SHRM, the Society for Human Resource Management, recently released two pivotal research reports, offering a comprehensive road map for business leaders, including those in the shed industry, to better navigate the complexities of the modern workplace.
The findings from the highly anticipated annual reports, 2026 State of the Workplace and 2026 CHRO (chief human resources officers) Priorities and Perspectives, indicate that while the adoption of artificial intelligence (AI) is accelerating, the true engine of organizational resilience remains human leadership and culture.
As organizations face the storm of economic uncertainty and rising operational costs, the 2026 State of the Workplace report uncovers a workforce under pressure.
Though workers, HR professionals, and HR executives agree that salaries and burnout are leading concerns, employers highlight effective leadership and management as their primary workplace need. This signals the ongoing reliance on strong leadership to address evolving workplace challenges, particularly in sustaining employee engagement—the top issue workers believe HR departments should prioritize in 2026.
Additional key findings from the 2026 State of the Workplace include:
- Rising Worker Expectations: 72 percent of HR professionals and HR executives report that workers have higher expectations of employers today, highlighting the growing need for organizations to adapt to evolving demands.
- Stronger Job Satisfaction: 91 percent of workers who believe their organization effectively addresses workplace needs report job satisfaction, compared to just 44 percent among those who view their organization as ineffective.
- Retention Risks: Among workers who believe their organization is ineffective at addressing workplace needs, 51 percent are at least somewhat likely to leave their employer within the next year.
“Business leaders recognize change is accelerating across every workplace. Success comes from reimagining how we lead, support, and develop our people,” says Jim Link, SHRM-SCP, CHRO of SHRM.
“Our research shows investing in leadership and employee experience remains essential for organizational health. By blending technology with the irreplaceable value of human connection, leaders create work environments ready to adapt, grow, and thrive, regardless of what the future brings. Organizations are taking steps now to strengthen culture and empower teams to position themselves to meet tomorrow’s challenges with confidence.”
Both reports highlight a critical consensus: the importance of leadership development.
According to the 2026 CHRO Priorities and Perspectives report, nearly half of CHROs (46 percent) cite leadership and manager development as a top priority for 2026, marking the second consecutive year it has ranked as the top priority. Additionally, 29 percent of CHROs are prioritizing employee experience, with 31 percent emphasizing workplace culture, an increase from 15 percent in 2025.
Additional key findings from CHRO Priorities and Perspectives:
- Economic and Financial Pressures: Economic uncertainty has overtaken wage inflation as the top concern for CHROs, with 43 percent citing rising operational costs and 42 percent feeling pressure to meet financial goals.
- AI and Skill Development: 92 percent of CHROs anticipate greater AI integration in workforce operations, while 84 percent expect upskilling in AI-specific skills to increase.
- Workplace Trends: Transparency in leadership (40 percent), managing multigenerational workforces (47 percent), and reducing bias in AI hiring tools (57 percent) are expected to become more prevalent in 2026.
While the research underscores a greater integration of AI and the need for upskilling, the data suggests technology must be viewed as an enabler rather than a replacement. CHROs’ expectations for 2026, particularly on AI, align with the priorities of CEOs, reflecting a shared view of the challenges ahead and the strategic focus needed to navigate them effectively.
Both the 2026 State of the Workplace and the CHRO Priorities and Perspectives reports serve as a wake-up call for leaders to embrace adaptability and strategic foresight. By balancing high-tech tools with high-touch leadership, organizations can build the resilience necessary to thrive in the years ahead.
