, I realized that mattering starts with the Three Switches of a Compassion Mindset: Value, Capability, and Responsibility.

Mattering is reinforced with each switch.

Humans want to feel valuable, without conditions. In our Compassionate Accountability® leadership training, we teach three Compassion Skills: Openness, Resourcefulness, and Persistence. For each skill, we teach three observable and learnable strategies. The three ways to be Open are to validate, disclose, and empathize. Validation is when we affirm another person’s feelings and experiences. Disclosure is when we share our own feelings and experiences. Empathy is when we connect with others because we’ve shared similar feelings and experiences. Each of these facets of Openness reinforces that our feelings and lived experiences are a valuable part of who we are and serve as powerful connectors with other people.

Openness doesn’t just show people they are valuable; it creates a safe space where leaders can learn the emotional data that’s driving behavior and better adjust to meet the needs of their employees.

Humans are agentic beings. This means we are hard-wired to learn, grow, and make things happen in the world around us. This is why principles of autonomy and self-determination are so important in human societies, because they support our need to feel capable. Capability is reinforced when we recognize a person’s contribution, ask for their perspective, or invite them to help solve a problem.

Stephen Glenn and Jane Nelson wrote one of my favorite parenting books, which has significantly influenced my view on leadership. The principles in this book are timeless and apply across the lifespan. I highly recommend reading Raising Self-Reliant Children in a Self-Indulgent World if you want to learn practical tips for reinforcing capability.

Actions have consequences. This phrase is often used to emphasize accountability, usually when someone is in trouble or suffering a negative consequence. Another way to think about it is that our actions are consequential. They matter. Because humans live and work together, our choices and behaviors impact each other. When people believe they don’t matter, they might say, “Nothing I do makes a difference,” or “It wouldn’t matter if I didn’t show up to work tomorrow.”

Each of us is 100% responsible for our feelings, thoughts, and actions. No more, no less.

Responsibility is refined when we discern and talk about our boundaries and principles and how our choices impact others. When we ask people to show up, step up, and own up while preserving their dignity, we send a strong message that they matter. When we depend on people, trust people, and make commitments with people, we underline that mutuality and interdependence can only work when we are responsible.

Mercurio emphasizes that the most impactful things leaders do to create mattering are not big things, but the small moments applied in a consistent way every day.

As a leader, when you approach your role with a Compassion Mindset and treat your employees as valuable, capable, and responsible, they will feel that they matter. This is the most impactful thing you can do to attract and retain great talent in the coming year.

Copyright Next Element Consulting, LLC 2025