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C-Suite Leadership · Organisational Performance · United States

Leading a Workforce That Disagrees.

Political difference is now the leading contributor to incivility inside US workplaces. Treated as a culture-war question, it is unsolvable. Treated as an operating problem, it is manageable.

Most executives we work with have stopped asking whether political division belongs in the workplace conversation and started asking what it is costing them. That is the more productive question, and it has an answer. This piece is not an argument about politics. It is about how a chief executive keeps a divided workforce executing, which is a management problem with management solutions.

The measurable cost, not the culture war

SHRM has tracked civility in US workplaces since 2024, and the Q2 2026 reading is the highest since the index began. Workers scored 41.9 on the workplace-level Civility Index, crossing the 40-point threshold for the first time since late 2024, with the society-level score at 51.0. Among workers who experienced or witnessed incivility, 61% said at least one instance happened at work, up from 55% two quarters earlier.

The contributing factor at the top of the list, as it has been throughout the tracking period, is political viewpoint difference, cited by 41% of workers, now tied with differences of opinion on social issues at the same figure. Racial or ethnic differences and age or generational differences follow at 36% each.

The cost estimate is where this stops being an HR topic and becomes a P&L one. Workers reported losing an average of roughly 33 minutes of productivity per uncivil act, and taking about 2.2 days away from work over the period specifically to avoid incivility. Scaled to the US labour force, SHRM puts the combined daily cost of lost productivity and incivility-driven absenteeism at approximately $2.66 billion, up around $350 million per day since Q4 2025.

Those are national aggregates and no single company should read its own number off them. The directional point is what matters: this is a rising, quantifiable operational drag, and it is trending the wrong way.

41%
Of US workers cite political viewpoint differences as a contributor to workplace incivility, the leading factor (SHRM, Q2 2026)
$2.66B
Estimated daily US cost of lost productivity and incivility-driven absenteeism
43%
Of workers say their manager could have done more to prevent incivility

Why this lands on the C-suite

Three structural changes have moved this from a middle-management annoyance to an executive agenda item.

The first is that the boundary between work and public life has thinned. Distributed teams, always-on messaging platforms, and employees whose professional and personal identities live on the same networks mean there is no longer a physical threshold at which the outside world stops.

The second is that employees increasingly expect institutional positions from their employer, and different employees expect opposite positions with equal conviction. A statement that reassures one part of the workforce is read by another as the company taking a side against them. Silence is read by both as a position too. There is no neutral output, only a choice about which cost to carry.

The third is that the C-suite has become a public role in a way it was not twenty years ago. A chief executive's remarks travel outside the company immediately and without context. That raises the stakes on every internal communication and, in our experience, causes many leaders to over-correct into vagueness, which employees reliably interpret as evasion.

What all three have in common is that they change the environment, not the leader's job. The job is unchanged: keep the organisation aligned on what it is trying to accomplish, and make sure people can work with colleagues they disagree with.

Employees do not need their chief executive to agree with them. They need to know the standard is the same on the days they are in the majority and the days they are not.

Red Lion Advisory

The speak-or-hold decision

The most common question we get from chief executives on this subject is whether to say something publicly when a political or social event dominates the news. Reasonable people, and reasonable boards, land in different places, and it is worth being honest about why.

The case for speaking is that visible silence on an issue affecting employees directly reads as indifference, that values stated only in the good times are not values, and that certain constituencies, among them customers, recruits and regulators, now factor a company's public posture into their decisions. The case for holding is that a company is not a political actor, that any statement inevitably alienates a meaningful share of a workforce that did not join to adopt an employer's politics, that each statement creates precedent obliging comment on the next event, and that executives have limited credibility outside their domain.

Both cases are serious, and the choice between them is a business judgment rather than a moral one. What separates companies that handle it well from those that do not is rarely which way they lean. It is whether they decided in advance.

The standard most boards eventually converge on is materiality: the company comments when an issue directly affects its employees, customers, operations, or regulatory environment, and does not when it does not. It is not a perfect line. It is a defensible one, it can be applied consistently, and it gives a leadership team something to point to when the pressure to comment arrives from one side or the other.

Three practical disciplines make the standard hold:

  1. Write it down before you need it. A one-page standard, agreed with the board and the general counsel while nothing is happening, is worth more than any statement drafted at 11pm under pressure from a single stakeholder group.
  2. Separate the company's voice from your own. Executives are citizens. The problem arises when a personal view is delivered through a corporate channel, or in a setting where the audience cannot tell which one they are hearing. Clarity about which hat you are wearing resolves most of the ambiguity.
  3. Address the operational impact even when you hold on the politics. If an event affects employees' safety, immigration status, benefits, or ability to work, saying so and explaining what the company is doing is not a political statement. It is basic operational communication, and leaders who conflate the two end up saying nothing at all when their people need something concrete.

Regulate conduct, not opinion

The instinct to ban political discussion at work is understandable and mostly counterproductive. Blanket bans are almost impossible to enforce evenly, because some conversations get flagged and others do not, and uneven enforcement is read as institutional bias, which is precisely the accusation the ban was meant to avoid. It also pushes the conversation into private channels where no manager can see it and no standard applies.

