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Lattice 2026 People Strategy Report: Key Insights

Lattice, a leading HR platform that unites people and AI, recently published its 2026 State of People Strategy Report. This report provides an in-depth analysis based on a survey of 1,002 HR leaders and managers worldwide. With the complex dynamics of the workforce today, the report highlights crucial aspects that organizations must address moving forward.

Overview of HR Challenges

The report underscores that nearly 50% of HR professionals in the United States are contemplating leaving their positions primarily due to emotional stress associated with handling employees' issues. Surprisingly, only 31% of their European counterparts share the same sentiment. Despite these challenges, job security remains relatively high, with 79% of respondents feeling secure in their roles.

These figures suggest a looming crisis in talent retention within HR departments as multiple factors converge to create a stressful work environment. The emotional strain, a feeling of undervaluation, and an imbalance between work-life integration have been identified as significant reasons behind this potential exodus.

Performance Management as a Priority

This year's findings illustrate a robust focus on performance management, which has been prioritized by 40% of HR teams globally, closely followed by employee engagement, which accounts for 39%. The shift indicates that organizations are not only expecting HR departments to drive performance but also to cultivate engagement amongst employees.

Stéphanie Fraise, CHRO at OpenClassrooms, stresses the idea that performance and engagement should complement each other rather than compete. She warns that favoring one over the other could yield short-term benefits but jeopardize long-term workforce stability.

Decline in DEIB Initiatives

Interestingly, support for Diversity, Equity, Inclusion, and Belonging (DEIB) initiatives has noticeably dwindled, dropping from a high of 30% in 2023 to just 16% in 2026. This decline raises concerns, especially given that 32% of HR leaders report feeling overwhelmed when addressing divergent viewpoints on DEIB within their teams.

The report highlights that highly effective HR teams continue to prioritize DEIB, indicating that organizational performance may benefit from a return to focusing on inclusivity and belonging within the workplace.

Embracing Technology in HR

Another significant takeaway from the report is the relationship between technology utilization and team performance. Remarkably, 72% of high-performing teams utilize four or more specialized HR tools compared to the average of three across all surveyed respondents. The generational divide in attitudes towards technology is stark, with Gen Z actively seeking new technologies while Baby Boomers express concerns about technology's impact on interpersonal relationships.

Despite these generational differences, 42% of HR leaders report regular use of agentic AI tools, and an impressive 83% express optimism about delegating tasks to such technologies, despite ethical concerns raised by 61% of the respondents.

The Future Outlook

Facing a complex landscape, organizations increasingly rely on resilient leaders to navigate their teams through change. These leaders are tasked with redefining how culture, engagement, and human connection manifest in the evolving workplace.

Lattice's report advocates for the synergistic potential of AI to enhance human resources, allowing managers to calibrate performance evaluations more effectively and minimize biases. The adoption of AI is not about replacing human contact; rather, it’s about augmenting it, creating richer interactions that pave the way for a more engaged workforce.

Conclusion

In conclusion, the State of People Strategy Report 2026 provides crucial insights into the current state of human resources. As organizations continue to embrace technological advances, the focus remains on fostering human connections and meaningful work. HR leaders must look beyond mere efficiency to create environments that empower employees and value their contributions in a transformative landscape.

For further details, the complete report can be accessed at Lattice's website. Overall, the findings reflect a blend of aspiration and caution, underscoring the complex dynamics of today's work environment and the critical need for effective strategies to harness talent and technology for a more inclusive future.