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Workforce
Trends
Report
2026
AIdisruption,RTOmandates,andworkplacecultureshifts
WorkforceTrendsReport20262
WORKFORCETRENDSREPORT2026
Tableofcontents
INTRODUCTION
03
AletterfromDHRGlobalCEOPriyaTaneja
SECTION1
Theidentitycrisis:Workplace
culturefacesanewtest04
SECTION2
Engagementfalls,burnoutpersists:
Thenewretentionrisk12
SECTION3
AI’sdouble-edgedsword:Productivity
gainsandcommunicationgaps19
SECTION4
RTOreality:Flexibilityiskey
toearningemployeebuy-in24
CONCLUSION
Buildingorganizationalresilience
forwhat’snext31
WorkforceTrendsReport20263
INTRODUCTION
AletterfromDHRGlobalCEOPriyaTaneja
Aswelookaheadto2026,businessleadersaroundtheworldarenavigatingasharedsetofchallenges:
employeeengagementisdeclining,burnoutisrising,
andthepaceofchange—drivenbyeconomicuncertainty,AIadvancements,andevolvingworkmodels—continuestoaccelerate.
Tohelpyoumeetthismoment,I’mproudtoshareDHRGlobal’ssecondannualWorkforceTrendsReport.Wesurveyed1,500corporateprofessionalsacrossNorth
America,Europe,andAsiatounderstandhowtheseforcesarereshapingtheworkplace,andtoidentifyactionablestrategiesforsustainingengagementandretention.Thesearethesamequestionsweask
ourselvesaswegrowgloballywhilestayingtruetoourpeople-firstvalues.
Whileregionalnuancesexist,thefindingsreveala
universaltruth:Cultureisapowerfuldriverofengagementandadaptability.Organizationsthatprioritizeflexibility,
investindevelopment,andleadwithauthenticityarebetterequippedtonavigatetoday’scomplexityandbuildamoreresilientfuture.
Insidethisreport,you’llfinddata-driveninsightsandpracticalguidancetohelpyouleadwithintention—fosteringtrust,transparency,andconnectionacrossyourteams.
AtDHRGlobal,webringauniqueperspectiveasaglobalboutiquefirmwithdeepexpertiseinthemiddlemarket.
Wehopethisreportsparksmeaningfulconversationswithinyourorganizationandhelpsyoushapea
workplacewherepeopleandperformancethrive.
Sincerely,
PriyaTaneja
ChiefExecutiveOfficer,DHRGlobal
WorkforceTrendsReport20264
SECTION1
Theidentitycrisis:Workplaceculturefacesanewtest
Cultureisthebedrockofeveryorganization.
Nearlyallrespondentssaytheirworkplacecultureissomewhat(40%)orvery(53%)importanttotheiremployeeexperience.Butonly36%ofworkersfeeltheircompanycultureiswell-definedanddrives
performance,withmanyinsteaddescribingitasreactiveandinconsistentacrossteams(46%)orvagueandnotactivelyshaped(15%).
Longgonearethedayswhenmostemployees
workedtogetherinoffices,wheresharedroutinesandspontaneousconversationsshapedculture
naturally.Now,employeesinmoredistributed
workenvironmentsvaluemeaningfulrecognitionandautonomyoverofficeperksorsocialevents.
WorkforceTrendsReport20265
THECULTUREDISCONNECT:ATWO-WAYSTREET
While77%ofC-suiteleaderssay
cultureis“veryimportant,”only37%
ofentry-levelemployeesfeelthesame.Executivesarealso2.5xmorelikely
thanentry-levelstafftoviewtheircompany’scultureaswell-defined.
Leadersmaysetthevision,but
cultureonlythriveswhenemployeesbuyinandactivelyparticipate.Eventhemoststrategicculturalinitiativesfallflatwithoutthatconnection.
WorkforceTrendsReport20266
Recognitionandflexibilitytopthelistofwhat
employeessaywouldmostimproveworkplace
culturetoday[Fig.1].Thisemphasisonrecognitionalsoshowsupinburnoutdata:Theshareof
employeescitinglackofrewardorrecognitionasatopburnoutdrivernearlydoubledsincelastyear,from17%to32%[Fig.4].
Thecallforamoreeffectiveworkplaceculturerunsdeep.Nearlyone-thirdofrespondents(31%)chose“astronger,morepurposefulworkplaceculture”asoneoftheTop3improvementstheywantfromtheiremployeroverthenextyear[Fig.2].
FIG.1.
Topimprovementsforworkplaceculture
Greaterflexibilityorautonomyinhowwework34%
Recognitionandrewardsystemsthatreflectourcompanymissionandvalues34%
Moretransparentandconsistentcommunicationfromleadership
29%
Amoresustainableworkloadorclearerboundaries
28%
Bettersupportortrainingforpeoplemanagers
23%
Leadershipthatmodelsdesiredbehaviorsandvalues
22%
WorkforceTrendsReport20267
FIG.2.
