As the year draws to a close, most HR leaders are forward-looking and strategizing for human capital success in 2026 and beyond. Central to those efforts will be preparing a pipeline of future-ready talent, which, according to new research, is a significant struggle for most HR leaders.

The DSG Global Workforce Power Index—based on a survey of more than 300 HR leaders from executive search and consulting firm DSG Global and The Harris Poll—found that two-thirds of respondents cited succession planning as a top pain point, followed closely by leadership pipeline development.

Aileen Alexander, CEO of DSG Global, says the “dynamic” environment many HR leaders are facing today is going to require them to pivot toward a more “proactive and anticipatory posture” of talent-building.

“The underlying challenge,” she says, “is balancing the stability and continuity needed for today with the skills required for tomorrow’s market.”

Strategies to build the leadership pipeline

To stay on the leading edge when it comes to preparing the leadership pipeline of the future, Alexander suggests several core steps.

First, align talent objectives with broader business strategy.

“HR must embed the full strategic business context into their talent plans, ensuring the leadership pipeline directly supports the future vision of the business,” she says.

When evaluating skills, and mapping what the organization will need in its leadership bench, focus on leaders’ digital fluency—“at a minimum, curiosity,” she says—as AI use will be ubiquitous, and not limited to one function. Yet, she cautions, don’t overlook core human skills: critical thinking, empathy and community, for instance.

“These are the differentiators for success in a volatile world,” Alexander says.

She predicts that the world will remain volatile into 2026, with geopolitical, economic and technological shifts only elevating the importance of forward-looking, proactive human capital strategies.

As culture and talent become the “primary anchor” for organizations navigating through volatility, HR will need to ensure human capital initiatives are “fully embedded” into culture, she says. When organizations prioritize cohesion and values-driven environments, they enhance resiliency against “external shocks.”

One of those shocks will likely be AI, requiring HR to embrace “aggressive” change management.

“The CHRO’s priority will be leading the necessary talent reskilling and defining new roles to position the workforce to leverage technology for growth,” Alexander says.

See also: Why is change management keeping CHROs up at night?

New opportunities for CHROs

The work facing HR will be challenging, Alexander says, but should be viewed as “significant opportunities for leadership, and for the businesses who are able to creatively solve for them.”

Increasingly, organizations are empowering their HR leaders to run with strategy, the survey found. Nearly 80% of respondents said the CHRO role has dramatically increased in importance.

To maximize that elevated role, Alexander says HR leaders need to “speak the language of business,” demonstrating how their function’s contribution drives business objectives and aligns with broader priorities.

“The HR strategy must show how it creates competitive advantage,” she says.

Boards of directors are among those to whom HR must build the business case for talent initiatives, but more than 60% believe boards have too much control over people strategy, which Alexander calls an opportunity for HR in 2026.

“From my perspective working directly with numerous boards, I find that they are genuinely focused on talent as a strategic imperative from a governance perspective,” she says, noting CHROs need to bridge the “perception gap” and work with functions including finance, technology and operations to demonstrate expertise and impact.

“The role of the CHRO will continue to be key to driving business success,” Alexander predicts. “Its visibility will only intensify, as will ensuring leadership continuity, succession and talent strategy remain on the board’s and CEO’s agenda.”