Beyond Buzzwords: HR Leaders Chart a Course for 2026 Amid Execution Gap

As 2026 unfolds, human resources leaders find themselves at a familiar crossroads. The challenges of retaining talent, integrating artificial intelligence, and developing skills are well-known. Yet, according to a new industry survey, the coming year will be defined not by the identification of new trends, but by an organization's ability to execute on long-standing promises.

A comprehensive study by payroll and human capital management provider Paylocity, conducted between November 2025 and January 2026, pinpoints the ten workforce trends poised to shape the corporate landscape. The data paints a picture of sustained pressure on HR departments, with a widening chasm between ambition and operational readiness threatening to undermine progress.

The Unshakable Priority: Retention
Employee retention continues to dominate the HR agenda, with over 61% of the 276 responding professionals ranking it among their top three concerns. "Employee retention is both HR’s biggest priority and biggest challenge," one survey participant noted, highlighting the direct link between day-to-day employee experience and organizational stability.

The AI Divide
Artificial intelligence presents a paradox. While it topped the list of priorities for 26% of respondents—the highest share for any single trend—roughly a quarter ranked it among their lowest concerns. This stark division underscores varying levels of organizational readiness, governance, and risk tolerance. "AI too often generates incorrect or incomplete data. The technology is not yet trustworthy," cautioned one HR leader. Adoption is expected to focus on workflow automation and analytics, while areas requiring human nuance, like performance management, proceed more cautiously.

Compensation as a Trust Signal
Closely tied to retention, compensation and benefits remain a heavy weight, cited by over 70% of leaders as a top-five priority. Increasingly, pay is viewed not just as a market benchmark but as a tangible signal of an organization's commitment to its workforce.

The Manager Multiplier Effect
The critical role of front-line managers is reaffirmed, with two-thirds of HR leaders prioritizing manager capability. Effective managers are seen as force multipliers, directly influencing engagement, performance, and ultimately, retention.

Bridging the Execution Gap
The most pressing finding may be a widespread "execution gap." While 98% of respondents said their top workforce issue carries high business impact, only 15% reported having a defined plan to address it. Fewer than 40% had both a dedicated budget and a timeline. Success strongly correlates with HR-Finance alignment: among those reporting full collaboration, over 73% had both budget and timeline in place.

"The themes are consistent, but the pressure to deliver tangible results has never been greater," said Dr. Shari Simpson, the HR thought leader who led the survey for Paylocity. "2026 will separate organizations that can operationalize their strategy from those that remain in planning mode."

Voices from the Field

Michael Torres, CHRO at a Midwestern Manufacturing Firm: "This data validates our focus. We're moving from isolated training programs to building a true skills-based ecosystem. It's the only way to ensure internal mobility and adaptability as roles change."

David Chen, HR Technology Consultant: "The AI adoption curve is real. The leaders are building robust governance now, while the laggards risk being forced into reactive, costly implementations later. The trust barrier is the key hurdle."

Anya Petrova, HR Director at a Global Retailer: "The so-called 'execution gap' is a failure of leadership, not HR. We've been talking about these priorities for years. If finance won't partner and the C-suite won't fund the plans, then these surveys are just an expensive form of corporate anxiety."

Sarah Gibson, People Ops Lead at a Tech Startup: "Seeing compensation framed as a trust signal is powerful. It's not just about numbers on a page; it's the most concrete way we show employees they are valued. That directly impacts our retention efforts."

Bottom Line: For HR leaders in 2026, the path forward hinges on closing the gap between strategic intent and measurable action. Success will belong to those who can forge stronger cross-functional partnerships, secure dedicated resources, and move decisively on the fundamentals of talent management.

Survey Methodology: The Paylocity survey was conducted by Dr. Shari Simpson from Nov. 11, 2025, to Jan. 8, 2026, receiving 403 responses of which 276 were completed. Results are unweighted and reflect the views of participating HR professionals.