Topwaysemployerscanenhanceworkexperienceforemployees
EmployeeEngagement
37%
Morerecognitionforhigh-impactwork
37%
Amoremanageableworkloadandbetterresourcing
36%
Moresupportforlearningandskilldevelopment
WorkplaceCulture
35%
MoreflexibilityinwhereIwork
33%
MoreflexibilityinwhenIwork
Astronger,morepurposefulworkplaceculture
CommunicationStrategy
32%
Moretransparency
arounddecision-making
35%
Clearercommunicationfrom
leadershipaboutcompanydirection
24%
AclearplanforhowAIwill(orwon’t)affectmyjob
WorkforceTrendsReport20268
FIG.2.[CONT.]
Topwaysemployerscanenhanceworkexperienceforemployees
Regionalprioritiesataglance|NorthAmerica
40%
Morerecognitionforhigh-impactwork
38%
Clearercommunicationfrom
leadershipaboutcompanydirection
FIG.2.[CONT.]
Topwaysemployerscanenhanceworkexperienceforemployees
WorkforceTrendsReport20269
Regionalprioritiesataglance|Europe
37%
Morerecognitionforhigh-impactwork
37%
Amoremanageable
workloadandbetterresourcing
FIG.2.[CONT.]
Topwaysemployerscanenhanceworkexperienceforemployees
WorkforceTrendsReport202610
Regionalprioritiesataglance|Asia
38%
MoreflexibilityinwhereIwork
38%
Amoremanageable
workloadandbetterresourcing
WorkforceTrendsReport202611
KEYTAKEAWAY
Withculturenolongeranchoredbyofficeroutines,leadersmustwork
tomakeittangibleforemployees
throughvisiblerecognition,real
flexibility,andvaluespracticeddaily.
Lastingandscalablecompanyculturealsorequiresactive,meaningful
employeeparticipation.
NEXTSTEPSFORLEADERS
Leaderscannurtureworkplaceculturebybuildingrecognitionprogramsthatreacheverylevel,tailoringflexibility
totheneedsofdifferentteamsandregions,andmodelingtheculture
theywanttosee.Leaderscanalsomakecultureasharedresponsibilitybyinvitinginputandcontributions
fromemployees.
WorkforceTrendsReport202612
SECTION2
Engagementfalls,
burnoutpersists:
Thenewretentionrisk
Employeeengagementhasdroppedsignificantly
year-over-year,withjust64%ofworkersdescribingthemselvesasveryorextremelyengaged—downfrom88%in2025.Thistrendisconsistentacross
regions,withengagementlowestinAsia(59%),and
slightlyhigherinNorthAmerica(67%)andEurope(68%).
Professionaldevelopmentcontinuestobethetop
driverofengagement(71%),aheadofremote/hybridwork(63%)andGenAItools(55%)[Fig.3].
Yet,asflexibleworkandAIbecomestandardrealities,theirpositiveimpactonengagementisfading.Manyemployeesarefeelingthestrainasthenoveltyof
flexibleworkandAIdiminishesandjobsecuritygrowslesscertainmorebroadly.
WorkforceTrendsReport202613
FIG.3.
Driversandhindrancestoemployeeengagement,2025vs.2026
Decreases
engagement
Noimpact
onengagement
Increasesengagement
Atighterjobmarket
(i.e.,it’shardertofindanewjob)
2025
9%
24%
67%
2026
19%
35%
47%
Jobinsecurity/
potentialforlayoffs
2025
16%
23%
61%
2026
34%27%
40%
GenAItoolslikeChatGPTandMicrosoftCopilot
2025
8%
22%
70%
2026
13%
32%
55%
Remoteandhybridwork
2025
7%1
8%
75%
2026
12%
25%
63%
WorkforceTrendsReport202614
FIG.3.[CONT.]
Driversandhindrancestoemployeeengagement,2025vs.2026
Decreases
engagement
Noimpact
onengagement
Increasesengagement
Executiveturnover/leadershipchurn
2025
11%
26%
63%
2026
23%
38%
39%
Burnout
2025
34%
22%
44%
2026
52%
22%
26%
Professional
developmentopportunities
2025
5%
15%
80%
2026
8%
21%
71%
WorkforceTrendsReport202615
Asengagementdeclines,burnoutremainsa
majorchallengeamongemployees,with83%ofworkersfeelingatleastsomedegreeofburnout,consistentwith2025(82%).
Theissueismostpronouncedintheretail(62%),tech(58%),andhealthcare(61%)industries
wheremoderatetoextremeburnoutishighest.
