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Insights from the 2026 Lattice People Strategy Report

In September 2025, Lattice, the leading human resources platform that harmonizes human capability with AI technology, released its annual State of People Strategy 2026 report. The findings represent a survey of 1,002 HR leaders globally and delve into the shifting dynamics in HR management, specifically in balancing performance management, employee engagement, and the embrace of advanced technologies such as AI.

Key Findings

The report unveiled that nearly 50% of HR leaders in the US are contemplating leaving the profession due to emotional fatigue. This sentiment starkly contrasts with the optimism expressed by 83% of these leaders about the potential for AI to transform HR functions positively.

Amid the evolving landscape, performance management has emerged as the top priority for 40% of global HR teams, closely followed by employee engagement at 39%. This signals a shift towards a more accountable HR function within organizations that are adjusting to tighter budgets and competing priorities.

Sarah Franklin, CEO of Lattice, emphasized, "This report reflects a return to business fundamentals. HR is central to current opportunities such as driving performance, engaging people, and responsibly adopting AI. The most effective leaders use AI not as a replacement for humans but as a catalyst to enhance creativity, ingenuity, and diverse perspectives."

The Diminishing Focus on DEIB

One alarming trend highlighted in the report is the notable decline in attention to Diversity, Equity, Inclusion, and Belonging (DEIB), which has dropped to 16% of HR teams prioritizing these efforts—down from 30% just two years prior. This trend reflects a broader challenge as organizations struggle to balance performance results against engaging in equitable practices. Regional differences are apparent, with European HR teams prioritizing employee engagement and learning/development initiatives over DEIB initiatives, which they are twice as likely to pursue compared to US counterparts.

Technological Adoption and Generational Perspectives

Notably, 72% of high-performing teams utilize four or more specialized HR tools, showcasing a direct link between technology use and overall team performance. However, the survey also indicates generational divides in attitudes towards technology:

• - Generation Z is more likely to embrace new technology proactively, with 53% actively seeking it out.
• - Generation X tends to demand testing before adoption, at 58%.
• - Baby Boomers express concerns that technology diminishes human connection, with 56% sharing this view.

Despite these differences, AI adoption is gaining traction, with 42% of HR professionals regularly using AI agents, reflecting a wider acceptance across generations. Interestingly, 83% of HR leaders feel optimistic about leveraging AI, though concerns about ethical implications persist among 61% of respondents.

Factors Influencing Retention

The report also revealed that almost 48% of HR professionals in the US are considering leaving their positions, mainly due to emotional tolls from employee issues, feeling undervalued, and challenges in achieving work-life balance. Conversely, overall job satisfaction remains relatively stable, with 79% expressing confidence in their job stability.

Shaping the Future of Work

Looking toward the future, Lattice's report underscores the necessity for leaders to cultivate resilience, define workplace culture, and enhance human connections in the evolving organizational landscape. AI is not merely a tool for efficiency but an opportunity to foster strategic work that is meaningful and inclusive.

As businesses navigate increasingly complex environments, the integration of AI and human-centered strategies is vital for driving results and shaping the future of work. Lattice remains committed to providing HR teams with tools to build high-performance environments and make data-driven decisions.

Conclusion

This report serves as a crucial resource for understanding the current state of HR strategy and highlights both the challenges and opportunities that lie ahead. For complete insights and a comprehensive view, the full 2026 State of People Strategy Report can be accessed through Lattice's official website.