Mercer is becoming Marsh.

Trend 4: Unleash a new HR era

This report is one of a series of deep dives into the four trends shaping workforce performance in 2026.

The Global Talent Trends 2026 series

New reports and perspectives will be released throughout the year to provide further insight and practical guidance. Make sure to read the additional Insights PDFs to dig deeper into each trend.

Redesigning the future of HR to drive enterprise performance

As organisations pursue growth and exponential performance, AI is reshaping how work gets done. For HR this raises the stakes. To remain relevant and help lead enterprise transformation the function must become more strategically embedded as technology changes how work gets done

The future of HR depends on moving beyond incremental improvement. Rather than adding AI to existing processes HR must redesign its own work, operating model and capabilities – then use that experience to help rearchitect work across the enterprise.

Built on insights from nearly 12,000 executives, HR leaders, employees and investors globally, this report examines how HR can become strategically embedded, create greater enterprise value and lead organisation-wide transformation in the human-machine era.

The HR reinvention opportunity

Leading HR functions are shifting from operating the workforce system to engineering how it performs.

This means shifting:

  • From operational partnership to embedded strategic HR
  • From AI bolt-ons to redesigning HR work from the ground up
  • From technology-first automation to outcomes-led work redesign
  • From static structures to adaptive HR operating models
  • From separate HR and IT agendas to coordinated AI enablement 
  • From measuring HR activity to owning business outcomes.

From insight to action for a future-fit EVP

This report provides practical guidance to help leaders:

  • Define the business outcomes HR needs to drive
  • Reframe ROI from cost avoided to value created
  • Redesign HR’s own workflows, systems and structures first
  • Rearchitect processes around people, outcomes, AI and automation
  • Start with the work and mandate before reshaping the org chart
  • Strengthen HR-IT alignment to enable enterprise-wide transformation.

Leading organisations are connecting roles, skills, rewards and careers so they can direct investment where it delivers the greatest value.

Download the report

Unleash a new HR era helps HR and enterprise leaders to redesign the function, strengthen HR’s strategic role and build the capabilities needed to lead AI-enabled work transformation.