Overwhelmingworkloads(48%)andworking
toomanyhours(40%)topthelistofcausesforrespondentsacrossallregions[Fig.4].
FIG.4.
Topburnoutdrivers,2025vs.2026
2025
2026
Overwhelmingworkload
35%
48%
Workingtoomanyhours
58%
40%
Difficultybalancingworkobligationswithpersonal/familylife
34%
37%
Lackofreward/recognition
17%
32%
Boredomwithmyjobtasks
19%
21%
WorkforceTrendsReport202616
What’sfueling
persistentburnout?
It’sworthnotingthatwhileburnoutratesareholdingsteady,burnout’sinfluenceonengagementhas
grown:52%ofworkerssayburnoutdragsdownengagement,upfrom34%in2025.
DOESTECHCULTUREDRIVEENGAGEMENT?
Despitehigherlevelsofburnoutamongworkers,tech
leadsallsectorsinengagement,with78%ofemployeesreportingthey’reveryorextremelyengaged.Nearlyhalfoftechworkers(48%)saytheirworkplacecultureiswell-definedandactivelyshapestheirexperience,suggestingthatastrongcompanyculturemaybehelpingsustaintheindustry’sabove-averageengagementrate.
WorkforceTrendsReport202617
Burnoutalsohitssomeemployeegroupsharderthanothers.Associates(62%)andentry-level
employees(61%)arethemostlikelytoreport
reducedengagementduetoburnout,comparedtojust38%ofC-suiteleaders,55%ofVPs,44%ofdirectors,and48%ofmanagers.
Failingtoaddressburnouthead-onrisksnot
onlyerodingemployeemoraleandproductivity,
butalsolosingkeytalent.Theturnoverofhigh-
performingemployeescreatesadditionalhurdles
fororganizations,with91%ofrespondentssayingthatthelossofhigh-performingcolleaguesimpactstheorganization.
Topconsequencesinclude:
Increasedpressureon
43%
1remainingteammembers
2
Knowledgegaps
34%
3
Lowermotivationandengagement
32%
WorkforceTrendsReport202618
KEYTAKEAWAY
Decliningengagementandpersistentburnoutcallfordecisiveaction.
Thefocusshouldbeonbuilding
strongworkplaceconnectionsandcommunicationsoeveryemployeefeelsvaluedandmotivated.
NEXTSTEPSFORLEADERS
Leadersmustprioritizemanaging
workloadsandhourstoaddress
topburnoutdrivers,andinvestin
professionaldevelopmenttoboost
retention.It’sparticularlyimportant
topaycloseattentiontoearly-careeremployees,whoareespecially
vulnerabletodisengagement.
WorkforceTrendsReport202619
SECTION3
AI’sdouble-edgedsword:Productivitygainsand
communicationgaps
AIhasquicklybecomeafixtureinthemodern
workplace.Overthepastyear,39%ofemployees
reportednoticeableproductivitygainsfromAItools,withthehighestimpactinAsia(44%),followedbyEurope(40%)andNorthAmerica(33%).
Organizationsarerespondingbyadjustinglearningand
developmentpriorities(34%),shiftingmoreresponsibilitiestostrategyandcriticalthinking(27%),andcreatingnew
rolestooverseeAIsystems(25%)[Fig.5].
WorkforceTrendsReport202620
FIG.5.
AI’simpactonorganizationsoverthepast12months
ExperiencednoticeableproductivitygainsfromAItools
Adjustedlearninganddevelopmentpriorities
Shiftedresponsibilitiestofocusmoreonstrategyandcriticalthinking
CreatednewjobrolestooverseeAIsystems
Encounteredmisinformation,errors,ormisleadingoutputsfromAItools
Introducednewleadershiproles(e.g.,ChiefAIOfficer)
Seenjobreductionsduetoautomation
39%
34%
27%
25%
20%
20%
20%
WorkforceTrendsReport202621
Thesenewgains
comewithnewrisks.
Oneinfiverespondentshasencountered
misinformation,errors,ormisleadingoutputs
fromAItools.Theconsequencesaretangible:
44%
havehadtomanuallyredoorcorrectworkgeneratedbyAItools
39%
43%
haveseeninaccurate
contentendupin
internalcommunications
saytheseissueshave
causedconfusionor
slowedprojectprogress
WorkforceTrendsReport202622
DespiteAI’sgrowinginfluence,mostemployees
arestillwaitingforguidanceonwhatthetechnologymeansfortheirdailyrolesandskills.Only34%saytheirorganizationhasalreadycommunicatedthis
information“veryclearly.”
Employeeappetiteforleadershipdirectionisstrong,with24%ofworkersrankingaclearplanforhowAIwillaffecttheirjobamongtheTop3changestheywantthisyear.
