State of Organizational Health Report

Every leader can sense when something is a little off with theirculture, but few have the data to say exactly where the strain is or what tofix first. Dale Carnegie's inaugural State of Organizational Health Report putsnumbers behind that instinct, tracking how communication, empathy,psychological safety and other foundational workplace qualities are actuallylanding across a global workforce.

This free report traces how those foundations shape day-to-dayexperiences with leaders and flow through to the outcomes every organization ischasing: job satisfaction, retention and engagement. Alongside the globalresults, it breaks findings down by region and flags the strategic prioritiesmost likely to close the gaps it uncovers in 2026.

Key takeaways
  • Where 2025 brought real progress, and where it didn't: gains in communication, learning and engagement are concentrated among leaders and hybrid or remote workers,while managers and individual contributors are still waiting to feel the difference.
  • Five key tensions shaping the 2025 workplace, from the gap between leadership conviction and employee experience to why managers remain "stuck in the middle" without the authority or support to lead effectively.
  • Six research-backed strategic priorities for 2026, including turning communication into a system rather than a skill, operationalizing empathy in everyday decisions, and reinvesting in the onsite experience.

Download the Ebook

By submitting this form you agree to our Privacy Policy.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
White Paper

In-group bias is wired into the brain. Specific skills are what override it.

Diverse hires deliver faster problem-solving, better decisions, and stronger financial performance. Whether those hires stay long enough depends on what happens after they arrive.

The brain categorises people into in-group and out-group inside milliseconds, before conscious thought catches up. We perceive faces differently. We empathise at different levels. We react to the same behaviour differently depending on who is doing it.

This Dale Carnegie white paper gives senior people leaders the language and the practical skills model to act on it.

What’s cultural competency?

Cultural competency in the workplace is the skill set that turns cultural awareness into inclusive behaviour. Dale Carnegie research frames it as a two-pillar model: cultural awareness and cultural competency. Awareness is the mindset that recognises in-group bias is a wired feature of human cognition operating in milliseconds. Competency is the practical skill set, empathic communication, conflict management, and change leadership, that overrides those defaults in real interactions. A 40-year meta-analysis of diversity training shows awareness paired with skills delivers stronger outcomes than awareness alone.

Inside the paper

The neuroscience of in-group bias.

Why “be open-minded” guidance underdelivers, and what the brain does when difference shows up in the room.

The two-pillar
model.

Cultural awareness as a mindset, cultural competency as a skill set. Why you need both, and what training tends to skip.

Self-efficacy as the starting point.

How self-confidence and genuine interest combine into the willingness to receive feedback, including from yourself.

The skills that make inclusion stick.

Empathic communication, conflict management, and change leadership, with practical handles for each.

Why now

A 40-year meta-analysis found diversity training works best when awareness is paired with skills development, run over a meaningful period. Awareness on its own sharpens sensitivity to bias without giving people anything to do with it.

If your business has invested in unconscious bias work and you've seen the awareness scores lift but the behaviour hasn't, this paper points to the skill-building layer that makes it stick.

Key numbers and ideas

5 business outcomes that diversity, properly included, has been shown to deliver:

  • Faster problem-solving
  • Better decisions
  • Stronger innovation
  • Higher engagement
  • Better financial performance

Awareness without skills falls short.

Decades of research show awareness training sharpens sensitivity but rarely shifts behaviour on its own.

Self-efficacy = self-confidence + genuine interest.

The Dale Carnegie definition of the internal condition any inclusion work depends on

3 skill areas that turn awareness into behaviour:

  • Empathic communication
  • Conflict management
  • Change leadership

About the research

The paper draws on neuroscience research on in-group bias, decades of evidence on diversity training, and Dale Carnegie's body of work on people skills. Written by Mark Marone, PhD, Director of Research and Thought Leadership at Dale Carnegie & Associates.

About Dale Carnegie

Dale Carnegie has been studying what changes how people communicate, lead, and influence at work since 1912. Over 9 million graduates across 90+ countries. In Australia, we work with HR and people leaders at organisations including BHP, Macquarie, GE Healthcare, Schneider Electric, and Veolia to turn capability frameworks into behavioural change you can see in the room.

Download the
White Paper

By submitting this form you agree to our Privacy Policy.
Download the Paper
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

More Resources

View all
White Paper

Managing Change in the Digital Era: Five Lessons for Leaders

White Paper

The 3 + 3 of Experience Innovation

White Paper

Humble Leaders: What Defines Them, and How They Unlock a High-Performance Culture