After several years of whiplash-level change, HR leaders are seeking ways to shift from reactive problem-solving to strategic impact. Where should they start? Industry experts highlight key areas where investment can deliver measurable returns.
Bridge the frontline communication gap
The disconnect between frontline employees and leadership represents a missed opportunity in most organizations. Jenny Shiers, chief people officer at Unily, an AI-powered employee experience platform, points to research that should worry any executive team: Seventy-two percent of frontline employees say they don’t have a strong grasp of company strategy. And more than three-fourths feel their feedback isn’t being heard by leadership.
“That’s a serious problem because frontline colleagues are closest to customers and products. Their insights are incredibly valuable and often the earliest signal of what’s next,” Shiers says.
Closing this gap goes beyond fostering employee engagement. Shiers says HR leaders should harness the full potential of the workforce. They should turn employee insights into actionable strategies and respond swiftly when it matters most.
The solution, according to Shiers, requires shifting from occasional check-ins to continuous listening that happens naturally within the flow of work. “In 2026, it’s going to be more important than ever for organizations to build a culture of real-time, two-way communication with their frontline teams,” she says. “When organizations listen in real-time, they can move in the right direction at speed, whether that’s to face a new challenge or jump on a new opportunity.”
Read more: How to create a future-focused strategy for frontline workers
Fix performance management systems that nobody trusts
The annual performance review remains one of HR’s most universally despised processes. Lana Peters, chief revenue and experience officer at HR platform Klaar, shares an unsettling statistic. Gallup researchers found that 98% of CHROs are unhappy with how performance management works, and most employees do not feel inspired by reviews.
“Changing this for the better will be the hot topic for HR in 2026, and this starts with moving away from the annual review toward continuous feedback,” Peters says. “The timing gap in performance conversations means that mistakes or opportunities for growth are not being addressed often enough, and that successes and growth aren’t being adequately recognized or celebrated.”
Peters advocates for building 1:1 feedback into the natural flow of work using HR technology platforms where employees and managers share quick, structured updates on a frequent cadence. “This approach helps keep performance top of mind without extra admin work, more fairly calibrates expectations and enables leaders to better spot flight risks before someone quits,” she says.
Read more: Do employees really want AI to deliver performance feedback?
Equip underutilized collaboration spaces
As return-to-office mandates strengthen, organizations are discovering a technology gap in the spaces where their best work happens. Holger Reisinger, senior vice president at Jabra, explains that research from Frost & Sullivan shows there are over 33 million “huddle rooms” and small meeting spaces worldwide. Yet fewer than 3% of them are equipped for video conferencing.
“In 2026, the availability of strong in-office collaboration tools for small meeting rooms and focus areas will be a must-have for organizations of all sizes,” Reisinger says. “These spaces are underequipped with technology, but are critical spaces where trust travels the fastest, productivity is driven and big ideas are generated.”
Investing in audio and video technology purpose-built for these rooms means every participant is seen and heard clearly, reducing communication gaps and creating a more productive and inclusive collaboration environment. “For businesses, this means new potential for underutilized spaces and the opportunity to maximize collaboration in evolving office environments,” Reisinger says.
Read more: How to make the workplace so great, employees want to RTO
Empower employees through automation and transparency
When employees lack clear visibility into their pay, benefits or time off, it creates unnecessary stress and extra administrative work. Shane Hadlock, Paycom’s chief client and technology officer, notes that with over half of Americans living paycheck to paycheck, employees shouldn’t be blindfolded before payday.
“In 2026, HR leaders of enterprise organizations should prioritize leveraging automation throughout their HR technology to empower their employees,” Hadlock says.
“Empowerment today is utilizing command-driven AI technology to more quickly and easily harness the HR technology the business is driving.”
He suggests employees should be able to see their paycheck in advance and fix errors before payroll runs, quickly view and manage their benefits or confirm paid time off requests as soon as they request them, all without needing to be a tech superuser.
“When employees have this level of ownership and transparency, organizations see stronger engagement and better business outcomes. Plus, those organizations see tremendous ROI out of their technology purchase,” Hadlock says.
Read more: Payroll, driven by tech shifts, emerging as a strategic force in orgs
Turn analytics into action
People analytics has evolved from simple headcount reports to sophisticated predictive models. However, many organizations still struggle to translate insights into decisions. Anna O’Shea, head of global HR at HCM platform Strada, predicts that by 2026, people analytics will be the backbone of HR’s value proposition. She says HR leaders will not just be measuring outcomes but driving them.