Withoutthisguidance,employeeshavehadtodecideontheirownwhichskillsfeelvaluableforcareergrowthintheageofAI.Mostareprioritizingdeepexpertise
inaspecificarea(35%),whileothersarefocusingonbroadercross-functionalknowledge(29%),softskillslikecommunicationandleadership(22%),orAIanddataliteracy(13%).
ClearcommunicationaroundAIadoptionmakesall
thedifference.Caseinpoint,tech.Halfofemployees
(52%)workingintechsaytheircompanyhasbeen
veryclearaboutAI’simpact,thehighestofanysectorsurveyed.TechemployeesarealsomostlikelytoreportasignificantengagementboostfromGenAItools
(37%,versus14-23%inothersectors),signalingaclearlinebetweenAIstrategyandbenefits.
THEAI
LEADERSHIPGAP
While69%ofC-suiteleaders
and51%ofVPssaytheir
organizationhascommunicatedveryclearlyaboutAI,only12%ofentry-levelstaffand22%ofassociatesagree.
Thedivideshowsupin
engagement,too:74%of
C-suiteleadersreporthigher
engagementbecauseofGenAI,comparedtojust27%ofentry-levelemployees.Leadersmaybelievethey’recommunicatingclearly,butmostemployees
aren’thearingit—puttingsuccessfulAIadoptionandengagementatrisk.
WorkforceTrendsReport202623
KEYTAKEAWAY
AIisrapidlytransformingwork,but
mostemployeesstilllackguidance
onhowthetechnologywillaffect
theirrolesandskills,particularlyearly-careeremployees.Theanswerliesinproactiveandclearcommunication.
NEXTSTEPSFORLEADERS
TorealizethefullvalueofAI,
leadersshouldfocusontransparent,
consistentmessagingandgive
employeesateverylevelaprescriptiveroadmapforadaptingandgrowing
alongsidenewtechnology.
WorkforceTrendsReport202624
SECTION4
RTOreality:Flexibilityiskeytoearning
employeebuy-in
Return-to-office(RTO)policiesarestillreshapingthe
workplace,butemployeebuy-inisfarfromguaranteed.Overthepasttwoyears,38%ofemployeeshavebeendirectlyimpactedbyRTOmandates,yetonly34%fullysupporttheirorganization’sapproach.Nearlyaquarter(23%)somewhatorstronglyopposeit.
RegionalresponsestoRTOvary:47%ofemployees
inAsiahavebeendirectlyimpactedbyRTO,comparedto34%inEuropeand32%inNorthAmerica.Still,
strongoppositionishighestinNorthAmerica(18%)andmuchlowerinEurope(7%)andAsia(3%),
signalingthatAmericanemployeesmayhave
moreextremeexpectationsforworkflexibility.
WorkforceTrendsReport202625
RegionalresponsestoRTO|NorthAmerica
32%
ofemployeeshavebeen
directlyimpactedbyRTOmandates
18%
ofemployeesarestronglyopposedtotheirorganization’sRTOpolicies
WorkforceTrendsReport202626
RegionalresponsestoRTO|Europe
34%
ofemployeeshavebeen
directlyimpactedbyRTOmandates
7%
ofemployeesarestronglyopposedtotheirorganization’sRTOpolicies
WorkforceTrendsReport202627
RegionalresponsestoRTO|Asia
47%
ofemployeeshavebeen
directlyimpactedbyRTOmandates
3%
ofemployeesarestronglyopposedtotheirorganization’sRTOpolicies
WorkforceTrendsReport202628
While61%ofC-suiteleadersareinfullsupport,
RTOsupportisalsodividedbyjoblevel.
thatfiguredropstolessthan40%amongother
roles—includingjust30%ofentry-levelstaffand19%ofassociates.Youngergenerationswithlittleexperienceofpre-pandemicofficelifemaybeevenlesslikelytoseethebenefitsofin-personwork.
WorkforceTrendsReport202629
Underlyingthisresistanceisadesireforclarity
andchoice.Employeeswantasayintheirin-officeexperience,withtheoptiontochoosewhichdaystocomeinastheirtoprequest[Fig.7].
Understandably,employeeswanttoknowthe
“why”behindin-personworkmandates.When
organizationsdon’tcommunicatethat,RTO
policiescanfeelarbitraryandquicklylosesupport.
FIG.7.
Whatwouldmakein-officedaysmoremanageable?
Theabilitytochoosewhichdaystogoin42%
Betterin-officeperks(e.g.,meals,childcaresupport)41%
Clearerpurposeorreasoningbehindin-officedays39%
Aquieter,morefocusedin-officeenvironment37%
MoretransparencyaroundthefutureofourRTOpolicy
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