Balancing innovation with compassionin an intelligent world of work Table of contents Key trends and priorities for 20263 Category:People4 Category:Compliance10 Category:Technology24 Easy, smart and human, in practice30 Key trends andpriorities for 2026 The workplace of 2026 will be defined by a new era:One that’s intelligent, interconnected and human-centric. Advances in artificial intelligence (AI) aretransforming how work gets done, while peoplecontinue to expect organizations to prioritizewell-being, fairness and trust. The challenge forHR leaders and business owners is clear: Strike abalance between innovation and compassion tofoster agility, resilience and long-term growth. This report highlights key trends and developmentsthat will influence people, compliance andtechnology within the human capital management(HCM) space in 2026. From skills-based job redesignto people’s professional experiences with AI, to paytransparency, multijurisdictional compliance andAI in employment decisions, to agentic AI and thedeepening partnership between HR and IT, eachsection delivers actionable insights to prepareorganizations for the workplace of tomorrow. Use this guide as a framework togain clarity and direction whilelaying the foundation for a smarterand more human world of work. Category Aligning people with organizational goals People The goal of such strategic optimization is not to eliminate roles;it’s to empower everyone to work more effectively. As the skillslandscape changes, organizations, especially large ones, have highexpectations for the benefits that AI will offer their company,with 84% of large organizations agreeing that using AI can helpstreamline processes but will not replace employees, compared to73% of small organizations and 76% of midsized organizations.2These expectations may be on target, given recent researchrevealing that up to 30% of current worked hours could potentiallybe automated by 2030,3freeing up more time for people to focuson strategic opportunities. Organizations are assessing their skillsinventories Two factors are compelling leaders to consider how their workforcescan be more efficient: (1) a focus on skills in hiring and developmentand (2) the rise of AI taking on routine tasks. While organizations ofall sizes agree that skills development is important for employees’job performance and career growth, 65% of midsized and largeorganizations face obstacles and challenges in providing skillsdevelopment opportunities for employees,1indicating workers maystruggle to acquire critical skills as work evolves. Skills-based approaches, where roles are distilled down to theskills needed and jobs to be done, create datasets leaders can useto align people efforts with organizational goals. This is the basisfor modern strategic workforce planning. On a micro level, it allowsleaders to better match people and tasks with unique strengthsand skills while offloading routine work to AI. On a macro level,strategic workforce planning helps organizations be more efficientand agile with their people power, matching people with taskswithout the constraints of traditional job titles, locations orgrades. This approach can help foster better people engagementand ultimately make operations more cost-effective and successful. In the process of adopting a more skills-focused approach to jobsas AI reshapes the workplace, some leaders have initiated a morethorough examination of the most critical competencies necessaryfor any given role, allowing a deeper breakdown and analysis ofwhat’s required to accomplish a given job. Coupling this knowledgeand the data surrounding it with the capacity of AI tools makesbreaking down work not just possible but more advantageous fororganizations and employees wanting to optimize their efforts.This inventory of skills and technology is helping leaders informthe possibility of job redesign, where organizations determine themost suitable locations for talent, keeping in mind costs, talentavailability and business needs. 65% of midsized and large organizations faceobstacles and challenges in providing skillsdevelopment opportunities for employees.1 Addressing strategic workforceplanning through skillsand technology 1•Usedata-driven insightsto analyze theskills and requirements of existing roles. “While larger organizations with greaterfinancial resources and advanced data-driven insights have been the first toadopt strategic workforce planning andskills-based design to align their talentsupply with organizational goals, small andmidsized organizations can and should alsoconsider implementing these practices on ascale that’s realistic for them. Doing so willsignificantly enhance their efficiencies andoverall success.” 2•Avoid introducing bias into the analysis,to reduce risk. 3•Align people’s strengthswithorganizational goals. 4•Consider the importance of humanoversight before outsourcing routinetasks to AI. — Asal NaraghiGlobal Innovation Leader, Fut