“We’ll see the shift of descriptive dashboards moving to AI-powered predictive and prescriptive insights that anticipate retention risks or skill gaps before they surface,” O’Shea says. “We could also see analytics evolving to include mental health, hybrid work and remote inclusion metrics, helping CHROs make decisions that balance productivity with humanity.”
The challenge isn’t generating insights but driving adoption. “The real shift? HR will need to master not just insight, but adoption, turning analytics into trusted narratives that not only influence their people but boards, leaders and frontline teams,” O’Shea says. “The organizations that do this will make analytics a true strategic differentiator.”
Read more | People analytics: How HR leaders can harness its power
Build transparent communication
Alison Bayiates, chief people officer at cloud storage firm Nasuni, argues that transparent communication will emerge as the single most important driver of organizational culture in 2026. Organizations are increasingly recognizing that culture cannot be built in the dark, and that employees need clarity, visibility and real-time communication to stay aligned, engaged and empowered.
“Just as an AI model cannot succeed with only half the data, a team cannot be expected to do its best work without full context,” Bayiates says. “That’s why leading HR executives are building systems that promote clarity, dialogue and accountability across every level of the organization.”
She suggests that regular town halls, open ask-us-anything forums, quarterly employee Net Promoter Score measurements and modern engagement tools can work together. These activities can surface sentiment, strengthen alignment and ensure employees feel seen and heard. “Transparent communication is becoming a long-term investment in culture,” Bayiates says.
“Communication is the thread that ties these efforts together,” she adds. It strengthens a culture of openness and adaptability, which becomes even more important as companies scale globally and drive new innovation.
Read more: HR communications tips and trends for 2026
Redefine employee experience through AI assistance
AI chatbots will transform how employees interact with HR systems and access information. Strada’s O’Shea predicts that intelligent assistants will give employees quick access to information and simplify navigation across HR systems. They will also support greater self-service, all through natural language.
“This shift not only empowers employees but also frees up HR teams from handling routine, repetitive inquiries, allowing them to focus on more complex, high-value needs that require thoughtful solutions,” O’Shea says.
Polina Dimitrova, global head of people at HR tech platform Make, emphasizes that the real value in AI comes from thoughtful, human-focused design rather than autopilot promises. “In 2026, HR will be liberated by HR,” Dimitrova says.
She notes that vendors may promise agentic tools that let AI run on autopilot. However, the true value of AI comes from thoughtful, human-centered design. “We will see AI help reduce the noise and administrative burden so that leaders can focus on propelling culture and enhancing leadership,” says Dimitrova.
Once organizations have strong data foundations and sufficient AI fluency, they can leverage AI to support HR teams in making predictions and decisions. The business can then implement these insights effectively.
“The future HR function will be a marriage of human strategy and system architecture so people can build their own efficiencies,” Dimitrova says. “The biggest impact isn’t technology alone, but really the mindset that drives it.”
Read more: 10 expert tips for creating a top employee experience in 2025
Balance skills, sustainability and experience
Annie Rosencrans, director of people and culture at HR platform HiBob, argues that HR leaders must prioritize three interconnected areas in 2026. These are skills, sustainability and employee experience.
“With change propelled by AI and changing workforce expectations, HR teams need to strengthen employee skills and talent strategies to stay ahead of evolving business needs,” Rosencrans says. “Also, advancing organizational sustainability through inclusion initiatives, employee wellbeing and the responsible use of technology will be critical.”
Rosencrans predicts that as hybrid work keeps evolving, organizations that create a personalized, purpose-driven employee experience will be better able to stand out and differentiate themselves.
The thread connecting these priorities is a more strategic, data-informed approach to HR. “Ultimately, the HR function of the future will be driven by data, centered around humans and critical to business strategy,” Rosencrans says.
Read more: Would your workforce recommend HR? Use NPS to find out
Orchestrate the three forces of modern work
Dave Bottoms, senior vice president and general manager of marketplace at Upwork, offers a framework for thinking about productivity in 2026. He points out the three forces of modern work—businesses, people and AI agents—working in concert.
“Human professionals will oversee and orchestrate AI systems, multiplying their capacity and creativity,” Bottoms says. “Organizations will gain faster, higher-quality outcomes by combining human judgment with machine efficiency. And AI agents will act as accelerators, connected to real business goals and guided by human intent.”
Organizations that will thrive in 2026 won’t be those that merely adopt AI tools. Success will favor those who thoughtfully integrate human expertise, organizational strategy and AI capabilities.
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