What's Happening?
A recent survey conducted by Paylocity, a payroll and HCM provider, highlights the top workforce trends expected to impact organizations in 2026. The survey, which gathered insights from HR professionals between November 2025 and January 2026, identifies retention and engagement as the primary focus for HR leaders, with over 61% ranking it among their top three priorities. Artificial intelligence (AI) adoption emerges as a polarizing trend, with 26% of respondents prioritizing it, while others express concerns over organizational readiness and risk tolerance. Compensation and benefits remain critical, with over 70% of HR leaders emphasizing their importance. Manager capability and skills development are also highlighted as essential factors
influencing employee experience and organizational performance.
Why It's Important?
The findings underscore the ongoing challenges HR departments face in aligning talent strategies with evolving employee expectations and technological advancements. Retention and engagement are crucial for maintaining organizational stability and performance, while AI adoption presents both opportunities and challenges. The emphasis on compensation reflects its role as a signal of organizational commitment, impacting trust and retention. Manager capability and skills development are vital for fostering a productive workforce, especially as roles evolve. These trends highlight the need for organizations to effectively execute strategies to address these challenges, with HR-finance alignment playing a key role in translating workforce strategies into actionable plans.
What's Next?
As organizations navigate these workforce trends, the focus will likely shift towards executing strategies that address known challenges rather than identifying new ones. Successful alignment of strategy, budget, and execution will be crucial for translating workforce ambitions into measurable impact. AI adoption is expected to concentrate on automation and learning, despite concerns over trust and data privacy. HR technology priorities will shift towards integration and security, with a focus on reducing friction and supporting compliance. Organizations that effectively address these trends may gain a competitive advantage in the evolving workforce landscape.
