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Overview of the 2026 State of People Strategy Report

The 2026 State of People Strategy Report by Lattice, a leading human resources platform, sheds light on the evolving landscape of HR amidst economic uncertainties and emotional strains faced by professionals. This report is based on a survey conducted with 1,002 HR leaders worldwide, aiming to provide insights into their challenges and priorities as they navigate through complex workplace dynamics.

Key Findings

Emotional Burden and Workforce Stability

One of the striking observations from the report is that nearly 48% of HR leaders in the U.S. are considering leaving the industry primarily due to the emotional load associated with employee management. This figure contrasts sharply with just 31% in Europe, signaling a more significant burden for U.S. HR professionals. Despite these challenges, overall employee engagement remains stable at 78%, and 79% of respondents express confidence in their job security. The prevalent issues that drive HR professionals to contemplate leaving include emotional fatigue, feelings of underappreciation, and a poor work-life balance.

A Shift in HR Priorities

The report indicates a remarkable shift in priorities, with 40% of HR teams globally prioritizing performance management, closely followed by 39% focused on employee engagement. This change reflects the need for accountability in HR roles and highlights the tension between achieving measurable outcomes while fostering an engaging work environment. Stephanie Fraise, HR Director at OpenClassrooms, states that performance and engagement should complement rather than oppose each other, advocating for a balanced approach to both areas.

Decline in Diversity and Inclusion Efforts

The report reveals a concerning decline in focus on Diversity, Equity, Inclusion, and Belonging (DEIB). Only 16% of HR teams are concentrating on DEIB initiatives, down from 30% in 2023. Notably, European teams emphasize DEIB over American counterparts, with 24% of European teams prioritizing it compared to 11% in the U.S. Despite budget constraints limiting DEIB efforts, 61% of HR teams dedicated to DEIB plan to continue their initiatives.

Embracing Technological Advancements

A significant correlation was identified between adopting HR technologies and team performance, with 72% of high-performing teams utilizing four or more specialized HR tools. The generational divide in attitudes toward technology is evident; while 53% of Generation Z actively seek out new technologies, older generations such as Baby Boomers exhibit skepticism, with 56% believing that technology diminishes human contact. Nonetheless, 42% of office professionals are incorporating AI agents into their operations, indicating a notable acceptance of technology across ages.

Optimism Towards AI

An interesting finding is that 83% of HR professionals express optimism regarding the outsourcing of mundane tasks to AI agent technologies, even as 61% hold ethical concerns about this trend. Regina Ross, Executive VP of HR and Operations at Opportunity Finance Network, emphasizes the need for teams to test AI tools through low-risk pilot projects to refine what works best while maintaining judicious budget allocations.

Conclusion

As organizations navigate an increasingly intricate HR landscape fraught with challenges, a constant remains: resilient leaders are crucial for fostering environments where personnel and businesses can thrive. The combined power of AI and human-centered approaches stands to shape the future of work, allowing teams to find opportunities for strategic, transparent, and meaningful work. Lattice’s commitment illustrates how HR can evolve from a focus on mere efficiency to a drive for effectiveness, ensuring every individual feels valued within their organizational role.

About Lattice

Lattice is a comprehensive HR platform designed to empower HR teams with the necessary resources for handling people management and AI integration seamlessly. With operations across North America and the UK, Lattice serves over 5,000 clients globally, including companies like Gusto and NPR. For more details, visit lattice.com.