What's Happening?
As organizations increasingly focus on artificial intelligence (AI) integration, HR leaders are being advised to also address other significant talent challenges expected in 2026. Experts highlight three
main issues: becoming a world-class HR organization, managing the people factor in AI use, and addressing talent and skills gaps. Chris Johnson from Equifax Workforce Solutions emphasizes the importance of HR departments demonstrating value to leadership through strategic partnerships and benchmarking. Trent Henry from EY stresses the need for a leadership mindset and learning culture to sustain AI-driven growth. Meanwhile, Fran Maxwell from Protiviti points out the looming talent supply concerns due to retiring Baby Boomers and the need for new skills as predicted by the World Economic Forum.
Why It's Important?
The focus on AI in HR is crucial, but overlooking other talent challenges could hinder organizational growth. The ability to become a world-class HR organization can lead to better resource allocation and cost savings. Addressing the people factor in AI use is essential for maintaining employee engagement and leveraging AI for high-value outcomes. The talent and skills gap poses a significant risk, as organizations may face increased competition and costs to acquire necessary skills. By addressing these challenges, HR leaders can ensure their organizations remain competitive and adaptable in a rapidly changing business environment.
What's Next?
HR leaders are expected to strengthen their strategic partnerships, particularly with CFOs, to better align HR initiatives with organizational goals. There will be a focus on creating inclusive workplaces and flexible career pathways to enhance employee confidence in using AI. Organizations will need to invest in upskilling and developing their existing workforce to address the talent and skills gap. Additionally, HR departments will need to consider the impact of AI on job redesign and employee engagement to avoid treating their workforce as an afterthought.
