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Lattice's 2026 State of People Strategy Report

In an age where workplace dynamics continuously shift, Lattice's latest findings shed light on the emotional struggles faced by HR leaders within the American workforce. The 2026 State of People Strategy Report points out that nearly 50% of US HR leaders are contemplating leaving their positions due to the emotional toll of their responsibilities.

Key Insights from the Report

Performance Management Takes Precedence

According to the report, 40% of HR teams globally are prioritizing performance management as their foremost challenge, with 39% of respondents focusing on employee engagement. This shift indicates a need for organizations to enhance accountability within HR functions while balancing performance, engagement, and the usage of advanced technologies like AI. Sarah Franklin, CEO of Lattice, emphasizes that effective leadership in today's environment means leveraging AI to complement human creativity and perspective rather than replace it.

A Decline in DEIB Focus

Diversity, Equity, Inclusion, and Belonging (DEIB) initiatives have seen a noticeable decline, with only 16% of teams prioritizing these efforts in 2026, a stark drop from 30% in 2023. European HR teams still place importance on DEIB, doubling the focus of their US counterparts (24% vs. 11%). However, many organizations report struggling to navigate differing viewpoints on DEIB among their employees, identifying a polarization in priorities as a significant challenge.

Technology Adoption Trends

The report highlights a direct correlation between team performance and technology adoption. Notably, 72% of high-performing HR teams utilize four or more specialized HR tools, compared to an average of three across all respondents. Interest in AI technologies is especially prevalent among white-collar HR professionals, with 42% reporting regular use of agentic AI. Moreover, 83% of respondents express optimism about AI's role in future HR practices, despite lingering ethical concerns.

Emotional Wellbeing and Workforce Stability

While almost half of US HR practitioners are contemplating leaving the field due to the emotional challenges associated with managing workforce dynamics, engagement levels remain stable. An impressive 78% of HR leaders report feeling secure in their jobs, with 79% expressing confidence about their role’s future potential. The emotional toll often stems from factors like feeling undervalued and difficulties in maintaining work-life balance.

Looking Ahead: Optimism amidst Challenges

As HR leaders face an ever-evolving landscape filled with challenges, the essential role they play in shaping workplace culture, engagement, and human connection is reaffirmed. The report illustrates how strategic incorporation of AI can foster not just efficiency but also meaningful interaction and creativity in workplaces, empowering HR to operate as a catalyst for change.

Lattice continues to provide comprehensive tools and insights, allowing organizations to elevate performance management while embracing a culture that values human connection amidst technological advancement. This alignment indicates that while challenges persist, optimism about the future is well-founded, paving the way for a more resilient workforce that remains focused on ethical engagement and innovative growth.

Conclusion

Lattice's 2026 State of People Strategy Report conveys an essential narrative that resonates with the complexities of modern HR. It highlights that while emotional challenges prevail, the integration of AI and technology offers avenues of hope for leaders committed to nurturing an empowered and resilient workforce. As HR practices evolve, maintaining a balance between technological efficiency and the human element will be critical to thriving in the ever-changing world of work.