This ‘small’ leadership slip is secretly killing morale

A growing body of research suggests that what feels like a “small” management oversight can quietly drain morale—and productivity—across an entire organization, Inc. writes.

A new study from Wharton finds that even minor interpersonal slights, such as forgetting to acknowledge an employee’s birthday or overlooking simple gestures of recognition, can trigger measurable declines in engagement.

In one striking example, workers whose managers missed small, expected courtesies showed a 50% increase in absenteeism, along with reduced working hours. Rather than dramatic confrontations, employees responded with subtle forms of disengagement: arriving late, leaving early, and stretching breaks—small acts that add up to meaningful productivity losses over time.

The takeaway for leaders is clear: culture is shaped in the margins. 

Consistent, basic human recognition isn’t “soft”—it’s a performance driver. Leaders who dismiss small gestures may unknowingly create conditions for quiet retaliation, eroding trust and output in ways that are easy to miss but costly to ignore.

Read the full story. A subscription may be required.