Making sure employees feel valued does have a cost though. Managers spend a lot of time on this, and they have a high salary. Career growth, 1:1's, conflict resolution, comp adjustments, etc.

When managers' own heads are also on the chopping block in a tough job market, they're going to prioritize looking out for their own ass. If "leadership" is saying "boil the frogs or you're gone", they're probably going to do it. Even if they don't want to.