Need a little productivity boost? Join our monthly newsletter and we’ll go/link you to the latest tips and trends in tech!
Earlier this year, GoProfiles—the AI people & culture platform for engagement, recognition, and rewards—surveyed nearly 400 HR leaders about their priorities for the upcoming planning cycle.
The result is The State of HR 2026: Tech-First, Strategy-Driven report. This data-rich report on how organizations are using technology to elevate HR’s strategic role, strengthen culture, and secure competitive advantage.
The message is clear: budgets are holding steady or rising for most organizations. Howver, the pace and focus of transformation varies widely. A cohort of leaders is racing ahead—aligning HR with business outcomes and embedding AI across the employee lifecycle—while others remain stuck in maintenance mode.
Below is a preview of the report’s biggest takeaways and why they matter right now.
Why This Report Matters
The last few years recalibrated expectations for HR. Leaders are now asked to reduce friction, personalize the employee experience, and show measurable impact on retention, productivity, and revenue. Technology—especially AI—has moved from “nice to have” to the primary lever for delivering on those expectations. This report quantifies where HR stands today and offers a blueprint to move from incremental progress to sustainable impact.
Key Findings at a Glance
Technology is the primary growth engine. Investment in HR tech, automation, and AI dominates 2026 agendas. Leading teams use advanced tools to inform workforce strategy, predict retention, and optimize talent deployment.
Engagement and personalization lag. Budgets may be up, but many organizations still deliver standardized experiences. Without personalization, retention and productivity gains stall.
Analytics and AI maturity is uneven. A two-speed HR transformation is emerging: trailblazers embed real-time analytics and integrate AI end-to-end, while others remain focused on compliance reporting and task-level automation.
Budget Outlook: Growth Amid Uncertainty
Despite macroeconomic headwinds and heightened ROI scrutiny, nearly half of HR leaders expect budgets to grow in 2026. Another third expect budgets to remain flat, while about one in five foresee reductions. What’s driving resilience?
AI & digital transformation. Modernizing systems and embedding data-driven decision-making is now seen as performance-critical.
Talent and skills shortages. Underinvesting in reskilling costs more than proactive workforce development.
Employee experience as a business imperative. Recognition and engagement sustain productivity—and leaders know it.
Yet caution remains: CFOs and boards want line-of-sight to measurable returns, particularly from AI and EX initiatives. The takeaway for HR: connect spending to concrete outcomes.
“You should be able to speak to an investor or the street the same way your CFO would—with a people lens.”
—Jeri Doris, Chief People Officer at Justworks
Technology Is the Top Investment Priority
More than 80% of organizations are prioritizing technology upgrades in 2026, with AI at the center. Leaders are:
Deploying AI-driven tools to automate workflows and augment decisions.
Replacing legacy platforms with modern, integrated solutions.
Building AI-powered ecosystems that unify data, insights, and experience.
Why the shift? Integration outperforms fragmentation, analytics enable ROI storytelling, and AI drives both efficiency and personalization. HR is moving from routine upgrades to full-scale transformation — and speed matters.
Play it forward: Build business cases around outcomes (retention, productivity, agility), choose platforms that scale with emerging AI capabilities, and prioritize employee-grade experiences—not just back-office efficiency.
The Evolving Role of HR: From Support to Strategy
Survey data confirms a decisive pivot: more than four in five HR leaders expect HR to operate as a strategic partner enabled by technology and data. That means:
Redefining metrics beyond activity and cost (e.g., revenue per employee, critical-role retention, innovation capacity).
Using analytics for enterprise decisions—from workforce design to scenario planning.
Developing hybrid skill sets that blend data literacy and empathy.
“Think like a CEO – leverage HR as a strategic lever.”
—Robin Merritt, Chief People Officer at Gainsight
Personalization: The Engagement Gap
Engagement sits atop HR priorities, but execution is lagging. While many teams provide “some personalization,” fewer than one in ten deliver hyper-personalized, AI-driven experiences that adapt to individual needs. Barriers persist—legacy systems, siloed data, change resistance—but the stakes are high:
Standardized programs feel generic and dull adoption.
Relevance drives motivation, performance, and retention.
Employees expect workplace personalization on par with consumer apps.
What good looks like: embedding recognition and feedback into daily workflows, tailoring rewards to what people value, and shifting from one-off programs to dynamic journeys that evolve with real-time signals.
“It’s about ensuring that employees are not just equipped with tools but that they’re also engaged with them. This requires intentional, strategic communication and support.”
Organizations cluster into four tiers—from compliance-only to real-time, strategic analytics. About one-third are already using people data to inform planning, productivity, and engagement; another third is still at basic or compliance levels. Closing the gap requires:
Integrated platforms for a unified, real-time view.
Upskilling HR teams in interpretation and storytelling.
Tying insights to outcomes (attrition risk, skills supply, manager effectiveness).
Advanced teams are deploying predictive retention models, skills mapping, and engagement insights that connect recognition, learning, and productivity to performance.
Diverging AI Strategies: A Two-Speed Transformation
AI has moved from pilot to strategic differentiator—but adoption paths diverge:
Some expand core HR automation (payroll, benefits, case management).
Others integrate AI across the lifecycle, powering personalization and agility.
Many remain admin-only, missing the broader value creation.
A growing group deploys AI for learning, performance, and manager enablement.
Organizations that limit AI to administrative tasks will capture efficiency but leave strategic value on the table. Those integrating AI end-to-end will redefine engagement, planning, and decision-making.
“AI is moving fast, but the values we lead with—ethics, transparency, and humanity—don’t change.”
—Brandon Sammut, CPO at Zapier
Leadership Personas: The Rise of the Tech Trailblazer
Two-thirds of surveyed leaders identify as Tech Trailblazers—HR executives who wield AI, analytics, and digital platforms to shape culture and performance. It’s a powerful signal of where the function is headed. The mandate:
Blend tech with humanity. Technology must amplify culture, inclusion, and connection.
Develop hybrid skill sets. Pair data fluency with empathy and change leadership.
Mentor the next generation. Build benches fluent in AI and organizational design.
“Everything eventually comes back to people. From compensation and performance to how people are feeling and their tenure with the company, there really aren’t challenges that don’t touch the CHRO world.”
—Janelle Henry, Talent and Brand at Stripe, Advisor & Former VP of People at Rad AI
Case Study: Turning Technology Into Connection
Rad AI, a remote-first company, demonstrates what’s possible when tech meets intention. By embedding recognition in daily workflows with GoProfiles and pairing it with leadership-led rituals, Rad AI built a scalable recognition engine that strengthened connection and lifted engagement. The lesson: tools matter—but how you use them matters more.
What HR Leaders Should Do Next
Adopt a portfolio mindset. Balance AI and automation with engagement and experience.
Reframe HR as a strategic partner. Tie initiatives to growth, innovation, and agility.
Advance analytics maturity. Invest in integrated data, real-time insights, and HR data storytelling.
Personalize the journey. Use AI to deliver tailored recognition, learning, and career paths.
Balance tech and humanity. Build culture as deliberately as you build systems.
Download the Report
HR has moved beyond managing people — it’s now shaping the future of work. With resilient budgets, rising technology investment, and higher expectations, the organizations that embrace AI, focus on business outcomes, and personalize the employee experience will lead in 2026 and beyond.