The more durable approach regulates behaviour rather than belief:

  • A conduct standard, applied symmetrically. Personal attacks, contempt, exclusion and pressure to disclose one's views are out of bounds. The test is the behaviour, not the viewpoint that motivated it. Symmetry is the whole point: the first time the standard is applied to one side and not the other, it stops being a standard.
  • Clear rules on company channels and company time. What the all-company Slack is for, what internal distribution lists may be used for, whether the company brand may be attached to political activity. These are ordinary resource policies and they are far easier to enforce than speech rules.
  • Consistency in how exceptions are handled. Senior people are not exempt. A standard that visibly stops at the executive team is not a standard, and employees notice within days.
  • Legal grounding. A number of US states restrict employer action against lawful off-duty political activity, and rules vary meaningfully by jurisdiction. Any policy should be reviewed by counsel before it is issued, particularly for multi-state employers. Nothing here is legal advice.

The aim is not a workforce that agrees. It is a workforce in which disagreement does not degrade the ability to work together. That distinction is worth stating explicitly to employees, because many assume the company wants the former.

Where most policies fail

Not in the drafting. In the first hard application. A policy applied to an unpopular view and quietly overlooked when a popular one crosses the same line teaches the organisation more in one incident than the document ever will. If leadership is not prepared to enforce it symmetrically, it is better not to issue it.

Managers are the actual control point

Executive statements set tone. Managers determine experience. SHRM's Q2 2026 data is uncomfortable on this: 36% of workers said their managers ignore acts of incivility, and 43% felt their manager could have done more to prevent it. Only 32% agreed that supervisors actively helped guide employees through it.

That gap is not usually indifference. It is that most managers have never been given a script for the situation and are afraid of making it worse, so they treat it as weather, something to wait out. The intervention is unglamorous and effective: give managers three or four rehearsed moves. How to interrupt a conversation that has turned personal without adjudicating who was right. How to redirect to the work without dismissing the person. When to escalate rather than handle it alone. What to do when the complaint concerns something said outside work.

Ninety minutes of practical rehearsal outperforms any policy document, because the failure is almost always hesitation rather than ignorance.

One more point worth making to a leadership team: the goal is not to eliminate friction. Organisations that suppress all disagreement lose the disagreement that matters: the challenge to a bad forecast, the objection to a flawed plan. The objective is to move friction from identity back onto substance, where it produces better decisions instead of attrition.

Under transformation and turnaround pressure

There is a specific case that deserves attention, because we see it repeatedly. When a company is in a turnaround or a major transformation, political and social division inside the workforce becomes materially more dangerous.

The reason is mechanical. Restructuring requires people to accept short-term cost, whether changed roles, reduced headcount or harder targets, on the basis of trust in leadership's judgment. Trust is exactly what polarisation erodes. Where employees have already sorted into camps, a difficult decision is not received as a difficult decision. It is received as evidence about whose side the leadership is on. Redundancy selection, return-to-office rules, promotion decisions and site closures all acquire a second, factional reading that has nothing to do with the underlying business logic.

Three things reduce that risk in practice:

  1. Over-explain the reasoning, not just the decision. In a low-trust environment, an unexplained decision will be assigned a motive, and the assigned motive is always worse than the real one.
  2. Make the criteria visible and boring. Selection rules that are written down, uniform and auditable are the strongest available defence against a factional reading of the outcome, and the strongest defence against a legal one.
  3. Give the organisation a shared objective large enough to compete with the division. This is the oldest tool in leadership and still the most reliable. People who are genuinely absorbed in a difficult common task spend markedly less energy sorting each other into camps.

Leadership in a divided workforce is not about finding the position that offends nobody. That position does not exist. It is about being consistent enough, and clear enough, that people who disagree with you about a great deal still believe you will apply the same standard to them as to everyone else. That belief is what keeps an organisation executing through a period when very little else is holding it together.

Questions we get asked

Should a CEO make public statements on political events?

Decide against a written standard rather than in the moment. The test most boards settle on is materiality: comment when the issue directly affects employees, customers, operations or the regulatory position, and hold when it does not. Consistency matters more than which way you lean, because selective comment sets an expectation you will be held to next time.

Can we simply ban political discussion at work?

You can, and it usually underperforms. Uneven enforcement gets read as bias and drives the conversation somewhere unobservable. Regulating conduct, meaning how colleagues treat one another and what company channels and time may be used for, is more enforceable and more defensible. Check state law first; several US states protect lawful off-duty political activity.

What is the single highest-return action?

Train front-line managers. The data consistently shows managers as the weakest link, and the failure is hesitation rather than ignorance. A short rehearsal of three or four concrete interventions changes the day-to-day experience more than any policy or all-hands message.

Leading through a transformation with a divided workforce?

We step into C-suite and interim executive roles during turnarounds and transformations, where the operating plan and the organisation have to move at the same time.

C-Suite Executives & Turnaround Management
Idris Elgabalawy, Red Lion Advisory
Director – Capital Markets
Idris Elgabalawy

Idris leads execution across Red Lion Advisory's M&A advisory, capital raising, restructuring, and fractional CFO mandates. He has advised on transactions ranging from $5 million acquisitions to capital deployments exceeding $500 million across buy-side and sell-side M&A, recapitalizations, leveraged buyouts, and asset-backed credit facilities.

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